Bloomberg Intelligence Predicts $100,000 BTC by 2025
Bloomberg intelligence is predicting a $100,000 USD Bitcoin by 2025 because the firm suggests that more and more investors will buy into the idea that Bitcoin is digital gold. With the current price of Bitcoin hovering around $15,000 Canadian or $11,300 USD, there is still a long way to go in order to reach the $100,000 USD price tag. There will no doubt be several ups and downs throughout the journey over the next five years. Is Bloomberg Intelligence right? Let’s look at the logic behind the company’s predictions.
The Price Isn’t Influenced by Supply
Knowing that there will only ever be 21 million is the chief reason that Bitcoin’s price will only continue to grow according to the report. It’s an important factor to consider, because there simply won’t be any manipulation of supply and demand on a macro level. As famed strategist Mike McGlone says, the lack of ability by anybody to manipulate Bitcoin’s supply “… leaves adoption as the primary driver.” McGlone’s right. Adoption will be the primary driver and it’s not because everybody and their mother is going to be using cryptocurrency at their local convenience store.
It’s because as the cryptocurrency market continues to mature, more and more individuals and institutions will invest in it as if it is gold. As if it is a store of value meant to build wealth. Not as if it’s something to be used every day. The recent flurry of institutional investing news surrounding Bitcoin over the last several months is proof of that.
Recent Institutional Investments in Bitcoin Proves Interest Is Rising Dramatically
A lot has been made of Square CEO Jack Dorsey investing $50 million of the company’s money into Bitcoin over the past week. But it’s not just Dorsey’s decision that’s driving investment in the project. Many other institutions have been following suit particularly over the last two or three months or so. Stone Ridge Asset Management purchased $115 million worth of Bitcoin recently. That’s a big investment for a firm that manages $10 billion in assets at any given time.
Then there is MicroStrategy Incorporated. It’s a publicly traded company that isn’t in the business of asset management and it’s not in the business of blockchain technology. MicroStrategy Incorporated is a business consulting firm with extra cash on hand. The company clearly subscribes to one of the fundamental ideas of running a publicly traded company. That is that your number one responsibility as a publicly traded company is to turn a profit for the shareholder.
That’s the underlying reason why more institutional investment in Bitcoin is a foregone conclusion, particularly over the next five years as people begin to understand the fundamental value that Bitcoin is creating. It’s also the reason a $100,000 Bitcoin price is well within reach by 2025. Keeping in mind Bitcoin needs to be worth approximately $2.7 trillion to make it to $100,000 in value.
That may seem like a huge number. However, when publicly traded companies with bigger pockets like Apple and Google start buying Bitcoin, they could almost single-handedly get its valuation above the $1 trillion mark.
Whether you agree with Bloomberg intelligence’s five-year projection or not it’s clear that now is the time to invest in the long-term future of cryptocurrencies.
Written by: Jack Choros
Writer, content marketing at Netcoins.