On-chain analyst Willy Woo shared his thoughts on Bitcoin, stating that the first cryptocurrency is not a “magical unicorn” and that its growth rates will have limitations in the future.
This is reported by Business • Media
According to him, over the next 15-20 years, Bitcoin’s average annual growth rate (CAGR) will be around 8%. Woo emphasized that institutional investors play a crucial role in the development of the crypto market, which has contributed to the decline in the asset’s growth rates.
Bitcoin’s Growth Rates
Willy Woo warned that many people have the illusion of infinite growth for Bitcoin. “People think Bitcoin is a magical unicorn that flies on moonbeams to infinity. But in reality, since 2020, when corporations and states entered the game, the annual growth rates (CAGR) have fallen from over 100% to 30-40%, and continue to decline,” noted the analyst.
People think BTC is like a magical unicorn that climbs to infinity on moonbeams. Here’s the actual CAGR chart. We are well past the 2017 year where we’d see many 100s of percent growth. Now look at 2020, that was the year BTC got institutionalized, corporations and sovereigns…
Bitcoin’s Prospects
Woo believes that as a new macro asset, Bitcoin will continue to attract capital until it reaches its stability. He also noted the possibility of enjoying the “journey” for another 15-20 years, as no publicly available investment product can compete with Bitcoin’s long-term performance, even if its average annual growth rate is declining.
According to the expert, in the long term, Bitcoin will establish its annual growth rate at around 8%, reflecting macroeconomic parameters — 5% money supply growth and 3% global GDP.
It is also worth noting that CryptoQuant CEO Ki Young Ju believes that Bitcoin is already demonstrating deflationary properties, as companies are accumulating it faster than it is being mined. Blockstream founder Adam Back, in turn, shared an optimistic forecast regarding Bitcoin’s value, claiming that the asset is currently undervalued and could reach a price between $500,000 and $1 million within a four-year market cycle.
Recall that analysts at JPMorgan Chase have already expressed an optimistic forecast for Bitcoin, which is increasingly establishing itself as an alternative to traditional assets, including gold. They predicted that in the second half of 2025, Bitcoin could surpass gold in growth rates due to increasing demand for derivatives.