How Much Bitcoin Could Cost and What It Means for UMI

There are plenty of experts out there who promise that bitcoin will soon cost $ 100,000, $ 500,000 and even a million dollars. Those who predict its fall to zero value are just a little less numerous. Who can we trust? Is there any growth ceiling for the first cryptocurrency and, if so, what’s its value? A short while ago, bitcoin joined the top 30 assets with highest capitalization. If it grows several-fold, it’ll be one of the most valuable assets in the world. How much will bitcoin cost in a week, in some months or years? Answers to these questions are really important for UMI users. It’s because bitcoin supports UMI liquidity in the order book. If ВТС price grows, liquidity will grow too. Don’t be alarmed — we chose bitcoin as support currency for a reason. However much it costs, it’s the most reliable cryptocurrency that is here to stay and will never lose value. We looked at how much bitcoin might cost, why it’s more reliable than the dollar and what bitcoin price is forecast by experts.

By the end of this year bitcoin could reach $ 20,000

This year, bitcoin has shown strong growth. Since the start of the year it’s grown by nearly 140 % — from $ 7200 to $ 17,500; in October it’s grown by 29 %. Today’s price is the maximum since January 2018. The coin has a market share of over 66 %. Many analysts are eager to predict the next milestone in bitcoin growth. There’s a very good chance that by the end of this year we’ll see its price reaching $ 20,000.   

Bloomberg’s analysts are among those who think that bitcoin could bounce back to record maximum values this year. In their June report, they announced that current BTC growth patterns are no different from those seen before the previous bull runs. This is why they expect bitcoin to reach $ 20,000 by the end of the year. Judging by ВТС growth rate, this prediction has an excellent chance of coming true.

The agency’s analysts believe bitcoin price will not grow only if “something goes wrong”. Having studied Bitcoin and Tether futures, the authors of the report added they believed in bitcoin more than in crude oil, gold, shares and raw materials. They also noted that use of bitcoin in everyday life by regular citizens is becoming more popular and convenient while institutional investors invest more in bitcoin. Therefore, they assume that ВТС price could reach $ 28,000 next year.   

In July report by the reputable crypto analytics company Crypto Research, forecasts are similar to those by Bloomberg. Experts believe that bitcoin will grow to $ 19,000 by the end of the year. 

Here are some more reports regarding ВТС price for the near future:

  • $ 40,000 by the end of 2021 — a well-known crypto blogger Ivan Liljeqvist (Ivan on Tech); 
  • $ 55,000 in 2021–2022 — Plan B, a well-known anonymous crypto analyst and trader;
  • $ 100,000 by the end of 2021 — Anthony Pompliano, co-founder of Morgan Creek Digital and early bitcoin investor. He believes this price is possible due to “limited supply and increased demand”;
  • $ 120,000 by the end of 2021 — Citibank analysts believe that if bitcoin passes the mark of $ 13 ,850 (it has already passed it), this price could be reached in a year.  

Most Russian experts surveyed by RBC-CRYPTO in August and October believe that ВТС will cost around $ 14,000 by the end of this year and could reach $ 20,000 by the end of next year. Experts also warn about risks of possible adjustments when ВТС price could fall below $ 10,000, even down to $ 6,000.   

How much bitcoin will cost in 10 years 

Naturally, all long-term forecasts are very rough. No one can predict how much precisely the coin will cost by the end of the week. Let alone a whole decade or more. However, investors cannot just stop thinking about it — how will they invest in this asset then? 

Most crypto enthusiasts are convinced that bitcoin will increase in price at a steady pace and will grow by several, maybe dozens of times. You can easily find forecasts predicting any bitcoin price: 20 K, 30 K, 50 K, 100 K, 300 K, 400 K, 500 K and even a million dollars per coin. 

Here are some most recent forecasts of ВТС price for the next few years: 

  • $ 50,000 — analyst Ronnie Moas;
  • $ 75,000 over the next three years — Robert Kiyosaki, author of the best-seller Rich Dad Poor Dad; 
  • $ 100,000 — cryptoanalyst Max Keiser;
  • $ 100,000 by 2027 — Kay Van-Petersen, analyst at Saxo Bank;
  • $ 100,000 over the next few years — Max Keiser, founder of Heisenberg Capital. The expert forecasts exponential growth for the coin after its prices surpasses $ 28,000. Over the long term, he forecast growth up to $ 400,000;
  • $ 288,000 over the next few years — Plan B cryptoanalyst;
  • $ 300,000 over 5 years “even without institutional acceptance” — Adam Back, bitcoin developer and Blockstream CEO; 
  • $ 340,000 in 2025 and $ 400,000 in 2030 — Crypto Research analysts in the report published in June 2020;

