“If global acceptance of Bitcoin as a legal tender becomes a reality, experts predict that its price could skyrocket to an astonishing $675,000, revolutionizing the traditional financial landscape forever.”
Fidelity Digital Assets, the cryptocurrency arm of the financial giant Fidelity, recently published a study asserting that Bitcoin is better than digital gold and could reach a price of $676,000 or more. The study, conducted in September, highlights several key findings.
Firstly, it states that Bitcoin is a monetary good and a store of value asset in a class of its own. Its price is based on being the most secure, decentralized, and sound digital money available. Furthermore, the study argues that Bitcoin’s scarcity and fungibility are similar to gold, but it also possesses improved portability and programmable properties that make it even better than gold.
The authors of the study, Chris Kuiper and Jack Neureuter, make the case that Bitcoin combines the best of gold and digital assets, positioning it as a unique asset class. They also reference the original Bitcoin white paper by Satoshi Nakamoto, which compared the addition of new coins to gold miners expending resources to add gold to circulation.
One of the most intriguing implications of the study is the potential for Bitcoin’s price to reach $676,000. The Fidelity team proposes that Bitcoin’s value is driven by its enforceable scarcity, and its inflation rate is on par with gold’s. With a current supply of around 19 million bitcoins that have been mined, if Bitcoin were to surpass gold’s market capitalization, it could fetch a price as high as $676,000 per BTC.
At the current price of $28,400, this would be nearly 24 times the value of Bitcoin. While this may seem ambitious, it highlights the long-term potential of Bitcoin as a store of value. In the near to mid-term, there are several important factors that could influence Bitcoin’s price.
Overall, Fidelity Digital Assets’ study presents a bullish outlook for Bitcoin and positions it as a unique asset class that combines the best qualities of gold and digital assets. If Bitcoin continues on its current trajectory, it could potentially see significant price appreciation in the future.