Over the last six months, Bitcoin (CRYPTO: BTC) has experienced an incredible surge, rising by 299% since the beginning of 2023. Given that the price of the cryptocurrency has dropped 6% from its peak, which was attained in March, this rise has somewhat halted. Right now, it costs about $69,400.
In case you’re wondering if it’s still a good idea to purchase the most precious cryptocurrency in the world, my prediction is that Bitcoin will hit $150,000 by 2030, yielding an annualized return of 14%.
Decreasing profits:-
It’s critical to understand that Bitcoin’s future returns are probably going to be substantially lower than those of its incredible ascent to this point. This asset is no longer being overlooked. Thus, it is likely that the growth of Bitcoin will slow down in the next years.
However, a few well-known personalities in the business and investing fields continue to be significantly more optimistic than I am. By 2030, Cathie Wood and her Ark Invest team believe the price of Bitcoin may reach $3.8 million. Additionally, Block CEO and co-founder Jack Dorsey predicts that Bitcoin will reach $1 million by 2030.
Given that, my forecast of $150,000 by the end of the decade is a more realistic one, but it would still represent a gain that exceeds the average return of the S&P 500. That wide index, which consists of 500 of the biggest and most successful companies in the United States, has historically generated annualized total returns of almost 10%.
Escalating need:-
The simple fact that more market participants will possess Bitcoin, including governments, businesses, and individual and institutional investors, will, in my opinion, be the primary driver of its price. In the long term, rising demand ought to raise the price of Bitcoin.
However, why would these players in the market desire to purchase and keep Bitcoin?
Most likely, the most significant factor that makes owning Bitcoin appealing is its fixed supply cap. There are strict constraints built into the Bitcoin software that limit the number of coins that may ever be created to 21 million, and they are being created at a predetermined and consistent pace of reduction.
The issue with traditional monetary and fiscal systems is the exact reverse. Take the alarming deficit the US government faces, for instance, which contributes to the growing national debt load. Furthermore, the dollar’s decreasing purchasing power over time is a result of the ever-increasing number of US dollars.
A major factor in Bitcoin’s growing case is people becoming more aware of it. It can take several years for this. However, as we’ve seen, there ought to be increased interest in purchasing Bitcoin now that more established financial institutions are endorsing it.
