BTC could hit $23 million
Blockware is a pioneer in bitcoin (BTC) mining. It offers services that include hardware purchasing, co-location of mining rigs, and professional mining operations. It also offers services related to staking pools. The company released a research report titled “Purchasing Power Under a Bitcoin Standard.” In sum, the paper predicts the future purchase price of BTC when it becomes the dominant store of value through the demonetization of other asset classes.
A realistic price prediction for bitcoin (BTC)?
On Dec. 31, Joe Burnett, chief analyst at Blockware Solutions, explained that research by the firm concluded that if Bitcoin becomes the dominant store of value, the price of the flagship crypto could reach nearly $23 million. . A price whose achievement will be stimulated by the demonetization of other asset classes.
After the publication of the report, Joe Burnett published the access link of the document on Twitter.
“The nominal value of assets is determined by their value in use plus a monetary/savings premium. Fiat currencies have failed to store wealth over time. This prompted humans to use non-monetary assets in order to preserve wealth. This makes a certain percentage of the face value of this asset a monetary premium. In a hyperbitcoinized world, BTC will absorb the monetary premium of other asset classes”we read in the document.
Later in the document, Blockware Solutions explains that the market capitalization of BTC currently represents roughly 0.05% of the total market capitalization of all financial assets. Gold, base currency, stocks, debt and real estate make up the remaining 99.95%.
He adds that if BTC cannibalizes the monetary premium of these financial assets, then it would represent around 61.38% of the total capitalization of financial assets. Hence its $23 million price tag.
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Far from having dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.