Bitcoin use has increased dramatically, and the price of bitcoin has exploded by 949% in the last five years. Well, now, a prominent figure in the burgeoning cryptocurrency space is betting on even more ambitious things on its horizon. Arthur Hayes, co-founder of BitMEX, has predicted that Bitcoin would surge to $1 million by 2028. This ambitious projection has provoked colorful debate in the fiscal-intelligentsia. Investors and analysts alike are deeply investigating what’s to come for the world’s most popular digital currency.
Hayes’ crystal ball gaze into the future came during a wide-ranging interview at the Token2049 cryptocurrency conference in Dubai on April 30. His remarks fuel the already heated debate over whether Bitcoin will succeed in the long run and if so, in what capacity within the global financial picture. The practicality and potential impact of this far-reaching price jump is now facing serious scrutiny.
The Path to $1 Million
Bitcoin would need to reach a $1 million price point per coin. For this leap to be realized, its entire market capitalization would have to reach approximately $20.5 trillion. This calculation takes into account the expected circulation of 20.5 million Bitcoin coins by 2028. Approximately 19.8 million coins are in circulation today. With a market cap of $1.9 trillion, the digital asset would require a massive influx of capital to hit Hayes’ prediction.
The looming prospect of institutional investment is frequently referenced as the primary catalyst behind Bitcoin’s meteoric rise. At the end of 2023, about $213 trillion was stored in investment assets on the global capital market. If institutional investors allocate even a small percentage of their portfolios to Bitcoin, it could significantly impact its market cap.
"Bitcoin is going to $1 million by 2028" - Arthur Hayes
Analysts suggest that if institutional investors allocate 2% of these assets to Bitcoin, it could result in around $4.2 trillion in inflows. This great of an investment would greatly increase the value of 1 BTC, getting us even further to that $1 million destination!
Market Dynamics and Future Growth
Bitcoin’s price makes its greatest moves over extended time frames. Market forces such as supply and demand fundamentals, scarcity, and accelerated adoption are the forces behind this strength. These are all key, upstream factors in looking to calculate future price appreciation potential.
Moreover, Arthur Hayes is not the only prominent figure in the cryptocurrency space to suggest that Bitcoin could reach $1 million. Today’s expert consensus on growth potential goes a long way in creating a narrative of long-term growth.
Investment Perspective
No one knows if Bitcoin will hit the $1 million milestone by 2028, but most experts consider it a good investment. The secondary case for investing in Bitcoin value lies in its free market mechanisms. These combined mechanisms are sure to drive prices up in the long run.
These mechanisms are the limited supply of Bitcoin, increasing institutional adoption, and growing acceptance as a store of value. These basic determinants laid the groundwork for the thesis that Bitcoin can and should be viewed as a great diversifier in a mixed-investment asset portfolio.
