As Bitcoin makes its way into a fully diversified portfolio, the question is: What will the price of Bitcoin be in 2050?
With a current market cap of nearly $300 billion as of June 2020, Bitcoin currently dominates the cryptocurrency space, controlling a whopping 64% of the entire market. Thus, it can be said that Bitcoin is the number one digital currency in circulation.
Given its popularity and interest, traders and investors flock to the liquid currency, seeking to make both short-term and long-term predictions. However, while traders expect short-term fluctuations, long-term investors thinking about their retirement portfolio are looking at Bitcoin predictions for 2050.
Despite some criticism of Bitcoin from dinosaur business titans like Warren Buffett, it continues to make its way around the world. In fact, with limited supply, high demand, and continued growth as a means of payment, Bitcoin has emerged as a promising store of value and medium of exchange.
In fact, many "pro-bitcoin" people often hold bitcoins in anticipation of an increase in the dollar price.
On December 16, 2017, the price of Bitcoin skyrocketed to $US19,665.39 ($20,000), the cryptocurrency's current all-time high. The following year, Bitcoin fell by more than 70% to a low of $3,250. Fast forward to 2019 and Bitcoin has reached its peak of almost $14,000. Bitcoin has fluctuated between $3,900 and $11,400 this year, experiencing the fastest decline in history.
It's clear that Bitcoin has been through a lot and is here to stay. This begs the question: Where will Bitcoin be in the next 30 years, in 2050? Let's find out.
What are the viewers saying?
Over the years, various "Bitcoin enthusiasts" have made various predictions about the price of Bitcoin, many of which are short-term self-serving predictions.
However, others ventured to consider the future of Bitcoin in the long term. Mark Yusko, known as the founder of Morgan Creek Capital, is one of those who made a long-term prediction in the field of cryptocurrencies. In fact, he predicts that Bitcoin will surpass $400,000 in the long term; and bases this price prediction on available Bitcoin and digital currency equivalence to gold.
Another well-known cryptocurrency figure, John Pfeiffer, a partner at London-based Pfeiffer Capital, also made a long-term forecast. He expects Bitcoin to be worth $700,000 in the long term. This prediction predicts that Bitcoin will rise to about 74 times its current price. While many may dismiss this bold prediction with disbelief, it's worth remembering that in 2017, Bitcoin went from $900 to $20,000, roughly a 22-fold increase. You can see how the crypto world will sound by 2024 on this site.
What do we think?
Despite criticism from tycoons such as Warren Buffett and Bill Gates, Bitcoin continues to prove that it is here to stay. Some criticism may be caused by his threat to banks and financial authorities. Since transactions are carried out on the blockchain, the need for banks, middlemen or central authorities is obsolete.
There are actually two main reasons for owning Bitcoin: the transactional reason and the speculative reason, those who hold it to exchange for goods and services and those who hold it for profit. Bitcoin's security, transparency and anonymity make it the preferred payment method for many people around the world. More and more businesses around the world, both online and offline, have started to include Bitcoin in their payment options. So we think Bitcoin is here to stay. There are currently 18,441,075 Bitcoins in circulation and a total supply cap of 21,000,000. So only 2,558,925 Bitcoins could be mined for supply.
Taking into account the limited supply, the increasing demand for it, and the possibility of replacing Bitcoin with gold, we predict that one Bitcoin will be worth more than $500,000 in 2050. All other things being equal, there should be 21,000,000 bitcoins in circulation in 2140. The current market capitalization of gold is 9 trillion dollars. About 80% of bitcoins are in circulation, with the last 20% mined for supply over the next 120 years; has the power to replace gold to have a market cap of over $10 trillion by 2050. If you do the math, assuming there will be around 20 million bitcoins in existence, that gives us a bitcoin price of around $500,000. Due to limited supply and high demand, we predict that the price of Bitcoin will exceed 500.