Technology continues to have a major impact on the economy and the investment environment. This is by no means clearer than when considering the rise of cryptocurrency. The Internet has created an entirely new asset class.
And then, Bitcoin (Cryptography: BTC) It has appeared. Over the past decade, world-leading digital assets have generated 32,530% monster returns (as of April 3). It was a volatile journey, but its profits were several years before the stock market.
Bitcoin prices have fallen 22% from their peak due to continued macroeconomic uncertainty. But the future may be bright. Where will Bitcoin be found in 10 years?
I’ve heard what critics said. Bitcoin Bear pointed out several examples of its extreme volatility, intrinsic value and lack of cash flow, energy consumption, criminal use, and regulatory uncertainty. Despite these debates, Bitcoin has stood the test of time.
As an asset of $1.6 trillion these days, Bitcoin is too difficult to ignore. Perhaps its biggest risk factor, the possibility of a US government ban, is no longer an issue.
The Trump administration has taken action in favour of the ongoing adoption of Bitcoin. The government announced a Strategic Bitcoin ReserveFreed Ross Ulbricht (creator of Dark Web’s infamous Silk Road Digital Marketplace), and the head of the Securities and Exchange Commission, have placed a crypto-friendly chairman. The regulatory burden could be further eased in the future.
Before the latest bright development, Spot Bitcoin ETF The transaction was approved in January 2024. This is essentially justified Bitcoin in the financial world, opening up a larger pool of capital to buy digital assets. We have been implementing these ETFs about 15 months. These have proven to be extremely popular. Of all of them, there has been over $90 billion inflows so far, and have successfully launched these ETFs. But to be fair, critics still have the point that Bitcoin remains unstable. It’s not as volatile as its previous era, but its value still bounces back like a stock of growth technology.
Even after incredible profits over the past decade, Bitcoin could generate strong returns between now and 2035.
The most persuasive feature of Bitcoin is its fixed supply. The software says that 21 million coins will be the largest created at a pre-determined rate. This setup will not change unless all nodes running the network agree. That hard cap is very interesting. As demand rises, prices should also rise.
The story continues