Why It’s Only A Matter of Time Until It Becomes One of the most valuable assets, ever.
Bitcoin’s Ranking Among Global Assets
As of the latest data, Bitcoin’s market capitalization stood at approximately $814.54 billion in December 2023. This significant market value places Bitcoin within the top 10 most valuable global assets, highlighting its prominence in the global financial landscape. In early 2021, Bitcoin’s market cap was around $638 billion, positioning it as the ninth-most-valuable asset worldwide, close to the market values of major companies like Tesla and Alibaba.
Scalability of Bitcoin’s Value
Bitcoin’s value proposition is intrinsically linked to its price, which directly influences its appeal to different investor classes:
Attractiveness at Different Price Points:
- $1,000 per Coin: At this level, Bitcoin becomes an attractive investment for millionaires seeking a reliable store of value. The relative affordability and growth potential make it an appealing choice for individual high-net-worth investors.
- $100,000 per Coin: When Bitcoin reaches this price, it garners the attention of billionaires and large institutions. The high value per coin combined with Bitcoin’s proven liquidity and market presence makes it a viable component of large-scale financial portfolios.
- $1,000,000 per Coin: If Bitcoin’s value escalates to this level, it would likely attract trillion-dollar entities like states and nations. Such a valuation would not only underscore Bitcoin’s role as a global financial staple but also mark it as a reserve asset on par with traditional stores of value like gold.
The Future Outlook for Bitcoin
Bitcoin’s current standing and its potential future growth point to its continued relevance in the financial world. Should Bitcoin’s market cap increase, as speculated, it may regain and surpass its previous ranking among the top global assets. The possibility of Bitcoin achieving a market cap over $1.4 trillion in the future aligns with the idea that as its price increases, so does its appeal to a broader and more influential investor base.
Institutional Adoption and Liquidity
Institutional interest in Bitcoin is growing, with entities recognizing it as a highly liquid asset. This liquidity is a critical factor for institutions like MicroStrategy, which have invested heavily in Bitcoin. The ability to convert large Bitcoin holdings into traditional currencies like the US dollar adds to its attractiveness as a store of value. This aspect is particularly appealing to institutions looking to diversify their portfolios with cryptocurrency while maintaining the option for liquidation when necessary.
Bitcoin’s current ranking among the world’s most valuable assets, combined with its scalable value proposition at various price points, highlights its unique position in the global financial ecosystem. While the future is inherently speculative, Bitcoin’s trajectory suggests a growing influence and potential as a store of value, particularly for high-net-worth individuals, institutions, and possibly even nation-states. This trajectory, coupled with increasing institutional adoption and liquidity, paints a promising picture for Bitcoin’s role as a pivotal financial asset.
Bitcoin’s Place Among Global Assets and Its Scalability of Value was originally published in The Dark Side on Medium, where people are continuing the conversation by highlighting and responding to this story.