- An expert outlines how factors like US debt, central banks’ embrace of Bitcoin, and more could increase demand for it.
A prominent South Korean analyst has projected that the price increase of Bitcoin (BTC) will have a 642% “ceiling” during the next ten years.
According to News1, the prediction appeared in a report titled Bitcoin: From Cyberpunk to Wall Street, written by Hanwha Investment & Securities researcher Kim Yu-min.
Growth in the Price of Bitcoin: Ceilings and Floors
Kim’s estimate, according to News1, indicated that in the upcoming ten years, “the future price of Bitcoin will rise by a minimum of 84% and a maximum of 642%” on present pricing.
According to the news source, Bitcoin would reach “about 616 million won [$460,790]” by 2034 if its value increased by roughly 642%.
The specialist pointed out that storing and trading Bitcoin is simpler than gold.
Kim added that these kinds of presumptions were growing more likely as lawmakers talked about the potential use of Bitcoin as a national reserve asset.
According to Kim, if Bitcoin’s appeal eclipses that of gold and it gains traction with investors and central bank reserve funds worldwide, the token’s upside potential might reach 577%.
Kim added that holders of US Treasury bonds purchase CDS in order to lower their total exposure to the US economy and to hedge against the possibility of a government default.
Kim clarified that these transactions work in a manner akin to Bitcoin in terms of mitigating central bank risk.
“Key Factors”: US Debt and Bitcoin State Adoption
The expert projected that the US government debt might reach $600 billion by 2034 based on projections regarding its growth till that year.
According to Kim, investing in bitcoin might help reduce the risk of a US government default. The expert did point out that there are other assets and that the price increase of Bitcoin in the next ten years might only be 162%.
Kim, however, hinted that in the coming ten years, there may be other factors influencing Bitcoin price increases outside the state of the US economy.
According to the analyst, there was a chance that nations with unstable currencies might accept Bitcoin as legal tender.
According to Kim, the upside potential of Bitcoin is 642% if we assume that 10% of the $1.6 trillion M2 supply is invested in the coin over the next ten years.
The quantity of money that a nation’s residents possess or have in short-term bank deposits is referred to by economists as the M2 amount.
Earlier this summer, regulators in Argentina and El Salvador had discussions over El Salvador’s experience adopting Bitcoin.
But as of right now, El Salvador is the only country in the world that has adopted Bitcoin to this extent. In September 2021, the nation formally recognized Bitcoin as legal money.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
