A growing number of crypto investors now think that Bitcoin (CRYPTO: BTC) could reach a price of $1 million in the next few years. In addition to Cathie Wood of Ark Invest, who famously predicted a price of $1 million in 2022, there is now Jack Dorsey, co-founder and former CEO of Twitter. In a recent interview, Dorsey suggested that Bitcoin will reach “at least a million” by 2030.

What makes this prediction so interesting is that it doesn’t come from a Wall Street investment firm. Instead, it comes from the perspective of a technologist with a deep understanding of how Bitcoin it works, not just how it is negotiated. So if Jack Dorsey is bullish on Bitcoin, should you be too?

Is Bitcoin an asset or a technology, or both?

There are two classic ways investors think about Bitcoin. The first approach is to think of Bitcoin as a commodity. From this perspective, Bitcoin is “digital gold” and a store of value, and should be accumulated in the same way as physical gold. The second approach is to think of Bitcoin as a digital currency. From this perspective, Bitcoin functions primarily as a payment mechanism and medium of exchange.

Image source: Getty Images.

But there is a third way to think about Bitcoin – as a technology. This is how Dorsey thinks about Bitcoin. He sees it as a blockchain-based technology that is capable of disrupting the modern financial system. And he’s primarily focused on the burgeoning Bitcoin ecosystem, which includes everyone from Bitcoin miners to companies creating new Bitcoin payment technologies.

According to Dorsey, every person who touches Bitcoin in a meaningful way helps make it better. He should know: In recent years, Dorsey has famously collaborated on several Bitcoin-related projects. Dorsey’s latest project is Oceanwhich is a new Bitcoin mining initiative.

How much is the Bitcoin ecosystem worth?

Given the emphasis Dorsey places on Bitcoin as a technology, it is perhaps natural to ask: “How much is the Bitcoin technology ecosystem worth when it comes to valuing Bitcoin?”

That’s a great question, but I’m not sure anyone has really answered it to my satisfaction. Ark Invest’s Cathie Wood has perhaps come closest, with her focus on Bitcoin’s core use cases. For example, in Ark Invest’s 2023 “Big Ideas” report, it highlighted several roles that Bitcoin can play, including as a remittance asset. Thus, for example, it is plausible that investors will attribute greater value to Bitcoin if they see its role in the cross-border remittances market increasing over time.

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Another approach is to focus on the new products and services that members of this Bitcoin ecosystem are bringing to the market. For example, Lightning Labs, already known for its Lightning Network, is now working to bring stablecoins and tokenized assets to the Bitcoin blockchain. And Strike continues to bring new Bitcoin payment options to global users. All of these products and services are helping to make Bitcoin more valuable, increasing its adoption worldwide.

Is Bitcoin really reaching $1 million?

When it comes to evaluating Bitcoin, the focus should be on the mainstream adoption of Bitcoin. In other words, what are ecosystem members doing to make Bitcoin more useful in everyday life? In this case, “utility” means more than just lots of people buying Bitcoin ETFs in cash. It means people use Bitcoin as part of a decentralized financial system that empowers individuals, reduces fees, and lowers barriers to entry.

Jack Dorsey hits the nail on the head when he talks about Bitcoin’s collaborative ecosystem. He has experience building technology companies and designing innovative technologies and platforms. He understands the importance of community and collaboration to the success and widespread adoption of any new technology.

While I’m still not convinced that Bitcoin will reach the mythical price of $1 million by 2030, I am convinced that Bitcoin is currently undervalued at its current price of $63,000. This is because many investors are focused on Bitcoin as a financial asset, and not as a digital technology capable of disrupting the modern financial system. With this in mind, I am optimistic about Bitcoin’s long-term prospects.

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Dominic Basulto has positions in Bitcoin. The Motley Fool has positions and recommends Bitcoin. The Motley Fool has a disclosure policy.

This top cryptocurrency could reach $1 million by 2030, according to Jack Dorsey was originally published by The Motley Fool

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