2020 Crypto Millionaire Summit: Matt McCall’s Ultimate Crypto Advice?

The Future of Bitcoin: Deadshot or Moonshot?

Over its otherwise relatively short lifespan compared to other assets out there, Bitcoin has undergone some pretty dramatic times, especially over the latter part of the 2010s. For anyone that has been in the cryptocurrency game for the better part of its life, you'll know that it's been nothing short of an incredible roller coaster ride in terms of pricing.

“Do you remember 2013? That was the year Bitcoin exploded onto the scene; Turning every $1,000 into $93,000 within the next 12 months.” Famous news anchor, Lauren Sivan laid down the impressive legacy of Bitcoin from an investment standpoint while laying down some impressive stats about what investment would net you in returns.

“How about 2017? That was the year Bitcoin did it again. Turning every $5,000 into $123,000 in just under 12 months.”

While this is leaving many newcomers with a belated feeling of unspent buyers' remorse, the reality is that this isn't an opportunity that new investors have missed, it's more like one that has its best days yet to come.

2020 Crypto Millionaire Summit Review

Investors, financial analysts, and blockchain evangelists are very much inclined towards being hawkish on the subject, and they have every right to think that way, as there's a strong rationale for thinking that there will be big upsurges in the foreseeable future. So what is it that's fuelling these upticks in Bitcoin on a reliable basis? Some of it's down to the supply and demand dynamic that exists and is in-built within Bitcoin's code.

As anyone that's read Satoshi Nakamoto's ‘Bitcoin' white paper will know – there will only ever be a certain amount of Bitcoin entering circulation – 21 million,  to be exact – after that, that's it. Having this kind of scarcity in-built has the effect of giving it an intrinsically strong baseline value.

But this is only part of the equation, as Matt McCall, InvestorPlace's Senior Investment Strategist points out, as Bitcoin has the added advantage of driving up user-side scarcity through a routine piece of its programming. What gives the likes of McCall credence is his and his colleague's crypto predictions, which netted them a 31,000% return on investment from altcoins like RedCoin, Vertcoin, and Peercoin.

While the tone in which the discussion takes place between McCall and Sivan takes place resembles something closer to an infomercial, which would be apt considering that InvestorPlace is the company directly behind the conference. Even with that being the case, there's still a logic to the argument that there are more upward surges ahead.

For anyone that is more of a long-term investor or speculator on Bitcoin, you'll likely know what drove these price rises in 2013 and 2017 respectively, but it's worth reiterating for those that weren't around. Within Bitcoin's programming, there's an event referred to as a ‘halving,' which effectively seed the block rewards for miners within the system cut in half.

These miners are responsible for adding the ‘blocks' of completed transactions within the blockchain to the growing ledger of information. For solving, or ‘adding' these blocks to the chain, through solving complex mathematical equations, they're given various amounts of BTC. The Halvings having happened in 2013 and 17 respectively,  which halved these block rewards.

These halvings directly impact on supply by pinching it closed more and more, while demand remains constant or increases, thus driving prices up to a sometimes staggering extent, as we've seen with Bitcoin in the past, and likely in the future.

This is something that's not necessarily just linked to Bitcoin, with cryptos like Bitcoin Gold, Cash and Litecoin undergoing their own halving events due to them are based on the same underlying blockchain.

The supply-demand dynamic is something that you don't even really need to look towards contemporaries to find examples, as Silver went through a similar kind of spike in 1979, thanks in good part to one shrewd family's investment strategy. With its successful purchase of more than one-third of the Silver Supply, the price of silver shot up from $5 per ounce, to well over 40 within less than a year.

So will we likely see this supply and demand trend happen in 2020? And will it be that this won't be the last or even greatest increase in the price of Bitcoin? All we can do is wait and invest if we're feeling bold enough.