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Should Andresen’s prediction materialize in 40 years, Bitcoin will have gained approximately 13,636.36%.
Inflation alone could see Bitcoin (BTC) price top $6 million by the year 2061, according to developer Gavin Andresen. Unavoidable inflation is bound to pump the prices if all the conditions remain constant.
“The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation,” Andresen noted.
Gavin Andresen on Bitcoin Price
According to him, the cost of transactions is bound to scale higher with the prices. “Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction),” he noted.
Bitcoin traded around $44 k at the time of reporting according to metrics provided by CoinGecko. Should Andresen’s prediction materialize in 40 years, Bitcoin will have gained approximately 13,636.36%. Bringing the numbers to a better perspective, $10 invested today in Bitcoin could be $1,363.6 by 2061 according to Andresen’s estimate.
However, adding other fundamental factors like the scarcity level of Bitcoin. The asset could see a much higher valuation in 40 years. Moreover, there are just 21 million BTC to ever exist, and the increased institutional and retail demand is bound to scale in the next decade.
Analysts estimate global central banks are likely to hold Bitcoin as an asset against imminent inflation. Furthermore, El Salvador has led the way by making Bitcoin a legal tender alongside the US dollar.
“But 20-or-so million BTC live on, circulating on other blockchains, valuable because there are a limited number of them and because BTC was the first scarce digital asset,” Andresen explained.
Bitcoin and Future Crypto Growth Prospects
For Bitcoin and the crypto industry to continue with its meteoric rally in years to come, analysts estimate a lot of global economic aspects will have to be affected. Among them, is how governments view the crypto industry, particularly in terms of regulations.
As more countries get to have clear crypto regulations, institutional investors are well-positioned to take part in crypto investments. Currently, leading global economies including Germany and Canada have allowed institutional investors to purchase digital assets.
Institutional investors are likely to take part in mining activities as more energy productions become greener and renewable. “These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay,” Andresen further noted.
More developments are expected to change the financial sector, especially in the decentralized financial ecosystem that has taken the market by storm.