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Owning 0.001 Bitcoin Could Make You a Multimillionaire, According to Fidelity Director

Owning 0.001 Bitcoin Could Make You a Multimillionaire, According to Fidelity Director

Bitcoin has made a name for itself as a deflationary and decentralized asset. These properties are written into the source code and cannot be changed. Many see these features and think about how they could potentially drive up the price, wondering how a small investment in Bitcoin could create generational wealth.

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Check out what some of the top analysts are saying about where the price of Bitcoin (BTC) could go in the coming years and decades.

One of the more compelling predictions for the future price of Bitcoin comes from Fidelity Investments. Jurrien Timmer, Global Head of Macro at Fidelity, has claimed that Bitcoin could rise to as much as $1 billion by 2038.

The prediction is largely based on Metcalfe's Law, which states that the value of a networked financial asset is equal to the square of the number of users on the network. The law, which places a numerical emphasis on network effects, has been applied primarily to technologies such as the Internet and social media. However, Timmer believes that the law also applies to Bitcoin.

Bitcoin is, at its core, a network. It helps connect users to enable peer-to-peer transactions. According to Timmer and Metcalfe's law, the value of Bitcoin should increase exponentially as new users join the network. This exponential growth has been demonstrated in the past, with Bitcoin's price exploding over the last decade while at the same time the number of users has risen sharply.

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With the new spot exchange traded funds (ETFs), the number of Bitcoin users also increased, which was accompanied by new all-time highs (ATHs). This could be further evidence of the practice of Metcalfe's law.

The prediction is based on two main assumptions. First, Timmer assumes that users new to the network will appreciate and be able to take advantage of the connections provided. This could be a problem for those who simply want to invest in Bitcoin as a store of value and not use it as a means of payment. Timmer also expects the number of Bitcoin users to continue to grow rapidly over the next decade. It is also possible that Bitcoin will not achieve the widespread adoption needed to reach the $1 billion price target.

Despite the assumptions, Timmer presents an interesting argument for a $1 billion BTC using a popular economic model.

The story goes on

If Bitcoin reaches $1 billion, a $1,000 investment would be worth $16.7 million in 2038. To become a millionaire, a minimum investment of $60 or 0.001 BTC would be required.

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This article, “Owning 0.001 Bitcoin Could Make You a Multimillionaire, According to Fidelity Director” originally appeared on Benzinga.com

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