In 2017, Bitcoin reached a new record-high 15 months after the 2016 block reward halving. BTC saw its latest halving in May 2020, so the chances of a new peak in mid-2021 remain high based on historical cycles.

Over the long term, cryptocurrency investors and analysts say the perception of Bitcoin as a durable store of value would push its valuation.

Tyler Reynolds, a former Google and Morgan Stanley alumni, said the fixed supply of Bitcoin makes it compelling as a hedge against government spending. He wrote:

“As it’s currently shaping up, the next bull run will be led by BTC with the very narrative that OGs have been saying since 2011: Bitcoin’s hard supply cap makes it a durable SoV as governments devalue their fiat currencies to support unconstrained government spending.”

Other notable investors, such as the billionaire Wall Street hedge fund manager Paul Tudor Jones, called Bitcoin an ideal inflation play.

Bitcoin is particularly attractive to institutions because it could act as a hedge within a diversified portfolio but also give investors exposure to Bitcoin’s asymmetric risk-reward potential.

The relatively low market cap of Bitcoin compared to companies like Visa and safe-haven assets such as gold indicate there is significant room for further growth in the next decade.

Via: Cointelegraph