Blockstream CEO Adam Back believes that as long as Bitcoin Layer 2 technology and wallet infrastructure improves, the price of Bitcoin (BTC) could reach $10 million by the end of the sixth halving in 2032 .
In a Feb. 12 Twitter thread, Back, one of Bitcoin Core’s contributors, explained to his 509,000 followers when Hal Finney’s $10 million price prediction for BTC could come true.
Noting that the price of BTC has doubled on average year-on-year since 2013, he stated that if this trend continues, the BTC price would reach $10 million in about nine years, along with a market cap of 200 trillions of dollars.
However, Back said that to reach that number, improvements in Bitcoin Layer 2 technologies and wallet infrastructure must be accelerated to allow time for these innovations to scale:
“I think things will get “interesting” in the next two halvings. and fast, we don’t have much time to scale the technology. We need a place where the next billion users can own their own UTXO, their own keys, with censorship-resistant cold storage. without weakening the security of the main chain.”
Back said it “probably means sidechains/drivechains as a compromise. more flash optimization […] We don’t have much time as technology takes time to mature, wallets, interop, integration.”
In response to a comment, Back said he believes bitcoin adoption has not yet reached the bottom of the S-curve as only 1-2% of the world’s population has used bitcoin. He predicts that more investors will start “stacking” BTC in cold storage wallets:
“Given the volatility, I think #Bitcoin can overshoot wildly and tap into one of those $100-300 trillion market caps, correct, and then gain steadier acceptance over time. I suspect folks with average entry points relative to the current price will not have much incentive to sell in size.”
The CEO explained that part of this next wave of adoption could come from what he calls “hyperbitcoinization surges” — where people in hyperinflationary environments will “rush” to Bitcoin:
Adam Back believes fiat currency inflation could force people to buy and hold Bitcoin. Source: Twitter.
Related: Blockstream CEO Adam Back discusses Bitcoin over a game of Jenga
However, in response to another comment, Back also admitted that “we have completely failed to fund bitcoin so far.” The cypherpunk suggested that bitcoin could be used in mortgages, using property as collateral and bitcoin as interest:
“The market for Bitcoin-native financialization is immature, almost untouched. structured bitcoin products, mortgages backed by real estate but interest rates guaranteed by BTC, other products make bitcoin easier for more people to use and fit risk profiles. which creates more growth.”
Back added that to approach $10 million, BTC would also need to “crowd out” a significant portion of the premiums in bond, real estate, gold, and stock portfolios.
BTC is currently at $21,800.
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