Bitcoin could reach $1 million by 2030, but only if global adoption continues.
For more than a decade, tech billionaire Jack Dorsey has Bitcoin (BTC 1.63%). In 2012, Dorsey famously endorsed Bitcoin, which was trading at just $11, calling it “great.” That was long before Bitcoin caught the attention of Wall Street's top investors. Since then, Bitcoin's value has skyrocketed and it currently trades for $70,000.
What Dorsey says will happen next with Bitcoin is nothing short of amazing. Dorsey said Bitcoin could rise to at least $1 million by 2030, according to a May 2024 post on the Daily Hoddle that referenced an interview on another site. This will increase by approximately 1,400% over the next five years.
The road to $1 million in Bitcoin
According to Dorsey, there are two main reasons why a $1 million price prediction makes sense. The first is purely technical and is based on Bitcoin's innovation potential. Simply put, creating a peer-to-peer digital currency that is completely decentralized and outside of the control of sovereign nations or central banks is an amazing technological achievement.
Image source: Getty Images.
This achievement becomes even more impressive when you add in the fact that Bitcoin has a proprietary algorithm that carefully controls the pace of new Bitcoin creation. Bitcoin has an inherent scarcity that fiat currencies issued by central banks do not have. This is why Dorsey is the CEO of a fintech company. block (NYSE:SQ)is currently introducing new Bitcoin innovations to the market.
Dorsey suggested in May that Bitcoin could play a much larger role in the global financial system, giving a $1 million price prediction in an interview with Pirate Wires.
There are signs that adoption is spreading. Several emerging markets around the world have already accepted Bitcoin, and bigger things could come to developed markets once new crypto-promoting legislation is approved. In Europe, for example, the new Markets in Cryptoassets (MiCA) regulation will come into full force in December. And there are signs that the US Congress may finally be ready to pass a comprehensive cryptocurrency bill in 2025.
In July, Dorsey took things a step further, suggesting that Bitcoin could eventually replace the US dollar as the world's reserve currency. This is something Bitcoin enthusiasts have been predicting for years. As they see it, the current U.S. dollar-based financial system is a house in the sand, supported by $35 trillion in U.S. government debt. They believe that when the House in the Sand finally collapses, the world will turn to Bitcoin and other alternative currencies.
Lawsuit against Bitcoin
For some investors, the idea of Bitcoin replacing the US dollar may sound fanciful. And indeed, many top investors remain wedded to the notion that Bitcoin is a pyramid scheme or a digital currency used only by criminals for nefarious activities. For example, in April, JP Morgan Chase (NYSE:JPM) CEO Jamie Dimon called Bitcoin a “decentralized Ponzi scheme” and a “scam.”
In mid-October, the European Central Bank (ECB) released a scathing paper on Bitcoin. In the ECB's view, Bitcoin facilitates a unique form of financial exploitation in which long-term Bitcoin investors profit at the expense of new Bitcoin investors. Long-term Bitcoin investors have an incentive to talk about how great Bitcoin is in order to lure new investors who will be forced to buy Bitcoin at a much higher price. That's the only way older Bitcoin investors can get paid. The European Central Bank refrained from calling Bitcoin a Ponzi scheme, but that's exactly what it is.
Of course, Bitcoin supporters fired back furiously as soon as the ECB document was released. In their view, this paper is nothing but a last-ditch attempt to tarnish Bitcoin's reputation and allow central bank digital currencies (CBDCs) to be introduced in its place. They argue that the modern central banking system, which has existed for more than a century, is dying and that Bitcoin is its successor.
Can I buy Bitcoin now?
Before deciding to buy Bitcoin, you need to understand both the pro-Bitcoin and anti-Bitcoin arguments. From my perspective, the arguments in favor of Bitcoin are much more convincing. The modern digital economy requires a modern digital currency, and Bitcoin is currently the best option.
With Bitcoin still trading at just $70,000, now is the time to load up on Bitcoin. Yes, that price causes quite a bit of sticker shock. But if Bitcoin is heading towards $1 million, as Jack Dorsey suggests, it could end up being a great bargain.
JPMorgan Chase is an advertising partner of The Motley Fool's Ascent. Dominique Basurto has a position in Bitcoin. The Motley Fool has positions in and recommends Bitcoin, Block, and JPMorgan Chase. The Motley Fool has a disclosure policy.
