Technical Expert Shows How Bitcoin Path Could Reach Gold’s $10 Trillion Cap
Bitcoin was designed to share several key similarities with gold, but the end result was an all-digital asset that does what the precious metal does best even better and then some.
Eventually, the first-ever cryptocurrency could share a similar-sized market cap as the precious metal has currently, and one of the crypto community’s best chartists has outlined the path on how Bitcoin could get there and when.
The Clear Path For Crypto To Match The Precious Metal King’s Market Cap
Bitcoin is a difficult asset to assign a fair market value. Its value is primarily speculative in its current state, making is susceptible to violent price swings as price discovery takes place.
Regardless of the exact figures, Bitcoin would need to pull a “40x” to reach the market cap of gold, give or take a few billion. And when this will happen, will be some time between 2030, and 2040 according to the lowest and highest boundaries of the analyst’s log chart.
Digital gold beats regular gold in just about every way and recently has been proving its value during the pandemic.
The no contact necessary asset can be stored without taking up any space, free of the reach of thieves or the government, and it could in theory hold value better than both fiat and gold in the long term.
Had it been Bitcoin instead, it would have moved at a fraction of the cost, a fraction of the time, required only the security the blockchain network provides, and when it arrived, it would need to space to store it.
Planning it would require just a thought, and executing the transaction just a few clicks.
In a recent scenario where $1 billion in BTC was sent related to a Silk Road wallet, for example, the transaction fee was roughly $14 worth of Bitcoin or 0.00087980 BTC.
The transaction is also completely verifiable for authenticity without the need for a detailed inspection. Bitcoin does this for you, whereas you can be certain the gold was inspected closely for any evidence of tampering or counterfeits, even despite the armed convoy.
As more investors, hedge funds, institutions, and even eventually central banks realize these benefits and the cost and time savings that cryptocurrency can afford them, there will be no stopping capital from gold to further flow into Bitcoin, and help to achieve the nearly $10 trillion target the chart maps out.
A $10 trillion market cap, at the circulating supply of BTC, would take the asset’s price to around $500,000 per BTC.
The total amount lines up with several top experts outside of the analyst we’ve put a spotlight on here, such as Tim Draper and Max Keiser.