A Million Dollars in 10 Years
Wences Casares, CEO of Xapo - a secure Bitcoin wallet provider - was asked in 2014 for his estimate on the price of Bitcoin in 10 years time. His confident, unwavering reply was $500,000 - $1,000,000! Now, when I first heard this statement I was sceptical to say the least. But why would a successful CEO of a thriving company make such a groundless statement with utmost confidence? There must be some substance behind this claim. The aim of this article is to explore if this price claim is even remotely possible.
"Bitcoin will reach $500,000 - $1,000,000 in 10 years"
Why Bitcoin could Potentially Reach $1,000,000?
Bitcoin is still in its early adoption phase and is far from reaching its full potential. Almost all new technologies that are eventually adopted by the masses follow an S-curve of adoption (yellow line in image below). The initial growth in the early adoption phase is small but when we reach the early majority phase, mass adoption will take place and the price of Bitcoin will grow exponentially. Therefore, the price of Bitcoin now is nothing compared to what it could potentially be when mass adoption takes place. Be sure to grab your Bitcoins before then!
The rate of Bitcoin production halves every 4 years, the next halving point is 2020. Furthermore, there is only a limited supply of Bitcoin at 21,000,000 coins. Reaching 21,000,000 coins is very far off in the future (approximately 120 years in the future). The point here is, if Bitcoin reaches a stage of exponential growth and worldwide adoption the demand would be much greater than the supply, resulting in a more valuable Bitcoin.
Furthermore, as stated by Wences Casares people will begin to realise that Bitcoin is a much safer store of wealth than traditional banking systems. Bitcoin is not administered by a centralised organisation such as a bank, and therefore you have full control over your funds. With a bank, you could potentially lose all of you funds if the bank goes bust. Also, once Bitcoin reaches 21,000,000 coins it will be immune to inflation.
My Investment Strategy
In 2010, I was introduced to Bitcoin. I had the opportunity to invest $1000 - which would be worth a staggering $3,000,000! today - but I didn't. To this day, this is one of my biggest regrets. Assuming that there is a possibility of Bitcoin reaching anywhere near the colossal price of $1,000,000, investing in Bitcoin today at $2000 is a no-brainer. My strategy is to buy one bitcoin with money that I can afford to lose, store it away and then look back in 10 years time. I could be a millionaire, and if not, the worst that can happen is losing $2000. I'd rather lose $2000 and say that I tried then look back it 10 years when bitcoin is worth $1,000,000 and wish I bought in at $2000.
Do you think Bitcoin could reach $1,000,000? Please leave your comments down below!