To understand the potential Return on Investment in Bitcoin, it’s important to take a close look at the fundamentals and market cap of all other major asset classes, that are a potential source for capital flows into Bitcoin.
My video takes a look at the potential of the bitcoin price in the long term, based on a 5% wealth transfer from the world major asset classes, that would take Bitcoin to a $10-$12 trillion market capitalisation.
It also highlights the risks that Bitcoin still faces, if this scenario was to become a reality.
]Editors Note] – Excellent discussion with Reggie Middleton of boombustblog.com. How the global financial system & society in whole would benefit, if it moves away from the inefficient heteronomous financial system we have today; by moving towards an autonomous financial system powered by the likes of Bitcoin and Blockchain technology.
“As Reuters reports, American Eagle silver coin sales jumped on Monday after the U.S. Mint said it set the first weekly allocation of 2016 at 4 million ounces, roughly four times the amount rationed in the last five months of 2015, after a surge in demand. It will not be enough”
“According to the Mint, more than half of the week’s allocation of silver sold on Monday, the first day of 2016 sales, a sign that demand entering 2016 is literally off the charts”
Debasement of the Yuan would be extremely bullish for alternate money/currency including Bitcoin and Precious metals.
China has $22 trillion in deposits part of which could soon find its way into these assets, if debasement and capitals controls for the Yuan hits.
“Given our views on credit contraction in Asia, and in China in particular, let’s say they are going to go through a banking loss cycle like we went through during the Great Financial Crisis, there’s one thing that is going to happen:China is going to have to dramatically devalue its currency.”
[Editors Note] I address this common question in the Bitcoin space, and why I dont think it will be the case:
“Due to the uneven distribution of the Bitcoin currency at this time; , If Bitcoin goes mainstream wont it just lead a new powerful financial elite or 1% and cause massive wealth inequality in the same way the existing global financial system does”
“It’s the folks who don’t understand cryptocurrency and the folks who don’t understand Bitcoin that seem the craziest these days. It’s a fascinating flip”
“But there’s one thing to remember in every investment scenario: objections are a buying signal. Say what you want about short-sighted folks stuck in the past: investors know that something is brewing.
“The underlying cause of this debt glut is the $12 trillion of free or cheap money created by central banks since 2009, combined with near-zero interest rates. When the real price of money is close to zero, people borrow and worry about the consequences later.”