Bitcoin is now ‘cheap' at $20K, with the BTC price to wallet ratio replicating 2013

Another expert, Fidelity Investments’ Jurrien Timmer, remains optimistic about Bitcoin network robustness, while another voice points to a “very compelling” risk/reward ratio at $20,000.

Analysts have argued that, at the time of this writing, Bitcoin (BTC) has not been as good a value as it is now. According to one analyst, $20,000 Bitcoin is “very cheap.” On July 7, Jurrien Timmer, director of global macro at Fidelity Investments asset manager, simply said that $20k Bitcoin was “inexpensive.”

Despite the fact that worries about crypto markets experiencing further declines this year persist, some people feel that current Bitcoin prices provide the value for money that hasn’t been seen in years. Timmer found that BTC/USD is now back at its 2013 peak, analyzing the BTC price against the number of non-zero addresses – wallets with a positive balance – nWhen compared to other assets like gold or fiat currencies, bitcoin has maintained an upward trend movement since mid-Jan 2014 and has made steady progress throughout most of its history.

At the height of bitcoin’s popularity, in mid-December 2013, one BTC was valued at approximately $1,130. However, after the failure of exchange Mt. Gox, cryptocurrencies spent years consolidating around this price before finally breaking out to new highs.

Despite the present bear market, the Bitcoin price/network ratio is not the only indicator that Bitcoin’s development is good. According to Timmer, although Bitcoin acceptance has slowed down, it still reflects the growth of the internet and that the Bitcoin network “appears to be functional.”

It is not just Bitcoin that is exhibiting signs of strong investment potential when it comes to price/network ratio, “If Bitcoin is cheap, then perhaps Ethereum is cheaper,” he wrote.

Even for those who think a 50% price drop is still plausible, $20,000 BTC should still provide a “attractive” investment opportunity.

That was the conclusion of James Lavish, a former hedge fund manager turned macroeconomics expert, who highlighted the simple arithmetic behind a Bitcoin wager in today’s climate, he told Twitter followers, “This is compelling.”

A $250,000 price tag for BTC/USD is difficult to imagine now, yet it is actually modest when compared to previous standards of price prediction. Billionaire Tim Draper, among Bitcoin’s advocates, predicted that the currency would cost $250,000 in 2022.

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