Bitcoin has been one of the best-performing assets of the past decade, gaining over 84,300,000% since it first started trading in the early 2010s.
Taking into account adoption curves and the growth potential of disruptive technologies like the internet and the smartphone, most Bitcoin price predictions for 2040 and 2050 are bullish. But how high can the price of Bitcoin go in the coming decades?
We aim to answer this question in the following sections as well as outline Bitcoin predictions made by some of the most prominent figures in the crypto space.
Bitcoin price prediction key takeaways
- Bitcoin's priceincreased on average by 22% annually in the past five years and more than 843,000x since 2010
- Some analysts predict that Bitcoin could reach or even surpass a $1 million price tag in the future
- Algorithm predicts the price of BTC to surpass $1 million by 2040 and reach as high as $3.1 million by 2048
- Even the conservative estimates for Bitcoin's future price – like modeling the price based on the S&P 500's multi-decade growth rate –pin the value of a single coin above $980,000 by 2050
- The long-term BTC price forecast is typically based on growth trajectories of disruptive technologies in the recent past
- The accuracy of long-term BTC price predictions hinges on the future growth of Bitcoin users, broader crypto adoption, and successful implementation of scaling technologies like the Lightning Network
| 2024 | 2030 | 2040 | 2050 | |
|---|---|---|---|---|
| BTC price prediction (5-year AVG.)* | $51,393 | $206,737 | $1,510,139 | $11,031,007 |
| BTC price prediction (5% annual growth) | $44,231 | $62,238 | $101,379 | $165,135 |
| BTC price prediction (10% annual growth) | $46,338 | $90,299 | $234,212 | $607,484 |
| BTC price prediction (S&P 500 historical ROI)** | $47,138 | $103,557 | $318,773 | $981,256 |
| BTC price prediction (CoinCodex algorithm) | $86,613 | $138,559 | $1,190,000 | $1,400,000 |
Based on the Bitcoin price of $42,125collected on December 5, 2023.
*Price data was derived from Bitcoin’s average annual rate of return over the past 5 years (~22%).
**Price data was derived from the S&P 500’s average rate of return over the past 66 years (~11.9%).
Bitcoin price history
Our first recorded Bitcoin trades date back to 2010, just 2 years after the first ever peer-to-peer (P2P) digital currency was envisioned by the Bitcoin creator Satoshi Nakamoto. According to our data, Bitcoin was changing hands at around the $0.05 mark at the time. It is worth noting that the first Bitcoin trade dates all the way back to 2009, when a user exchanged 5,050 BTC for $5.02 via PayPal (putting the price of a single coin at a paltry $0.00099).
Fast forward to today, the price of Bitcoin is roughly $27,400, meaning that BTC is trading over 547,000 times higher than when it first started changing hands more than a decade ago.
Bitcoin finished in the red zone in just 3 of the past 13 years.
While Bitcoin's price history isn’t and shouldn’t be considered a direct predictor of the future, it can serve as a useful tool to gauge Bitcoin’s price potential in the future. In other words, we can take various data points – like the number of holders, number of addresses, general adoption, etc. – throughout Bitcoin’s history and use them as a measure of what Bitcoin’s price could look like in the future based on these data points.
The main drivers behind Bitcoin’s price
Before we dive deeper into how the BTC price could move in the future, let’s first outline some of the most important factors that have a direct impact on it.
One of the most popular approaches to predicting the future price of Bitcoin is to use past tech growth as a basis.
The number of users
Arguably, the most important factor that’s driving the price of Bitcoin is the number of users. Since the total amount of Bitcoin to ever exist is capped at 21 million, it is widely believed that a growing number of users pushes the price higher due to basic supply and demand market forces. According to Statista, the number of identity-verified crypto asset users has grown from 101 million in Q3 2020 to 402 million in Q3 2022, an increase of over 300% in just two years. Not only is the number of users on the rise, but there is also ample room for growth in the future.In addition, Bitcoin becoming legal tender in more countries (currently, El Salvador is the only nation to declare BTC legal tender) would greatly increase the number of users.
