Proponents of bitcoin believe that the cryptocurrency has not yet realized its full potential and will continue to rise.
Strategy (Nasdaq: MSTR) co-founder Michael Saylor predicts that Bitcoin will reach a price of $13 million, while ARK Invest CEO Cathie Wood believes it will reach $1.5 million.
One expert, though, believes that these forecasts are very low-key.
Prominent cryptocurrency expert Joe Burnett released his prediction on March 1 that two illogical changes will propel Bitcoin to $10 million within ten years.
Significant capital flow
According to Burnett, $900 trillion in assets held by the global banking system might be diluted or devalued. However, he said that because Bitcoin is the first and only financial asset with a fixed supply, it is immune to both.
The more wealth is held in traditional assets such as gold, real estate, or stocks, the greater the market incentive to depreciate them, he said, adding that capital is now flowing into Bitcoin, which cannot be diluted or devalued.
Deflationary technology acceleration
Burnett also noted the rapid advancements in robots and artificial intelligence, which he believed would lead to an abundance of products and services. “Everything will be far more affordable as automation cuts costs,” he continued.
According to Burnett, as products and services become exponentially cheaper, a person holding 0.1 BTC today (about $10,000) might experience a 100x or more gain in purchasing power by 2035.
He said that by inflationary measures that raise prices in spite of technical advancements, a fiat economy artificially suppresses natural deflation. When this distortion is eliminated by Bitcoin, real deflation may occur.
$10M target ‘not that crazy’
The total market value of Bitcoin would be around $200 trillion if it reached $10 million. Burnett asserted that if the latter keeps increasing at a rate of 7% each year, the amount only amounts to 11% of the world’s total wealth.
According to him, it is quite acceptable for Bitcoin, which is extremely scarce, to reach a level comparable to that of the “mundane” wine sector, which is predicted to reach $528 billion by 2030.
