Bitcoin just keeps surging and surging, and with no end in sight, many analysts have become major fans over the last few weeks and months. Some are even claiming that the asset is going to reach new highs that many people never though possible. One of these individuals is Garrick Hileman, the head of research at Blockchain.com.
Garrick Hileman Is Convinced of Bitcoin’s Prowess
At the time of writing, bitcoin’s market cap is at around $440 billion, though Hileman is convinced that a $1 trillion market cap is in bitcoin’s future. He says that bitcoin has gained roughly 12 percent in the last 48 hours alone, and that the currency is on the verge of making its way to the top of the financial ladder and proving itself as the ultimate asset.
In a recent interview, he comments:
My expectation is that bitcoin will become a trillion-dollar asset as early as next year.
Here’s a small comparison: gold’s present market cap is roughly $10 trillion, which makes it considerably larger than bitcoin despite the cryptocurrency’s surging price. However, should bitcoin reach a $1 trillion market cap, that’s about one-tenth the size of the present gold arena. Not bad considering gold has been around for hundreds of years while bitcoin has been around for only 12.
Furthermore, Blockchain.com says that new wallet creation has surged by close to 40 percent this year. Thus, about 17 million wallets have been established since last December.
Hileman is so confident in the prospects of bitcoin that he thinks fiat currencies – including the U.S. dollar – are set to be digitized within the next five years. He mentions:
At this point, the Fed is still taking its time because the Fed is happy with the way the world is.
He further states that as many as 100 million individuals across the globe own cryptocurrency today, and that much of the recent rally is being driven largely by institutional players, which are now holding more of a place in the crypto arena.
In 2017, when bitcoin experienced its first major rally, the currency saw much praise and support from retailers, which was nice but didn’t lead to the long-lasting drive it needed. The currency reached $19,000+ by December of that year but failed to keep its position and dropped into the mid-$3,000 range roughly 11 months later.
Institutions Keep Pushing the BTC Agenda
This time, however, we are seeing major companies such as Square and MicroStrategy invest hundreds of millions of dollars into the world’s leading digital currency by market cap. These businesses now see bitcoin as a store of value and are confident that the currency can protect wealth against serious economic turmoil such as inflation.
Should bitcoin ever reach a $1 trillion market cap, one unit would have to be trading at roughly $54,000, meaning the price would require an additional surge of roughly 130 percent.
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