The Case For A Future Valuation Of $1 Million
As of November 5, the date of the election of the President Donald Trump Following the re-election, Bitcoin experienced a significant upward trend, reaching an all-time high of $93,300.
BTC has since been trading within a tight range between $89,000 and $92,000, on track to head towards the $100,000 milestone. This raises an interesting question: $1 million per coin The next ten years are feasible.
Investors’ long-term vision
Market experts VirtualBacon provide an in-depth analysis of these possibilities, delving into the data, trends, and catalysts that could propel Bitcoin to soar nearly 1,000% from current price levels.
During the current market cycle, experts predict Bitcoin could hit $200,000 in the next one to two years. However, he noted that while the milestone is significant, altcoins may offer higher returns with greater risk, often plummeting 80% to 90% in bear markets.
Bitcoin is a safer long-term investment compared to altcoins, which face increasing regulatory scrutiny. VirtualBacon believes that Bitcoin’s potential is not just limited to the next few years, but spans a decade or more.
Related reading
VirtualBacon claims that in order to understand why the price of Bitcoin may reach $1 million, investors need to consider its basic utility As a store of value. Bitcoin’s fixed supply of 21 million coins, its global accessibility and resistance to censorship and manipulation make it a compelling alternative to traditional financial assets.
Experts suggest that if Bitcoin is to be recognized as the digital gold of the 21st century, it must reach Market value A price comparable to gold’s estimated $13 trillion is not only a theoretical possibility but a “logical consequence.”
Key drivers of this potential growth include the increasing participation of asset managers, corporate treasuries, central banks and wealthy individuals. Recent data shows record inflows into Bitcoin ETFs, with $1 billion invested last week, reflecting growing institutional confidence.
Additionally, discussions between companies such as Microsoft taking into account Bitcoin reserves further enhance its strategic value. The wealthy have also begun to adopt Bitcoin as a standard portfolio allocation, with even modest investments of 1% becoming commonplace among billionaires.
What will it take for Bitcoin to hit $1 million?
For Bitcoin to reach the $1 million mark, two key factors must be analyzed: global wealth growth and portfolio allocation. VirtualBacon states that by 2022, a total of global wealth It is estimated at $454 trillion and is expected to grow to $750 trillion by 2034.
Currently, gold accounts for approximately 3.9% of global wealth, while Bitcoin accounts for only 0.35%. If Bitcoin’s allocation to global portfolios rises to just 3%, still well below gold’s share, its market capitalization could soar to $20 trillion, pushing the price of each Bitcoin to $1 million.
Historically, gold’s market capitalization has grown significantly following launch exchange traded funds In 2004, its portfolio allocation increased from 1.67% to 4.74% over the next decade.
Related reading
If Bitcoin follows a similar trajectory, its allocation could rise from 0.35% to 1.05% or more, equivalent to a market cap of approximately $7.92 trillion, which equates to approximately $395,000 per Bitcoin. Therefore, reaching $1 million does not require Bitcoin to overtake gold; it would have to account for around 57% of gold’s projected market capitalization by 2034.
Gold accounts for 4.7% of global investment portfolios, while Bitcoin accounts for only 0.35%. If Bitcoin’s share of global wealth increased slightly to 3% (only 60% of gold allocations), it could “easily” lead to $20 trillion market cap and $1 million price view.
At the time of writing, BTC is trading at $92,240, up 7% on a weekly basis.
Featured images from DALL-E, charts from TradingView.com
