A leading South Korean analyst, Kim Yu-min, from Hanwha Investment & Securities, has predicted a remarkable 642% growth in Bitcoin’s price over the next decade. Kim’s analysis suggests that Bitcoin’s price could increase by a minimum of 84% and a maximum of 642% based on current prices. If BTC were to rise by 642%, it could reach around 616 million won ($460,790) by 2034. Kim based this forecast on data related to gold and credit default swaps, highlighting Bitcoin’s value storage and decentralization benefits compared to traditional assets like gold.
Kim also mentioned that Bitcoin’s ease of trade and storage make it a more attractive investment compared to gold, especially in a modern era where fast transactions between countries and individuals are on the rise. He also noted that discussions among politicians about using Bitcoin as a national reserve asset indicate the potential for the crypto market to outgrow the gold market. If Bitcoin surpasses gold in popularity and becomes a serious option for global central bank reserve funds, its upside potential could reach 577%.
The analyst also discussed how Bitcoin could help hedge risks related to the increasing US government debt, which is expected to rise to $600 billion by 2034. Kim highlighted the similarities between Bitcoin and credit default swaps in terms of hedging central bank risk, emphasizing the potential for Bitcoin to be a valuable asset in a diversified investment portfolio. However, Kim also mentioned that there are other assets to consider, and Bitcoin’s price rises could be as little as 162% in the next decade.
In addition to economic factors, Kim pointed out that countries with poor currency stability could consider adopting Bitcoin as a legal tender, which could further drive Bitcoin’s price growth. By assuming that 10% of the annual $1.6 trillion M2 money supply flows into Bitcoin over the next 10 years, Kim suggests that Bitcoin’s upside potential could be as high as 642%. The term M2 refers to the amount of a country’s cash that its citizens hold in short-term bank deposits or in their possession, and this influx of money into Bitcoin could significantly impact its price.
While Bitcoin adoption as legal tender has only been seen in El Salvador so far, discussions between regulators in Argentina and El Salvador indicate a growing interest in adopting Bitcoin at a national level. If more countries follow in El Salvador’s footsteps and adopt Bitcoin, it could lead to increased demand and accessibility, further driving Bitcoin’s price growth. Kim’s analysis provides valuable insights into the potential growth of Bitcoin’s price in the coming years, offering investors valuable information for their investment decisions in the crypto market.
