market capitalization of bitcoin (btc) It could reach $200 trillion in the next nine years if veteran bitcoiner Adam Back is to be believed.
“Earlier this year I was intrigued by the claim that ‘Bitcoin averaged 2x per year,’” the early bitcoin user and founder of bitcoin development firm Blockstream wrote in a Twitter thread posted this weekend.
The claim “verifies”, he said, and that BTC has in fact increased by an average of 2.036x per year between January 2013 and December 2022.
If the trend continues, the price of each bitcoin will reach $10 million by the end of the next two halfWhile the total market cap of the asset will reach $200 trillion, Beck wrote.
Bitcoin is halved every four years, cutting the reward to miners in half. Halvings have historically been the catalyst for major bull markets in coins, which in turn have fueled bull-runs in the broader digital asset market.
The current market cap of bitcoin is $417.2 billion – or $0.4 trillion – at the time of writing. The upside potential, in other words, is still massive if the veteran bitcoin developer is correct in his prediction.
Hal Finney’s Original Prophecy
In his Twitter thread, Adam Back also noted that the $200 trillion market cap is what early bitcoin user Hal Finney predicted in 2009.
According to Finney, such a market cap could be reached if bitcoin “became the dominant payment system used worldwide.”
“Then the total value of the currency should be equal to the total value of all the money in the world,” Finney, who died in 2014, wrote at the time.
Back said he does not believe bitcoin adoption will slow over time, nor that volatility will decrease going forward. He even said that adoptionhyperbitcoinization spurts,” where “rapid viral adoption turns weak currency into a hyper-inflationary frenzy.”
“People become pragmatic if they see fiat melting, see hordes of others protecting savings via bitcoin,” the Blockstream founder predicted, while also adding that Regular bitcoin users “won’t have much incentive to sell in size.”
As a result, there will be less and less BTC available on the open market for newcomers to buy, and the only way for these late adopters to buy bitcoin would be to “take it out” of the cold wallets of existing users, Backe wrote.
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