Where Will Bitcoin Be Decade From Now?

Over the past ten years, the S&P 500 (SNPINDEX: ^GSPC) has generated a total return of 224%. Although this represents a notable increase, Bitcoin (CRYPTO: BTC) Has performed significantly better. Since mid-March 2015, the leading cryptocurrency globally has surged an astounding 29,690% (as of March 12).

Even though the ride has been unpredictable with numerous price drops similar to what we're experiencing now, the top cryptocurrency has proven to be an excellent creator of wealth for investors. However, the question remains: Where will Bitcoin be in 10 years?

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Going mainstream

Bitcoin has traveled quite a path to arrive at its present status as a $1.6 trillion asset. Many exchanges and financial service companies have introduced features enabling greater numbers of people to purchase and store it. Despite experiencing significant declines during periods when investors lost enthusiasm, Bitcoin managed to recover each time, ultimately reaching even loftier peaks.

Bitcoin has never experienced a hack. Additionally, approximately every four years, it has successfully completed a halving process. halving , showing that the network is functioning as intended.

In the latter part of 2020, major companies such as Strategy (previously known as MicroStrategy) and Block begin incorporating Bitcoin into their reserve assets. Tesla Joined the activity at the beginning of 2021. In that very year, El Salvador made history by being the first nation to recognize Bitcoin as a legitimate form of currency.

In January 2024, the Securities and Exchange Commission gave approval for spot Bitcoin ETFs This was a much-anticipated development that significantly bolstered Bitcoin’s status as a credible financial instrument.

During last year’s presidential election, it became evident that Bitcoin had garnered the interest of political figures in Washington. The then-presidential candidate Donald Trump was the main speaker at theBitcoinconference heldlastsummer,demonstratingthe significanceof gainingthesupportofcryptoenthusiasts.

A bright future

One of the main concerns raised by critics was that the U.S. government might ultimately prohibit Bitcoin. This prohibition could render owning, trading, and mining Bitcoin illegal, thereby reducing demand due to involvement with the globe’s most significant economic power. They believed this action would likely depress Bitcoin's value.

That significant risk factor appears to be less concerning nowadays. On March 6, President Donald Trump issued an executive order declaring the establishment of a new initiative. Bitcoin Strategic Reserve It will be financed using the bitcoins that the U.S. already possesses through assets seized during criminal or civil forfeiture processes. Additionally, the government has options for obtaining extra bitcoin without increasing spending. Furthermore, according to the directive’s conditions, none of the bitcoins in this reserve will be liquidated.

This action can be seen as a major victory for Bitcoin supporters. With the globe’s biggest economic power now signaling its intention to embrace the digital currency, it might spark a competition amongst other nations to follow suit, resulting in increased demand.

This makes it easy to believe that Bitcoin has a bright future, particularly as a more popular store-of-value asset. Its fixed supply of 21 million coins, supporting absolute scarcity, is the most important characteristic that can drive more interest among investors who want to own an asset that can't be debased.

Gold is frequently seen as a point of reference. It’s believed that the total worth of all available precious metals amounts to approximately $20 trillion. If Bitcoin were to reach a similar valuation, it would indicate potential for an increase of around 1,150%, considering its present market capitalization stands at about $1.6 trillion.

Nevertheless, this perspective might be understated. Bitcoin has several advantages over gold since it is verifiable, portable, and divisible.

Over the last ten years, Bitcoin’s value surged by nearly 30,000%. Although I don’t believe we’ll see such an extraordinary increase over the coming decade, I’m certain that its price will rise significantly by 2035.

Is it wise to put $1,000 into Bitcoin at this moment?

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Neil Patel And his clients do not hold any shares in the companies mentioned. The Motley Fool holds positions in and recommends buying Bitcoin, Block, and Tesla. The Motley Fool also has a disclosure policy .

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