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Holding 0.001 Bitcoin Could Make You a Multi-Millionaire, Fidelity Head Says
Holding 0.001 Bitcoin Could Make You a Multi-Millionaire, Fidelity Head Says
Bitcoin has made a name for itself as a deflationary and decentralized asset. These properties are written in the source code and cannot be modified. Many see these characteristics and think about how this could potentially drive the price up and wonder how a small investment in Bitcoin could create generational wealth.
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Take a look at what some top analysts are saying about where the price of Bitcoin (BTC) could go in the coming years and decades.
One of the most compelling predictions for the future price of Bitcoin comes from Fidelity Investments. Jurrien Timmer, global head of macro at Fidelity, has claimed that Bitcoin could reach $1 billion by 2038.
The prediction is primarily based on Metcalfe’s Law, which states that the value of a networked financial asset is equal to the square of the number of network users. The law, which digitally emphasizes network effects, has mainly been applied to technologies such as the Internet and social media. However, Timmer believes that the law also applies to Bitcoin.
Bitcoin is, at its core, a network. It helps connect users to facilitate peer-to-peer transactions. According to Timmer and Metcalfe’s law, the value of Bitcoin should increase exponentially as new users join the network. This exponential growth has been demonstrated in the past, with the price of Bitcoin exploding over the past decade, at the same time as the number of users has increased significantly.
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With new spot exchange-traded funds (ETFs), the number of Bitcoin users has also increased, which has been correlated with new all-time highs (ATH). This could provide further evidence of Metcalfe’s Law in practice.
The prediction is based on two main assumptions. First, Timmer assumes that new users of the network will appreciate the connections provided and be able to use them. This could be a problem for those who simply want to invest in Bitcoin as a store of value and don’t want to use it as a means of transacting. Timmer also assumes that the number of Bitcoin users will continue to grow rapidly over the next decade. It is also possible that Bitcoin will fail to achieve the large-scale adoption needed to reach the $1 billion price target.
Despite the assumptions, Timmer presents an interesting case for a billion-dollar BTC using a popular economic model.
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If Bitcoin reaches $1 billion, an investment of $1,000 would be worth $16.7 million in 2038. A minimum investment of $60 or 0.001 BTC would be required to become a millionaire.
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