Bitcoin price has been the best performing asset during the last decade. Predicting the price of BTC in 2030 has become quite popular. However, the reality is that no one knows what the price will be. What we do know is that Bitcoin finished off a strong 2019, and has already surpassed +35% returns in 2020. A wealth manager recently shared his thoughts.
Wealth Manager Makes Huge Prediction
One US wealth manager predicts that the price of BTC will be $400,000 by 2030. If this comes to pass, the market for BTC will be a staggering $8 trillion. Considering that the value of BTC has climbed thousands of percentages since its launch, this prediction does not seem so outrageous.
According to Andy Edstrom, who is a wealth manager at WESCAP, which is based in California, he usually considers a 10-year time horizon when considering potential upside of any investment. He made the remarks during a Citizen Bitcoin podcast. Andy said that he is quite bullish about the future of BTC prices. In his opinion, BTC could one day become the default global currency. He points to the current geopolitical tensions and actions by the Federal Reserve as the reason for his belief.
Bitcoin vs Gold
Some people have begun to draw parallels between gold and BTC, which is often used at the global safe haven in times of crisis. However, BTC has a long way to go before it can achieve the same status as gold and definitely has both similarities and differences.
Andy Edstrom predicted that the valuation of BTC in the next decade could be as high as $8 trillion. He said that to achieve this milestone, Bitcoin could take a share from gold, fiat, offshore assets, or other stores of value such as real estate. Besides that, he pointed out that new use cases for Bitcoin, which are being created, or yet to be considered, could help to grow its value. He said that if Bitcoin were to achieve the $8 trillion market valuation, it could be worth as much as the gold market.
According to Edstrom, some feel this prediction is aggressive, while others feel it is a conservative figure. He believes that this multi-trillion-dollar valuation could be caused by hyper-bitconization or the natural progression of bitcoin as the decade unfolds.
Problems With Bitcoin Hash Rate?
However, Edstrom also had a warning over the halving event that is slated for May. He believes that halving might not be necessarily good for the price of Bitcoin. Edstrom said that as the hash power drops and the price falls, this could be the perfect opportunity for hackers to tamper with the BTC network. This is because the reduction in mining rewards would force miners to stop working, which could weaken the hash power of BTC.
Bitcoin Hash Rate Growth
When taking a look at Bitcoin Hash Rate, it has gone up substantially the last two years. If we compare 2018 metrics to 2020, you can see that Hash rate growth has nearly gone up over 5.5X. It’s understandable to see the point that Edstrom brings up regarding Bitcoin halving and potential hash rate implications. Figures below are measured in Bitcoin Hash Rate “TH/s.”
Bitcoin Global Acceptance
For Bitcoin to take $8 trillion market share, some form of global adoption will have to take place. With this being said, Bitcoin will have to hover past regulators in a sense. There’s never been any mass adopted technologies that were able to bypass regulators. Many believe Bitcoin will replace fiat and banks, but that narrative is hard to prove right now. What we do know is that the government is more powerful than ever, and working with them on cryptocurrency may be the best bet at global adoption. It’s interesting to see the progression of bitcoin theories since inception. At first, Bitcoin was just going to be a valuable way to transact peer-to-peer payments without the need of financial intermediaries. We now hear numerous parties arguing that fact that Bitcoin will take over gold on a global scale. This is crazy, especially due to the fact we have no idea who truly created Bitcoin. But hey… I had no idea who my Uber driver was this afternoon either.
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