Just this week, the world’s first cryptocurrency celebrated its 14th anniversary. Since its founding in 2009, Bitcoin (Bitcoin -0.03%) has pioneered an entire asset class, going from a value of just 1 cent to an all-time high of just under $70,000 in November 2021. In his two countries owned by Fortune 500 companies, technological advancements continue to expand the user base.
All of this, of course, begs the question: Where will Bitcoin be in 14 years?
A glimpse into the future based on the present
By 2037, I believe there are several realities that Bitcoin could unfold in the future. I have to take it with a grain of salt. But I have data and research to support my hopes.
Let’s start with fruits that are easily available. More and more people are buying bitcoin every year. Since 2009, the number of users holding at least 0.1 of his bitcoins has grown, reaching an all-time high of 4.1 million his wallets, even amid the recent market turmoil. It’s hard to imagine a future where your favorite retailers accept Bitcoin as payment, thanks to technological advances such as the Lightning Network that make it easier and more cost-effective to use Bitcoin for everyday transactions. It’s not difficult.
With the momentum of more users, I believe more countries will accept Bitcoin as legal tender within the next 14 years. El Salvador will be the first country to grant her official status in 2021, followed by the Central African Republic six months after her. However, both of these countries are relatively small players on the global economic stage. By 2037, I wouldn’t be surprised if countries like Nigeria, Thailand, Turkey, and Argentina decide to give Bitcoin legal status. These countries are home to the world’s largest population of Bitcoin users, and a decision by either could lead to another lawsuit. This is a phenomenon known as game theory.
Bitcoin’s next achievement is to make it a staple in both personal portfolios and corporate balance sheets.companies such as fidelity We already offer Bitcoin exposure to our clients and are considering offering employers the option to provide Bitcoin access through employee retirement plans. There is also the institutional side of things. Just this year, the world’s largest asset manager, black rock, said it will provide access to Bitcoin to capital-rich institutional clients. As an industry leader, it may be safe to assume that more competitors will follow suit to meet increased demand.
Additionally, we believe the regulatory environment surrounding Bitcoin will become clearer. The guidelines and laws regarding digital assets are now as clear as mud. Last year, countries such as Germany, Brazil, and Japan all ratified comprehensive laws, thereby cleaning the air and providing better legal guidance. It is happening and may have set a precedent for legislators to intervene and realize sooner or later. A comprehensive framework would give investors greater confidence that Bitcoin is a legitimate asset, potentially leading to a more favorable tax environment and better understanding.
All of this will lead to greater demand. And when demand increases and supply decreases, prices rise. By 2037, Bitcoin will have halved four more times, with approximately 96% of all coins in circulation.
let’s talk numbers
Based on historical data, after each halving Bitcoin earns less than the previous halving (the most explosive growth was in the early days), but that doesn’t mean it won’t continue to rise. is not. Analysts and Bitcoin fanatics such as Kathy Wood are calling for Bitcoin to carry her $1 million price tag by 2030. I’m not convinced this could happen anytime soon, but even if her team at Ark Invest were only half right and completely off, just a few years later, by 2037, Hitting $500,000 would represent a 2,800% return from the current meager price of around $17,000.
Overall, Bitcoin’s potential impact by 2037 will depend on how widely it is adopted and how it is used. It’s hard to predict what the future holds, but it’s clear that Bitcoin has the potential to significantly change the way we think about money and value.