The CIO of ETF issuer Bitwise published an article the day before yesterday, discussing why BTC could reach 1 million dollars each.
I looked into it, and this is how he calculated it:
1/ Currently, the 'store of value' market size is less than 37.377 trillion dollars, composed of gold at 35.984 trillion (>96%) and Bitcoin at 1.393 trillion (<4%).
2/ The history of gold: When the first gold ETF was launched in 2004, its size was 2.5 trillion dollars. Now, at a size of 35.984 trillion, the compound annual growth rate is 13.45%.
3/ Assuming this growth rate continues, in 10 years the global 'store of value' overall market will reach: 37.377 × (1+13.45%)^10 = 132 trillion dollars.
4/ During this process, there is reason to believe that BTC's relative growth rate will exceed that of gold, capturing 1/6 of the market share. This would bring Bitcoin's market value to 132 × 1/6 = 22 trillion dollars.
5/ The value of each Bitcoin = 22 trillion / 21 million > 1 million dollars. $BTC
I looked into it, and this is how he calculated it:
1/ Currently, the 'store of value' market size is less than 37.377 trillion dollars, composed of gold at 35.984 trillion (>96%) and Bitcoin at 1.393 trillion (<4%).
2/ The history of gold: When the first gold ETF was launched in 2004, its size was 2.5 trillion dollars. Now, at a size of 35.984 trillion, the compound annual growth rate is 13.45%.
3/ Assuming this growth rate continues, in 10 years the global 'store of value' overall market will reach: 37.377 × (1+13.45%)^10 = 132 trillion dollars.
4/ During this process, there is reason to believe that BTC's relative growth rate will exceed that of gold, capturing 1/6 of the market share. This would bring Bitcoin's market value to 132 × 1/6 = 22 trillion dollars.
5/ The value of each Bitcoin = 22 trillion / 21 million > 1 million dollars. $BTC
