Bitcoin Expected to Reach a Value of $1.3 million by 2035, According to Bitwise Analysts
(Investorideas.com Newswire) Bitcoin analysts at crypto asset manager, Bitwise, have recently revealed that they expect the popular cryptocurrency to reach a value of £1.3 million by 20235. Bitcoin is already the most well-known and well-regarded digital asset available to investors, and the analysts expect it to remain so over the next ten years. They believe that continued institutional adoption, inflation hedge demand, and bitcoin's fixed supply will also be major contributing factors to this predicted surge in price.
Cryptocurrency, with Bitcoin at the forefront, is becoming increasingly popular both in the US and across the globe on a wider scale. Already, an estimated 28% of American adults own at least one kind of digital asset, and a further 14% have revealed an intention to invest in the future. With countless benefits, ranging from heightened security, increased anonymity, low transaction fees, and the ability to grow in value over time, it isn't difficult to see why the experts at Bitwise are expecting digital assets to be the very future of finance itself.
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Bitwise published these predictions on August 21, at a time when Bitcoin's value had reached an all-time high and soared above $100,000. Aligning with this, the coin has also seen much greater regulatory clarity emerge in recent months alongside significantly more institutional investors turning to it for the first time, both of which contributed to its growth.
Should the predictions prove accurate, Bitcoin will experience a compound annual growth rate of 28.3%. This being said, the company has warned that volatility will remain high and that investors should continue to be prepared for this. As such, the same advice to never invest more than you can afford to lose remains in place despite Bitcoin's expected success.
The analysts, who were led by Bitwise CEO Matt Hougan, have suggested that three distinct forces will contribute to this predicted surge in value. The first is the continuation of Bitcoin adoption at an institutional level. More and more institutions are turning to the coin's potential, and it is likely that this trend will only continue as time goes on. The second rests on a rising demand at a societal level for hard-asset exposure in an increasingly inflationary environment. Finally, the third driving force, according to the analyst, is the fixed nature of its new supply.
In another surprising revelation, the analysts suggested that the historic "four-year cycle" for Bitcoin is no longer relevant, meaning the significant fluctuations between bullish and bear markets will cease to be a touchstone for traders. This being said, they have cautioned investors about continued steep drawdowns. The challenges that Bitcoin faces today, including regulatory uncertainty, legislative changes, and Bitcoin's position as a new asset, will continue into the future and continue to create volatility.
They also revealed that they believe the increasing number of digital threats and crypto hacks through quantum computing will continue to be an issue. However, they see this as a secondary concern. This prediction likely stems from the observation that, as crypto hackers evolve, so too do cryptocurrency's security defences, and the future will likely see Bitcoin's security continually strengthened, even more so as global governance continues to adopt the asset and craft effective legislation.
However, the analysts still maintained that predicting anything to do with Bitcoin, as a highly volatile asset, is a difficult task and is certain to come with some inaccuracies. As such, they stated in the report that, "we aim to err on the side of being conservative." Even the model they used to make these predictions is still in its early days, and will continue to evolve as time goes on.