Cryptocurrency, created to revolutionize world finance, today is restricted to an instrument for investment. The highly volatile market of the digital currency experienced its market capitalisation erode from about $2,200 billion in March 2022 to $830 billion in December 2022. However, investors are bullish on the cryptocurrency market. In addition, they are highly optimistic for the digital assets markets over the next few years. Recently, fund manager and bitcoin expert Jesse Myers predicted an exorbitant bitcoin (BTC) price target. Myers has analysed the Bitcoin when unlocked with its full potential could have a market value of $10 million/ BTC in today’s value of dollar. This means the digital gold could 500x in the coming decade as claimed by Myers. It’s expected to have potential of reaching a whopping 25% share in the world’s wealth. Which according to the bitcoin expert are his conservative estimates.
Currently, the global allocation of bitcoin is 0.05% that is about $400 billion. This makes it 1/2000th of the global asset value as presented in the fund managers blog post. The BTC is also categorised as “Digital gold” since its often compared with gold. Myers is betting on the fact, due to the scarce nature of bitcoin, the value stored in bitcoin increases with time. He argues that gold is good store of purchasing power in contrast, BTC is growing purchasing power. However, Myers is not alone eyeing stratospheric BTC prise valuation. ARK, an investment giant has predicted a price of $1 million by the end of this year. While, in a bearish market it still estimates it at $258,000 as analysed in its “Big Ideas 2023” outlook report.
Furthermore, chief investment officer (CIO) of Bitwise asset management, Matt Hougan. Which is a $1.3 billion digital asset fund. Has expressed his highly optimistic predictions and opinions on the market. Hougan on a youtube channel “The wolf of all streets” has expressed how bullish he is for the digital assets market for the coming three years. One of the key reasons the CIO is optimistic about meteoric growth in digital assets value, is that he believes, this is the market cycle wherein the cryptocurrency will actually go mainstream. What he is betting is on scalability.
He has cited that the reason he is bullish for the crypto market is this technology breakthrough which will drive the crypto market. A breakthrough which he claims to be bigger than non-fungible tokens (NFT) , decentralized finance (DeFi) or stablecoins. This breakthrough will reduce the cost of transactions. Such as Ethereum, earlier had transaction costs hit as high as $200 for each transaction. This halted the mainstream adoption of cryptocurrencies, which now will be facilitated with lower costs. With the pace of technology progress in blockchain the fee has gone down from $3 to $1.5, to now just $0.12. By the end of the year it will be a fraction of penny. What this will allow is for market adoption.
Moreover, currently the market is already seeing a surge as it’s 50% up this year. “With investors bullish the market is expected to reach heights by the end of the year”, with a positive outlook for 2024 and 2025, said Hougan.