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Bitcoin will reach $150,000 in 2030
Bitcoin (CRYPTO:BTC) has seen a fantastic run over the last year and a half: it is now up 299% since the start of 2023. This growth has slowed down a bit, as the price of the cryptocurrency has fallen 6% from its peak historic was achieved in March. The current price is around $69,400.
I think for those wondering if this is still a good time to buy the world’s most valuable cryptocurrency Bitcoin will reach $150,000 by 2030, offering an annualized return of 14%.
Diminishing returns
It is important to recognize that Bitcoin’s future returns will likely be much lower than its impressive rise to its current level. This asset no longer flies under the radar. Therefore, Bitcoin’s appreciation will likely slow down in the years to come.
But some prominent figures in the business and investment world remain far more optimistic than I. Cathie Wood and her team at Ark Invest think that the price of Bitcoin could reach high levels $3.8 million by 2030. And Jack Dorsey, co-founder and CEO of To blockbelieves Bitcoin will reach $1 million by 2030.
In this context, my prediction of $150,000 by the end of the decade is a more moderate outlook, but it would be a gain that would exceed the S&P500the average return. Historically, this broad index of 500 of the largest and most profitable U.S. companies has produced annualized total returns of approximately 10%.
Increasing demand
In my opinion, the key factor that will determine the price of Bitcoin is the simple fact that more market participants will own it: individual and institutional investors, as well as companies and governments. The increase in demand should, in theory, increase the price of Bitcoin in the long term.
But why would these market participants want to buy and hold Bitcoin?
Bitcoin’s fixed supply limit is probably the most important variable that makes it an attractive asset to own. Only 21 million coins will be created, and they will be minted at a predetermined and ever-decreasing rate – hard limits built into Bitcoin’s software.
This is the complete opposite situation to that of traditional monetary and fiscal systems. Consider, for example, the worrying deficit the U.S. government is operating under, leading to a growing federal debt burden. And we cannot forget the ever-increasing supply of US dollars which causes the purchasing power of the dollar to decrease over time.
Bitcoin’s growth largely depends on people becoming more familiar with it. This could take many years. But as we’ve seen, with more traditional financial firms painting Bitcoin in a positive light, there should be greater buying interest.
The story continues
Mental preparation
My bullish guess that Bitcoin will reach $150,000 per coin by the end of the decade is far from a certainty. There is a lot of uncertainty, as there usually is with new technologies.
For investors, the best way to approach this asset is to appropriately size your position in it. Don’t invest more money in Bitcoin than you are willing to lose. This could result in a person allocating a relatively small portion of a well-diversified portfolio to it, perhaps 1%.
From a mental and emotional standpoint, be prepared to experience a lot of volatility in such a position. In its fairly short history, Bitcoin has seen numerous drops of more than 50%. While its value may stabilize over time, such declines are still something an investor must be prepared for.
If you are looking to buy Bitcoin, make sure you keep a long-term perspective. The main cryptocurrency is destined to continue winning in the coming years on the road to $150,000.
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Neil Patel and its clients have no position in any of the securities mentioned. The Motley Fool has positions and recommends Bitcoin and Block. The Motley Fool has a disclosure policy.
Prediction: Bitcoin will reach $150,000 in 2030 was originally published by The Motley Fool