What Will Bitcoin Be Like in the Next 10 Years?

You will struggle to find assets that outperform Bitcoin (CRYPTO: BTC). Over the past 10 years, the price of this leading cryptocurrency has skyrocketed by 46,000% ( as of May 27, 5). This would turn a $1,000 investment into an astonishing investment of $461,000 today. The scarcity of Bitcoin Bitcoin has existed for about 16 years. It has withstood the test of time despite the price dropping by more than 50%. There have been instances of cryptocurrency exchanges failing and investors losing their money. But what is noteworthy is that the Bitcoin network itself has never been hacked. The durability is a positive factor that helps investors feel confident. The longer Bitcoin retains its value, the lower the chance of it being forgotten. And over time, more and more people are participating in the market, whether individuals, organizations, or politicians, seeking to understand what makes Bitcoin truly special, which is the fixed supply of 21 million coins. This is in stark contrast to the ever-increasing amount of fiat currency in the world. The growth of the money supply in the United States, as well as federal debt, shows no signs of slowing down. This makes the value of owning a completely digital, decentralized, and scarce asset clearer than ever. The network effect of Bitcoin The great Warren Buffett once called Bitcoin a "square rat poison." His viewpoint is understandable, as cryptocurrencies do not generate revenue and cash flow like a traditional business, which is what Buffett wants to see. However, the Oracle of Omaha values companies with economic moats. Applying the same framework to Bitcoin would make anyone optimistic. Its current market capitalization overshadows any other blockchain, currently standing at $2.1 trillion. Being the oldest and most valuable cryptocurrency means that Bitcoin has an unparalleled network effect. More users make Bitcoin more valuable to all other stakeholders. Unless a cryptocurrency is significantly better than Bitcoin in terms of being a decentralized and secure store of value, there is very little risk that a newcomer will overthrow it. The clear network effect of Bitcoin brings benefits in another very important way, which is the development of many tools to support the adoption of Bitcoin. This includes hardware wallets, mining devices, and an expanding ecosystem of financial services. All of this demonstrates that the network effect of Bitcoin has supported its increase up to this point. This important competitive advantage enhances the opportunity for this digital asset not only to survive but also to thrive in the next decade and beyond. 10-year price target of Bitcoin I think that investors should always carefully consider the price targets of analysts. This is also true for cryptocurrencies. Because the future is unpredictable and humans are very bad at making accurate predictions. However, that doesn't mean that evaluating the value of Bitcoin in 2035 is a waste of time. I really think it's a valuable exercise to figure out what things might look like, just to give investors an idea of what could appreciate. Just don't expect Bitcoin to generate the same returns in the next 10 years as it did in the past decade. At the time of this writing, Bitcoin is trading at around $106,000, which is not too far from its record high. It seems that this is not the right time to invest money near the peak. But consider gold, arguably Bitcoin's most direct competitor as a global store of value, which has a market value of $22.1 trillion. As the world becomes more and more digital, I don't believe that Bitcoin will surpass this precious metal one day.

Of course, no one can predict the final timeframe for that to happen. If Bitcoin increases more than 10 times from its current level, then it seems like a smart investment with a 10-year outlook.