It is no secret that digital currencies (cryptocurrency) have become a global asset class to have in your portfolio. They are the fastest growing and more or less within everyone’s reach. With a current market cap of almost 300 billion dollars as of June 2020, Bitcoin dominates 64% of the market. It is, therefore, safe to say that Bitcoin is the foremost cryptocurrency. Many people make analysis for the short term, which is important for traders. But for investors, it’s much more relevant to know the long term target for Bitcoin. So, what’s our Bitcoin price prediction 2050?
Despite the criticisms that Bitcoin has faced from some business titans who could be called “anti-bitcoiners,” it has continued to make headway. All around the world, Bitcoin adoption has continued to surge. With its limited supply, high demand, and continual surge as an acceptance for payments by several businesses, it has proven to be a promising store of value. Many “pro-bitcoiners” often store Bitcoin for speculation. In other words, they keep the digital currency to make a profit when its value increases against the dollar.
On December 16, 2017, the price of Bitcoin surged to $19,665.39 ($20,000), which is so far the cryptocurrency’s all-time high. In 2018, the price plunged at a rate of over 70%, falling to a value of about $3,250. In 2019, Bitcoin’s price peaked at $5,961. So far this year, 2020, the Bitcoin price has fluctuated between $5,032.50 and $10,328.90. Is Bitcoin here to stay? If so, what do we think Bitcoin’s price would be in the next 30 years, 2050?
What Do Onlookers Have to Say?
Various people within the crypto space who are “pro-bitcoiners” have made a variety of Bitcoin price predictions. Most predictions were more short-term, some were mid-term, and a few were long-term. Mark Yusko, notably known for founding Morgan Creek Capital, is one of those in the crypto space to make a long-term prediction. He predicts that the Bitcoin price would be over $400,000 in the long-term; he bases this prediction on the available Bitcoin and the equivalence of the digital currency to Gold. On the other hand, Roger Var, who invested early in Bitcoin and Blockchain-related start-ups. Basing his prediction on demand and supply, he pegs it at $250,000 per Bitcoin. The principles of demand and supply make him stoutly believe that Bitcoin as a store of value has exceptional potentials; this made him spot the opportunity in Bitcoin very early.
Another prominent figure in the crypto space, John Pfeiffer, a partner at Pfeiffer Capital based out in London, has also made a long-term prediction. He predicts the value of Bitcoin would be $700,000 in the long-term. This prediction implies that Bitcoin would increase about 74 times its current price. While this may sound like a bold prediction, it is good we refresh your memory that in 2017, Bitcoin went from about $900 to about $20,000. That phenomenal increase in the year 2017 is about 22 times. Putting this event into consideration, a long-term prediction of $700,000 would not be far-fetched. Private investors often hold Gold as a means of keeping their money in something more dependable than the intrinsically worthless fiat. He believes that investors could ditch there privately held Gold for Bitcoin, seen as it is much easier to store and much more secure; instead of keeping Gold bars buried in their backyards or safe boxes.
What Do We Think?
Notwithstanding the criticisms from magnates like Warren Buffet and Bill Gates, Bitcoin has continued to prove that it is here to stay. Some criticisms may be as a result of its threat to banks and financial authorities. Since transactions are on a Blockchain, the need for banks, middle-men, or central authorities become obsolete. There are two main motives for holding Bitcoin: transaction motive and speculative motive, those who hold to exchange for goods and services, and those who hold to make a profit. The security, transparency, and anonymity of Bitcoin makes it a preferred payment option for several individuals across the globe. More and more businesses around the world, both online and offline, have started including Bitcoin in their payment options. It, therefore, appears to us that Bitcoin is in no doubt here to stay. There are currently 18,441,075 Bitcoins in circulation, and the total supply cap is 21,000,000. Thus, only 2,558,925 more Bitcoins could be mined, for supply.
Considering the limited available supply, a rise in its demand, and a possibility for Bitcoin to replace Gold, we predict one Bitcoin would be worth north of $500,000 by 2050. All things being equal, by 2140, all 21,000,000 Bitcoins should be in circulation. The current market cap for Gold is $9 trillion. About 80% of Bitcoin are in circulation, with the last 20% mined for supply over the next 120 years; it has the power to replace Gold to have a market cap of over $10 trillion by 2050. If you do the math, assuming there would be about 20 million Bitcoins in supply, that gives us a Bitcoin price of about $500,000. With a limited available supply and a high demand, we predict Bitcoin’s price to be over $500,000 by 2050.
Bitcoin appears to be a perfect alternative currency to fiat, a store of value that is independent of the influence of the government or financial institutions. Sometime in the future, it could become the world’s default currency. In any case, it is necessary to point out that; digital currencies fluctuate, and no one person can accurately predict its exact price. It solely depends on the prevailing conditions of the market.