Bitcoin has a market capitalization of over $ 10 trillion compared to gold. Bitcoin’s rate of inflation is halved every four years over time and has a limited supply of 21 million coins. Bitcoin is accessible to almost everyone and can be broken down into 100 million parts called satoshis (satoshis). Bitcoin has a higher acceptance rate and network effect than cell phones and the Internet in the first 12 years of its introduction. Bitcoin hit over 1 trillion in 12 years; while US tech giants like Facebook, Amazon, Apple, Netflix all took up to 20 years to reach that point. Over 90% of millennials chose Bitcoin as a store of value over gold.
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Lots of numbers are spread about where Bitcoin is going after all. While I agree with many of them, I think we can draw some real reasons for price increases that will occur over time.
So here are four reasons why I think Bitcoin will hit $ 250,000 per coin. Of course, this is not financial advice.
1. More attractive than comparable inflation hedges
First, let’s look at the market cap of another inflation hedge: gold has a market cap of over $ 10 trillion at the time of this writing. Bitcoin now has a market capitalization of just under $ 1.1 trillion. Bitcoin’s rate of inflation is halved every four years over time and has a limited supply of 21 million. Coins
The rate of inflation in gold has remained stable, and when prices rise, so does production. The total supply of gold is unknown and gold extraction technology is constantly improving.
The real monetary value (excluding jewelry and bullion) of gold is approximately $ 4.3 trillion. When bitcoin hits the same monetary market capitalization, it will be over $ 250,000 per coin.
I believe investors are beginning to understand the movement of digital assets, which are scarce by nature but have a growing user base. Their value is comparable to technology companies, whose value increases as a larger user base, adoption, and network effects are realized.
Bitcoin is available to almost everyone. Just as $ 1 is 100 cents, Bitcoin can be broken down into 100 million pieces called satoshis (SATS). With Bitcoin you can transfer values like an email and in any amount.
Try one of these quick, inexpensive transactions in gold. Gold had perceived value and is not considered a currency, and I would put bitcoin in the same category as a store of value. But gold has reached normalcy
and adoption, although it is cumbersome to use and gold is not easily divisible. Humanity, over time, has had a consensus that gold was worth gold.
The same thing is happening now as humanity comes to a present and future consensus that Bitcoin is the alpha store of value. And in the end, I believe that gold will be inferior to Bitcoin.
2. Acceptance rate and network effect
Bitcoin has a higher acceptance rate and network effect than cell phones and the internet in the first 12 years after its introduction. On the other hand, gold has almost no network effect and a declining user base. This leads me to believe that at monetary levels we will see currency parity with BTC and gold.
Bitcoin hit a market capitalization of over 1 trillion in 12 years; while US tech giants like Facebook, Amazon, Apple, Netflix all took up to 20 years to reach that point.
3. Changing of the guard
Bloomberg took part in a survey that found over 90% of millennials chose Bitcoin as a store of value over gold. The changing of the guard on the workforce will no doubt be a rising tide that can push the USS Bitcoin to new all-time highs.
According to a CNBC Millionaire poll, half of millennial millionaires have at least 25% of their net worth in digital assets.
The younger generations believe in the decentralized and trustworthy operating system of the Bitcoin network; choose to put their money and trust in a mathematical framework that is free from politics and human error.
4. Mainstream adoption wave (s):
Turn on the TV and you will see Matt Damon in a crypto.com advertisement. the former staple center will now be called “Crypto.com arena”. The Miami Heat play in the “FTX Arena”. There’s no shortage of mainstream coverage and below are some of the high-profile events and long-term bullish news.
- Elon Musk holds Bitcoin. Likewise Tesla (NYSE: TSLA) and
SpaceX, keep part of their treasury in BTC. - Publicly traded Microstrategy (NYSE: MSTR) owns approximately $ 5 billion
BTC worth USD for their treasuries.
Some of the notable investors flocking to Crypto and Bitcoin are:
- Paul Tudor Jones
- Carl Icahn
- Cathie Wood
- Ashton Kutcher
- Mark Cuban
Even Kevin O’Leary of ABC’s Shark Tank, a notable protractor, has changed his mind and now has 7% of his personal net worth in digital assets. O Leary also spoke at BTC 2021 and is an evangelist for institutional handling of digital assets.
O’Leary recently said: “This is not going to go away, this is the new asset class”
The first futures Bitcoin ETF (Exchange Traded Fund) was approved this year. Wall Street is now expecting a spot Bitcoin ETF, in which the fund is covered with real Bitcoin.
Notable Athletes To Get Paid, Or To Be Paid, In Bitcoin
- Aaron Rodgers
- Odell Beckham Junior
- Tom Brady
- Trevor Lawrence
- Sean culkin
- Russel Okung
Some well-known companies that accept Bitcoin:
- PayPal
- Cash app
- Shopify
- Microsoft
- Overstock
- Dallas Mavericks
- Oakland A’s
- Burger King
- AT&T
- KFC
- Miami dolphins
- Subway
- Fresh air
- Norwegian Air
- Low-cost airlines
- Amazon
- Quiznos
- AMC
El Salvador becomes the first nation to make Bitcoin legal tender. Ukraine followed suit. El Salvador is building 20 schools with a portion of its BTC profits and has bought the latest slump. They are creating a Bitcoin economy and 100% renewable Bitcoin mining powered by solar energy and CHP (combined heat and power) from their volcano.
Other Nations Proposing Similar Pro-Bitcoin Laws:
- Tonga
- Columbia
- Mexico
- Panama
- Brazil
- Paraguay
Germany has just announced the “Money Allocation Act” and wants to be crypto-friendly and accommodate innovations. This allows open funds to invest up to 20% of their holdings in digital assets.
Bank Adoption: Blockdata, an analytics firm, says in a recent study that 55% of the world’s 100 largest banks have invested in the crypto or blockchain space.
Below is a list of banks, all of which have $ 200 million
invested in digital assets.
- Standard Chartered
- BNY Mellon
- Citibank
- UBS
- BNP Paribas
- Morgan Stanley
- JPMorgan Chase
- Goldman Sachs.
The oldest bank of BNY Mellon America offers its customers the custody of Bitcoin and digital assets.
With that said, it’s easy to see how the tides are embarking on the Bitcoin tsunami that is just beginning. The basics of use case benefit, the network effect, and a more receptive younger generation, all of whom are seeing mainstream adoption, will see Bitcoin hit 250,000 per coin.
I don’t know when, and the road to get there won’t be straight. In some cases it is 3 steps forward and 4 steps back. I would guess we will go through at least one more Bitcoin halving to get there comfortably.
As my good friend Tushar would say “just my two sats”
Sources With hyperlink: BTC ATHLETES (Buy bitcoin worldwide.com) CNBC Millionaire Study, Bloomberg BTC VS GOLD, companies that accept BTC (99Bitcoins.com), nations that want to take over BTC (City AM), Blockdata Study (Cointelegraph), German announcement (Forbes), banks with the most cryptocurrencies (Business Insider), adoption rate (Coingape), dual adoption curve and chart (Michael Levin)
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