In the past 24 hours, the Bitcoin price has fallen by around 0.7%. This brings the losses over the past seven days to around 2%. Bitcoin is currently valued by the market with a capitalization of $450 billion. In the last 24 hours, the Bitcoin price has been hovering around $23,500. Nevertheless, there are always spectacular price forecasts. While the first Bitcoin fans thought six-digit rates were possible around the year 2010/2011, there are now much more bullish contemporaries. Ark Invest & Cathie Wood have reiterated a $1 million price target for Bitcoin in the past. Now crypto analyst Jesse Myers sees things a little differently – and was even more bullish. Then in a blog post he considers a Bitcoin price of $10 million not only possible, but even a probable scenario.
Jesse Myers does not want to limit himself to questions of detail, but sees the big picture as decisive:
“But in looking at all these details, we fail to step back and ask a few important questions that really matter.”
In order to develop a well-founded, long-term Bitcoin course forecast, one must answer questions regarding the valuation of the Bitcoin. Why could there be a higher valuation in the market? How high can the Bitcoin price rise and why is scarcity the key parameter to climb even higher?
This cryptocurrency could increase tenfold as early as 2023
The scarcity of Bitcoin as a USP
At first glance, this seems more than questionable. Bitcoin has developed parabolic in recent years. The ATH has been marked below $70,000, already the six-figure price target is still within reach, although entry has been predicted countless times. Nevertheless, Jesse Myers does not limit his forecast to some fetched numbers, as you can read in many price forecasts. As a reason, he cites the fundamental relevance of bitcoin, or that which could arise in the future.
Because in the economy there are different assets that are valued for different reasons and fundamentally different from their intrinsic parameters. While some gain in value, others only gain purchasing power. Others lose value over time – in favor of other asset classes.
While consumption loses value particularly quickly in the graphic above and only creates a certain added value for a short time, this looks different for other assets. Bitcoin is best positioned in this list. Due to the scarcity and the early development stage, a strongly parabolic performance could result here.
Bitcoin as a store of value
According to Jesse Myers, bitcoin has unique attractive properties to function as a store of value. The digital revolution has therefore also created an opportunity to design an asset with outstanding capabilities. The concept of “digital scarcity” is therefore more predictable and is associated with certainty. After all, no one knows exactly how much gold is being mined or how the money supply will be successively expanded. Bitcoin, on the other hand, has predictability. Around the year 2140, 21,000,000 bitcoins will exist. At the same time, the Bitcoin Halvings ensure a continuous reduction in the inflation rate, which will continue to exist for at least the next ten years. After that, the annual issuance of bitcoins will fall almost to 0.
Can Bitcoin reach $10 million?
However, the global asset mix is particularly crucial for the target price of $10 million. In her Big Ideas Report 2022 and 2023, Cathie Wood also referred to the relevance of global assets, which are likely to be successively invested in Bitcoin. According to Jesse Myers, there is approximately $900 trillion in volume worldwide. When it comes to storing value here, the entire market for bitcoin is potentially open, although the value is currently only 0.05%. Just around $400 billion out of $900 trillion.
However, this proportion could now shift – and there are good reasons for this. Eventually, bitcoin will account for more than 0.05%. Myers does not assume that all capital will flow into BTC. Because diversification should continue to play a major role and Bitcoin will only partially take over shares from other asset classes.
The graphic below shows the calculation – every investor can transparently assess for himself whether he considers this to be realistic or whether he should change the figures. For example, according to Myers, bitcoin would claim around 50% of the gold market, 15% of the stock market and 30% of bonds, for example. The cumulative calculation comes to a potential upside of $10 million per bitcoin.
Crypto adoption is progressing—no question. But states regulate bitcoin or try to make adoption more difficult. For example, considering that in 2021 states held around 17% of the gold and gold producers alone around 28% of the gold, it seems difficult to switch half of the gold into Bitcoin for the foreseeable future.
Should you definitely buy Bitcoin now?
Basically, such bullish price forecasts are always one thing – a cry for attention. Bitcoin undoubtedly has immense potential in the long term. At the same time, there is a good chance that six-digit prices will also be reached in the foreseeable future, which means that BTC already seems worth buying at the current price. Such bullish price forecasts depend on many parameters and are always subject to considerable uncertainty. Anyone who is fundamentally convinced of Bitcoin should accumulate BTC regardless of any kind of price forecast, while such forecasts do not reveal any added value for short-term traders.
However, the Bitcoin price forecast shows us one thing without a doubt – there are valid arguments to assume that the Bitcoin price will multiply. Whether this will then amount to 500x in a few decades seems questionable. But even a fraction of this performance would probably make any investor happy.
“To put this another way, I believe Bitcoin’s full potential is to eat ~25% of the world’s value… while today it constitutes just 0.05%. That’s absurd. That means that I believe Bitcoin could increase 500x over the coming decades, in real (inflation-adjusted) terms.”
Alternatively, investors could also take a look at crypto presales in early March, which are busy raising money with bullish momentum. Only recently could the Move-2-Earn-Coin fight out reach the milestone of $5 million – you can still get the potential FGHT token plus attractive bonuses here cheaply. In contrast, the eco-friendly Coin C+Charge already raised over $2 million. Since there are still a few price increases in the advance sale, it is particularly worthwhile to get in early. In the past, the initial investment was often multiplied in the lucrative market segment of presales.
The mega presale of the year – find out more now
Author: Daniel Robrecht
After studying law and management, Daniel decided to work as a freelance author and has been writing qualitative publications on various specialist topics for around 10 years now. As an investor, he gained years of experience with stocks & cryptocurrencies. In addition to a long-term investment approach, Daniel is also passionate about short-term markets. Through targeted further training at international universities, he has acquired extensive knowledge about the capital markets, stocks, cryptocurrencies and decentralized finance. Daniel’s primary focus is on general market trends, exciting stocks, business news and the digital currency market. In his private life, too, there is never a day without the financial markets. As an author, Daniel writes for leading German-language publications in this field. Daniel publishes for Finanzen.net, among others, Business2Communityand FXStreet.de. Daniel on LinkedIn.
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