Bitcoin Can Reach $1 Million in 7 to 10 Years

One of the things that make Bitcoin believers stick to the cryptocurrency is the fact that it comes in limited numbers. After the last Bitcoin has been mined, there will be no more Bitcoin left. And given supply and demand, they argue that it will only increase the price of Bitcoin as time goes by.

In the last ten years, Bitcoin has been able to hit near $20K. It was considered a big deal for a lot of crypto believers then. And though Bitcoin dropped by more than 80% 12 months after, Bitcoin is currently hovering between $3,000 to $5,000 range these days.

According to Wences Casares who is the CEO of XAPO, a crypto custodian company, he believes that Bitcoin could potentially surge by 250 times more. Casares is also a PayPal board member. He mentioned that “In my (subjective) opinion those chances of succeeding are at least 50%. If Bitcoin does succeed, 1 Bitcoin may be worth more than $1 million in 7 to 10 years. That is 250 times what it is worth today”.

However, he made it clear that it is still a risky investment. He considers it irresponsible for anyone to invest more than anything that he or she can lose. However, he also explained that it is also irresponsible if you don’t have any exposure to Bitcoin at all. He also mentioned that “If Bitcoin succeeds it will most likely not replace any national currency. It may be a supranational currency that exists on top of all national currencies. If Bitcoin succeeds it may be a global non-political standard of value and settlement”.

Will There Be Adoption in the Coming Years?

There are countries that have been adopting cryptocurrencies more than others. For instance, you have countries that have been suffering from an economic crisis that have reverted towards cryptos. You have the likes of Venezuela wherein Dash has become an accepted cryptocurrency. In fact, Venezuela even made their own cryptocurrency in order to address US sanctions.

Adoption is still something that a lot of crypto believers are waiting for. The good news is that slowly, regulators are coming up with steps towards regulatory clarity. Recently, there was even a bill that would clear the status of cryptocurrencies not as securities.

How Much Should You Invest?

Casares believes that you should only invest up to 1% of your portfolio on Bitcoin. He mentioned that “I suggest that a $10 million portfolio should invest at most $100,000 in Bitcoin (up to 1% but not more as the risk of losing this investment is high). If Bitcoin fails, this portfolio will lose at most $100,000 or 1% of its value over 3 to 5 years, which most potfolios can bear. But if Bitcoin succeeds, in 7 to 10 years those $100,000 may be worth more than $25 million, more than twice the value of the entire initial portfolio”.

Could this actually be a good strategy? Bitcoin has been slowly making a comeback. It has stayed above $5K recently. And now, people are saying that the bull market is actually back. Could it be a good time to buy Bitcoin now? Will it be able to surpass its all-time high? Or maybe, Bitcoin will stay in this range for a long time?