Now everyone is discussing the argument that Bitcoin will cost $1 million in 3 months. But is such growth possible?
The market capitalization of Bitcoin at a price of $1 million will reach $18.5 trillion. Bitcoin can theoretically achieve such capitalization, overtaking gold. But this will not happen in three months; it will take years, perhaps even decades. In 1932, one ounce of gold cost only $20.67, and today its price is around $2,000. It took 90 years for the asset to grow 100 times. The adoption of Bitcoin in the world is progressing, but so far about 80% of the planet does not yet use crypto.
Now the capitalization of BTC is about $500 billion, for comparison, the capitalization of AAPL is $2.5 trillion, and gold is $12.5 trillion. $18 trillion is a huge amount - it is equal to China’s GDP for 2022, i.e. the efforts of 1.5 billion people. It takes more than a year for an influx of such huge liquidity.
Investor Srinivasan, who bet on the growth of BTC, argues that the impending crisis will lead to the depreciation of the US dollar and, consequently, to hyperinflation, as a result of which #BTC will quickly reach $1 million. Let's assume that the dollar will depreciate, which it is already depreciating , but the rate of its depreciation is somewhere around 3-5% per year. There are no prerequisites for a rapid depreciation of the dollar in 3 months.
In general, BTC has the potential to grow to $1 million, but not in 3-3 months. So, Srinivasan will lose in this argument 100%!
