According to many Bitcoin Bulls, Bitcoin may hit a six-figure price and replace gold as the number one asset people go to in times of uncertainty in the market. This has come after Bitcoin has shown a considerable upward movement in the past month or so in spite of some heavy backdrops in the international economy.
A Twitter user named Thomas Lee puts it nicely. He says that in a time when the US and China face political tensions, and the global equity markets fall sharply, Bitcoin has only risen and its no small rise as it has neared $7000. It is clear that the global market has no effect on the cryptocurrency even in the roughest of times.
So far, whenever worldwide chaos hits the market, people turn to gold and secure it as assert because of its high value and the scarcity of the metal around the world. It is this very scarcity that makes gold a safe asset, something whose price may not go low ever. It only claims higher even when the markets fall. That’s why even countries mint out currencies based on the gold they own.
However, if these Bitcoin Bulls are to be believed, all these could be changed, and Bitcoin may take the place of gold due to the advantages it has over the yellow metal. The biggest advantage of Bitcoin is that it can be distributed into smaller values. The fact that it is transferrable also adds to the case against gold.
According to the CEO of Morgan Creek Digital, Mark Yusko, the price of Bitcoin will reach $500,000 in future because of its high demand and scarce supply and its advantages over the safe assets like Gold.
He believes that when the total worth of gold, that is some $7.4 trillion is divided by 21 million Bitcoins, the price of each Bitcoin will become $4000 to $5000. There aren’t that many Bitcoins left to be mined, but it seems like a plausible option. And since around 23% of the bitcoin owners have lost their private keys, it’s hard to say. Yusko says the lost Bitcoins are equivalent to the gold that is lost to the sea.
If that happens, people who own Bitcoin now or buy it in near future, in about a decade or so, the value of that Bitcoin would be somewhere 6000 of its current value, and that would make the owner more just a billionaire. Now, that’s a happy thought, isn’t it?