When will Bitcoin cost $1 million?

One of the favorite pastimes of financial analysts is making forecasts regarding the maximum value of Bitcoin.

For several years now, leading experts from banks and investment funds have been competing to predict how much the leading cryptocurrency will cost in the future.

However, the most optimistic forecast is that Bitcoin will reach a value of $1 million by 2030, 2033 or 2040.

Moreover, according to some financiers, a million dollars is far from the limit of the price that Bitcoin can reach. For example, such a famous American investor as Cathie Wood predicts a maximum value of 1.5 million US dollars per coin.

But how realistic are these predictions and how much could Bitcoin really cost?

If you have already invested in an asset like Bitcoin, you, of course, want to believe that one day it will be worth a million or even a billion dollars.

Unfortunately, Bitcoin is not a unique work of art that is released in a single copy. When forecasting the cost of a coin, one should take into account the fact that there are 21 million coins in circulation and if the price rises, each of them will have to cost $1 million.

That is, it is easy to calculate that the capitalization of Bitcoin in this case will be:

21,000,000 x 1,000,000 = 21,000000000000 or 21 trillion US dollars.

Now let's move on to discussing whether cryptocurrency will be able to attract such a huge amount of funds?

Today, Bitcoin capitalization is only 2.2 trillion US dollars, in fact it is an astronomical amount. But in order to increase the cost of one coin to a million dollars, it is necessary that people invest another $ 19 trillion in Bitcoin, that is, almost 7 times more than the entire existence of cryptocurrencies.

For comparison, the current investment amounts in the most popular assets are:

• Real estate market – total capitalization about 350 trillion US dollars
• Stock market – including all securities $ 110
• Gold - the cost of the extracted metal, is about 20 trillion US dollars

How realistic is it that the capitalization of just one of the cryptocurrencies will overtake the capitalization of gold, which has been formed over hundreds of years?

Investors simply do not have enough money to invest about twenty trillion dollars in the cryptocurrency market to disperse the price of bitcoin to one million dollars. Moreover, every day there are less and less new potential investors to the cryptocurrency market.

If record growth does happen, it will take decades to implement; it is quite possible that the value of the leading cryptocurrency will reach 1 million, but only by 2050, and not by 2030.

And if we talk about quite real prospects, then this can be a mark of $ 150,000 per 1 coin, such an indicator is quite achievable in the next couple of years.

The catalyst for the process could be the recognition of Bitcoin as an official reserve asset of Central Banks, along with gold. Or a collapse of the stock market, which will force investors to redirect their funds to other areas.