After reading a clear and concise Bitcoin for beginners guide, price is often one of the next most exciting topics for a potential investor. What will bitcoin be worth in 2030? What will it be worth five years from now? Reviewing several factors can tell us what BTC could be worth in a few years.
This article goes over three factors that could determine Bitcoin’s future price growth and tries to draw conclusions regarding the asset’s future price. These assumptions are not to be construed as financial advice, as Bitcoin remains a work in progress.
Factors Driving Bitcoin Prices
Several factors cause cryptocurrency to rise and fall. This section, however, focuses on what has been driving Bitcoin’s price growth and evidence that this could continue into the foreseeable future:
- Institutional Adoption
One big reason Bitcoin’s price has grown significantly in the past decade is that more institutional investors have started allocating to the asset. Similarly, some of the world’s largest financial services providers are also queuing in and offering Bitcoin-related services to their most prominent clients.
For instance, in April 2022, the famous U.S. bank Goldman Sachs offered its first Bitcoin-backed credit facility. The bank issued a loan collateralized by a client’s bitcoin deposit. Such integration undoubtedly increases institutional interest in Bitcoin, as it reveals’ bitcoin’s usefulness as a liquid asset.
Meanwhile, other companies, including MicroStrategy, Block, Meitu, and Tesla, have allocated a portion of their corporate treasury to Bitcoin, albeit in varying proportions. This scope of institutional adoption ensures that fewer bitcoins are available on the open market, further driving price action.
- Retail Adoption
The adoption of bitcoin by retail investors has also been another factor driving the price. Such adoption primarily occurs in countries with high inflation and other issues unique to fiat currency regimes. There has been considerable uptake of Bitcoin in Nigeria, Argentina, and Turkey, where inflation has run into triple digits over the past decade.
It is also being joked within the Bitcoin community that the asset has already become a global reserve asset for smaller investors, akin to how many central banks and governments maintain fiat currency reserves. This growing use case for Bitcoin will also likely continue as the asset grows in popularity. Several reports estimate that we now have close to 300 million bitcoin investors globally, a significant figure for a network that barely existed during the previous decade.
- Bitcoin’s Economic Model
Perhaps the most significant factor driving Bitcoin’s price is the asset’s in-built deflationary model. The total supply of bitcoins that will ever exist is already known. There are also hardcoded halvings designed to create a supply shock by reducing the number of coins released every four years.
Bitcoin’s halving has been a known catalyst to the asset’s price increase, with the BTC price reaching new highs within 18 months of each halving. Although there is no guarantee that such meteoric price rises will continue to be the case, there are chances it will continue and sends the asset’s price a lot higher in the years ahead.
What Will Bitcoin Be Worth in 2030?
Bitcoin could be worth at least $100,000 in 2030 if the factors considered above continue to drive price action. That is, if more institutional and retail investors allocate the assets, the hard-coded economic model continues to play out as designed.
Bitcoin investors must also keep an eye on bitcoin news today to identify new trends such as the nation-state adoption of bitcoin and the asset’s increased usage as a payment rail through the Lightning network. However, the stars seem to be aligning for Bitcoin’s price to keep rising, albeit with short-term volatility that weeds out impatient investors and rewards the most patient holders.