In recent discussions, prominent crypto expert Willy Woo has provided his perspective on Bitcoin‘s (BTC) enduring relevance and future trajectory. Known for his practical analyses, Woo’s insights during the ETF approval period drew considerable attention, especially regarding the non-paper Bitcoin landscape. Extending his forecast over the next two decades, Woo underscores critical factors set to shape Bitcoin’s course.
How Will Bitcoin Evolve Over 20 Years?
In his discussions about ETF approval, Woo highlighted that contrary to futures BTC ETFs, spot ETFs might instigate substantial market movements. He explained that asset retention could potentially lead to a supply shortage, a prediction that has proven to be correct.
Woo recently examined Bitcoin’s Compound Annual Growth Rate (CAGR), a key metric reflecting average annual growth rates. Predicted to diminish in the next two decades, Woo illustrated that while an asset might grow 100% over half a decade, the even growth equates to a 15% annual CAGR.
What Do Bitcoin’s Past Trends Indicate?
Woo’s analysis suggests that Bitcoin’s past triple-digit growth figures are no longer feasible, signaling the end of an era last witnessed in 2017. The CAGR, once over 100%, had dipped to 30-40% by 2020 after institutions and governments began accruing BTC. Woo expects this downtrend to persist as the network accumulates more capital.
Bitcoin, as a macro asset for 150 years, will continue to attract capital until achieving balance. Considering a long-term monetary expansion at 5% and GDP growth at 3%, Woo anticipates BTC’s CAGR will stabilize at around 8%.
Bitcoin’s anticipated 8% annual growth places it prominently among global investment options. This expansion fosters overall cryptocurrency market growth. As BTC prices potentially elevate to millions, altcoins might also experience significant ratios of growth. Nevertheless, only resilient altcoins are expected to benefit from capital influx over the next 20 years.
Though BTC’s price growth may decelerate each cycle, the broader cryptocurrency markets remain vibrant. This continuing expansion suggests new investment opportunities, with altcoins offering promising ventures.
Woo’s predictions portray a future where Bitcoin not only maintains its market dominance but also fosters growth across the cryptocurrency sector. Despite expected declines in growth rates, Bitcoin’s position as a financial titan appears secure over the long term.
