Even considering the recent wobble, Bitcoin (Cryptography: BTC) I’ve been crying lately. It has risen almost 55% over the past six months, setting a new all-time high just as early as Michael Phelps at the Olympic pool. Over the past decade, it has outperformed many other asset classes.
For some code bulls, the question is not whether Bitcoin will succeed, but how much higher the topcoin will be. The Bull incident on Ark Invest is seeing Bitcoin at nearly $1.5 million by 2030. MicroStrategy (NASDAQ:MSTR) Chair Michael Saylor is moving further. He believes that BTC will reach $13 million by 2045.
If you’re worried about being late for the Bitcoin party, these targets from big names are encouraging. But they are also very ambitious – and I will talk about Bitcoin as an optimistic person. Let’s see why it could happen. Next, let me explain why it’s not the case.
At the simplest level, people have to use it for Bitcoin to continue to soar for the next decade. Ark Invest identifies several potential areas of growth, including countries that use it as fiat currency. El Salvador and the Central African Republic have already done so.
Bitcoin can also remove serious chunks from the global remittance industry, making money easier to travel internationally. Straits Research valued the global digital remittance market at nearly $23 billion in 2023, and Ark’s most optimistic forecast says Bitcoin could account for 25% of that market.
The possibility of Bitcoin as a form of digital gold, especially coupled with an increase in institutional adoption, is another reason for optimism. Like gold, Bitcoin is not controlled by any government. And only a fixed number of Bitcoins are produced. It could be a good hedge against inflation, but it still has to prove itself here.
Optimism about the impact of a more positive regulatory environment now plays a major role in recent rallies. But it’s too early to say how this will unfold in the long run. Regulations can become a whimsical beast.
Bitcoin has marked the $100,000 mark for around 100,000 over the past few months. So, to reach $1 million, it will need to grow ten times over the next 10 years. That’s a lot. Especially with relatively new assets, it has already proven to be rather unstable, with questionable environmental records.
With the approval of Bitcoin Exchange-Traded Funds (ETFS), it’s easier than ever for investors to add Cryptos’ Grandaddy to their portfolio. The influx of money from retailers and institutions has reduced Bitcoin volatility somewhat and improved its reputation. The same goes for the people who own Bitcoin through ETFs don’t actually use it to create transactions.
The story continues