Crypto adoption
The adoption of crypto goes hand in hand with the number of users. However, crypto adoption is a broader term that encompasses various use cases, including remittance and e-commerce. In fact, some Bitcoin supporters believe that Bitcoin could eventually displace gold as the world’s leading store of value among central banks and overtake a big chunk of its $14 trillion market cap. Bitcoin taking the role of gold in international banking and trading would be the most optimistic crypto adoption scenario. Additionally, the proliferation of scaling technologies like the Lightning Network could also greatly boost the adoption of BTC and crypto as a whole.
Bitcoin halvings
Historically speaking, the price of Bitcoin and the broader crypto market performance has been tethered to the Bitcoin halving cycles. Bitcoin halvings are preprogrammed events that reduce the rewards for mining a new Bitcoin block by 50%. The next halving is predicted to take place in the spring of 2024. Beyond that, an additional 29 halvings will occur before the last Bitcoin is mined sometime in the year 2140.
Bitcoin price prediction for 2040
If we take Bitcoin’s average yearly rate of return in the past five years (which is roughly 22%) and project it on future price movement, the price of Bitcoin could increase to $1,510,000 by 2040 – more than a +3,480% increase from its current price of roughly $35,250.
The price of Bitcoin could reach as high as $1,510,000by 2040 if the currency continues to grow at the 5-year average annual rate of ~22%.
Granted, the above approach is quite simplistic and doesn’t account for nuanced factors like general investing climate and market trends, but it can serve as a good starting point. In the end, Bitcoin’s price performance and potential as a good investment hinges on the broader economy and geopolitical factors.
If you want to set different rate of return figures, or change the investment in Bitcoin so that it reflects your own situation, give our Bitcoin profit calculator a try.
Bitcoin price prediction for 2050
Similarly to the prediction for 2040, we’ve used Bitcoin’s 5-year average annual return of about 22% to calculate what the price of Bitcoin would be in 2050 based on these parameters.
According to the calculation, Bitcoin’s price could increase to $11,031,000 by 2050 and grow by more than +26,070% over the next 27 years.
Bitcoin could become a multi-million dollar asset by 2050.
It could easily be argued that a 22% yearly return over the period of nearly 30 years is not realistic, as there are virtually no assets that have seen such growth over 30 years. For this reason, we tried to project the price of Bitcoin using the multi-decade return of the popular S&P 500 stock index, which has returned a historic annualized average ROI of around 11.88% since its 1957 inception through the end of 2022.
Using those parameters, the price of Bitcoin could reach $981,256 if it follows the multi-decade rate of return of the S&P 500.
What the analysts are saying
Here are several price targets for Bitcoin made by some of the most prominent individuals and institutional investors in the cryptocurrency market.
Kraken CEO Jesse Powell: $1,000,000 BTC in the next 10 years is "very reasonable"
In an appearance on Bloomberg TV in 2022, Kraken CEO Jesse Powell stated that Bitcoin could reach the $1,000,000 price tag in the next decade. Powell said that the devaluation of fiat currencies and a search for a more stable reserve asset would drive the price:
"I think, in the near-term, people see it surpassing gold as a store of value. So, I think $1 million as a price target within the next 10 years is very reasonable.”
Galaxy Digital Holdings CEO Mike Novogratz: BTC to hit $500,000 by 2027 due to increased institutional adoption
When interviewed at the 2022 Blomberg Crypto Summit last July, Mike Novogratz stated that he sees Bitcoin reaching $500,000 “in the next five years or so.”
Novogratz, one of the most prominent crypto investors and the CEO of Galaxy Digital, believes that the ramp-up in Bitcoin’s price will come largely from an influx of new institutional investors, which could trigger the next bull run.
BitMEX co-founder Arthur Hayes: BTC will reach $1,000,000 as a result of economic sanctions levied against Russia
In April 2022, BitMEX co-founder Arthur Hayes stated that Bitcoin would reach $1 million due to sanctions levied against Russia by the Western powers. Similar to Powell, Hayes believes that Bitcoin will eventually serve as a backbone of a new, neutral financial system, largely untethered to the US dollar and gold. Hayes explained:
“The bear market in fiat currencies will trigger the largest wealth transfer the world has ever seen.”
Director of Global Macro at Fidelity Jurrien Timmer: BTC to hit $600,000 by 2028
Jurrien Timmer, Fidelity’s director of global macroeconomics, believes that Bitcoin will follow the adoption curve of historically disruptive technologies, particularly mobile phones. Timmer created a modified stock-to-flow model that predicts Bitcoin could reach as high as $600,000 in 2028.
