Can a $10,000 Investment in Bitcoin Turn Into $100,000 by 2030?

Five years ago, a single coin cost as much as a used car, but today it s six figures

The question matters because the forces that once pushed Bitcoin north are changing shape

Still, Bitcoin's history reads a roller coaster's safety disclaimer rather than a guaranteed fit machine

Let's dig into why a 10-fold or perhaps even more remains on the table with this asset, and why a measured apach beats a blind leap

The drivers of the coin's value paint a similarly favorable picture

Demand keeps building, and from key sources exchange-traded funds (ETFs)

Image source: Getty Images

Furthermore, corporate appetite for holding the asset is rising too, and in multiple forms

Many publicly listed companies Tesla are now opting to hold Bitcoin directly on their balance sheets, and they may be just the first of many

Separately, an entirely new class of company is emerging: Bitcoin treasury companies, which only aspire to buy and hold more of the coin as their main model

Other treasury es from London to Tokyo are copying that playbook, further shrinking the float available for public trading and bringing in significant capital to compete for the supply that remains

Meanwhile, the total supply is locked in cement, and the rate of new coins being mined is only going to get slower and slower

Put simply, more buyers are chasing fewer coins, and that can send its price upward in a very dramatic fashion, precisely as it has in the past

A 10-fold gain is very possible here, and on a long enough timeline, it is ly to occur

Risk, volatility, and why dollar-cost averaging wins Let's temper the above

Bitcoin isn't actually allergic to smooth sailing, but it might be easy to get that impression based on the risks it has faced and the steep price declines it has experienced historically

A liquidity crunch, a regulatory swerve, or a plain old sentiment flip can slice prices in half very quickly -- and in the long run, it is guaranteed that such a plunge will happen again, even if it is subsequently very ly that a rebound occurs

Spot ETFs make exits from the traditional financial sector quite frictionless, so any panic could snowball faster than in the past

Investors should also keep an eye on Washington, as a sudden -face on crypto policy -- or a failure to through on the mises that the current administration made -- could discourage many institutional buyers

Given those hazards, lump-sum bets can backfire

A steady dollar-cost-averaging plan spreads purchases across upswings and sell-offs, lowering the odds that a single bad month leaves you under water

Historically, holding through at least one full four-year halving cycle has left patient investors with gains, but there have been stretches, even spanning several years, when paper losses were brutal

Bitcoin's stars may be aligning to der gargantuan gains in the next few years, but the road from here to there might be more volatile than many expect

Framing the 10-fold goal as "possible, not mised" should keep your emotions in check

Use position sizing you are comfortable with, keep dry powder for inevitable dips, and remember that compounding only works if you stay in the game

Alex Carchidi has positions in Bitcoin and is Bitcoin Trust

The Motley Fool has positions in and recommends Bitcoin and Tesla

The Motley Fool has a disclosure policy.