Bitcoin (BTC) to reach millions by 2030, analyst says
A well-known, conservative cryptoanalyst made a bullish comment about the price of Bitcoin. According to a YouTuber, further proliferation of the digital asset will lead to a steady increase of BTC to one million dollars.
On a YouTube video, InvestAnswers signaled that BTC is approaching diminishing returns. Diminishing returns are when an asset reaches a point where increased future investment yields less profit. The cryptoanalyst said that BTC gives investors five times less profit every new market cycle compared to the previous one.
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Bitcoin to be traded for millions of dollars by 2030
However, the analysts offered a different view of bitcoin that contrasted with the digital asset’s apparent diminishing returns. They cited that the value of networks grows as the number of participants increases, according to Metcalfe’s law.
If Bitcoin follows the trend of disruptive networks like cell phones and the internet, using Metcalfe’s Law predicts a bullish scenario for bitcoin. Thus, a modest assessment of BTC’s future price will put it at over a million dollars by the year 2030.
The host made it clear that this prediction was strictly based on the scientific possibility that Metcalfe’s Law holds for the largest cryptocurrency in the world. However, it is not the subject of wishful thinking. According to the analyst, the use of bitcoin digital assets follows the historical patterns of previous technologies.
Similar to InvestAnswers, there have been several observations by several users across the internet, which supports the future strengthening of bitcoin’s price.
Crypto market cycles
As speculation says bitcoin remains bullish in the long run, many are looking forward to taking advantage of the next market cycle.
The market cycle explains ebb and flow in a market. Usually, new markets have a slow start. They choose from a point where people show little or no interest. However, as interest in the asset begins to increase, demand increases, and the price begins to inflate as a result. A complete marketing cycle has four phases: accumulation, markup, distribution and markdown.
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As the increasing interest takes the price of the commodity to new heights, it reaches a point where it eventually peaks. Investors will be satisfied with the return. And then sell off the asset causing tremendous selling pressure. Therefore, the price starts to decrease. After one market cycle ends, the next one soon begins.
Bitcoin price action
Bitcoin has roughly ranged between $22,000 and $18,000 for most of the 3rd quarter of this year. Investors are keenly seeing the state of the broader market as a go-ahead to pump funds into risky assets like bitcoin.
Featured image from Pixabay and chart from TradingView.com
