How Can Bitcoin Reach the Dream $1M Mark? Variables Explained

• Cathie Wood believes Bitcoin would be at $1 million by 2030. 
• To reach that mark, multiple variables need matter. 

Bitcoin is currently trading at $27,905.59. What will drive BTC into the $50k to $1M range? Many have predicted that Bitcoin will reach $1 million by 2030, including Ark Investment’s Cathie Wood. But multiple variables still need to be in place for BTC to reach the dream value. 

Seven Conditions That Could Drive BTC to $1 Million

The first variable that needs to be in place is a general loss of confidence in fiat currencies worldwide. The recent economic scenario proves that the world population is slowly losing faith in fiat currencies. The US will soon bring the “Gold Standard Restoration Act,” which would peg the USD with a fixed amount of gold. 

When the majority of the world’s population would move to crypto and, more importantly, Bitcoin as an option because cryptocurrency offers multiple options and facilities that could answer the present problems.  

The second thing would be increased investment in Bitcoin by major financial institutions and asset management entities, bringing more liquidity to the cryptocurrency and thus fueling the price rally. The increased investment would also facilitate the growth of new use cases and protocols, increasing BTCs utility. 

The third point should be a considerable increase in the government’s adoption of Bitcoin as the reserve currency. For this scenario to occur and deliver desired results, major countries like the United States, Russia, Saudi Arabia, China, etc., should start accepting BTC as their reserve currency. This step would legitimize its usage, increasing trust in cryptocurrency, inadvertently increasing the demand and fueling the rally.

The fourth one is important, as it requires widespread retail adoption of Bitcoin. If cryptocurrency can be used in retail and everyday transactions, it will increase BTCs utility and hence the price. Major companies like Apple, Twitter, Coca-Cola, etc., must come forward and accept Bitcoin payments. 

The fifth one is the easement in the Bitcoin mining scenario. If somehow BTC miners are made to believe there are multiple opportunities and facilities in the business, other than just rewards, like tax rebates or subsidized power, etc, mining would become more attractive. In turn, decreasing transaction time, creating a robust and increased validation network, prices could increase in the long run. 

The sixth condition is a sudden or paradigm shift in the global political scenario. For instance, Robert F. Kennedy Jr., the Democrat Presidential candidate, has openly spoken about how Federal CBDC, FedNow, could be used to track citizens’ finances and potentially be used for multiple scenarios like limiting spending capacity, money expiration, etc. 

There could be multiple scenarios like this one, which could trigger the population to view Bitcoin as a viable and trustworthy option. Such scenarios, if they occurred, could fuel the rally in a never heard before magnitude. 

Lastly, the seventh option is a massive increase in Bitcoin’s demand generated by targeted social media activities and political movements. If they can create a buzz or a narrative that BTC is the next big thing, it could bring multiple people into the system. 

Moreover, if the blockchain network could retain more than half of the new arriving investors and users satisfactorily, it would help get BTC to the dream mark. 

It can be assumed that these conditions can fuel the million dollar rally, but the possibility for even half of them to occur simultaneously is slim. But one must not lose hope, as the prediction of Bitcoin reaching the $1 million mark will happen someday, indeed. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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