KEY POINTS

  • Crypto Research Report suggested Bitcoin will reach $19,000 in 2020 and $397,000 by 2030
  • The researchers looked into Target Addressable Market as a key indicator for estimating a token’s future price
  • Cryptocurrencies are being traded more than they are being used for transactions or as store of value

New research suggested Bitcoin will spike to $397,000 by the year 2030 if it manages to penetrate at least 10% of its total addressable market.

Researchers behind the Crypto Research Report predicted a future valuation for Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Stellar based on a number of variables and their penetration of addressable markets. Based on their estimates, Bitcoin will shoot to $19,044 in 2020, $341,000 in 2025, $397,727 in 2030, and $395,000 in 2033. 

The researchers are expecting Bitcoin to increase its price by 107% before the year ends. By 2030, Bitcoin’s price would have increased by 4,238%, based on the researchers’ model.

The researchers predicted Ethereum to end 2020 with $331, a 45% increase from current prices. By 2025, they are expecting the world’s second-largest cryptocurrency to increase by 1,463% to $3,549 and finally to $3,644 by 2030, a 1,600% increase taking into account the price today.

Stellar would boast the biggest price increase, from $0.06 today to $7.81 in 2030 and $8.26 in 2033, representing an almost 14,000% price increase in value.

The researchers looked into Target Addressable Market (TAM) as a key indicator for estimating a token’s future price based on how they are able to penetrate those markets. TAMs include consumer loans, offshore accounts, reserve currency, store of value, online transactions, remittance, gaming, etc. 

The research also found out cryptocurrencies’ off-chain velocity has increased more than their on-chain velocity. On-chain velocity represents the movement of an asset in the blockchain while off-chain represents the movement of assets in the crypto exchanges. The research concluded cryptoassets are moving more inside exchanges versus them moving because of transactions (utility). Simply put, users are trading more than they are using cryptocurrency for their supposed intended use, such as a medium of transaction or as a store of value. This is true for Bitcoin as well as the other coins reported in the research.

The Crypto Research Report’s Bitcoin price forecast coincided with Bloomberg’s Crypto Market Report, which predicted Bitcoin will revisit $20,000 before the year ends. Bloomberg looked at Bitcoin’s correlation with the stock market and the COVID-19 pandemic as signs that the world’s first cryptocurrency is maturing into a proper asset class.

Bitcoin This photo illustration shows a Vietnamese cryptocurrency investor looking at the latest Bitcoin values on a smartphone in Hanoi, April 12, 2018. Photo: NHAC NGUYEN/AFP/Getty Images