Bitcoin Price Set To Skyrocket To $750,000, Says Expert
18 Julio 2024 - 4:00AM
NEWSBTC
In a forecast shared via a YouTube video, Joe Burnett, Senior
Product Marketing Manager at Unchained Capital, articulates a
strong case for Bitcoin reaching a valuation of $750,000. According
to Burnett, the market may be substantially underestimating
Bitcoin’s potential this cycle, often losing sight of its broader
context within the global financial ecosystem. Why Bitcoin Could
Soar To $750,000 Burnett begins by addressing a common oversight in
market analysis, which typically juxtaposes Bitcoin’s current cycle
against historical performances without accounting for its evolving
market context. “I think it’s possible that many people are
underestimating Bitcoin this cycle,” Burnett stated, emphasizing
the necessity to perceive Bitcoin through the lens of its relative
position in the total global wealth. A key component of Burnett’s
argument is the HODL model created by the Rational Root, which he
discussed extensively on the podcast “What Bitcoin Did.” The model
pinpoints a critical inflection in 2020, coinciding with Bitcoin’s
third halving—an event that reduces the number of new bitcoins
generated and thus awarded to miners for verifying transactions.
Related Reading: Watch Out Bears: Bitcoin’s Rally To This Mark
Could Trigger $19 Billion Short Squeeze Burnett elucidates, “This
model is fascinating because it shows a logical inflection point
that occurred in 2020 around the third halving. It highlights that
illiquid supply as a percentage of total supply held at an all-time
low percentage, and it’s been slowly climbing ever since.”
According to him, this reflects a shift towards Bitcoin being
increasingly held by long-term holders rather than circulated by
miners and speculators. Post-2020, Burnett argues, Bitcoin has
entered a new phase characterized by a diminishing supply of liquid
coins. “Until the third halving, Bitcoin was really just in the
process of distributing coins via proof of work mining; almost 90%
of all coins were mined by 2020,” he explains. The subsequent
reduction in new coin generation post-halving has spurred a gradual
transition from a freely circulating supply to a more tightly held
asset. Burnett’s forecast also leverages a comparative analysis
with gold, traditionally viewed as a robust store of value. He
challenges this notion by highlighting the flaws in gold’s economic
mechanics, particularly its annual supply increase of 1% to 2%
which introduces continuous sell pressure. “Gold has a negative
feedback loop considering it’s not perfectly scarce like Bitcoin.
Hundreds of billions of dollars of new gold are mined annually,”
Burnett points out, arguing that this diminishes gold’s appeal as
an investment. Related Reading: Silicon Valley Using Trump For A
Bitcoin Pump Play? Mark Cuban Weighs In Conversely, he describes
Bitcoin’s halving events as a “positive feedback loop,” where the
decrease in new supply every four years inherently drives price
appreciation, stimulating new waves of adoption. “The amount of new
Bitcoin being mined gets cut in half. This repeats until no newly
released Bitcoin are mined,” he adds, suggesting a built-in
scarcity that bolsters its value over time. Zooming out to a global
scale, Burnett references the near quadrillion-dollar total global
wealth, within which Bitcoin’s current market cap is just a
fraction. He contends that Bitcoin’s market share is poised for
significant expansion, potentially commanding a sizable portion of
global wealth. This stands in sharp contrast to more conservative
expectations by various experts which barely see Bitcoin crossing
the $100,000 threshold in the near future. “With all that being
said, the ‘concept of diminishing returns’ could very easily be
flawed. We live in a world with nearly 1 quadrillion dollars of
total global wealth and Bitcoin is 0.1% of that,” Burnett states.
He concludes with a quote from Michael Saylor: “All your models
will be broken,” and added “anything below the size of gold is
absurdly early. Gold parity is now at about $750,000 per Bitcoin,
meaning if the market size of Bitcoin just reached the market size
of gold.” At press time, BTC traded at $ Featured image created
with DALL·E, chart from TradingView.com
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