Employees of Bitwise Asset Management, a company that manages cryptocurrency funds, believe that the relevance of investing in bitcoins will remain until at least 2035.
In a recently published report, the firm's analysts made a conservative forecast for the change in the BTC price over the next 10 years, according to which the digital asset will grow in price by an average of 28.3% per year. In this case, Bitcoin will surpass all other traditional assets in terms of price growth rate and will retain its status as the most profitable investment instrument.
Average annual return on investment in different assets, according to Bitwise experts
At first glance, it may seem that Bitwise employees are painting an overly rosy picture, but data for the past 10 years indicate that the average annual growth of the Bitcoin rate, which is 28.3%, is indeed a conservative estimate. According to the results of 5 out of the last 10 years, the cryptocurrency has more than doubled in price, and only in 2018 and 2022 was a drop in its value recorded.
Bitcoin price change over the past 10 years
However, it remains a mystery why Bitwise employees predicted only a 4% increase in the gold rate. Since 1971, the precious metal has been growing in price by an average of 8% per year, and since 2002, the XAU rate has been growing faster, apparently due to the devaluation of the dollar. Therefore, the price of gold will most likely increase faster than the company's experts believe