In a recent discourse capturing the attention of cryptocurrency enthusiasts, seasoned expert Willy Woo has resounded his insights on the future of Bitcoin (BTC)
105,140 and cryptocurrencies. Known for his pragmatic evaluations, Woo’s comments made during the ETF approval period, particularly on non-paper Bitcoin, have left a significant impression. Now, he extends his foresight to a 20-year timeframe, highlighting vital aspects of Bitcoin’s trajectory.
Woo’s 20-Year Bitcoin Growth Projection
During the ETF approval phase, Woo noted that, unlike futures BTC ETFs, spot ETFs could catalyze significant market surges. He opined that asset holdings might potentially trigger a supply scarcity, which proved accurate.
Recently, Woo shared his assessment of Bitcoin’s Compound Annual Growth Rate (CAGR). This metric, indicating average annual growth over time, is anticipated to decline over the next 20 years. For instance, an asset growing 100% over five years would assume a 15% annual CAGR if growth were even.
Woo elaborated on this analysis, emphasizing that Bitcoin is not a mythically infinite one-horned creature ascending to the moonlight. The previously observed three-digit growth percentages are bygones, as significant growth was witnessed back in 2017.
By 2020, as institutions and sovereigns began amassing BTC, the CAGR notably dropped from over 100% to about 30-40%. Woo stresses this decline will persist as the network continues to aggregate more capital.
Presently trading as the newest macro asset in 150 years, Bitcoin will keep absorbing capital until equilibrium ensues. In light of a long-term monetary expansion pegged at 5% and GDP growth at 3%, Woo predicts BTC’s CAGR to stabilize around 8%.
Cryptocurrency Growth Prospects
A yearly 8% growth rate distinguishes Bitcoin amongst investable global assets. Consequently, BTC’s expansive growth indirectly benefits the entire crypto market. As BTC unit prices soar to million-dollar levels, altcoins too may witness similar growth ratios. However, not all will endure; surviving altcoins can anticipate substantial capital influxes over the next two decades.
While BTC’s price grows less rapidly in each cycle, the cryptocurrency markets continue expanding robustly, led by BTC, bringing reminiscent gains as new altcoin opportunities arise. This shows new ventures might offer attractive investment prospects.
