Writer: Nick Gambino
Ask ten different financial analysts or trend forecasters about the future of Bitcoin and you’ll get ten different answers—a variety of answers as volatile as the crypto market itself.
Some argue the value of Bitcoin is simply tied to the value we assign as a people, which is to say, it’s arbitrary. Though that argument could be made about any denomination of money ever created. These are not natural things borne of the earth. We crafted them out of a system and placed value on them as a society. Whether fiat or cryptocurrency, they are far cries from an archaic barter system.
Michael J. Saylor, the CEO of MicroStrategy, thinks when (or if) Bitcoin surpasses the market cap of gold, the sky is the floor for the little crypto that could. Gold is the, pardon the pun, gold standard for monetary value. Everything is essentially measured against that and it’s generally accepted that the value will always go up.
Ask Saylor and he’ll tell you he sees Bitcoin capable of hitting a market cap of $300 trillion. For comparison, gold currently sits around $11 trillion. That’s a bold prediction, especially considering that would place a single Bitcoin at about $14 million.
While that does seem like an insane figure remember that there are only a finite number of Bitcoin, making them scarce which in turn makes them more valuable. As they’re mined and we approach the 21 million in existence the value should just keep going up. It’s basic inflation rules. If it can’t be inflated, eventually a single unit will retain or gain in value based on supply and demand.
You can create more cash money, but you can’t create more Bitcoin. It was designed to work this way. That’s why every four years the amount of Bitcoin rewarded from mining is cut in half. It’s a controlled inflation toward a finite goal.
I can’t make a prediction as to where Bitcoin is headed, but everything’s in place for it to continue to rise in value. We’ll have to wait and see. So far, it’s defied any traditional trajectory.
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