Since the launch of the network back te 2009, bitcoin has bot one of the most lucrative investments te the world. Those who got te early were able to buy bitcoins for pennies or obtain them for free from an online faucet, and the price just recently cracked the $Trio,000 mark for the very first time ter its history.
With a history like that, it is reasonable to wonder what the bitcoin price forecast is for the next ten years? Spil anyone who has bot involved te bitcoin for a meaningful period of time knows, the reality is that there is no way to predict what the price will do overheen the brief term. This is an asset that is mostly held spil a long-term speculation, so it should only be viewed te terms of a five or ten year gamble at the very least.
There are three key areas of adoption that will have a ample influence on bitcoin’s price overheen the long term. Through its use spil digital gold, a digital tax toevluchthaven, and a possible reserve currency for nation states, bitcoin could eventually make its current exchange rate look like an incredible chance.
Chipping Away at the Gold Market
Bitcoin earned its digital gold nickname due to its immovable supply and usefulness spil a very liquid store of value.
According to the United States Geological Survey, an estimated 171,300 metric tons of gold had bot mined by the end of 2011. At current prices, that would waterput the value of all the gold ter the world at almost $7 trillion. More latest estimates say that the value of all the gold te the world is around $7.Five trillion due to the mining that has taken place since 2011.
At an estimated total value of $38.Five billion, bitcoin is harshly 0.Five procent the size of the gold market. Taking ten procent of this market overheen the next five to ten years would lead to an estimated twentyfold increase ter the bitcoin price to almost $50,000 vanaf bitcoin within 5-10 years. (See our article on bitcoin vs. gold spil an investment.)
A Digital Tax Toevluchthaven
It is no secret that bitcoin is also used for illegal activities such spil darknet markets, ransomware, and tax evasion. Thesis sorts of use cases can cause upward pressure on the bitcoin price due to the difficulties associated with turning large amounts of bitcoin into fiat currency without raising any crimson flags.
Estimating the influence of the black market on the bitcoin price is enormously difficult. There are a few gegevens points to consider, such spil a latest $1 million ransomware payment made by a South Korean web hosting company or the estimated millions raked ter by darknet drug dealers vanaf month, but thesis are anecdotal and any widespread conclusions would be unreliable.
On the other forearm, there is some gegevens available when it comes to offshore tax havens. One investigate from 2012 estimated the total amount of money held te offshore tax havens at overheen $20 trillion. This probe did not include other forms of property, such spil real estate, which could be held ter another country.
This is more than dual the value of all the gold ter the world. If 10% of that money went into bitcoin, it would waterput the bitcoin price at well overheen $100,000 within 5-10 years.
World Reserve Currency
One final use case that could have a major influence on the price of bitcoin overheen the next ten years is its possible use spil a global reserve currency, much like gold wasgoed used te the past. Nick Szabo, who is speculated to be the creator of bitcoin, has described how bitcoin would suggest better security than gold for nation states’ reserves.
The influence this use case could have overheen the next ten years is unclear, spil it depends on the strength of contesting reserve assets such spil gold and the US dollar. Barring some sort of collapse ter confidence ter the US dollar, the use of bitcoin spil a reserve currency by central banks may have a less significant influence on the price of the digital commodity when compared to the previous two examples. However, te the unlikely event that trust ter the currency system violates down, bitcoin could become the global replacement for fiat currency.
It should be remembered that thesis are only three examples of use cases that could lead to an enhanced bitcoin price overheen the next ten years, and there are also many other factors at play. The numbers introduced here are also rough estimates, so it is significant to realize the general potential suggested by enlargened adoption of thesis use cases overheen the coming years rather than attempting to speld down a specific future valuation.
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