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Take a look at what some of the top analysts are saying about where the price of Bitcoin (BTC) could go in the coming years and decades.
One of the more compelling predictions for the future price of Bitcoin comes from Fidelity Investments. Jurrien Timmer, Fidelity's global head of macro, has claimed that Bitcoin could go as high as $1 billion by 2038.
The prediction is mostly based on Metcalfe's law, which states that a networked financial asset's value is equal to the square of the number of users in the network. The law, which places a numerical emphasis on network effects, has mostly been applied to technologies such as the internet and social media. However, Timmer believes that the law is also applicable to Bitcoin.
Bitcoin is, at its core, a network. It helps connect users to facilitate peer-to-peer transactions. According to Timmer and Metcalfe's law, the value of Bitcoin should increase exponentially as new users join the network. This exponential growth has been shown in the past, with Bitcoin exploding in price over the past decade at the same time as the number of users has grown greatly.
With the new spot exchange-traded funds (ETFs), the number of users on Bitcoin also increased, which was correlated with new all-time highs (ATHs). This could be further evidence of Metcalfe's law in practice.
The prediction relies on two main assumptions. First, Timmer assumes that users new to the network will value the connections it provides and be able to use them. This could be an issue for those who simply want to invest in Bitcoin as a store of value and do not want to use it as a way to transact. Timmer also assumes that the number of users on Bitcoin will continue to grow rapidly over the next decade. It's also possible that Bitcoin will fail to reach the large-scale adoption necessary to reach the $1 billion price target.
Despite the assumptions, Timmer presents an interesting case for a $1 billion BTC using a popular economic model.
If Bitcoin reaches $1 billion, an investment of $1,000 would be worth $16.7 million in 2038. A minimum investment of $60 or 0.001 BTC would be needed to become a millionaire.
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