Can Bitcoin Really Go To $100,000 in 5 years?
What are the sound financial principals to make this a reality?
Well according to a recent Bloomberg Intelligence piece on Bitcoin where they ( yip mainstream news ) project Bitcoin to $100,000 in 5 years. The Bloomberg piece had a number of key points. Here are a few key ones I found persuasive.
- Limited Bitcoin supply on favourable macroeconomic environment (low rates, QE etc)
- The lowest volatility ever vs the Nasdaq 100 index indicates that Bitcoin is ripe to rise from the one-to-one price to index ratio entrenched for three years. The chart below shows the ratio of Bitcoin’s 260 day volatility to that of the Nasdaq reaching a new low. Bitcoin’s price first matched the Nasdaq index value in 2017 at about $6,200. It revised the level in March and has nearly doubled since then with volatility declining for Bitcoin vs it rising for the stock market. Risk is improving for Bitcoin.
- Bitcoin supply is limited and declining on an annual percentage. The market cap is $190 billion, so too small for large investors However, if the cap increases then it can become more like a ‘digital gold’, Gold cap is around $9 trillion.
- As stocks underperform that encourages more QE and rising debt to GDP ratios. Tail winds for gold and bitcoin
- Rapid rise in the market cap of stable coins indicate that central bank digital currencies are just a matter of time. In this ‘digitial currency’ market who is the king pin? Bitcoin. The digital version of gold.
- There are favourable trends in decentralised finance (DeFi) and exchanges (DEXs)
- About 90% of the 21 million Bitcoins that will ever be mined, have been
- Bitcoin is correlating more closely with gold. On a 52 week basis Bitcoin is the most correlated to the metal in the Bloomberg Intelligence’s data base since 2010. When futures were launched in 2017 the Bitcoin to gold relationship was closer to zero vs about 0.44 now.
- Bitcoin looks to be the leader in a paradigm shift towards digital money and stores of value. It may fail, but the Intelligence piece see this as unlikely as On-Chain indicators show a solidifying foundation.
- Read here to understand On-Chain metrics. The Bitcoin has rate continued to increase and has reached new highs.
Looking at the technical there are a few key points ahead. However, the break of the monthly trend line would be a great sign for Bitcoin bulls.
Not Convinced? Other Crypto Experts Predicts Bitcoin Will also Hit 100k
Billion-dollar public company Microstrategy Inc. has bought 16,796 more bitcoins. The company has purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million.
Square (SQ), the payments and investment platform company founded by Twitter (TWTR) founder Jack Dorsey, has announced that it has converted 1% of its assets into Bitcoin
We will see more news like this and those brave, early investing companies will be huge in the future because of this. Investing 2-5% of your overall wealth into the bitcoin can have life-changing consequences.
Supply is shrinking and when people realise there is not much left i think 100 000$ is conservative target. Gold is here to stay but millennials are buying Bitcoin, not gold, generational wealth swap is incoming.
The most important advantage is there’s full transparency and the verifiability of Bitcoin. So, you know exactly how much exists exactly how much it’s being produced every day and kind the supply side of the supply and demand equation is known with 100% certainty. So nobody can go in and manipulate it. Once you get into stuff like quantitative easing – So if you take quantitative easing that is literally the fed printing money and flooding the market with more dollars. It creates a higher degree or a higher number of circulating supply of dollars. So that’s quantitative easing.
See bitcoin is designed to do the opposite where the supply of bitcoins are reduced when a bitcoin halving occurs – reducing the supply of available bitcoins in circulation. Please see the vide below to explain this in much more detail.
Read more: forexlive.com
Credit to Robert Kiyosaki & Anthony Pompliano.