Bitcoin’s “logical” market cap limit (for now) is gold’s $9 trillion valuation: trader ๐จ This article is 4 years old...
Bitcoin’s “logical” market cap limit (for now) is gold’s $9 trillion valuation: trader
2 min read
Updated: Nov. 24, 2020 at 11:32 am UTC
Bitcoin has undergone a strong rally since the lows of September and October.
From the mid-October lull at $11,200, the coin has rocketed over 60 percent higher to $18,350 as of this article’s writing. Just a few days ago, BTC was trading just a few percent shy of $19,000 as investors began to flood in from all corners of the investing world.
Bitcoin is not yet past its previous all-time high but analysts are preparing for a strong break in the upward direction once it decisively past $20,000.
The coin is up around over 400 percent from its March pandemic lows and up around 180 percent since the year began. Even still, there are analysts that are projecting strong gains for Bitcoin.
But where will BTC top in this market cycle or at least in the coming market cycles?
According to one prominent trader and many executives in the space, a logical long-term top for Bitcoin will be approximately $500,000 per coin, as that would coincide with gold’s market capitalization of $9-11 trillion.
Bitcoin to top at $10 trillion?
According to I Capital’s “Z,” the “logical top-side market cap limit” for Bitcoin currently is the market capitalization of gold, which currently sits at $9 trillion to $11 trillion, depending on who you ask.
That would mean that the coin tops at approximately $500,000 per coin, which would put BTC on equal footing with gold, even though that may not seem to be the case.
The logical top-side market cap limit for $BTC is 9 Trillion USD (goldโs share).
— Z (@SplitCapital) November 24, 2020
This is in line with the sentiment of a number of investors in the space that over the coming years, Bitcoin will displace gold as the world’s primary sovereign store of value.
Winklevoss Capital, the crypto venture fund and family office run by the Winklevoss Twins of Gemini, have commented on the prospects of Bitcoin:
“Bitcoin has already made significant ground on gold โ going from whitepaper to over $200 billion in market capitalization in under a decade. Today, the market capitalization of above-ground gold is conservatively $9 trillion… Said differently, the price of bitcoin could appreciate 45x from where it is today, which means we could see a price of $500,000 U.S. dollars per bitcoin.”
Above and beyond?
Some think that Bitcoin will go beyond a $10 trillion market capitalization in the years ahead.
As reported by CryptoSlate previously, Kraken co-founder and early Bitcoin adopter Jesse Powell told Bloomberg earlier this year that he thinks Bitcoin will eventually โsurpass gold as a store of value.โ
Raoul Pal, CEO of Real Vision and a former Goldman Sachs executive, has shared a similar sentiment in the past:
โIf it becomes an ecosystem, and we believe it will be and it will take the whole ecosystem with it as well, then yes, I think a $10 trillion number is easily achievable within that process.โ
Bitcoin Market Data
At the time of press 11:32 am UTC on Nov. 24, 2020, Bitcoin is ranked #1 by market cap and the price is up 1.11% over the past 24 hours. Bitcoin has a market capitalization of $350.62 billion with a 24-hour trading volume of $53.45 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 11:32 am UTC on Nov. 24, 2020, the total crypto market is valued at at $569.18 billion with a 24-hour volume of $288.46 billion. Bitcoin dominance is currently at 61.75%. Learn more about the crypto market ›
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Goldman Sachs
Goldman Sachs a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
Cameron Winklevoss, a renowned figure in the cryptocurrency sector, is a Harvard University graduate with a degree in Economics and holds an MBA from Oxford University.
Tyler Winklevoss, known for his pioneering role in the cryptocurrency realm, is a Harvard University alumnus with a degree in Economics and holds an MBA from Oxford University.
A former hedge fund manager who retired at 36, Raoul Pal is a co-founder of Real Vision, a financial media company offering in-depth video interviews and research publications from the worldโs best investors.
Jesse Powell is an expert in virtual currencies, online/international payments and fraud, as well as co-founder and former CEO of Kraken, one of the most trusted and largest Bitcoin exchanges in the world with number one EUR market share.