Bitcoin only has a better chance of hitting $10 million by 2023 if layer technology and wallet infrastructure improve.
The startling prediction was first made 13 years ago by the late Hal Finney, an early Bitcoin contributor, in his infamous Bitcoin thought experiment.
To remember that, let’s go back to what he wrote. According to Finney’s “amusing thought experiment,” BTC’s inherent 21 million-coin issuance cap will boost its price as it becomes the world’s major payments system.
According to Finney’s estimate, total global household wealth was somewhere between $100 trillion and $300 trillion at the time of writing. “With 20 million coins, each coin is approximately worth $10 million.”
Finney’s predictions have been criticized for being overly optimistic. One that skeptics considered exaggerated was the notion that the entire world would run entirely on bitcoin.
Nonetheless, the global economy has been growing since the post was published and the recent recovery in the crypto market has prompted a bullish outlook.
Blockstream CEO Adam Back took to Twitter to discuss the possible scenarios in which Finney’s $10 million prediction could become a reality.
Bitcoin’s price has doubled since 2013
According to Back, a Bitcoin Core contributor, if BTC Layer 2 technology and wallet infrastructure continue to advance, BTC could reach $10 million by the end of the sixth halving in 2032.
He pointed out that BTC’s price has averaged c since 2013, and if this pattern continues, the world’s dominant crypto would reach $10 million in price in about nine years and a market value of $200 trillion.
Back clarified that in order to reach this number, advances in wallet infrastructure and layer 2 bitcoin technology need to be accelerated in order for these advances 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.”
The chief executive also ramped up hyperbitcoinization, which he believes could act as a catalyst for the next wave of adoption. The term indicates a hyperinflationary environment where people would see Bitcoin adoption as the only “pragmatic solution.”
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.