Bitcoin Price Prediction: Family Who Invested Everything In BTC Sees $200,000 Value By 2022

KEY POINTS

Taihuttu and his family have traveled the world with nothing in their savings other than Bitcoin
The investor said a supply shock will cause an increase in price
He argued companies like when PayPal starts selling Bitcoin to all its 350 million users around the world, the Bitcoin has to come from somewhere first.

Bitcoin could reach as high as $200,000 by 2022. That’s according to Didi Taihuttu, who in 2017 sold all of his family’s possessions to go all-in on the dominant cryptocurrency. Four years later, he and his wife and three daughters have traveled to 40 countries, haven't owned any bank accounts, and have had all of their savings tied to Bitcoin.

Most of the family’s Bitcoins were bought when it was still $900 per BTC. That means even when the market went down to $3,000 in 2018 and $4,000 in March this year, their holdings were still technically making a profit. “Whegn Bitcoin dipped, we started to buy more,” he added.

Taihuttu said because Bitcoin is in a cycle, it is poised to see a minimal peak of $100,000, before likely reaching $200,000 in 2022, he told CNBC. “I don’t see demand going down. I think we’re headed for a supply crisis.”

The Bitcoin investor is referring to the Bitcoin halving, a technical event that last happened in May 2020, when the amount of new Bitcoin released is cut to just roughly 900 BTC per day. With new demand from larger companies like MicroStrategy and Square, coupled with fintech giant PayPal allowing its U.S. customers to purchase cryptocurrency, basic economic theory suggests that the only way for scarce supply to equilibrate with increased demand is a higher price.

“When PayPal starts to sell Bitcoin to its 350 million users, they also need to buy the Bitcoin somewhere,” Taihuttu said. This is a supply crisis, the investor said, because there won't be enough Bitcoins mined to fulfill the demand from these large companies.

It turns out $200,000 is also the price point referred to by on-chain analyst Willy Woo, albeit by 2021 year-end. The figure, he said, is actually a “conservative” one, as his model is predicting a peak price of $300,00 by next year.

Bitcoin closed Thursday at $19,448, its 4th day above $19,000 this year. The benchmark cryptocurrency is up 82% in the last three months and 169% since the year began. A new all-time high was actually breached on Dec. 1, 2020, according to price aggregator CoinGecko. However, the industry perceives $20,000 as the 2017 all-time high that must be breached first.