Bitcoin Price Prediction: Is Bitcoin Still Undervalued?

PlanB: Bitcoin is Strongly Undervalued

In a recent YouTube video, the Dutch former institutional investor, known as PlanB, discusses the difference between price and value in relation to Bitcoin (BTC). He quotes renowned investor Warren Buffet, stating that “Price is what you pay, value is what you get.” According to PlanB, Bitcoin is currently significantly undervalued, as its price does not reflect its actual value.

The Disconnect between Price and Value

PlanB highlights the fact that Bitcoin’s true value is not reflected in its current price. While the current price hovers around $29,200, PlanB suggests that the fair value of Bitcoin should be around $60,000. This means that Bitcoin is still heavily undervalued, with its price potentially needing to double to align with its actual worth.

Bitcoin Heading Towards $1 Million?

PlanB also discusses the strong correlation between Bitcoin’s price and its halvings. Bitcoin halvings occur approximately every four years and reduce the number of BTC miners receive as a reward for mining a block, leading to decreased inflation and increased scarcity. These halvings form the basis of PlanB’s stock-to-flow model, which has faced criticism but remains a key component of his price prediction.

The Significance of Halvings

The stock-to-flow model suggests that by 2024, Bitcoin could potentially reach a price of $1 million. PlanB believes that the next halving will be a significant factor in driving this price increase. If the price surpasses $100,000, it could serve as a crucial support level. The stock-to-flow model predicts a price of $500,000 by 2024, but in previous bull markets, Bitcoin has surpassed this model’s projection. Therefore, a price of $1 million is not out of the realm of possibility.

Conclusion

PlanB’s stock-to-flow model and price prediction for Bitcoin have garnered much attention in the cryptocurrency space. While the model has faced criticism, PlanB remains steadfast in his belief that Bitcoin is undervalued and has the potential to reach $1 million by 2024. The next halving event and the scarcity it creates are key drivers behind this prediction. As with any price prediction, it’s essential to consider various factors and market dynamics, but Bitcoin’s bullish trajectory remains a topic of great interest and debate.