Last year, John McAfee challenged the cryptocurrency industry with a $1 million price prediction for Bitcoin, which gained a lot of attention from the entire market. It is nice to dream that Bitcoin would reach this goal, but the consideration has not gone far beyond that pondering. Now, let us consider – how would someone’s investment look if that price point is ultimately reached?
McAfee originally made this prediction on July 17th, 2017, replying to a tweet that inquired if he saw Bitcoin reaching $500,000 within the next three years. At that point, McAfee made an even bolder retort in another tweet.
if not, I will eat my dick on national television.
— John McAfee (@officialmcafee) July 17, 2017
Since being conservative was clearly not his style, he later stated that he believes that a more realistic number would be $1 million.
When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD
— John McAfee (@officialmcafee) November 29, 2017
Now, even if it is just a misspelling of his prediction, the second post technically says Bitcoin, which is an ERC20 token that has a limited supply of 87 million and almost no transaction history. In fact, it only even has 31 addresses in possession of it. With $0 as the market cap, this token is highly unlikely to reach the 2020 deadline he stated.
All typos aside, if this BTC value became a reality, would there be major profits for investors. In an article with Chepicap, the initial investment is broken down into several amounts, starting at a $100 investment. If Bitcoin reaches $1 million, then this is the return on investment that investors could expect:
- $100 investment: $25,000 ROI (return on investment)
- $1,000 investment: $250,000 ROI
- $10,000 investment: $2.5 million ROI
- $100,000 investment: $25 million ROI
- $1,000,000 investment: $250 million ROI
- $1,000,000,000 investment: $250 billion
Considering how stubborn McAfee is, he has continually remained behind his prediction of $1 million. In an interview with Cointelegraph, he said that he is a mathematician, and he figured the number considering the number of transactions and the number of people using Bitcoin. Along with McAfee, there are many other notable players that agree with his price point, but without putting their genitals at stake, like Lou Kerner.
Kerner said that he believes that Bitcoin stands to overtake the $8 trillion market cap that gold has, in the event that it earns more respect from the traditional economy as a store of value. When speaking with Bloomberg, he added that it is easily a better store of value than the precious metal and that its only a matter of time before BTC is priced at $100,000 per token.
Any investor in the cryptocurrency world for some time can recognize one major factor – volatility. The value can change at any time, and the circumstances that influence the market can change too. That is the beauty of decentralization, while it can be the biggest downfall as well.
Will Bitcoin reach $1 million next year? It is anyone’s guess. It may not happen by 2020, or some major development could push along the price this year. However, to benefit from any surge, it’s important to stay involved in the market.