Bitcoin has most of its wealth creation still to go and could top a giant $1 trillion in market cap in just six years, new analysis claims.
$1 Trillion Bitcoin Doesn’t Need Parabolic Trend
Published last week, the forecast by Blockchain investment advisory resource, Byte Tree, suggests that even with conservative growth, Bitcoin will achieve wild new heights.
“Growth rates can go on for long periods of time but will inevitably slowdown as they mature. The implications for this new trendline imply $10,000 bitcoin will remain a theme until late 2020, rising to $20,000 by Feb 2022 and $40,000 by May 2023,” it reads.
Recall that if (nearly) 18 million coins quadruple in price, more than half a trillion dollars of wealth will be created. That’s more than possible and the network could touch a trillion dollars by 2025. Considerably more wealth creation lies ahead, than has occurred in the past.
The figures come at a time when BTC/USD had come off its latest bullish rise, which previously saw the pair touch $13,800.
Sideways action subsequently culminated in a dip to $9350 last week, with markets since recovering to linger just below $11,000 at press time on September 6.
Tech Stock-Style ‘Mega Trend’ Inbound
Bitcoin’s annualized investor returns are 212%, Byte Tree notes, adding that the figure was unlikely to continue at such an aggressive pace forever.
Despite that however, slowing down does not equal bearish signals, and this holds true for assets other than Bitcoin.
“You can’t reasonably expect steep trendlines to continue indefinitely, but you can expect credible assets to keep on moving higher year after year,” the publication concluded.
“If you doubt that, then just look at the leading tech stocks which seemingly go from strength to strength. They grow because the internet is an established mega trend; something that bitcoin will enjoy for years to come.”
The idea of a $40,000 Bitcoin by 2023 is certainty moderate compared with some other predictions. As Bitcoinist reported, it is ‘permabulls’ John McAfee and Tim Draper leading the way, the former still infamous after pledging to consume his own male appendage if BTC/USD did not hit $1 million by 2021.
Draper believes $250,000 is achievable by 2023. In the short term, technical indicators meanwhile err on the side of caution, nonetheless suggesting an end-of-year price for 2019 at around $20,000 – sooner than Byte Tree.
What do you think about Byte Tree’s Bitcoin forecast? Let us know in the comments below!
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