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How Bitcoin will reach 1 million dollars

By Guardian Nigeria
20 July 2022   |   8:44 am
Some people believe that Bitcoin will rise to $1 million over the long term to become a reserve currency for the world. According to a US-based ARK Investment Management LLC's report, people believe that in 2030, the price of one Bitcoin could exceed $1 million. Also, according to the report, Bitcoin mining will encourage and…

Some people believe that Bitcoin will rise to $1 million over the long term to become a reserve currency for the world. According to a US-based ARK Investment Management LLC’s report, people believe that in 2030, the price of one Bitcoin could exceed $1 million. Also, according to the report, Bitcoin mining will encourage and use electricity from renewable carbon-accessible sources. In the end, institutional investors will continue to purchase or sell Bitcoin via Tesler slowly but surely.

According to the report, Bitcoin’s market participants are maturing and are focused on the long term. The report further noted that this virtual asset is attracting institutional holders. Exchange-traded products, countries, and corporations held 8% of Bitcoins supply as of November 2021.

People believe that Bitcoin will eventually become the global reserve currency and much larger than the gold market cap.

JPMorgan’s Long-Term Bitcoin Price Target
JPMorgan released a note for a theoretical long-term price target on this digital currency of $146 000 in January, adding that it competes with gold. On the other hand, people accept gold as a haven for investors. Now, Bitcoin is beginning to develop such a reputation.

This digital asset is also competing with traditional gold and a form of digital gold. Also, the private sector’s gold value for investment is around $2.7 trillion. For Bitcoin’s market cap to reach $2.7 trillion, it will need to hit a price of approximately $146,000. 

On the other hand, there are cautions, the biggest one being the volatility of the price of this virtual currency. This electronic currency is known for its wild price swings. In other words, Bitcoin is more volatile than gold. Institutional adoption is key to Bitcoin’s volatility converging with gold. As a result, the faster the pace of institutional adoption, the quicker that merging is in volatility. 

Widespread Adoption
There is the increased accessibility of this digital asset, especially in the U.S. The Lightning Network, innovation, and the integral role of Bitcoin’s layer two scaling solutions were vital in bringing more users to this digital currency domestically. Payment apps like CashApp have utilized the Lightning Network to onboard millions of users to the Bitcoin network.

Also, aside from creating this digital money as a hedge against inflation, it can be a hedge against traditional currencies’ manipulation by the government in developing markets. As a result, more high-net-worth individuals will use this digital currency as an insurance policy against governments’ confiscating their wealth. 

Why is Bitcoin Rallying?
Many factors are behind the rush into Bitcoin. Also, there has been significant retail and institutional investors’ participation. Also, large companies, including Tesla, are getting more involved with this digital asset. On the other hand, central banks have been easing monetary policy such as buying assets via the so-called quantitative easing programs and lowering interest rates cushioning the blow to economies hit by the coronavirus pandemic. 

In addition, Bitcoin’s bull prediction that Bitcoin could hit $1 million relies on a few factors, including the scarcity of this digital currency, which has a hard cap of 21 million coins, and the technology’s decentralized nature. No central authority controls Bitcoin, such as a national government or a central bank.

The Bottom Line
As investor interest in this digital asset increases, this digital asset could rise to $1 million in the next five years. Also, the year after halving seems to create a considerable rise. Therefore, investing in Bitcoin today could be wise for any investor interested in cryptocurrency.