Комплексный анализ прогнозирует цену биткойна около $ 20 тыс. В этом году, $398 тыс. к 2030 годуForecasts for ВТС, ВСН, ЕТН, LTC, XLM prices in Crypto Research Report. Source: Crypto Research Report

  • $ 400,000 by 2030 — Andy Edstrom, asset manager at the Californian investment and consulting firm WESCAP;
  • $ 400,000 (with no indication of date) — Mark Yusko, founder of Morgan Creek Capital. “It’s just math. It is gold equivalent… there are about 20 million Bitcoin available today. Gold today is about $8 trillion. That gives you $400,000. And that doesn’t include use cases that relate to currency”, Yusko explained his forecast;
  • $ 500,000 by 2030 — Jeremy Liew, Executive Director at Lightspeed Venture Partners;
  • $ 1,000,000 — John McAfee, McAfee investor and founder. In 2017 he was confident that ВТС price would reach a million dollars by the end of 2020 and promised to eat his penis if his prediction doesn’t come true. Later, however, he said his own forecast was complete nonsense and those who thought it was a real deal were idiots;
  • $ 1,000,000 by 2027 — Wences Casares, CEO at Xapo, in 2017; 
  • $ 1,000,000 by 2037 — Chamath Palihapitiya, co-owner of Golden State Warriors and founder of Social Capital. He also thinks in about four years bitcoin price will most probably surpass $ 100,000. “It’s potentially comparable with the price of gold… it’s fantastic hedging and value storage against autocratic regimes and banking infrastructure,” Palihapitiya explained his position;
  • $ 1,000,000 in 5 years — Raoul Pal, former manager at Goldman Sachs hedge fund and founder of Real Vision. The expert explains this growth by an “enormous wall of money” coming to the market from institutional investors.

No one actually knows how much bitcoin will cost 

No one actually knows how much bitcoin will cost. It’s not because there aren’t enough smart people. It’s because it’s impossible to give a precise estimate. Bitcoin price depends on too many variables that cannot be calculated in advance. In the end, an unexpected event no one could predict might occur at any time (for instance, coronavirus) and change the trend of many years. Moreover, bitcoin, like other cryptocurrencies, is a unique asset unlike any others that is hard to analyze. 

To be fair, it’s not just bitcoin price that’s hard to predict. Analysts sometimes make errors in forecasts for conventional assets. Thus, experts from oil-producing countries budgeted an average oil price of $ 70–110 per barrel for 2015, while in real life it dropped below $ 50! In the middle of the same year, most analysts predicted that the price of dollar in Russia would remain around 35 rubles, but it cost 80–90 rubles by the New Year’s Day. 

Therefore, there’s no simple and precise answer to the question “How much will and can bitcoin cost?” . No one knows that. It’s true that experts rely on special models and have a good command of asset price forecasting tools. In quiet times, their predictions come true, but as soon as something goes wrong in the world (which happens all the time), their models don’t work. As a result, all predictions become short-term and inaccurate. 

Probable bitcoin price in the next few years will be $ 20,000–30,000 

To reiterate, no one knows how much bitcoin will cost at a certain period. It has dozens, maybe hundreds of years to develop. Over this time, it could well reach the price of the proverbial million per coin, maybe more. However, for the next 10 years forecasts of the price of the first cryptocurrency reaching 50 K, 100 K or more dollars seem too optimistic. And here’s why. 

Many experts who predict stratospheric prices for bitcoin are highly interested in its growth — they have invested money in it. This is why they pass off their belief in future growth as extensive analysis and hope it will have an indirect impact on price growth. Most often they simply transfer past rates of bitcoin growth into the future. However, if it grew by 20 times in 2017, it doesn’t mean it’ll grow as fast again one day. There’s a huge difference between growing several-fold from $ 10 or from $ 10,000.   

Moreover, bitcoin can hardly go up in price infinitely. Thus, at the price of $ 1 mln per coin its capitalization will be about $ 18.5 trln — it’s nearly 18 % of the global GDP, 5 times more than the US annual budget or 61 times more than the Russian annual budget. No matter how good bitcoin is as a means of value exchange and storage, it could hardly cost more than the economy of a dozen developed countries. On the other hand, stranger things happened in this world. 

