Ever since Bitcoin proved that it has the ability to be worth $20,000, it earned worldwide attention even during its subsequent slump. Now, many investors are hedging their funds by turning them in BTC; this is, by far the world’s most valuable digital asset. Whilst a sizable portion of the community remains skeptical, others seem to believe that it has the potential to surpass gold, a millenary asset, in market capitalization.
Regarding that debate, Bobby Lee, a very well-known figure in the crypto industry, has said that BTC will eventually leapfrog gold in the market capitalization ranking and has the potential to be worth $1 million.
A Hot Debate
The founder of crypto exchange BTCC and the owner and leader of a Bitcoin wallet startup named Ballet, offered his thoughts via Twitter on the weekend, providing yet another voice in the hot debate between Bitcoin and gold and which is more convenient and valuable.
Right now, the market cap of gold is $8 trillion and Bitcoin is currently at $160 billion. That makes BTC 50 times lower as things stand today, but a reversal of fortunes could be taking place in 2028 according to the crypto entrepreneur.
Bobby Lee wrote in his official account in the microblogging site, @bobbyclee, “I predict the #flippening will happen within 9 years and $BTC will shoot up past USD $500, 000.00”. He shares the same view as many people in the industry: he thinks that over the next ten years, the amount of Bitcoin that will be issued to miners, there will be three-block halvings.
Lee also observed that “by 20th year, the daily new output will just be ~255 BTC — yearly inflation of less than 0.5%. More scarce than #gold!” His thoughts are mostly in agreement with those of Stock to Flow, which is an instrument that uses BTC’s new supply and compares it to the existing stock to try and predict its future worth.
The Next Block Halving Will Unlock the Price
Crypto news site has recently reported that until the next block halving, the BTC price will be around $8,300, but once that happens, the landscape will start to change, and quickly: the projections forecast value of $100,000 in two years’ time.
Lee, like other sources and entities such as PlanB, are predicting, is also forecasting that Bitcoin’s price will be far higher in the latter part of the 2020’s and beyond. In fact, PlanB seems to think that money printing could eventually affect the Stock to Flow model, whilst Lee believes that each BTC could be worth $1 million if global money printing continues.
“I would be happy if the model holds for 1 or 2 or maybe 3 more halvings. Especially since BTC is measured in $ … who knows what happens with $ if the FED keeps doing more QE (money printing),” he said in his official account.
The fact remains that the Bitcoin versus gold as alternative stores of value is hot and is far from over. Peter Schiff is a major detractor of the concept of Bitcoin ever surpassing gold, and he said recently that the fact China will back its CBDC with gold wasn’t a very good sign for Bitcoin.
By Andres Chavez