I’ve been hearing a lot of different opinions, and I’m really curious, What could Bitcoin be worth 10 years from now?
Is it still a good idea to invest in Bitcoin for the long term?
I'm just trying to understand if it’s something worth holding onto over time. Any advice, or beginner tips would be super helpful!
Thanks in advance!
Bitcoin is expected to grow cumulatively far more than the S&P 500 or gold, which only grow on average just enough to keep up with inflation. There are various growth projections ,Michael Saylor, for example, predicted a 21% cumulative annual growth rate over 21 years.Power law model, which is based on mathematics and physics, has projections and predicts a cumulative growth rate of 30–40%.That's why I place more trust in this model . it's grounded in mathematics and objective principles rather than speculation.
It's important to understand that a cumulative growth rate doesn't mean Bitcoin will go up every single year. Instead, it refers to the average compounded return over a longer period ,including years of sideways movement or bear markets.For example, gold reached an all-time high of $2,000 per ounce back in 2011, but then went through a multi-year bear market. By 2015, it had bottomed out near $1,000 per ounce. However, if you look at the cumulative return over a 20-year period, it averaged around 8% annually roughly in line with inflation.
If you want to preserve your money, beat inflation, and even earn additional returns, then saving in Bitcoin is a much better and harder asset compared to gold or the S&P 500.