By crossing the $71,000 mark, bitcoin now weighs more than all the silver metal that has come out of the ground.
Bitcoin puts the money in its retro
After surpassing the value of the Swiss Franc last week, the 19,651,000 BTC in circulation are now worth more than money. The market capitalization of bitcoin represents 1.4 trillion dollars, compared to 1.38 trillion dollars for the gray metal.
Here is the additional appreciation bitcoin needs to outperform the assets still ahead of it:
-Google: +20%
-Amazon: +30%
-Saudi Aramco: +48% (A single BTC will then be worth more than $100,000)
-NVIDIA: +56%
-Apple: +88%
-Microsoft: +115%
-Gold: +949%
In other words, the value of a bitcoin will be multiplied by 10 when it exceeds the capitalization of gold. On that day, a single bitcoin will be worth around $700,000.
However, it is possible that some of the wealth in gold flows into bitcoin in the process. The latter will then exceed the barbarian relic before reaching 700,000 dollars.
Why is it condemned to be worth more than gold? The first argument is that there will never be more than 21 million. 93.50% BTC have already been mined.
Conversely, gold production increases as soon as its price increases. We produced 3,300 tonnes of gold in 2020. Compare with 2,560 tonnes in 2010 and 1,224 tonnes in 1980.
For financiers, note that the S2F (Stock to Flow) ratio will increase after the halving from 60 to 120. While that of gold will remain at 60. Our article on this subject: Adam Back anticipates $700,000 for this halving.
Second very important thing, bitcoin is a currency as well as a payment network. Two in one. It is possible to send the equivalent of billions of dollars in just a few clicks for a few tens of cents in transaction fees.
Surpassing gold is the first step. Soon, 8 billion humans will save in bitcoin. Knowing that the fiat money supply represents the equivalent of two billion bitcoins at the current price.
Replacing savings accounts with bitcoin will multiply its value by 100. That’s seven million dollars for one BTC.
Here is the result of a monthly investment in bitcoin (DCA) over 1,2, 3, 4 and 5 years.
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