South Korean analyst predicts Bitcoin price to rise 642% over next decade
Date: 2024-08-20 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
A leading South Korean analyst has predicted that Bitcoin (BTC) prices could rise by a maximum of 642% in the next decade.
The forecast was presented in a report by Hanwha Investment & Securities researcher Kim Yoo-min titled “Bitcoin: From Cyberpunk to Wall Street.”
Kim’s analysis found that “in the future, Bitcoin prices will rise by a minimum of 84% and a maximum of 642%” from current levels over the next decade.
If BTC prices rise by about 642%, Bitcoin will reach “around 616 million won [$460,790]” by 2034.
The analyst based his analysis on data related to gold and credit default swaps (CDS), noting that Bitcoin also provides investors with a “store of value” and “decentralization.”
The report notes that Bitcoin is “easier to trade and store than gold.”
It also highlights that such assumptions are becoming more likely as policymakers discuss “the possibility of Bitcoin as a national reserve asset.”
If Bitcoin’s popularity surpasses that of gold and it becomes a serious candidate for central bank reserve funds and investors, the token’s “upside potential” could reach 577%.
It was also stated that investors who hold U.S. Treasuries buy CDSs to hedge the risk of government default and reduce their overall exposure to the U.S. economy. These transactions function similarly to Bitcoin in terms of hedging central bank risk.
US Debt and Government Adoption of BTC Key Factors
The analyst also factored in the increase in US government debt through 2034, predicting that it could grow to $600 billion by 2034.
Investing in Bitcoin could help hedge against the risk of a US government default. However, the expert pointed out that “there are other assets out there,” and that BTC prices could only grow by 162% over the next decade.
However, the report suggests that the health of the US economy will not be the only factor driving BTC prices over the next decade.
It considers “the possibility that countries with [low] currency stability could adopt Bitcoin as legal tender.”
“Assuming 10% of M2’s $1.6 trillion annual supply is allocated to Bitcoin over the next 10 years, the coin’s upside potential would be 642%,” the report says.
Economists use the term M2 to refer to the amount of cash in a country that citizens hold either in hand or in short-term bank deposits.
Earlier this summer, regulators in Argentina held talks with their counterparts in El Salvador about its experience with Bitcoin adoption.
However, to date, El Salvador remains the only country in the world to have adopted Bitcoin at this level. The country officially adopted Bitcoin as legal tender in September 2021.
