Adam Back, the CEO of Blockstream, a blockchain technology company, predicts that the price of Bitcoin may hit $10 million by the end of the sixth halving in 2032. He believes that this forecast is dependent on advancements in Bitcoin layer-2 technology and wallet infrastructure.
In a tweet on February 12, Back outlined how Hal Finney’s $10 million price prediction for BTC might come to fruition. Back points out that Bitcoin’s price has historically doubled on average since 2013.
Assuming this trend continues, Back predicts that in the next nine years, the price of Bitcoin will reach $10 million, with a $200 trillion market value. However, he cautions that advancements in wallet infrastructure and layer-2 Bitcoin technologies must be accelerated to allow time for these advances to scale.
Back Confident of Global Adoption
Back is confident that advancements in Bitcoin technologies will come to fruition and will enable the next billion users to own their own UTXO and keys, with censorship-resistant cold storage. However, he acknowledges that Bitcoin adoption has not yet reached its full potential, as only 1-2% of the world’s population currently uses the cryptocurrency.
He believes that Bitcoin’s adoption will pick up as people in high inflationary situations “rush” to Bitcoin, which he refers to as “hyperbitcoinization spurts.”
Additionally, Back recognizes that “we’ve utterly failed to financialize Bitcoin” until now. In response to a comment, he explains that Bitcoin needs to “displace” a large fraction of store of value premiums in bonds, real estate, gold, and stock portfolios to approach $10 million.
Blockstream Raises More Cash
Meanwhile, Blockstream has received $125 million in convertible notes and loan financing to expand its institutional Bitcoin mining colocation services. With this funding, the company aims to improve its mining capabilities to produce and store more Bitcoin.
Bitcoin to $10?
Back’s prediction of Bitcoin’s price hitting $10 million is an optimistic one, but it is contingent on advancements in wallet infrastructure and layer-2 Bitcoin technologies. While Bitcoin adoption has not yet reached its potential, Back believes that with the upcoming surge of uptake, more people will turn to Bitcoin, especially in high inflationary situations.
The market value of Bitcoin will need to displace a significant fraction of store of value premiums in other assets to approach $10 million.
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.