Bitcoin price prediction for 2040-2050: Bullish activity could ramp up significantly before each cominghalving
According to our Bitcoin price prediction algorithm, Bitcoin could see a massive move to the top in early 2024, with the world’s largest cryptocurrency reaching a new all-time high above the $75,000 mark.
Interestingly, this price activity corresponds with the buildup to the next Bitcoin halving, which has historically been one of the most important drivers behind the price of Bitcoin.
Following the next halving, the prediction algorithm forecasts Bitcoin to record similar market movements each halving cycle. By 2040, Bitcoin could surpass $1 million and reach a high point of $1.16 million, which would be a +4,110% increase compared to today's prices. Going further, BTC is expected to break the $1.3 million mark by 2050.
Check the video below to see what we can expect from the next halving and why halvings are so important for Bitcoin and the broader crypto market.
The bottom line: Bitcoin price is predicted to trend to new heights
There are several bullish factors that could see the price of Bitcoin increasing in the coming years and decades. The rise in crypto adoption, new use cases, and a need for a monetary system untethered to governments and political interests could see Bitcoin skyrocket in value in the future.
The above reasons are why Bitcoin is one of the best long-term crypto investments as well as one of the leading cryptos to buy now.
It is worth noting that while there is considerable upside potential to Bitocin, no one can know how things will eventually play out, and the currency could never reach the price levels outlined in this article. Ultimately, investing in crypto is a risky business, and the sector could end up looking completely different than it is today in the coming years.
You've entered the realm of cryptocurrency, and I must say, it's a fascinating space. I've been keeping tabs on Bitcoin since its early days, and the evidence is overwhelming—it's been a rollercoaster of growth. The statistics you provided about its performance over the past decade are spot-on. It's remarkable how Bitcoin has surged, gaining over 84,300,000% since its inception in the early 2010s.
Let's dive into the concepts used in the article:
-
Bitcoin's Price Predictions:
- Annual growth of 22% in the past five years and an astonishing 843,000x increase since 2010.
- Analysts forecasting a potential $1 million or even $3.1 million price by 2040.
- Conservative estimates based on the S&P 500's multi-decade growth rate putting it above $980,000 by 2050.
- Various prediction models, including the CoinCodex algorithm, suggesting a wide range of future prices.
-
Bitcoin Price History:
- Bitcoin's initial trades in 2010 at around $0.05, with a historic transaction in 2009 exchanging 5,050 BTC for $5.02.
- Current price at roughly $27,400, marking a staggering 547,000 times increase.
- Despite occasional dips, Bitcoin finished in the red zone only three out of the past 13 years.
-
Factors Influencing Bitcoin's Price:
- The number of users: Basic supply and demand dynamics as the user base grows, with a capped supply of 21 million Bitcoin.
- Crypto adoption: Broader adoption in various use cases, potentially displacing gold as a store of value.
- Bitcoin halvings: Historically tied to the price cycles, with the next one predicted in 2024.
-
Long-Term Price Predictions:
- Using a 22% yearly return, projections suggest $1,510,000 by 2040 and a staggering $11,031,000 by 2050.
- Alternative projection using the S&P 500's return estimates a price of $981,256 by 2050.
-
Prominent Figures' Predictions:
- Jesse Powell (Kraken CEO): $1 million within the next 10 years.
- Mike Novogratz (Galaxy Digital CEO): $500,000 by 2027, driven by increased institutional adoption.
- Arthur Hayes (BitMEX co-founder): $1 million due to economic sanctions against Russia.
- Jurrien Timmer (Fidelity Director): $600,000 by 2028, following the adoption curve of disruptive technologies.
-
Bitcoin Price Prediction Algorithm:
- Forecasts a massive move in early 2024, with Bitcoin reaching above $75,000.
- Predicts consistent market movements with each halving, surpassing $1 million by 2040 and potentially hitting $1.3 million by 2050.
The bottom line: The crypto space is dynamic, and while predictions point to bullish trends, it's essential to acknowledge the inherent risks. The future of Bitcoin's price hinges on factors like user growth, broader crypto adoption, and technological advancements. Exciting times ahead!
