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Bitcoin Will Be More Valuable Than Gold This Decade, Experts Say

Published 02/19/2021, 03:41 PM
Updated 02/19/2021, 03:44 PM

By Yasin Ebrahim

Investing.com – Bitcoin's unprecedented rally above $55,000 Friday, took its market cap well beyond $1 trillion, placing in on track to become more valuable than gold in market cap within this decade as its reputation as a store of value gathers pace, experts say.

BTC/USD rose 6.15% to $54,954, and notched a high of $55,680 earlier in the day. The rally took its market cap to $1.03 trillion, still some way off gold's estimated market cap of about $10 trillion. 

In recent years, Bitcoin's has had a tough time winning over Wall Street, widely touted as the final piece of the credibility jigsaw needed for crypto to hit the big time. But now with its reputation as a store of value firmly entrenched, it can fulfil its promise as "digital gold."

 "There were a lot of 'Bitcoin killers', although none have succeeded. Bitcoin has reached its exit velocity, so now, I have a 95% conviction that it will surpass gold in market cap within this decade," said Luis Cuende, Co-Founder of Aragon, a platform for building & running decentralized autonomous organizations. 

Winning over institutions was far from a smooth journey.

JPMorgan (NYSE:JPM) CEO Jamie Dimon once dismissed bitcoin as a "fraud" – but later apologized-- while Berkshire Hathaway B (NYSE:BRKb)'s Warren Buffett, the oracle of Omaha, famously proclaimed bitcoin to be "rat poison squared."

The wave of institutional demand suggests the tide is turning. Asset managers like Blackrock (NYSE:BLK) seeking to diversify their portfolios or institutions like Tesla (NASDAQ:TSLA) growing wary of depreciating bonds and cash on their balance sheet are turning to bitcoin.

In the era of central bank easing, having an "algorithmic supply really matters," Cuende added. " "Distinct from the 2017 bull run, this time it’s institutions who have woken up to the fact that there is one global, decentralized store of value that cannot be controlled by a committee composed of a select few."

Still, history suggests that after every bull run in crypto, a correction follows. Bitcoin's could be unrelenting, even drastic, but will likely be met with a wave of demand.

"I’m unable to foresee how much of a pullback there will be, or when it will occur, but usually crypto assets tend to overcorrect after a bull run, falling up to -80% from their all-time high. If something as drastic as that happens, a pull back below $30k is likely, but I expect that a lot of buy demand would chime in and restore bitcoin to its $50k levels," Cuende said.

Latest comments

"Experts" do not know what they are talking about.
Ppl should be cashing out on the way up. Anybody has done any cashing out yet?
Oh youre shorter.
How did Bitcoin behave when Gold crashed last March 2020? -- I never bought into the Gold stories anyway. -- Gold has gone nowhere --
The same EXPERTS had a 3000$ target for gold. But later on as they saw the BRC going high and higher they changed their minds. These EXPERTS are like SUNFLOWER changing their direction every time!!!
* BTC
Thinking about last March, when "experts" said it will take years before we saw oil at $35 again.
Every time I see the word 'Expert' in a headline, it makes me cringe.
Especially in the stockmarket
So yoy advice to invest im this currency?
You can't see natural gas but you do see the storage containers and the result of its use.   Bitcoin is the same.
Can you power an industrial machine with bitcoin?
 No, you need an industrial machine to power Bitcoin. Why are you asking?
and in the 1600s a single tulip bulb could buy you an entire farm...naa
Most bitcoin investors haven’t the slightest idea what you’re referring to.
Crypto could be a disaster in the making. Fostering more greed and greater inequality in the World
Has anyone exchanged goods with these price (value) fluctuations? Its really useless as an exchange currency
do you use gold as exchange then?
I will always value an ounce of gold over an ounce of bitcoin.
That's because you don't understand how bitcoin is fundamental to pushing the most advanced technology on earth while a colored "metal" is ridiculously inefficient for anything at all.
That sir, will be your downfall.
For thousands of years the world has been fighting over a colored rock.
*colored metal
rat poison works - rats are dying!
If its such a here all end all to fiat currencies then when it comes time to sell the investor chooses to go back to their respected fiat currency. Want 100% correction? Turn off the power.
great store of value. especially when you don't have any electricity. ok. I'll give you some btc for food rations. oh *******the entire grid is out.
Isnt the same true about most investments? If the entire grid is out stock dont matter real estate dont matter ***gold doesnt even matter the most expensive commodity would be ammo. But cmon lets get real here
Ammo, Water, Rations.
Tesla has solved this. Invalid argument.
tangible vs. intangible asset
Yes they would say it`s` good value , Most probably because they have a vested interest and millions invested funds that have pushed it to these highs , It can only happen in the US , I wonder how many traders will be jumping out of windows when it all goes *****up , And looking at the price now me thinks it`s not to far off Oh wait i forget there`s another stimulus Package coming , What is it $1.7 TRILLION , That should hold things for a bit ,
1.9
The crypto fees are insane and wasnt the whole purpose of crypto a new way to not have big banks fee and own everything? Wasnt it also supposed to be annonimity?
Look at BNB jesus christ
Bitcoin will be worth $1B sometime in the future as it becomes the world's currency...
It's paintings and baseball cards. It's not a currency. It's an asset being sold back and forth.
Tomorrow I will open *******currency
Well, gold is basically a colored rock
well a coloured metal would be more accurate
money laundry
Of course bitcoin is valuable than gold. Because there are only 18.6 million bitcoins and 5 million lost. But there are tones of gold around the world.
Monkey coin, Soon or later running out from Monkeys to sell .Did you ever seen a Bitcoin? Did anybody ever seen one?
Do you see gas? No. But you see the storage containers.
There is 26g of gold for every human on earth. This is less than an once !
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