Willy Woo, a prominent analyst in the cryptocurrency space, recently shared his observations regarding the slowing growth of Bitcoin (BTC) and its potential impact on future investments.
Current Bitcoin CAGR Trends
Willy Woo noted that Bitcoin's CAGR, which once exceeded 100% annually, has significantly decreased. This decline is attributed to the shift from explosive growth, particularly in 2017, to a more stable phase characterized by institutional investors and corporations. "We are well past the 2017 year where we’d see many 100s of percent growth," Woo stated.
Future Growth Predictions for Bitcoin
According to Woo's predictions, Bitcoin's CAGR may ultimately settle at around 8%, aligning closely with traditional capital markets. This figure incorporates approximately 5% growth from long-term monetary expansion and 3% from GDP growth. Woo emphasizes that Bitcoin is now considered a new macro asset that will continue to absorb capital until it reaches equilibrium.
Bitcoin's Potential as a Macro Asset
Despite the declining growth rates, Woo points out that Bitcoin still outperforms most traditional assets like the S&P 500. He believes that the anticipated stability of BTC in the long term may attract capital interested in more reliable investments. "Maybe 15–20 years away, almost no publicly investable product can match BTC performance," Woo concluded.
The current slowdown in Bitcoin's growth may indicate its transition to a more stable asset, which could be beneficial for long-term investors.
