Bitcoin could cross the $1 million level over the next five years according to a crypto expert
Recently, a Coindesk editor, Ollie Leech, said Bitcoin would eventually go to $1 million. While he is unsure when this will happen, the editor believes it could be somewhere around 2025. This is just after the 2024 Bitcoin halving.
The editor also believes that besides the halving, growing institutional adoption will play a role in the exponential adoption of Bitcoin. But how realistic are these projections?
Well, going by Bitcoin’s history, such projections are a possibility.
For starters, Bitcoin has experienced a significant jump in value after every halving event. The first Bitcoin halving happened on November 28th, 2012. What followed is that the price of Bitcoin went from $12 to around $1200 a year later.
The second Bitcoin halving took place on July 9th, 2016. After this event, the price of Bitcoin went from $647 to around $20k in December 2017.
A similar trend was witnessed after the 3rd Bitcoin halving on May 11th, 2020. What followed is that Bitcoin jumped from $8000 to over $64k.
One clear thing is that after each halving, the price of Bitcoin jumps exponentially. In essence, if the trend is anything to go by, Bitcoin hitting $1 million a coin after the 2024 halving is within the realms of possibility.
The thing is, Bitcoin’s rallies after halving have a quantifiable rationale behind them. Since its inception, Bitcoin’s demand has been growing consistently.
Whether it’s on the dark web in its early days or major institutions now, the demand has been on a consistent uptrend.
However, the supply of new Bitcoins hitting the markets has been on a consistent decline. During the first Bitcoin halving, the block rewards for miners went from 50 to 25.
In the second halving, the block rewards were slashed from 25 to 12.5. In the halving of 2024, the rewards will drop from 12.5 to 6.25. This means that the growing demand for Bitcoin is ever-chasing a shrinking supply.
Other than the halving, things look much better for Bitcoin than during the previous halving events.
In 2021, Bitcoin has experienced a level of mainstreaming like never before. This year, El Salvador announced that it would be using Bitcoin as legal tender.
While El Salvador is a small country with little influence in global geopolitics, it still marks a considerable milestone for Bitcoin in terms of mainstream legitimacy.
Besides the adoption by El Salvador, Bitcoin has experienced massive adoption by major institutions in the US and elsewhere.
One of the institutions that have been most aggressive in adopting Bitcoin is Microstrategy. The US software has been aggressively buying Bitcoin over the past year and now has over $3 billion worth of Bitcoin.
Other institutions that have been moving towards Bitcoin are JP Morgan and Goldman Sachs. These institutions have indicated that they would be offering Bitcoin products, especially to their wealthy clients.
Of course, the biggest news with regards to Bitcoin adoption came from Tesla. While the company later paused on Bitcoin payments, Elon Musk has since stated they are still open to the idea of accepting Bitcoin for payments.
This institutional mainstreaming and the fact that halving makes Bitcoin ever scarcer could see Bitcoin test prices above $1 million by 2025.
Even on the retail side of things, adoption is set only to get bigger going into the future. This is evident in major payments companies like Paypal, MasterCard, and Visa moving to start accepting it for payments. MasterCard even did a survey and found that 40% of its users plan to transact in crypto by 2023.
All these are demand factors that will likely see Bitcoin hit $1 million or even more after the 2024 block halving.