The introduction of bitcoins has indeed created drastic changes in the finance market. It has been predicted that the value of bitcoin is said to increase and touch a global ceiling level of 1 million USD in the short span of 5 years. Investments from cash, gold, and shares have moved dramatically to this new substitute for money. It has also created volcanic differences in the rise and fall of certain brands.  

A rise in the value of Bitcoin

The former hedge fund chief of Goldman Sachs had predicted that there would be a huge wall of money being built in the future due to the upsurge of Bitcoins.

Although bitcoins still do not properly function in many parts of the world, the promise of a prospective future has increased its value. This indeed has made many firms incorporate the role of Bitcoin into their shares as a future consideration.

Real Vision, one of the popular financial media companies, has allocated more than 50% of its capital to Bitcoin. This is because – they believe that it will be a safe option to invest in Bitcoin in the current situation. Adding to it, the condition of COVID-19 and its impact upon the world has also been considered. The world has grown more dependent on online currency and digital transactions, which offers a prospective future for Bitcoin. This might as well increase its value to $1 million. 

Investment based on future predictions: Case study

Below mentioned are the four arguments that support the case that the value of Bitcoins might rise further in the future. 

Case 1

Cathie Wood

Cathie Wood is the founder of Ark Invest and has made the firm highly focused on the prospect of Bitcoins. They have predicted that 5K dollars of Bitcoin worth can be gathered from various institutes and global studies. 

Ark invested in a global study which found institutions, pension funds, sovereign wealth funds account with 6.5% Bitcoin, making it an additional $500K value to Bitcoin price. Last year alone, this happened as many companies added Bitcoin to their portfolio. This is just the beginning of the deep influence that Bitcoin might have on other firms and their investment decisions. As the investment choices of other films increasingly begin to depend upon Bitcoins, the value of the digital currency will surely rise high. 

Case 2

Corporate Giants

The corporate world is the leading giant in today’s age. Their decisions highly impact the business and the world of finance. The news on Tesla and Microsoft considering crypto itself made the markets fluctuate tremendously. Corporates like this can definitely be a result for the surge in prices. This power can also be used as an instrument in making a better impact on the world. If corporations dedicated 10% of cash to Bitcoin, it would increase the value of Bitcoin to $500K. 

Michael Saylor began the trend, and Tesla followed suit of it very soon. Corporations all across the globe are converting their cash into BTC. As corporations have a higher market share in finance, their investments will also motivate other shareholders of the firm. In turn, the usage of BTC will increase and can be valued higher. 

Case 3

Winklevoss Twins 

Tyler Howard Winklevoss and his sibling Cameron Winklevoss are American investors. They together founded the companies Winklevoss Capital Management and Gemini Cryptocurrency Exchange. They have released the statement that 1 BTC is equal to $500K on many platforms, openly supporting the use of BTC. As per the records, there are 46 million millionaires and retail investors. 

Furthermore, bitcoins are a better version of gold. The market capital of gold is 10 million dollars. But, investing in BTC is better than gold as they promise to offer higher returns in the future. Though gold has the risk of turning obsolete in the future, with the surge of the digital world, digital currency like bitcoins will only gain more usage and popularity in the future. Thus, they strongly encourage people to invest in BTC over other elements as the future of BTC is brighter. This will, in turn, increase the prospect of bitcoins, and with more investors inshore, the value will also see a surge, and its value can also reach the sky-high of 1 million USD. 

Case 4

Central Bank

Central Banks have a huge role in the financial stability and usage in a country. If the central banks of different countries try to focus on BTC and add it into their reserve, it will increase the value to 500K dollars. By authorizing the use of bitcoins, they support and offer confidence in its usage. This will propel more people to indulge in the usage of bitcoin and get more value by using it. 

As the usage of BTC and the investment in it increases, the value will increase as well. Thus, it is necessary for the development of a country (in the digital currency world) that their central bank starts making proper use of these digital assets like bitcoin by adding them to their reserve. It will also enable the country in the future, as bitcoins in the future will be valued higher, making the country gain an increased share of profit margin eventually. Thus, central banks must start using BTC in their reserves for their financial advancement and benefit. 

Final thoughts

There are many situations in which a business will have to surrender itself owing to the limited presence of cash flow. The future of Bitcoin and its ease of transaction will limit many firms from suffering limited cash flow.

However, for now, the usage of BTC is comparatively lesser in many parts of the world. It is necessary that it becomes uniform all across the globe so that it can be used more widely. With the widespread acceptance, the value of bitcoin can increase drastically. This will also offer an added perk  – unified development of all countries!