According to the trading company Capriole Investment, it cannot be ruled out that the bitcoins (BTC) will soar up to an astronomical $600,000 over the next decade. According to the company, this could happen when bitcoin surpasses gold as the main resource backup activity takes over. It will be a hell of a job, but according to the company, bitcoin has some important fundamental advantages over the precious metal that make it possible.
“There are many other characteristics that distinguish bitcoin from gold, such as its fair decentralization, the ability to transfer instantaneously and to be used for micropayments. But most importantly, bitcoin is harder than gold.
bitcoins vs. gold
From bitcoin rate it is currently very much in the red. Related to historic high about a year ago even almost 80%. However, the future looks very bright for the king of cryptocurrencies. This has everything to do with the history of the financial world.
In a newsletter informs Capriole Investments that she is very interested in the period around 1971, when the dollar disengaged from gold. At that time, gold turned into an insane store of value and has remained so to this day. Capriole Investment thinks something similar could also happen with bitcoin.
“Because gold was so much smaller in the 1970s (and Bitcoin is even smaller now by comparison), it had the ability to make big moves through a decade of inflation and high interest rates. This is one of the reasons we believe Bitcoin will do the same and more this decade,” Capriole writes
Bitcoin $600,000
The market capitalization of Bitcoin is currently only a fraction of the market capitalization of gold. About 2.5% to be exact. Even at the height of the bull market, bitcoin was only 10% the size of gold. According to Capriole, this means that the potential for a sharp rise in bitcoin is huge. Similar demand for bitcoin as gold means a huge price increase for bitcoin, according to Capriole
“Bitcoin has more growth potential than gold because it is smaller. Similar demand for both assets will result in a 40x greater price change for bitcoin.
