Ric Edelman, the founder of Edelman Financial Engines, has made a bold prediction that the price of bitcoin will soar to $420,000 by the end of the decade. In an article published by Think Advisor, Edelman explained that if just 1% of the world's $738 trillion in financial assets were invested in bitcoin, it would result in a staggering $7.4 trillion inflow, pushing the price of bitcoin to $420,000.
Edelman based his prediction on simple arithmetic, taking into account surveys that revealed that over 75% of independent registered investment advisors plan to allocate 2.5% of their assets to bitcoin. With these advisors managing a total of $8 trillion, this would equate to $150 billion flowing into the cryptocurrency. Edelman also speculated that additional investments could come from family offices, pension funds, endowments, and other institutional investors.
Highlighting the global financial assets totaling $738 trillion, Edelman stressed the unique supply constraint of bitcoin, with only 21 million coins in existence. He emphasized that if just 1% of the advisors, investors, and institutions managing these assets were to allocate a portion to bitcoin, the total inflows would reach $7.4 trillion. With 19.4 million bitcoins already in existence, this would increase the value of each bitcoin by approximately $378,000. Taking into account bitcoin's current price of around $42,000 as of December 31, Edelman concluded that the future price of bitcoin would be roughly $420,000.
What are your thoughts on Ric Edelman's prediction? Do you believe bitcoin will reach $420,000 by the end of the decade? Let us know in the comments section below.