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According to Jack Dorsey, this flagship cryptocurrency could reach $1 million by 2030
A growing number of cryptocurrency investors now think so Bitcoin (CRYPTO: BTC) could reach a price of $1 million within the next few years. In addition to Cathie Wood of Ark Invest, who famously predicted a price of $1 million in 2022, there is now Jack Dorsey, co-founder and former CEO of Twitter. In a recent interview, Dorsey suggested that Bitcoin will reach “at least a million” by 2030.
What makes this prediction so interesting is that it doesn’t come from a Wall Street investment firm. Instead, it comes from the perspective of a technologist with in-depth knowledge of how Bitcoin it works, and not just how it is traded. So, if Jack Dorsey is bullish on Bitcoin, should you be too?
Is Bitcoin an asset, a technology, or both?
There are two classic ways investors think about Bitcoin. The first approach is to think of Bitcoin as a commodity. From this perspective, Bitcoin is “digital gold” and a store of value, and should be accumulated just like physical gold. The second approach is to think of Bitcoin as a digital currency. From this point of view, Bitcoin functions primarily as a payment mechanism and medium of exchange.
Image source: Getty Images.
But there is a third way to think about Bitcoin: as a technology. This is how Dorsey thinks about Bitcoin. He sees it as a blockchain-based technology capable of disrupting the modern financial system. And he focuses first and foremost on the thriving Bitcoin ecosystem, which includes everyone from Bitcoin miners to companies creating new Bitcoin payment technologies.
According to Dorsey, every single person who touches Bitcoin in a meaningful way helps improve it. He should know: Dorsey has collaborated on numerous Bitcoin-related projects in recent years. Dorsey’s latest project is Oceanwhich is a new Bitcoin mining initiative.
How much is the Bitcoin ecosystem worth?
Given Dorsey’s emphasis on Bitcoin as a technology, perhaps it’s natural to ask, “How much is the Bitcoin technology ecosystem worth when it comes to valuing Bitcoin?”
This is a great question, but I’m not sure anyone has really answered it satisfactorily. Ark Invest’s Cathie Wood perhaps came closest, focusing on Bitcoin’s core use cases. For example, in Ark Invest’s 2023 “Big Ideas” report, you highlighted the various roles Bitcoin can play, including as a remittance asset. So, for example, investors could conceivably place a higher valuation on Bitcoin if they see its role in the cross-border remittance market increasing over time.
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Another approach is to focus on the new products and services that members of this Bitcoin ecosystem are introducing to the market. For example, Lightning Labs, already known for its Lightning Network, is now working to bring stablecoins and tokenized assets to the Bitcoin blockchain. And Strike continues to offer new Bitcoin payment options to global users. All of these products and services are helping to make Bitcoin more valuable by increasing its adoption on a worldwide basis.
Will Bitcoin really reach $1 million?
When it comes to valuing Bitcoin, the focus should be on mainstream Bitcoin adoption. In other words, what are members of the ecosystem doing to make Bitcoin more useful in everyday life? In this case, “utility” means much more than just the number of people buying spot Bitcoin ETFs. It means that people use Bitcoin as part of a decentralized financial system that empowers individuals, reduces fees and lowers barriers to entry.
Jack Dorsey is right when he talks about Bitcoin’s collaborative ecosystem. He has experience building technology companies and designing innovative technologies and platforms. He understands how important community and collaboration are to the success and mainstream adoption of any new technology.
While I am not yet convinced that Bitcoin will reach the mythical price of $1 million by 2030, I am convinced that Bitcoin is currently undervalued at its current price of $63,000. This is because too many investors focus on Bitcoin as a financial asset and not as a digital technology capable of disrupting the modern financial system. With this in mind, I am optimistic about Bitcoin’s long-term prospects.
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Domenico Basulto has positions in Bitcoin. The Motley Fool has positions and recommends Bitcoin. The Motley Fool has a disclosure policy.
According to Jack Dorsey, this flagship cryptocurrency could reach $1 million by 2030 was originally published by The Motley Fool