The Mustard Seed: Bitcoin Forecasted to Reach $10 Million by 2035
In a groundbreaking publication titled The Mustard Seed, Joe Burnett, the Director of Market Research at Unchained, presents a compelling thesis that predicts Bitcoin could reach an astonishing $10 million per coin by the year 2035. This quarterly letter takes a unique long-term view, focusing on what Burnett terms “time arbitrage” as it explores the potential future landscape of Bitcoin, technology, and human civilization.
Key Transformations Driving Bitcoin’s Growth
Burnett’s thesis revolves around two significant transformations that he believes will drive a massive influx of global capital into Bitcoin. The first transformation, dubbed the “Great Flow of Capital,” highlights the appeal of an asset with absolute scarcity. The second transformation, the “Acceleration of Deflationary Technology,” underscores how advancements in AI and robotics are reshaping entire industries.
A Long-Term Perspective on Bitcoin
The Mustard Seed sets itself apart by taking a long-term perspective on Bitcoin, contrasting with the short-term focus of most financial commentary. Burnett points out the risks inherent in the global financial system, where traditional assets like gold, real estate, equities, and fiat currencies face the constant threat of devaluation or dilution due to inflationary pressures.
Bitcoin’s Unique Value Proposition
Bitcoin’s fixed supply of 21 million coins distinguishes it from traditional assets that can be diluted or devalued over time. Burnett compares Bitcoin to an untapped reservoir, offering a new outlet for global wealth that cannot be expanded or diluted. He emphasizes how Bitcoin’s scarcity, coupled with growing demand, could lead to significant price appreciation.
The Acceleration of Deflationary Technology
Burnett also highlights the impact of deflationary technologies like AI, automation, and robotics on global costs. These innovations are driving down production costs in key sectors, making goods and services more abundant and affordable. By 2035, he predicts that advancements in manufacturing, 3D printing, supply chain automation, and autonomous transportation could lead to dramatic cost reductions.
Bitcoin’s Path to $10 Million
Despite uncertainties in projecting Bitcoin’s global adoption, Burnett references models that suggest a price range of $1.8 million to $2.1 million per BTC by 2035. He argues that these projections could be conservative, considering the accelerating pace of technological adoption and increasing awareness of Bitcoin’s properties.
Looking Ahead
The Mustard Seed underscores the potential for Bitcoin to absorb a significant portion of global wealth, positioning it as a compelling long-term store of value asset. Burnett urges forward-looking investors to focus on the multi-year horizon and recognize Bitcoin as an asymmetric and overlooked opportunity in global markets.
As Bitcoin continues to gain mainstream recognition, Burnett’s forecast of a $10 million Bitcoin by 2035 paints a compelling picture of the digital asset’s potential. With Bitcoin’s user base still relatively small and traditional wealth predominantly held in legacy assets, the opportunity to front-run the capital migration into Bitcoin remains enticing for savvy investors.
At the time of writing, Bitcoin is trading at $83,388, showcasing its ongoing price growth potential.
In conclusion, The Mustard Seed offers a thought-provoking analysis of Bitcoin’s trajectory and the factors driving its long-term growth potential. As the digital asset landscape evolves, Bitcoin’s unique value proposition and scarcity could position it as a cornerstone of the future global financial system.
Featured image created with DALL.E, chart from TradingView.com.