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Bitcoin Displacing Gold Entirely Would Value BTC At $350,000: Is It Possible?



Since its inception, Bitcoin (BTC) has been praised as an alternative to traditional assets day after day. In particular, the cryptocurrency is. in the eyes of some experts, a replacement of gold, specifically the value capacity of the metal store. But if Bitcoin assumes the hegemony of gold, what would happen to the value of BTC?

Related reading: Bitcoin (BTC) Principal asset with better performance in 2019, with an increase of 43% to date

The case of a six-figure bitcoin

According to HodlWhale, a cryptocurrency investor based in Seattle, a world in which Bitcoin has absorbed all the value of gold in circulation would see BTC valued at $ 350,000.

This figure is not exactly unfounded. As reported by NewsBTC at an earlier date, all gold currently in circulation is valued at approximately $ 7.83 billion, while the entire BTC has a mere valuation of $ 94 billion. If the latter were to completely displace the value of the former, Crypto Voices, an industry research and analysis group, estimated that the BTC would increase to a value of $ 450,000, slightly above the HodlWhale estimate.

And while this sounds absurd, especially considering that cryptocurrencies remain in the depths of a brutal bear market, some are confident that Bitcoin will become the "digital gold" that its investors want it to be.

Could BTC move gold?

Just a few days ago, Adamant Capital, a fund focused on Bitcoin led by investor Tuur Demeester, published a report on the current state of the cryptographic market. After an explanation that "whales" are accumulating cryptocurrencies en masse, the market is expressing "hope", and that a further reduction could be possible if conditions are right, Adamant partners explained that they expect Bitcoin to disrupt traditional assets , like the stores. of value and reserve assets.

The firm specifically targets the growth of the Bitcoin scale, such as the amazing growth of the Lightning Network and the increase of the side chains; the institutionalization / financialization of this industry through Bakkt, the Nasdaq futures, etc., and the rise of millennial demography to affirm that BTC could become a "digital asset of reserve and digital gold used". But why exactly should BTC usurp gold?

Well, it's simple, to be frank.

As Tyler Winklevoss of Gemini explained, Bitcoin is "better at being gold than at gold itself", a sentiment that many investors have of long-standing cryptocurrencies. He sees specifically the fact that BTC is portable, sculpted for today's digital society, even more scarce than metal, resistant to censorship as opposed to traditional assets, and decentralized as a way of endorsing this joyful feeling. At one point, the cryptocurrency entrepreneur added that the only thing gold has over BTC is an "advantage of 3,000 years."

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