Bitcoin (BTCA new analysis concludes that it could reach $10 million per coin or more as it eats up 25% of global wealth.
IN blog post Fund manager and Bitcoin expert advisor Jesse Myers revealed his own “outrageous” BTC price target in a February 16 post.
Myers: “Bitcoin Could Increase 500x in Next Decades”
Bitcoin may be dealing with “brutal” volatility, but hodlers and critics alike shouldn’t doubt its long-term price trajectory, Myers says.
Analyzing Bitcoin’s value proposition, he argues that Bitcoin’s ability to appreciate over time means it is almost destined to siphon value from other asset classes.
Among other things, because an asset with such appreciation characteristics and increasing rarity allows it to fulfill the role of “digital gold.”
“Bitcoin has an unthinkable property: it gains value over time. Gold is good at storing purchasing power, but Bitcoin is growing purchasing power,” the blog post reads.
“The value stored in Bitcoin becomes more valuable over time as the Bitcoin design becomes more and more scarce – you just have to weather the (undoubtedly brutal) volatility in the process.”
Such an idea is not new – it forms the central thesis of many popular views on Bitcoin, including Saifedean Ammous’ seminal book “The Bitcoin Standard”.
Myers, getting down to the numbers, meanwhile, calculates the global allocation to BTC as 0.05% of available wealth from 2023 – $400 billion.
“That’s 1/2000 of the global asset value,” the post continues.
“With this in mind, we have to ask an important question: if Bitcoin’s mechanics continue to play out (causing it to reliably appreciate in value every 4 years), more than 0.05% of the world’s capital will eventually realize that they want to be in such an asset ? I think the only logical conclusion is ‘yes’.”
This finding, Myers predicts, means that $10 million per bitcoin should be a “conservative estimate.”
“Overall, my personal assessment of where the ceiling is for bitcoin is simple… it’s very high. Almost to the point that I am ashamed to show my analysis,” he concludes.
“My conservative estimates indicate the tremendous full potential of Bitcoin’s price: $10 million/Bitcoin, in today’s dollars. Put another way, I believe Bitcoin’s full potential is to eat up ~25% of the world’s value… while it’s only 0.05% today. This is absurd. That means I believe Bitcoin could 500x in real terms (adjusted for inflation) in the coming decades.”
ARK Bitcoin “bear case” now $258,000 by 2030
“Absurd” or not, Myers is far from alone in watching bitcoin’s sky-high valuation become a reality in the coming decades.
Related: Bitcoin Must Use $1,000 Central Bank Liquidity To Beat Sellers – Research
Some are even calling for reaching the $1 million mark before the end of this year – for example, ARK Invest continued stick to this forecast declines through 2022.
In his “Big Ideas 2023“In an outlook published at the end of January, the investment giant described the long-term opportunity as ‘strengthening.’
It turns out that the firm’s “bear case” for 2030 still puts BTC/USD at $258,000 by the end of the decade.
The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.