It has been just revealed that Bitcoin could surge x 10 times. How? Well, it seems that the market share from gold could be the answer.
Bitcoin could rise in price thanks to gold
According to crypto investor Brian Kelly, if investors start choosing Bitcoin over gold, the market cap of the cryptocurrency could increase by as much as 10 times.
In an interview with CNBC’s Fast Money, the CEO of digital asset investment firm BKCM expressed his bullish sentiment towards Bitcoin, citing various reasons including the possible approval of a spot market Bitcoin exchange-traded fund (ETF).
“We have another halving coming up in April. And I’m not one of those people that thinks the halving is the actual catalyst. But it’s one of those sentiment things that all of a sudden now you have a reduction in supply. Couple that with the fact that we have the Federal Reserve that is likely done for some time being of raising rates. If not, we don’t think they’re going to go to 10%. Maybe they go to 5.5%.”
The notes continued and stated the following as noted by the online publication the Daily Hodl:
“And then the second part of that is we now have these ETF filings. So for the first time ever, just like the gold ETF, you’re going to have retail investors, not that they couldn’t buy it before, but now registered investment advisors, your Morgan Stanley wealth manager can allocate to this, and so that’s what got the market excited about this new ETF.”
The trader has predicted that investors will soon start considering Bitcoin as the equivalent of digital gold, which will lead to a shift in market share from precious metals to Bitcoin.
This shift could potentially cause a significant increase in Bitcoin’s market cap.
The trader explained that Bitcoin can be thought of as a form of digital gold, which can be included in a portfolio to combat inflation.
If an investor is worried about their currency losing value, they can use gold or Bitcoin as a hedge.
The trader argued that Bitcoin is a better option than gold because it can be used on the internet, while gold cannot.
Let’s consider Bitcoin’s current market cap of $700 billion. The total value of all the gold ever mined is estimated to be around $7-8 trillion.
Therefore, Bitcoin has the potential to capture some of the gold market share, which it seems to be doing already. As a result, the market cap is expected to increase.
If this trend continues, it may lead to significant returns. Although it may seem far-fetched, a five or ten-fold increase is not impossible.
Just like any other business, market share is the key driver behind the increase in market cap.
