Now that Bitcoin price has reached its new all-time high, the question we all would like to hear the answer is: “Will it rise higher?“
The price being only a second-long equilibrium between the supply and demand, it depends of course on the market sentiment, and there’s no way to predict where exactly it would go, especially in a short term.
But what about the long-term? Despite its impressive rise from $0 to over $65k in 11 years and a market cap of $1.2Tr, we at DCenter believe that the best for Bitcoin is yet to come.
Why ? Because other financial assets, some of which can be called inefficient or outdated, easily dwarf Bitcoin’s $1.2Tr. Take these two examples.
Gold market cap: $11.3Tr.
Used as a store of value since the Antiquity, gold is still highly considered among asset managers, mostly because it is scarce. Dubbed “digital gold”, Bitcoin is scarce too, and it also carries other important qualities: it is accessible to everyone and easily transferred all over the world in a matter of minutes.
Global bond market: $119Tr.
With ultra-low (and in some countries even negative) interest rates and accelerating inflation, investing in bonds now means losing money. Some asset managers do it consciously, reducing their portfolios’ risk exposure or hoping that the rates will go even lower, others are obligated by the law. Nonetheless, losing money is never a goal in itself, and for many years already investors have been reducing their bond exposure and investing more into alternative assets, like stocks.
Now that Bitcoin is “too big to ignore” and all sorts of financial products are built on it (futures, options, ETFs…), it is a legitimate alternative asset, and what is more, it’s uncorrelated with any other, allowing to diversify investment portfolios.
Even a small portion of this money invested in Bitcoin would continually drive up its price, and we believe that’s what has been happening for some time already.
So keep your eyes on a prize ! 🚀