What happens every 4 years to Bitcoin?
The halving phenomenon
A halving, which occurs about every four years, was designed by bitcoin's creator, Satoshi Nakamoto, to effectively reduce by half the reward that miners of the digital token receive.
While the immediate impact on Bitcoin's price may not be significant, the halving is expected to have long-term effects on the supply and demand dynamics of the cryptocurrency. As the supply of new coins decreases, Bitcoin's scarcity increases, which could potentially lead to price appreciation over time.
With the halvings every four years, the pace of new issuance of bitcoins reduces over time until the last one is mined, likely sometime in 2140.
What Could Bitcoin Be Worth in 10 Years? Predictions about prices vary by analyst, with some claiming that prices could rise into the millions. However, it is just as likely that it will be worthless.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2030 | $754,034.59 | $912,035.79 |
| 2031 | $1,096,347.35 | $1,323,956.59 |
| 2032 | $1,577,288.26 | $1,905,958.39 |
| 2033 | $2,417,431.23 | $2,786,857.29 |
Fidelity Predicts: $1B per 1 BTC by 2038 — 2040
Jurrien Timmer, the Director of Global Macro at Fidelity Investments, thinks the value of a single Bitcoin could reach $1 billion by the year 2038 — very close to our Bitcoin price prediction 2040 target date. Timmer's demand model is rooted in Metcalfe's Law.
We predict that Bitcoin will hit a new ATH of $85,000 in 2024, however, this also comes alongside a predicted low of $38,000 for Bitcoin in 2024. As for an average price, we expect Bitcoin to consolidate around previous ATHs during the year, and predict that Bitcoin's average price for 2024 will be $60,000.
On April 19, 2024, the block reward for bitcoin miners was reduced by half, from 6.25 BTC per mined block to 3.125 BTC per mined block. However, you wouldn't know it from the lack of fanfare. No bells were rung, no fireworks lit up the sky, and the price of bitcoin remained relatively stable at around $64,000.
In Ark Invest's "Big Ideas 2023" report, the investment firm outlined eight key use cases for Bitcoin, projected their growth potential, and then aggregated the market size of each for the year 2030. That's how Ark Invest arrived at its $1.5 million price target for Bitcoin.
What will Bitcoin be worth in 5 years time?
| Year | Price |
|---|---|
| 2025 | $ 69,308.40 |
| 2026 | $ 72,773.82 |
| 2027 | $ 76,412.51 |
| 2030 | $ 88,457.04 |
With its massive potential for growth and adoption, Bitcoin is expected to remain a major player in the cryptocurrency market for years to come. By 2050, our long-term Bitcoin price prediction estimates that the maximum price could reach up to $11,94,927.3.
The blockchain is designed so that a halving occurs every time 210,000 blocks are added to the chain, roughly every four years. At the halving, the amount of bitcoin available as rewards for miners is cut in half.
If we go by Wood's predictions of Bitcoin hitting $1 million in 2030, that would represent a 1,288% price increase from today's price. In turn, $1,000 in Bitcoin bought today would produce a return of $12,880 return in six years.
If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030. This would result in a compounded annual growth rate (CAGR) of nearly 95%.
A reasonable assumption that Bitcoin could hypothetically reach the null state of it's value is worth the thought. Even-though such an event is very less likely to take place, there are some factors that could theoretically lead to Bitcoin price crashing to zero.
By 2040, Bitcoin could surpass $1 million and reach a high point of $1.16 million, which would be a +2,275% increase compared to today's prices.
Bitcoin (BTC) Prediction for 2040 and 2050
If we draw a line connecting Bitcoin's historical lows, we get a prediction of $1.3 million by 2030 and a staggering $200+ million by 2040 and 2050, which would put its market cap at an unreasonable $4 quadrillion. By this time, this asset class will likely be matured.
Sarathy concurs that there are risks involved with investing in these cryptocurrencies, including price volatility, cybersecurity concerns and a lack of regulations compared to traditional currency. Ultimately, it's up to each individual user how much risk they want to take.
Known for her innovative investment approach, Cathie Wood predicts Bitcoin will surpass $1 million sooner than her previous estimate of 2030.
Should you hold or sell Bitcoin?
Historically, long-term Bitcoin investors have been rewarded for their patience, riding out significant price fluctuations to see considerable profits. If you originally invested because you believed in Bitcoin's long-term value, then selling during a downturn may contradict your original investment strategy.
A $100 investment in Bitcoin could purchase 0.00607 BTC today based on a price of $16,466.14 at the time of writing. If Bitcoin hits the $1 million price target by Wood in 2030, the $100 investment would turn into $6,070. This represents a gain of 5,970% from now until 2030.
Who Owns the Most Bitcoins? Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.
The index includes top tokens like $SOL, $ETH, and $WBTC- all of which are expected to see considerable gains in 2024 - making this a fantastic DeFi platform primed to explode throughout the year.
Key points. Bitcoin has plenty of bullish momentum in 2024. The SEC approved the first spot bitcoin ETFs in January 2024. The original crypto is on track for its next halving in April 2024.
