Since the beginning of the year, the Bitcoin price has risen from $ 7,200 to over $ 16,000. This enabled BTC not only to show growth of over 100%, but also to increase its market capitalization considerably. This is currently around 300 billion dollars. From this point of view, a digital currency market capitalization of $ 1 trillion doesn’t seem so unrealistic.
What about the BTC bet that Bitcoin will soon have 10% of the total capitalization of gold?
Bitcoin market cap at $ 1 trillion?
Our article is based on an interview between investor Lyn Alden and Cointelegraph .
Alden, who was still considered a big critic of Bitcoin in 2017, spoke in the interview about her current perspective on the digital asset. Alden said that, in her opinion, 2020 and the macroeconomic factors have gone a long way in strengthening the narrative surrounding BTC.
As a result, Alden also speaks about the network effect of Bitcoin . Not expecting any fundamental changes in monetary policy, she thinks Bitcoin market capitalization will rise to $ 1 trillion in the next few years.
Your opinion and fear of a so-called dilution of the network effect at the time. dilution, Alden has since discarded. At that time, the investor saw the risk that capital could be withdrawn from Bitcoin and overflowed onto other protocols.
I feared watering down. If there is not a network that reaches the critical size, the market capitalization and thus the capital behind it can be distributed over many networks and protocols.
Bitcoin network will be much more mature in 2020
The Bitcoin network is now so strong that it has long since reached critical size. Other factors such as the topic of PayPal can also contribute to the fact that the network size of Bitcoin will increase by three-digit percentages in the next few years.
Afterwards, Alden talks about macroeconomics and the effects of monetary and financial policy. In her opinion, the combination of the increase in the supply of fiat money and historically low interest rates help hard assets like gold and bitcoin benefit.
For this reason, the investor also withdraws from the Bitcoin-Gold comparison.
When Bitcoin market capitalization hits $ 1 trillion, it is just 10% the size of gold. So could Bitcoin be 10% the size of gold? – Yes I think so.
With this very realistic scenario, the Bitcoin market capitalization would be around 3.3 times as high as it is today. As a result, the BTC price would also have to increase by a factor of 3.3 from today’s perspective. That brings us to a price of around USD 50,000 per bitcoin.
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