Bitcoin (BTC) will exceed the market capitalization of gold and could be worth 1 million dollars: to support it was Bobby Lee, co-founder of the Chinese cryptocurrency exchange BTCC, in a series of tweets.
Lee: BTC's market capitalization will reach 8 billion dollars
The market capitalization of gold is 8 billion dollars, while that of Bitcoin stops "only" at 160 billion. Although at the moment this figure is fifty times small, Lee believes that the situation could change as early as 2028.
"I expect the #flippening will take place within 9 years and $ BTC will exceed USD 500,000", he wrote.
Like many, Lee based his theories on the success of Bitcoin on supply reduction by halving the block reward. He noted that, over the next decade, the amount of Bitcoin supplied to the miners with each block will be halved three times. He added:
"By the 20th year, the new daily production will be only ~ 255 BTC: annual inflation will be less than 0.5%. Rarer than gold! "
Printing money could bring BTC to a million
Lee's statements are in line with the predictions of a model that tracks the price of Bitcoin, called Stock-to-Flow. Product of the PlanB analyst, the instrument uses data on the new Bitcoin offer compared to the existing reserve to forecast its future value.
As reported by Cointelegraph, the calculations predict a price of only $ 8,300 until the next halving, which will take place in May 2020. Subsequently, however, the situation should change rapidly, and the currency should reach $ 100,000 in just two years.
Lee also agrees with the forecasts of PlanB and the Stock-to-Flow model, but noted that the latter could be invalidated by the strong printing of banks' money.
"I would be happy if the model held up for 1 or 2 or maybe 3 halvening. Especially since BTC is measured in dollars … who knows what will happen to the dollar if the Fed continues to do more QE (print money)"he said on Twitter last month.
The "Bitcoiners" fight against gold supporters
The idea that Bitcoin can unseat gold as an alternative value reserve does not all agree. The most aggressive critics come from Peter Schiff, the gold bug become famous on social media for his offenses against Bitcoin and its supporters.
Last week, Schiff said that the fact that China could anchor its digital state currency to gold is a "bearish" signal for Bitcoin.
Previously, he stated that the BTC / USD pair will never reach $ 50,000, while gold will exceed $ 5,000.