The crypto space has grown exponentially this year, and Bitcoin (BTC) is no exception. With a market cap of over $125 billion, BTC is the most valuable cryptocurrency in existence. But Bitcoin’s dominance might be short-lived. Major altcoins like Ethereum and Litecoin are both forecasted to have larger market caps than even BTC by 2030, according to some projections. This article will take a look at why and how that could happen. Bitcoin’s market cap is currently over $125 billion. Ethereum’s is well over $90 billion and Ripple’s is over $40 billion. These figures give Bitcoin a market cap of around 50% compared to Ethereum at 32% and Ripple at 16%. But these figures still don’t tell the whole story. The key point that needs to be understood about the crypto space is that we are now in an era where all cryptocurrencies are considered to be on par with one another, which was not the case even a year ago. For instance, if Ethereum were to be valued at the same price as Bitcoin in 2019, BTC would be up around 625% while ETH would have risen 518%.
Short-Term Price Potential
Bitcoin’s price has been rising steadily since the beginning of 2017. In recent months, BTC has made a series of higher highs, breaking the $4,400 barrier for the first time in November and managing to secure a “base” above $4,000. As a result of its strong performance so far this year, some think Bitcoin could be poised to continue its upward movement. A popular technical analyst, known as The Crypto Dog on Twitter, recently gave his short-term price prediction for BTC; he believes that it will perform similarly to how it did back in 2013 when it surged above $1,250. This would happen by May 2019, according to his forecast.
More bullish are other analysts who believe that Bitcoin could surge to $7,000 in the coming months and reach a market cap of around $1 trillion. However, this is based on the assumption that BTC is adopted as a world reserve currency. Such a scenario will only unfold if the world suddenly loses faith in the U.S dollar and its ability to fulfill its role as global reserve currency. This could happen if the U.S government introduces negative interest rates for holding money in their national bank system (similar to Japan).
Bitcoin (BTC) Price Action
The cost of Bitcoin, as well as the cost of installing a Bitcoin payment system, is quite high. Considering this, it would be ridiculous for Bitcoin to get adopted as the world’s reserve currency as it currently does not hold any real value. However, this does not mean that BTC will not gain widespread adoption. In fact, many commentators believe that the crypto space is slowly but surely entering its “Goldilocks” stage. This growth phase will see a steady increase in use and demand for cryptocurrency among users worldwide. The number of those who will “hodl” (hold onto their digital assets) is also expected to increase.
The factors most likely to cause a rise in the price of BTC in the near future include:
· Increasing adoption as a store of value
.Rising institutional interest
.Sustained developer activity surrounding blockchain technology.
Long-Term Price Potential: Valuation and Metrics for BTC to Reach Market Cap > $1 Trillion by 2030
When considering the long-term price potential of Bitcoin, it is important to be aware that there are actually different metrics (methods) for determining its valuation. The most common one used today is known as Metcalfe’s Law, which states that the value of a network is proportional to the square number of its users. On the other hand, there are also those who believe that Bitcoin’s performance of late is actually the result of a new super-bubble. If a bubble does occur, then it will almost certainly burst before long. If this happens, Bitcoin could drop to as low as $250.
Determining BTC’s Indicative Long-Term Value
Since we are dealing with the future, there is no way to determine if Bitcoin is currently in a bubble or if it will eventually become the world’s reserve currency. We can only make predictions based on the fundamentals of the cryptocurrency market. So, it is logical to assume that Bitcoin will reach a market cap of at least $1 trillion by 2030. In order for BTC to accomplish this feat, it needs to rise from its current value of around $4,000 (at the end of 2018) up to about $12,000 in value. One key fundamental factor in this scenario is that Bitcoin’s share as a world payment currency will rise significantly and grow over time.
