A popular crypto exchange forecasted that Bitcoin will reach over $1 million by 2032. The analysis regarding how much will Bitcoin cost 10 years from now is based on a combination of factors, including the cryptocurrency’s limited supply, increasing demand from institutional investors, and growing popularity as both a store of value and a hedge against inflation.
Bitcoin Prices Now and in the Future
Bitcoin has seen major price fluctuations over the past decade. However, it has consistently demonstrated an upward trend, with its price increasing from a few cents to over $60,000 in 2021.
Changelly predicts that this trend will continue and that Bitcoin’s price will reach at least $ 1.124 million per coin by 2032. It’s also possible that the numbers may stretch up to $1.355 million per coin based on the analytics of the crypto exchange while the average price per unit is pegged at $1.164 million in that period.
At present, the company sees Bitcoin moving between $33,016.25 and $39,784.65. This coincides with the consensus that BTC may hit $35K in April 2023.
Factors Driving Bitcoin’s Price Increase
One of the primary factors driving Bitcoin’s price increase is the cryptocurrency’s limited supply. The Bitcoin blockchain has a fixed supply of 21 million coins, and the rate of new coin issuance decreases over time. As the supply of new Bitcoin decreases, the existing coins become more valuable, which could drive up the price of Bitcoin.
Another factor driving Bitcoin’s price surge is the rising demand from institutional investors and mainstream financial institutions. These investors have increasingly shown interest in Bitcoin as an alternative investment asset and a hedge against inflation. The growing acceptance of Bitcoin by established financial institutions is likely to drive demand and increase the cryptocurrency’s price in the coming years.
The Role of Institutional Investors in Bitcoin’s Future
Changelly’s prediction on how much will bitcoin cost 10 years from now heavily takes into account the role of institutional investors in Bitcoin’s future. These investors have a heavy impact on the crypto market, and their increasing interest in Bitcoin is likely to drive demand and increase its price. The involvement of institutional investors is also expected to bring more stability to the market and reduce volatility, making the cryptocurrency a more reliable investment option.
Moreover, the involvement of institutional investors is likely to increase the level of regulation and oversight in the market, which could further increase confidence in Bitcoin as a legitimate investment asset. This increased regulation and oversight could also help to reduce the risk of fraud and other illicit activities in the crypto space.
Potential Risks and Uncertainties in Bitcoin’s Future
Despite the positive factors driving Bitcoin’s price increase, there are also potential risks and uncertainties that could impact the cryptocurrency’s future. Regulatory changes, technological developments, and market volatility are some of the factors that could significantly affect Bitcoin’s price in either direction.
Regulatory changes, in particular, could have a key influence on Bitcoin’s price. Governments around the world have been discussing the regulation of cryptos, and any new regulation could trigger a ripple effect in the market. For instance, if a government were to ban Bitcoin, its price would likely plummet.
Furthermore, technological developments or disruptions could also have a crucial effect on Bitcoin’s future. For instance, if a new cryptocurrency were to emerge that is more advanced than Bitcoin, it could reduce demand for Bitcoin and, consequently, its price.
In a nutshell, Changelly’s prediction that Bitcoin will be over $1 million by 2032 is based on a combination of factors, including the limited supply of Bitcoin, increasing demand from institutional investors, and growing popularity as a store of value and a hedge against inflation. While there are potential risks and uncertainties that could impact Bitcoin’s future, the involvement of institutional investors and increasing acceptance of the crypto by mainstream financial institutions are positive indicators for the crypto’s future.
As with any investment though, caution should be exercised, and any decision to invest in Bitcoin should be made after careful consideration of the risks and uncertainties involved.
Giancarlo is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations such as the Department of the Interior and Local Government (DILG), the National Economic and Development Authority (NEDA), Megaworld Corporation, and the China Banking Corporation in the Republic of the Philippines.
In addition to his civic and corporate pursuits, his forward-thinking approach has led him to manage several prominent websites in the banking and finance sector, notably the Australia-based RateChoice, where he immersed himself in the world of emerging financial technologies and where he found particular interest in Bitcoin all the way back to 2013.
Prior to his addition to Blockzeit’s dynamic team, he held an essential role as Project Manager for initiatives encompassing blockchain, stablecoin, mining, special economic zone development, and iGaming. This noteworthy chapter in his career unfolded under the auspices of InPlan Consultancy Services, Inc., the think-tank of IMPERO Consortium Management Corporation headquartered in Manila, Philippines, and Tokyo, Japan. InPlan, led by a distinguished retired Cabinet member of the Philippines, collaborates directly with IMPERO’s core management team, contributing to strategic planning and business development endeavors.