The same can be said about forecasts of bitcoin price at the level of several hundreds of dollars. With the bitcoin price at $ 500,000, its capitalization (cost of all coins together) will be over $ 9 trln (currently, ВТС capitalization is $ 327 bln). With the price at $ 100,000, its capitalization will be $ 1.8 trln — it’s still a huge amount, but not as unbelievable considering that Apple costs over two trillion dollars. Therefore, we assume ВТС price at the level of 100 K dollars is not impossible. But we think we shouldn’t expect these prices in the next few years. The 2017 spike will hardly happen again — back then, the general public had no knowledge of bitcoin while now over 100 mln people in the world own cryptocurrencies

Anyway, bitcoin is still at the very start of large-scale acceptance. The number of ВТС users doubles each year and will apparently continue to grow. Billions of people will use it in the not so distant future. Therefore, there’re no essential reasons why bitcoin couldn’t cost more than $ 100,000. The more people use cryptocurrencies — the more advanced infrastructure will be offered by the market; the more institutional funds come to the sector — the more highly demanded and expensive bitcoin will be. In the end, when it cost nothing, no one believed it would one day sell at $ 10,000–$ 20,000.  

However, it’s most likely that ВТС price in the next few years will remain in the range from $ 15,000 to $ 30,000. This price range means investors can make profit, preserve their faith in the coin and survive wild swings of the price. 

At any rate, even with its current price of over $ 17,000 bitcoin is in the TOP 30 global assets with highest capitalization. At the time this article is published, bitcoin capitalization is $ 325 bln. Once its price surpasses $ 20,000, it’ll join the TOP 20. 

Bitcoin will most certainly not lose all its value 

No matter how much bitcoin costs in a few years, it will most certainly not lose all its value even though its price can change multifold over short periods of time. Moreover, it has multiple reasons to continue going up in price in the long term:

  • Limited issuance. Anti-inflation nature: bitcoin is designed to go up in price. For instance, dollars are issued with no limits while there will never be more than 21 mln bitcoins (the last bitcoin to be mined around 2140). Right now 18.5 mln coins are in circulation, with a part of them forever lost. With an increasing interest towards an asset, its price will grow for a very mundane reason — if demand becomes higher, there won’t be enough coins for everyone;
  • Mining. Bitcoin mining is a very cost-intensive business, requiring huge consumption of power. It’s not so good for the environment (for instance, UMI staking is a lot more environment-friendly and power saving). However, mining is a great tool ensuring growth of coin price. The more money miners invest in the mining of bitcoin, the higher is the price they’re willing to set;
  • Bitcoin is a protection asset. In crisis times, the first cryptocurrency proves to be a great “safe haven” for investors — they switch to it from other assets trying to minimize their risks. It makes bitcoin a digital equivalent of gold. ВТС’s protective properties were noticed by institutional investors (large funds and financial companies), with the volume of institutional investment growing year on year; 
  • Consequences of monetary policies of central banks. Central banks do a great favor to bitcoin and cryptocurrencies by printing huge amounts of unbacked currency to support their domestic financial systems. The US Federal Reserve System is the leader in issuing unbacked currencies. In 2020 alone, they printed over $ 9 trln out of thin air and have no intention of stopping.  

Why UMI liquidity is backed by bitcoin

UMI staking is backed by liquidity in bitcoins collected in the order book on the platform for price support. Bitcoins earned by our team via buying UMI for ВТС and the Crypto-By-Card service are added to the buy order book on Today, it has over $ 2.4 mln (over 138 ВТС). We do this to help UMI holders sell staked coins with no trouble, without worrying the price might drop. This system also helps the buy order grow along with growing ВТС price. UMI is the only cryptocurrency employing this model. We will continue to add orders to the order book to ensure coin liquidity and stability. 

We chose bitcoin for UMI liquidity support for a reason. This cryptocurrency has been the most reliable, well tested and profitable for its investors for 12 years. $ 1,000 invested in the coin in 2015 has now turned into $ 70,000. We’re confident bitcoin will not disappoint its investors in the future. 

Moreover, bitcoin is one of the most widely used cryptocurrencies in the world — it’s more popular than most national currencies. We believe that today cryptocurrencies are more reliable than fiat currencies, and in the future their superiority will continue to strengthen, their price will grow. This is why, ideologically, we support bitcoin rather than dollar. We also believe in the successful future of cryptocurrencies. A future where UMI and bitcoin will walk hand in hand and forge a new decentralized world! 

Sincerely yours, UMI Team!