Bitcoin is the digital currency that started a whole new market: cryptocurrencies. From 2009 to 2013 the trend was quite slow, but from 2013 to now Bitcoin has captured the headlines of newspapers around the world, with adoption soaring. And of course, the price has also had several jolts both upwards and downwards. Bitcoin is currently the best performing asset of the last decade, but we must admit that holding BTC is not easy considering we have seen it dump 50-90% on many occasions. However, BTC has always come back stronger than before and today we are going to list some reasons why we at DeFi.cx think that BTC will be worth between $100,000 and $1,000,000 per piece! We are extremely Bullish, wouldn’t you say?
BTC towards 1 million – Why?
1) BTC will become legal tender in many states: The First country to accept bitcoin as a Legal Tender was El Salvador. A small country in Latin America that is making huge strides, by going as far as giving an Airdrop of BTC to all inhabitants of legal age who download the BTC Wallet offered by the country. Since El Salvador has about 4 million inhabitants of age, in one fell swoop BTC adoption will grow by 4 million new users. And imagine what will happen when larger countries accept BTC as a legal tender and perhaps make a similar move? The user base could grow to billions of people worldwide!
2) It will be harder and harder to mine BTC – Halving is obviously one of the main reasons why we see new price increases every 4 years. What happens? Simply that the BTC mined per block halves, making it a super scarce asset and increasing its value. During the last halving of 2020, BTC had a crazy climb, starting at $3000 in March and going up to $64,000 a year later. Now we are seeing a price correction that has taken it to 28k USD, but what will happen during the next halving? Or the one after that? Definitely price rises that no one can even imagine!
3) FIAT currencies are failing – With the Covid crisis we have seen what countries can do with fiat currencies. As an example, trillions of new dollars have been printed in the US which will sooner or later deliver an unprecedented blow to the US economy. Many crypto Twitter influencers have started to joke about it, comparing the dollar to a shitcoin as 25% of the supply has been printed in the last year, the state holds more than half of the tokens and inflation is skyrocketing. The same applies to the euro and all other fiat currencies. BTC is set to stay and change the world, creating the biggest wealth transfer of the whole century!
4) DeFi will destroy CeFi – Decentralized Finance is reporting great numbers and has grown from 1B TVL 1 year ago to about 100B TVL a few days ago (50B now). DeFi performs much better than CeFi and will sooner or later become a serious competitor to banks and other lending institutions. Even if BTC doesn’t run on Ethereum, where DeFi is currently the strong point, there are many ways to make one’s BTC work by actively participating in different activities. How? Exchanging your BTC for tokenized BTC on Ethereum or other blockchains, using projects like WBTC, pBTC, renBTC and so on. The possibilities are endless!
5) BTC NEVER gives up! – The most important point is precisely this: the strength of BTC to stand up again every time it collapses. I have known and followed BTC for 10 years and have witnessed plenty of problems in the past. When it was not yet so well known, some hacks led to the closure of exchanges that accounted for almost all of BTC’s daily volume such as BTC-E and MTGox. On those occasions BTC collapsed by as much as 90%, only to come back a year later stronger than before. Over the years, BTC collapsed many times, but always came back, after months or years, stronger than before. And if it hasn’t given up in 10 years and in times when it was a niche currency, why should it give up now that there are more than 100 million people using cryptocurrencies?
You can be as bearish as you like, but BTC at 1 million dollars is a SURE THING!