A new report from a crypto research group suggests that the price of Bitcoin could approach $400,000 by 2030 or just 10 years, with altcoins following its bullish example.
In the June 2020 edition of the Crypto Research Report, researchers predicted the price of Bitcoin (BTC) and other altcoins — Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and Stellar (XLM) — would get a huge surge before 2025, which may continue for at least five years.
“We believe that Bitcoin is still at the very start of its adoption curve,” the report states.
“The price of $7,200 at the end of 2019 suggests that Bitcoin has penetrated less than 0.44% of its total addressable markets [worth $212 trillion]. If this penetration manages to reach 10%, its non-discounted utility price should reach nearly $400,000.”
That would mean a price increase of more than 4,000% for BTC by 2030, but ETH, LTC and BCH are also looking bullish in this scenario, with surges of roughly 1,600%, 5,000% and 5,400%, respectively.
However, XLM would see the largest increase: more than 11,000% from $0.07 to $7.81.
The Liechtenstein-based research group analyzed cryptocurrencies based on their target addressable market, or TAM, a metric used “to estimate a cryptoasset’s implied future price.”
According to the report, TAMs for cryptocurrencies include remittance, tax evasion, offshore accounts, store of value, online transactions, micropayments, crypto trading, gaming, online gambling, consumer loans, reserve currency and others.
“If cryptocurrencies gain adoption for long-term hoarding purposes or for short-term spending on speculation or coffees, the price of crypto assets will go up,” the Crypto Research Report stated. “High velocity on-chain and low velocity off-chain suggests that crypto assets are becoming increasingly used for speculation and not for store of value.”