Genesis Report Shows Investors’ Varying Views on Bitcoin’s Value By 2030
Much has been said about Bitcoin and its recent price rally. The asset's performance has drawn praise and criticism alike, with multiple speculations floating around on what could happen soon.
While proponents believe this is the beginning of a march towards a six-figure valuation, detractors claim that it is just another bubble waiting to drag investors down. However, a new report shows that many investors are feeling more conservative in their outlook towards it.
A Great Year for Investors
Genesis Mining published its Bitcoin Investor Prediction for 2020. The report shows a varying view of what investors expect to happen to BTC. While some investors are bullish on Bitcoin’s long-term potential, others remain conservative with their predictions.
Genesis Mining started on an explanatory note, giving reasons why Bitcoin has rallied so much in 2020 despite the pandemic. The firm highlighted three reasons: investors' desire for a safe haven asset, increased institutional adoption, and the decentralized finance (DeFi) market growth.
Genesis Mining also sought the opinion of other Bitcoin investors. The goal was to gain insights into why and how these investors think. Questions asked included their investment level, when they decided to join the Bitcoin market, and why they chose to take the plunge.
Not So Bullish on Long-Term Price
While these questions provided different insights into who the investors were, their price predictions were quite startling. Despite the optimism surrounding Bitcoin's ability to blitz through alternative assets in the coming years, only 17 percent of surveyed investors expect BTC to surpass $50,000 in value by 2030.
As Genesis’ report showed, there was no visible consensus concerning where Bitcoin’s price will be in the next decade. However, about 16 percent of investors see Bitcoin oscillating around the $10,000 to $20,000 price range.
In general, only 50.2 percent of investors believe that Bitcoin will have risen above the $20,000 mark by 2030.
Those who held incredibly bearish positions gave several reasons for their views. These included the threat of stringent regulations and a possible ban on Bitcoin’s use. They also mentioned reduced market hype and the possibility of CBDCs replacing BTC.
The bulls believe increased adoption and declining trust in traditional currencies would be instrumental to Bitcoin's rise.
Such a disparity also appears to be the distinction between this rally and the 2017 bull's run. Investors are more realistic in their predictions than blindly thinking that the gravy train will keep moving.
While the opinions on Bitcoin’s exact value varied, there was more consensus about whether it is the best asset class.
As the Genesis report showed, 66.3 percent claimed that the asset is a better investment option than the dollar. 52.3 percent believe that the asset will bring higher returns than real estate, and 54.5 percent claim the asset beats the United States stock market.