TLDR
- Joe Burnett predicts Bitcoin could reach $10 million per coin by 2035 due to capital flow into scarce assets and deflationary technology
- Two models project Bitcoin at $1.8-2.1 million by 2035, but Burnett suggests these may be conservative
- Bitcoin’s hard cap of 21 million coins creates a store of value that cannot be diluted, unlike gold, real estate, and other assets
- Deflationary technologies like AI and automation could dramatically reduce costs across sectors by 2035
- As Bitcoin approaches $100,000, analysts warn of potential short-term consolidation due to profit-taking
Joe Burnett, Director of Market Research at Unchained, has released a bold prediction that Bitcoin could reach $10 million per coin by 2035. In his publication “The Mustard Seed,” Burnett takes a long-term view of Bitcoin’s future over the next decade.
The prediction rests on two main ideas. First, there will be a “Great Flow of Capital” into Bitcoin because it has a fixed supply. Second, the “Acceleration of Deflationary Technology” through AI and robotics will reshape industries and boost Bitcoin’s value.
The global financial system big shift
Most market analysts focus on short-term price movements. Burnett instead looks at big changes that could happen over years. His report examines how the global financial system might shift toward Bitcoin as a store of value.
The global financial system holds about $900 trillion in assets. According to Burnett, these assets face risks of “dilution or devaluation” over time. Gold increases in supply by about 2% each year. Real estate expands at 2.4% annually with new development.
Companies face competition that erodes profits. Traditional currencies and bonds lose purchasing power through inflation. All these factors make it hard for wealth to maintain its value over long periods.
Burnett compares this situation to water flowing down a waterfall. Capital naturally seeks the most secure place to preserve value. Before Bitcoin, all asset classes had ways they could lose value over time.
Fixed suppy means demand directly raises the price
Bitcoin changes this picture with its hard cap of 21 million coins. This makes it the first monetary instrument that cannot be diluted from within. The supply is fixed forever, so increased demand directly raises the price.
To illustrate Bitcoin’s unique supply, Burnett points to the halving cycle. Mining rewards started at 50 BTC per block in 2009. Today, the reward has dropped to 3.125 BTC. By 2065, new Bitcoin supply will be tiny compared to the total amount.
Current models project Bitcoin’s price reaching $1.8 to $2.1 million by 2035. Burnett believes these estimates might be too conservative. They often assume slowing growth rates, but technological adoption could accelerate instead.
The second part of Burnett’s thesis involves deflationary technology. AI, automation, and robotics increase productivity and lower costs. By 2035, many industries could see dramatic cost reductions.
Burnett gives several examples of this trend. Adidas “Speedfactories” cut production time from months to days. 3D printing and AI assembly lines could reduce manufacturing costs tenfold. 3D-printed homes can be built 50 times faster at much lower costs.
Advanced supply-chain automation might make housing 10 times cheaper. Autonomous ride-hailing could cut fares by 90% by removing labor costs. These changes would increase the purchasing power of Bitcoin holders.
Under the current financial system, natural deflation is often “artificially suppressed.” Monetary policies like inflation targets mask technology’s impact on lowering costs. Bitcoin would allow deflation to “run its course,” increasing purchasing power as goods become cheaper.
As Bitcoin approaches the $100,000 mark, some analysts warn of possible short-term price consolidation. Market watchers note that major psychological price levels often trigger profit-taking by investors.
Digital Gold
Analysts at Matrixport have observed a shift in market sentiment since summer 2023. Gold breaking above $2,000 has boosted the outlook for Bitcoin as “digital gold,” a narrative supported by investment giant BlackRock.
Independent analyst Markus Thielen believes both gold and Bitcoin will become more important as alternative assets gain momentum. While price levels like $100,000 for Bitcoin might cause temporary consolidation, the broader uptrend likely remains intact.
Current market indicators show investor sentiment remains cautious. The fear and greed index sits at 22, still in the fear zone despite moving out of extreme fear. Bitcoin spot exchange-traded funds have seen outflows for five consecutive weeks, totaling $870 million.
Technical signals also show potential caution ahead. Bitcoin has formed a “death cross” as the 50-day and 200-day Weighted Moving Averages have crossed, which some traders view as a warning sign.
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