When it comes to Bitcoin, even the most far-fetched predictions take shape within no time.
- Analysts predict that BTC might replace gold as store of value in a decade
- Market value of BTC rallying unstoppable towards surpassing that of gold
- Global currencies stand threatened from market acquisition of BTC
- Experts tout the leading crypto as the future currency of internet
We are the generation witnessing once-in-centuries monetary revolution. A few decades down the line, money like how we see and pursue it now, might totally be changed. The chances of such occurrence are more robust than one can imagine. And the process of transition has already begun.
Bitcoin is set to touch the predicted $100,000 mark by the end of 2021 and that has a lot to say about future of cryptocurrency. Analysts are highly bullish on the prospects that Bitcoin might as well be heading towards acquiring close to 7 percent share of the overall world economy. And given that the projections are for just a few years from now, the chances are high that we might soon witness complete overhaul of money.
The recent CNBC interview featuring Microstrategy CEO Michael Saylor had some interesting takeaways for the market. It talked about Bitcoin’s price rally, its institutional adoption and regulation, current market volatility and the most notable of all, replacement of gold by Bitcoin. Yes, you heard that right.
Bitcoin can soon replace gold as store of value
Market cap of Bitcoin has hit $1 trillion for the first time in history. Gold, on the other hand, account for $11.73 trillion in overall global market valuation.
Launched in 2009, it was only in 2011 that Bitcoin touched the $1 threshold. From that day till now, Bitcoin has surged more than 5,000,000% within mere 10 years. While the journey sounds too good to be true, it actually is reality.
The bullish prospects of BTC replacing gold as the store of value comes from multiple factors. First, it is easy to transfer and accounts for lower storage cost. Second, the digital revolution is on the way. The future of internet is decentralized and once that happens, cryptocurrency will be the currency of the internet.
Bitcoin giving Global Currencies a hard time
Saylor believes that once BTC replaces gold, it will eventually move towards flipping the monetary indexes. He believes that the chain reaction would lead to BTC acquiring a little share of nearly everything- from real estate to equity.
“At the end of the decade it will have flipped gold, and then it will flip monetary indexes, a little bit of bonds, a little bit of real estate, a little bit of equity, and emerge as a $100 trillion asset class. So, 100X of where it is right now.”
If we compare the value of BTC with that of world’s leading currencies, the figures stand in the favor of the former. Despite regulatory crackdowns and volatility, BTC stands at 14th spot among the global currencies. Outdoing the top three currencies, Yuan, USD and Euro, can be a distant dream, however, others above BTC on the list are not really tough contenders to outdo.
“When we get there, it will be 5% to 7% of the worldwide economy. The U.S. dollar will probably replace 150 currencies. Maybe there will only be 2 to 3 left. There might be the euro, the CNY, and the dollar. Everything else is probably going to disappear. And then Bitcoin will be the world’s monetary index.”