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This Top Cryptocurrency Could Reach $1 Million by 2030, Says Jack Dorsey
A growing number of crypto investors now believe that Bitcoin (CRYPTO: BTC) could reach a price of $1 million in the next few years. In addition to Ark Invest’s Cathie Wood, who predicted a $1 million price tag in 2022, there’s now Jack Dorsey, co-founder and former CEO of Twitter. In a recent interview, Dorsey suggested that Bitcoin would reach “at least a million” by 2030.
What makes this prediction so interesting is that it doesn’t come from a Wall Street investment firm. Instead, it comes from the perspective of a technologist with in-depth knowledge of how Bitcoin works, not just how it trades. So if Jack Dorsey is bullish on Bitcoin, should you be too?
Is Bitcoin an asset or a technology, or both?
Investors view Bitcoin in two classic ways. The first approach is to consider Bitcoin as a commodity. From this perspective, Bitcoin is “digital gold” and a store of value, and should be hoarded much like physical gold. The second approach is to consider Bitcoin as a digital currency. From this perspective, Bitcoin functions primarily as a payment mechanism and a medium of exchange.
Image source: Getty Images.
But there is a third way to look at Bitcoin: as a technology. This is how Dorsey thinks about Bitcoin. He sees it as a technology based on blockchain, capable of disrupting the modern financial system. And it’s focused first and foremost on Bitcoin’s thriving ecosystem, which includes everyone from Bitcoin miners to companies creating new Bitcoin payment technologies.
According to Dorsey, every person who touches Bitcoin in a meaningful way helps make it better. He should know: Over the past few years, Dorsey has collaborated on a number of Bitcoin-related projects. Dorsey’s latest project is Oceanwhich is a new Bitcoin mining initiative.
How much is the Bitcoin ecosystem worth?
Given Dorsey’s emphasis on Bitcoin as a technology, it is perhaps natural to ask: “How valuable is the Bitcoin technology ecosystem when it comes to valuing Bitcoin?”
This is a great question, but I’m not sure anyone has really answered it satisfactorily. Ark Invest’s Cathie Wood perhaps comes closest, focusing on Bitcoin’s core use cases. For example, in Ark Invest’s “Big Ideas” 2023 report, it highlighted various roles that Bitcoin can play, including as a remittance asset. So, for example, investors could likely attach greater value to Bitcoin if they see its role in the cross-border remittance market increase over time.
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Another approach is to focus on new products and services that members of this Bitcoin ecosystem are bringing to market. For example, Lightning Labs, already well known for its Lightning Network, is now working to integrate stablecoins and tokenized assets into the Bitcoin blockchain. And Strike continues to bring new Bitcoin payment options to users around the world. All of these products and services help increase the value of Bitcoin by driving its global adoption.
Is Bitcoin really going to hit $1 million?
When it comes to valuing Bitcoin, the focus should be on widespread adoption of Bitcoin. In other words, what are members of the ecosystem doing to make Bitcoin more useful in everyday life? In this case, “utility” means more than just a large number of people buying Bitcoin ETFs for cash. This means that people use Bitcoin as part of a decentralized financial system that empowers individuals, reduces fees, and lowers barriers to entry.
Jack Dorsey is right when he talks about Bitcoin’s collaborative ecosystem. He has experience building technology companies and designing innovative technologies and platforms. He understands how important community and collaboration are to the success and widespread adoption of any new technology.
While I am still not convinced that Bitcoin will reach the mythical $1 million price by 2030, I am convinced that Bitcoin is currently undervalued at its current price of $63,000. Indeed, too many investors focus on Bitcoin as a financial asset and not as a digital technology capable of disrupting the modern financial system. With this in mind, I am optimistic about Bitcoin’s long-term prospects.
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Dominique Basulto has positions in Bitcoin. The Motley Fool posts and recommends Bitcoin. The Mad Motley has a disclosure policy.
This Top Cryptocurrency Could Reach $1 Million by 2030, Says Jack Dorsey was originally published by The Motley Fool