We’ve heard some pretty outrageous longer-term price targets onBitcoin(CRYPTO:BTC) and other cryptocurrencies (think Ethereum) in recent years. And while it seems absurd to envision a single Bitcoin going for $1 million one day, let’s just say anything is possible in the wild world of crypto. In any case, Bitcoin goes for just north of $114,000 today, so a run to the million-dollar mark would entail just shy of a 900% rise from current levels. That’s quite obscene, but then again, I was wrong about Bitcoin passing the $100,000 mark when they were going for closer to $20,000.
In any case,Coinbase(NASDAQ:COIN) CEO Brian Armstrong is nothing short of upbeat about Bitcoin and its potential over the next five years. While I wouldn’t rule out Bitcoin at $1 million in 30 years from now, I do think that the five-year target is a tad aggressive, to say the least. Indeed, I’d imagine that such bullish comments might inspire some to bet the farm on the cryptocurrency, especially on the latest dip.
Key Points
- Coinbase CEO Brian Armstrong has a lofty price target for Bitcoin in the next five years.
- I’m not nearly as bullish on Bitcoin and would encourage investors to buy steep dips and manage downside risks.
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Coinbase CEO is incredibly bullish on Bitcoin’s trajectory from here
As a part of Armstrong’s prediction, he thinks that macro tailwinds and increased adoption of Bitcoin as some sort of “digital gold” could help power further gains from here. In any case, Bitcoin would need to really gain momentum if it’s to have a chance of reaching the $1 million mark by 2030. And while the target could pan out in a bull-case scenario (it’s certainly not outside the realm of possibility, especially if the stock market boom continues without a bear market moment over the next five years), I’d be more inclined to view Bitcoin as correlated to tech stocks (think the Nasdaq 100) than a risk-off asset like gold.
Though there are plenty of other crypto bulls with lofty price targets and expectations for the coming years (notably, Cathie Wood and Jack Dorsey are major bulls on Bitcoin), I do think that there’s as much downside risk as upside risk, especially given the potential for Bitcoin to plunge if a so-called “AI bubble” were to burst at some point. In any case, I don’t think overvaluation concentrated in AI stocks has to end in a spectacular bursting of a bubble.
Indeed, not all paths lead to a repeat of the 2000-01 dot-com bust, at least in my humble opinion. In any case, as a prospective crypto investor, I’d look more into a base-case scenario while being mindful of a potential bear-case to pan out (think a tech-focused sell-off that spreads through the crypto markets).
Bitcoin could continue to be a choppy ride. Buying up the dips incrementally could be a way to counter volatility
Even if Bitcoin is destined for another meteoric rise, there are sure to be bumps in the road. And I’d much rather be a net buyer on such dips than when most others are upbeat and pound-the-table bullish. So, is Bitcoin at $1 million by 2030 realistic? I don’t think it is. Such a move would entail a lot of things going right, and while, in theory, such a scenario could play out, I’d be more focused on riding out the bumps and bear markets along the way and buying incrementally than backing up the truck with a specific target in mind.
Even if Bitcoin were to blast off in the coming years, shares of Coinbase might be a better way to play the move. The shares are up more than 104% in the past year, beating the price of Bitcoin, which has gained just north of 87%. Additionally, I’d also be inclined to give some of the other cryptocurrencies out there some more love. Ethereum, XRP, and others might have more runway over the next five years, and increased interest in the entire crypto asset class, I believe, could be a boon for shares of the major crypto exchange platform.
So, Bitcoin at $1 million by 2030? I wouldn’t count on it. But that doesn’t mean crypto and crypto-related stocks can’t continue to do well from here.
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