- Bitcoin escaped the utility asset domain of platinum palladium and silver and now entered the monetary asset domain of gold
- Bitcoin aiming for 100 trillion USD after 2028
Bitcoin or what is now being popularly regarded as Digital gold, saw a rally during stock market weakness over the fear of the US China trade war. During this period while gold surged as well, the gains registered were nowhere near Bitcoin’s gains of 60 percent in May.
Bleakley’s chief investment officer, Peter Boockvar who predicted that BTC/USD could lose 90 percent of its value in January 2018 when it was its all-time high around $20,000 said Bitcoin is useful as an investor tip-off by being a measure of market sentiment. This prediction didn’t materialized after Bitcoin floored at $3,150 in December last year.
Despite BTC outperforming Gold, gold people say the precious metal is superior to the leading cryptocurrency as they got upset by Grayscale’s Drop Gold advertising campaign. As a matter of fact, Goldmoney.com, a precious metals company created a white paper and infographic to convince the investing public that yellow metal is “superior” to Bitcoin.
“Bitcoin needs gold to exist,” wrote company founder Roy Sebag. “Gold doesn’t need Bitcoin to exist.”
Bitcoin entered the monetary asset domain of gold powered by Halvings
In current scenario, Bitcoin price is having a hard time since it entered into June month. From riding the bull wave to $9,100 level, the leading cryptocurrency tumbled down to start this month at $8,500 only to take a further drastic drop to below $7,400.
Now, for the past couple of days, we are trading near $7,700 level. At the time writing, BTC/USD as been trading $7,796 with 24 hours gains of 0.58 percent.
However, Bitcoin has already surpassed metals like Palladium and silver and is now onto taking over Gold when it comes to stock-to-flow ratio. This, crypto analyst planB says is powered by the upcoming Bitcoin reward halving in 2020 that would cut the BTC supply in half.
Stock to flow ratio of a commodity is the amount of an asset that is held in reserves divided by the amount of the asset produced every year. The higher the ratio, the reduced inflation occurs on an asset annually. Commodities like gold that have a higher stock-to-flow ratio are preferred for their scarcity.
“Fascinating to see that bitcoin has escaped the utility asset domain of platinum palladium and silver (2F<5) and has entered the monetary asset domain of gold (S2F>5), powered by … the halvings,” shared planB.
#Bitcoin aiming for 100trillionUSD (after 2028)?!All physical commodities are nicely lined up on the stock-to-flow / market value grid. I added diamonds (S2F19, market value $1.5trn). Bitcoin seems to grow towards the 1 free spot on the S2F periodic table pic.twitter.com/OZdEz72U8E
— planB (@100trillionUSD) June 6, 2019
In a subsequent tweet, planB added Diamond into the mix that has S2F19 and market value of $1.5 trillion. Bitcoin, he says, “seems to grow towards the 1 free spot on the S2F periodic table” and further aiming for 100 trillion USD that could be achieved after 2028.
Currently, Bitcoin has a market capitalization of just about $140 billion while gold has a market cap of $7.5 trillion. In order to go $100 trillion capitalization, one BTC would be worth around $4.7 million which is more than any BTC price prediction, the highest being $1 million per BTC.
- Source: First Appeared Here
- Published Time: 2019-06-06 16:45:43
The views and opinions expressed in the article Bitcoin Aims for $100 Trillion USD? Now Targets Gold after Passing Platinum, Palladium and Silver do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research.
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