Blockchain CEO and Founder Peter Smith and Jeremy Liew, the first investor in social media app Snapchat, shared their thoughts on the future of bitcoin in a presentation sent to Business Insider. The two industry experts argue that Bitcoin could, and should, be worth upwards of $500,000 by 2030. Their reasoning is based on an increased interest in the cryptocurrency largely thanks to recent developments and trends.
According to the two men, international money transfers have doubled in the last 15 years and, “Expats sending money home have found in Bitcoin an inexpensive alternative.” They predict a sharp increase in the percentage bitcoin-based transfers as awareness of the cryptocurrency rises.
Smith and Liew also cite political uncertainty as a reason for bitcoin optimism. According to them, bitcoin awareness, liquidity, transportation and market outperformance allow it to overcome geopolitical risks and dangers, creating a potentially sound and profitable investment opportunity.
Thanks to growing smartphone utilization numbers, the number of mobile transactions will double, according to Liew and Smith. They see this trend as a penetration point for bitcoin and they believe that bitcoin could account for half of all mobile transactions in the future.
The pair also provides quantitative factors that drive their optimism about bitcoin. Based on the current bitcoin price and the current growth rate, they predicted that by 2030 the number of bitcoin users will grow 61x and the average bitcoin user will hold $25,000 worth of the digital currency. Based on these predictions, Smith and Liew calculated a bitcoin market cap of about $10 trillion. The market cap and predicted supply of about 20 million bitcoin by 2030 brought them to their final valuation of $500,000 per bitcoin.
Liew and Smith do warn against particular uncertainties surrounding bitcoin, namely, China’s crackdown on bitcoin trading and the SEC denial of two bitcoin-related ETFs. However, according to Smith, the SEC decisions were expected and it will take some time before bitcoin securities gain approval. The other glaring issue with bitcoin is the risk of a hard fork which puts current bitcoin holders at risk, but Smith argues, “bitcoin has strong economic incentives to prevent this” and we should not underestimate the resiliency of the currency.
The prediction of Smith and Liew is certainly bold but their reasoning is logical. The argument is music to the ears of current bitcoin holders, and only time will tell if it can persuade new investors to hop on board the bitcoin train.
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