Hodler: Bitcoin (BTC) Will Be Worth $98 Million in 20 Years
Bitcoin has seen both good and bad
days since its birth in 2008. While creating Bitcoin, Satoshi Nakamoto,
envisioned an overhaul of the current traditional financial system. However,
the cryptocurrency is yet to fulfill that vision. It has been marred with price
fluctuations and criticisms from all corners.
At the time of writing, Bitcoin has a
market capitalization of $$89,068 million and
steady above $5,000. Even so, an
outlook of the next two decades indicates that Bitcoin is poised to record unimaginable
Banks Have A Role To Play
From the look of things, the value of
Bitcoin will be propelled higher in the next few years thanks to changes by
traditional financial institutions in a bid to be part of the digital
Presently, Bitcoin acts as medium of
exchange—as envisioned by the founder, is a settlement layer and a most
importantly, as a reliable store of value. Institutions have for far too long
sat on the fence gauging whether they should be involved.
Even with this reluctance from deep
pocketed institutions, Bitcoin stands on top of a Gold miner, ready to solve
pertinent problems and one bold holder, going by the Twitter Handle Moon_Rekt
is optimistic that Bitcoin prices will erupt towards the $98 million mark in
the next two decades.
Why It’s Achievable
While this may be seen as a wild
thought, here’s his argument.
Bitcoin is probably the best form of
money to have graced the surface of the earth. When pitted against gold and
fiat, on the basis of divisibility, security, predictable supply, and
decentralization, it occupies the first position.
In the ten years that Bitcoin has been
in existence, it has experienced both highs and lows. Each time BTC emerges
from a low cycle, commonly known as a bear/winter period, it bounces back
stronger. The high season, often called the bull market, attracts attention
from miners, financial institutions, speculators and developers. When the bears
kick in, the attention dies, the price plummets, and the cycle continues.
These cycles are driven by ‘Bitcoin
Hodlers of Last Resort.’ These are individuals who stockpiles of BTC during low
seasons and sell during the high seasons. These hodlers know one thing for
sure; the bulls will certainly defeat the bears.
Bitcoin Is The Best Form Of Money In Existence
To explain, let’s put gold, fiat, and
Bitcoin side by side. The three are highly interchangeable and non-consumable.
Only gold and Bitcoin have a high durability.
Fiat and gold share moderate
divisibility and security while Bitcoin beats them on the two qualities. On the
predictability of supply, gold has moderate while fiat has low. Bitcoin has
Out of the three, only Bitcoin is
decentralized and programmable. Bitcoin also happens to have a low government
Moreover, BTC has been in existence
since 2009 and its first decade was filled with boom and bust cycles. However,
the price of Bitcoin continued to rise through these cycles. The boom cycle
attracted software developers, asset managers, banks,
etc, while the bust cycle chased them away. When the attention drops, the price
drops, and those who understand the market accumulate more coins.
The reason the boom cycle does not
last forever is that once it pops the cycle reverses giving room for the bust
Interestingly, even during these
cycles, Bitcoin maintains a positive trajectory. The upward trajectory is
maintained by ‘Bitcoin Holders of Last Resort’ who buy and hold low and sell
Bitcoin Halving Will Propel The Price In The Right Direction
The supply of Bitcoin is automatically
set to decrease over time due to miners earning less when the Bitcoin Platform
halves their reward.
According to Moon_Rekt, halving acts
as a “major supply shock to the market.” The next having event is market to
take place in May next year. With it will comes a reduction in Bitcoins annual
inflation rated to 1.8 percent from 3.8 percent. The price has already started
positively responding to this event.
Consequently, the combination of these
scenarios is highly likely to drive massive Bitcoin adoption.
Back to our $98 Million Projection
With massive adoption levels, broad
money which is valued at $90.4 trillion will shed the entire value to Bitcoin.
Additionally, Gold, global GDP, global debt, global equities, and Real estate
will each share 90 percent ($6.9 trillion), 5 percent, 50 percent ($107.5
trillion), 50 percent ($73 trillion), and 25 percent ($54 trillion)
Therefore, a total of $294 trillion will
be flowing into the Bitcoin market in approximately 20 years. This will
effectively make Bitcoin (BTC) the new global unit of account in a state of hyperbitconization.
Since 84 percent of Bitcoin’s 21
million coins is already in supply, the $294 trillion will be shared among the
slightly above three million coins which are yet to be mined. Quick
calculations reveal that one Bitcoin will be worth $98 million by the end of