Skeptics will argue against Bitcoin’s success tooth and nail, especially now that the cryptocurrency is stuck in the lower $7,000s with almost panic-instilling further dips every now and then. However, that hasn’t stopped proponents of the benchmark-crypto from predicting a sky-rocketing valuation for the asset in the foreseeable future.
Optimistic forecasts state that the controlled and gradually depleting supply of Bitcoin will eventually make it on par with the highest valued assets in the world.
Some even predict that Bitcoin could be on its way to becoming a Veblen good: an asset whose demand is primarily driven by their premium price (often as a means to show off one’s high socioeconomic status).
Adding more to these speculative theories, YouTuber and crypto-analyst The Moon ( @themooncarl ) prophecied earlier today that Bitcoin could be on its way to competing against diamonds, Ferraris, and other similar Veblen goods in the foreseeable future. I think #Bitcoin might in the future behave like a Veblen good. A Veblen good is something that is desirable, because of its high price. Examples are; Diamonds, Ferraris, Gucci etc. Imagine when the #BTC price is above $1,000,000. Will millionaires use Bitcoin to flex? — The Moon (@themooncarl) December 4, 2019 Of course, such speculative forecasts are not new. BeInCrypto readers probably remember how a $700 quintillion asteroid recently sparked speculations surrounding Bitcoin’s bullish prospects over the long haul.
The underlying argument adding meat to these bullish speculations is simple economics, albeit purely hypothetical, hence shrouded by all sorts of uncertainties.
However, to […]
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