The VP of Blockchain and Digital Currencies of IBM Jesse Lund reported Thursday that Bitcoin would eventually go as high as $1 million in value. The problem so far, Lund states, is that speculators think wrongly of cryptocurrencies, thus hurting their value in the long run. Lund revealed his prediction recently during the Think Conference hosted by Fred Schebesta.
Lund predicts that as soon as the price of Bitcoin gets high enough, there will be banks that should take a serious interest in it. This will then mean that this popular cryptocurrency will create waves as it attains greater and greater liquidity on its network. The IBM executive emphasized that as a cryptocurrency gains at price, its utility also increases. With greater liquidity, banks would start looking at Bitcoin with greater interest.
Satoshis, or Pennies?
Lund’s first prediction for the Bitcoin price was actually just $5,000. However, he went public with his astonishing remark regarding the million-dollar price in order to express his long-term outlook about Bitcoin itself. Lund said that that was his long-term outlook and that if Bitcoin indeed reaches $1 million, then the Satoshi would be on a competition with the US penny.
Nonetheless, the good thing about the predicted increase in price is that there will be around $20 trillion in liquidity when that happens. That will definitely drive change, particularly in corporate payments.
Recently, IBM launched the World Wire product that relies on the cryptocurrency Stellar for its payments. The good thing here is that you know the receiver on the other end – whether he is a good or bad actor. Lund believes that Bitcoin and a variety of cryptocurrencies would be used for cross-border settlements someday.