In an effort to overcome the currency’s price volatility, the central bank of El Salvador has enacted legislation that will allow the use of Bitcoin as legal tender alongside the U.S. dollar. Other Central and South American nations have indicated that they may follow suit in an effort to break free from the dollar’s grip. Moreover, the panel consensus predicts that the price of Bitcoin will drop to $25,000 in 2040, a fall of nearly $8,000 from the current price of around $32,000 per bitcoin.
The finite supply of Bitcoin also makes the currency deflationary. Its finite supply means that it will eventually run out of money, and by the time 2040 comes around, it will have surpassed the maximum supply. Also, mining Bitcoin becomes exponentially more power-hungry. In 2021, one Bitcoin transaction would consume as much energy as a small country. Therefore, the potential for Bitcoin to hit billions of dollars is huge.
As long as the currency’s value remains stable, it will become a more attractive investment. It’s expected that institutional investors will start buying Bitcoin by 2027, and the crypto currency will continue to be an excellent investment. By 2040, some experts believe that the price of Bitcoin will reach nearly $66,000. This is far off, but it’s a long enough time away for accurate forecasts to be made.