Over the past decade, Bitcoin has seen a dramatic increase in value. While the coin was hovering around $478 in 2013, today its price stands at an impressive $55,400. This represents a spectacular increase in value of no less than 120 times its original price.
Bitcoin has outperformed most other asset classes in eight of the eleven full calendar years since 2013, making it one of the most successful investments of the past decade. But what does the future hold? Where could Bitcoin be in ten years? In this article, we take a closer look at what the world’s largest cryptocurrency could look like.
The Rise of Bitcoin
Bitcoin began as an experiment among a small group of tech enthusiasts who were intrigued by the idea of digital money. In those early years, however, Bitcoin was notoriously difficult to purchase and store securely, and its extreme volatility made it a very risky investment. The market at the time was so volatile that today’s fluctuations pale in comparison.
However, over the years, Bitcoin has developed a robust financial infrastructure. Digital wallets, trading platforms, and new payment methods have greatly facilitated its adoption, making Bitcoin more accessible to the general public. It is estimated that around 82 million people own Bitcoin worldwide, and in El Salvador, it has even been recognized as an official means of payment. Furthermore, large companies hold Bitcoin on their balance sheets, adding to the growing legitimacy of this digital currency.
Increasing Accessibility and Political Support for Bitcoin
With the advent of spot Bitcoin ETFs backed by reputable asset managers, it has become even easier for investors to invest in Bitcoin. Political support for Bitcoin is also growing. For example, former US President Donald Trump spoke out in support of the currency at a major conference and even suggested that the US should establish a strategic Bitcoin reserve. Such statements highlight how far Bitcoin has come in terms of adoption.
One of Bitcoin’s most attractive features is its limited supply – there will never be more than 21 million coins in circulation. In a world where government debt and inflation are rising, such as in the US, this scarcity could increase demand for Bitcoin, further driving up its price.
The Future Value of Bitcoin
While it remains difficult to accurately predict Bitcoin’s future value, it is often compared to gold as a store of value. However, Bitcoin has several advantages over gold: it is easier to verify, store, and transport, and its supply is more limited.
Gold’s current market cap is around $17 trillion, while Bitcoin’s is around $1.2 trillion. This suggests a potential growth path of 1,300% for Bitcoin if it were to ever reach the same market cap as gold.
A more conservative estimate predicts that Bitcoin could grow by around 15% annually over the next decade. This would result in a fourfold increase in its current price by 2034.
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Source: https://newsbit.nl/de-toekomst-van-bitcoin-waar-staat-s-werelds-grootste-cryptomunt-in-2034/
