Bitcoin is expected to achieve a market worth of up to $200 trillion, according to Dan Held, Director of Growth Marketing at crypto exchange Kraken. BTC would be valued at about $9.5 million per token in this scenario.
“It’s a big range, but I think Bitcoin’s market cap should be between ten and two hundred trillion dollars…”
Yesterday, the leading cryptocurrency closed eight consecutive daily green candles, making this its greatest consecutive run in 2021 so far. BTC was able to close over the crucial $40,000 mark as a result of this.
As a result, there is a resurgence of a bullish attitude. With that comes high price forecasts. However, Held’s projection is on the high end of previous predictions.
What is his rationale for this possibility?
High-flying predictions become even higher-flying predictions.
Greg Foss, the Executive Director of Validus Power Corp, has estimated the market capitalization of Bitcoin to be $45 trillion. BTC is being valued at $2.1 million.
Bitcoin may, in the future, take a cautious 5% of the $900 trillion global asset valuation, according to his calculations. He predicts that oil and gas suppliers would abandon the dollar in favor of Bitcoin within the next ten years.
Despite the fact that this appears to be a tall order at the moment, Foss believes that the dollar, as an inflationary asset that loses value over time, is a major burden for energy suppliers.
Validus Power Corp is a sustainable energy solutions company that mines Bitcoin using (waste) flare gas.
While Foss’ forecast is extremely high, Held believes Bitcoin may reach much more.
How did Bitcoin reach a market capitalization of $200 trillion?
Held told Kitco News host David Lin that he should analyze the “whole addressable market of the store of value assets” instead of suspending his disbelief over a $200 trillion Bitcoin market valuation.
He went on to mention other stores of value assets, such as gold, fiat money, sovereign debt, and real estate, which has a market cap of $250 trillion. In some way, they’re all “inherently weaker” than Bitcoin as a store of wealth, he says.
“None of them are digitally native, many of them can be seized and censored, there are other things you can’t do with them as well, they’re not divisible, they’re not very durable, and so Bitcoin is a really sexy store of value asset in terms of its monetary attributes.”
As a result, Held believes Bitcoin will eventually compete with real estate, resulting in his $200 trillion valuations. However, he does not provide an estimated date for this to occur, simply that it will take a long time.