Now, bitcoin (Crypto: BTC) It’s more than a $ 100,000 mark, but it’s natural to ask. How high can you get? After all, bitcoin has increased by more than 30,000 % in the past decade, and is now $ 2 trillion. Long -term investors may find it difficult to imagine Bitcoin reproducing performance over the past 10 years.
Good news is that it is likely that Bitcoin is not close to the real ceiling. According to Larry Fink, CEO of Asset Management Giant Blackrock, Bitcoin can ultimately rise $ 700,000. Based on today’s price, it represents nearly 600 % investment.
In an interview with the Bloomberg in the Swiss World Economic Forum, Fink has overvised a potential scenario that can send bitcoin to $ 700,000. From his point of view, it all begins with the institutional adoption of bitcoin. And the best way to measure this level is to track allocation that institutional investors have a willingness to bitcoin in their portfolio.
At present, it is considered a risk to assign 1 % of portfolio to bitcoin, especially if you are a pension fund, a fund, or other large institutional investors. In order for bitcoin to reach the true possibility, the percentage must be considerably higher. As FINK is looking at, 5 % of the assignments are required to get a meaningful result with bitcoin.
The 5 % numbers match the similar predictions made by Cathie Wood of Ark Invest. As part of her bitcoin evaluation model, she examined several different scenarios for institutional adoption. In the case of a bear case scenario, the adoption of the system remains at a 1 % level. However, in the case of beef scenarios, the system adoption is 6.5 %. Wood says that Bitcoin could actually reach $ 1 million by 2030.
For many retail investors, the decision to invest in bitcoin is based on the belief that there is no possibility of its ultimate rise. They have seen that the bitcoin can provide 10 times, 100 times, and even 1000 times returns over a very short period of time. They believe that Bitcoin will continue to provide these same returns in the future.
However, for institutional investors, there are completely different reasons to invest in bitcoin. Instead of greedy motivation, they are motivated by fear. They are looking for ways to separate risks and protect themselves from economic uncertainty. They consider bitcoin as a “digital gold” form that still works well, even if the rest of the world economy is tattered.
The story will continue