Prominent investors and analysts in the industry now expect Bitcoin to hit $50,000 and secure a $1 trillion market cap in the next several years.
Investors including the Winklevoss twins echoed a similar thesis since 2019, anticipating Bitcoin to be considered as gold 2.0 eventually.
The Winklevoss twins believe Bitcoin is undervalued until it hits a $7 trillion market cap. (Photo ... [+]
The leading theory behind ambitious price predictions for BTC between $50,000 and $100,000 is that Bitcoin will account for a significant portion of gold’s market share.
High-profile investors predict that Bitcoin will inevitably compete against gold to become an established store of value.
Chris Burniske, partner at Placeholder formerly of Ark Invest, said:
“Why Bitcoin above $50,000? As discussed in May 2019, if BTC is half as volatile in this cycle as it was in the last, we would still expect it to cross $50K and $1 trillion in network value. $1 trillion has been a long time coming for this macro-asset.”
Gold is a universal store of value that investors typically turn to in times of global economic uncertainty and financial turmoil.
The perception of Bitcoin as a store of value and a hedge against inflation is improving with growing institutional adoption, showing a glimpse into how BTC can co-exist with gold.
Similarly, in 2019, the Winklevoss twins emphasized during an interview with CNBC’s Seema Mody that Bitcoin is highly undervalued until it hits a $7 trillion market cap.
The Winklevoss twins, who famously own over a billion dollars in cryptocurrencies, said that people are becoming increasingly comfortable with Bitcoin as it builds more trust.
They said:
“Our thesis is that Bitcoin is gold 2.0 and so until it has a market cap of $7 trillion, which is the size of gold, it's a very undervalued asset. So I think people are just waking up to that. People get more comfortable with Bitcoin when they keep hearing gold 2.0, it's a store of value, its characteristics are better than gold, and also the longer it is here, it is harder to call it a fad, and it's more here to say. So I think it just builds confidence and trust.”
If Bitcoin hits a market cap of $7 trillion as the Winklevoss twins predict, the price per Bitcoin will surpass $333,000.
According to the newest data from Ark Invest, the market capitalization of gold is now at $9 trillion.
Considering that, Ark Invest analyst James Wang said Bitcoin could see its valuation surge to $800 billion if it takes merely 15% from gold’s market share.
An $800 billion valuation would place the price of Bitcoin at $38,095.
Potential market capitalization of Bitcoin depending on the markets it targets.
“In a world with 10,000 cryptocurrencies, bitcoin simply refuses to die. Maybe its unique combination of technical and 'belief' networks endows it with some durable value. How much? We slice it three ways, and a $1T is not off the mark,” Wang said.
Before late 2018, there was a lack of trusted custodians, strictly-regulated futures exchanges, and over-the-counter (OTC) desks dealing with cryptocurrencies.
Since the fourth quarter of 2018, the infrastructure in the cryptocurrency market started to grow, facilitating growing demand from both retail investors and institutions.
The crucial factor that would decide the trajectory of Bitcoin’s growth over the upcoming years is whether the industry’s infrastructure will continue to grow at a rapid pace or become stagnant.
For now, renowned investors are seemingly expecting important developments in the Bitcoin market in the medium to long-term.
