According to Bobby Lee, Bitcoin (BTC) will surpass the market capitalization of gold and could ultimately have a value of $ 1 million.
In a Set of tweets On November 10, Lee, co-founder of the Chinese cryptocurrency exchange BTCC and now the operator of a Bitcoin Wallet startup, became the new voice in the growing debate over Bitcoin versus Gold.
Lee: BTC market capitalization needs to exceed $ 8 trillion
The market capitalization of gold is $ 8 trillion, Bitcoin only $ 160 billion. Lee estimates that a reversal could already occur in 2028, although it is currently about fifty times lower.
"I expect that #flippening will take place within 9 years and skyrocket $ BTC beyond $ 500,000," he wrote.
Like many others, Lee based his argument for Bitcoin's success on falling supply by halving the block rewards. He noted that the amount of Bitcoin spent on miners over the next decade will halve three times in each block. Lee added:
"By the 20th year, daily new production will only be ~ 255 BTC – an annual inflation rate of less than 0.5%. Rarer than #gold! "
Money pressure could bring BTC to $ 1 million
His arguments are consistent with predictions from an established model that represents the bitcoin price – stock-to-flow. The tool is the product of social media analyst PlanB and uses Bitcoin's new offering relative to its existing stock to forecast its future value.
According to a report by Cointelegraph, a BTC / USD rate of only $ 8,300 is estimated by the end of May 2020, until the next halving. Thereafter, however, the situation should change rapidly and around two years later, the price should be $ 100,000.
Lee, along with PlanB, also predicted a higher bitcoin price for the later part of the next decade or beyond. While the former believes that a $ 1 million price is possible as global monetary pressures continue, PlanB predicts that money pressure could ultimately affect the viability of the stock-to-flow model.
"I would be happy if the model can withstand 1 or 2 or maybe 3 more halves. Especially because BTC is measured in US dollars … who knows what happens to US dollars if the Fed continues to spend more QE (money pressure), "he said in a late-month Twitter exchange.
Bitcoiner fight against gold supporters
The idea that Bitcoin uses gold as an alternative value store still has its biggest drawbacks. One of the most well-known is Peter Schiff, the Goldbug, notorious for his social media criticism of Bitcoin and its advocates.
Last week, Schiff argued that bitcoin was a "bearish" sign that China may be backing gold from its state-issued digital currency.
Before that, he predicted that BTC / USD would never reach $ 50,000, while gold would exceed $ 5,000.
Also loud is Max Keizer, the RT host, who continues to argue for the supremacy of the cryptocurrency in the mainstream media.
In an episode of his Keizer report last week, he said that Bitcoin's ability to self-regulate deals makes it better suited to transactions than gold or Fiat currencies.