Those who missed out on buying Bitcoin (BTC 0.48%) years ago are probably kicking themselves. The digital asset's nearly 51,000% trailing-10-year gain is hard to believe. It would've been a major contributor to anyone's portfolio returns.
Bitcoin's past performance is jaw-dropping. But the good times aren't over. I predict that the world's top cryptocurrency will triple by 2030 to $375,000. Here's the key catalyst.
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Bitcoin's fixed supply is the main attraction
The most compelling quality that Bitcoin possesses is its fixed supply. It's written in the code that there will only ever be 21 million units in circulation. This is enforced by all the network's participants, supported by a halving schedule that reduces new supply being created.
Owning an asset that can't be debased is an attractive value proposition. That's because Bitcoin will likely continue to rise in price thanks to the burgeoning levels of government spending, deficits, and debt in U.S. dollar terms. In the past 10 years, U.S. federal debt has expanded by 99%. The deficit was $2 trillion through the first 11 months of fiscal 2025. The fiscal year begins in October. These concerning trends only help to boost the M2 money supply and demonstrate the value of Bitcoin's fixed supply.
Returns going forward will come down
There's absolutely no reason to believe that this financial mismanagement is going to stop. Cutting spending and reducing the deficit aren't politically popular. This will continue to provide a favorable environment for Bitcoin to flourish.
It wouldn't be a shock at all to see its price rise threefold in the next five years, which might be a conservative prediction. The forecast return will be much lower than the past five years.
