Cryptocurrency investment firm Bitwise predicts that Bitcoin will be the strongest-performing institutional asset in financial markets over the next 10 years. According to the company's report, the price of Bitcoin could reach $1.3 million by 2035. Bitwise bases this prediction on three key factors: Increased institutional demand: It is stated that Bitcoin will increasingly become an institutional investment vehicle, resulting in continuous net inflows. The need for protection against inflation: It is argued that the demand for “hard assets”, especially from institutional investors, will bring Bitcoin to the forefront. Limited supply: The fact that Bitcoin's new supply is extremely limited and inelastic is seen as the most important factor supporting the price in the long term. Bitwise notes that Bitcoin's compound annual return over the next decade could reach 28.3%, but that significant volatility will likely follow. However, the company predicts that these fluctuations will remain below historical averages. The report states that Bitcoin will maintain its low correlation with stocks, bonds, and other major asset classes, making the “four-year cycle” approach obsolete. However, potential regulatory and legislative risks, political uncertainty, and Bitcoin's relatively new nature are cited as the biggest threats. Bitwise states that technological risks (e.g., those arising from quantum computing) are less likely, but should not be ignored. The company describes Bitcoin's transformation from “zero to a $2.4 trillion asset” in 16 years as the most critical threshold and describes the upcoming period as “the transition process from 1 to 100,” in the words of Peter Thiel. *This is not investment advice.