When you invest in Bitcoin, you are actually placing two bets at the same time:
1. Bitcoin will successfully establish itself as a new 'store of value' asset.
2. Governments will abuse fiat currency and increase the demand for 'store of value' assets.
The reason the market for 'store of value' assets like gold and Bitcoin is growing,
is because governments are abusing money.
If this market size grows threefold,
I believe Bitcoin's growth will certainly be more than threefold.
Of course, this threefold valuation is already under the condition of very restrained government finances.
The reality is that QE is like drug addiction, a habit that governments cannot quit.
That is to say, Bitcoin can easily reach $300,000 without the dollar collapsing.
You just need Bitcoin to continue maturing along its current path and become an institutional asset.
Bitcoin currently accounts for about 10% of gold's $18 trillion market value.
If Bitcoin 'matures' and reaches 50% of gold,
then each Bitcoin will be worth over $400,000.
However, from the #BTC / #GOLD trading pair perspective, Bitcoin is setting new historical highs.
The term 'historical highs' has become quite common in the Bitcoin market.
Setting historical highs against the RMB, setting historical highs against the dollar, the next step will be to set historical highs against gold.
Personally, I believe that before Bitcoin reaches 50% of gold's market value, it will create a siphon effect on gold.
It will shake the old money that believes gold is the only store of value.
At least it will lead them to diversify a portion of their investments into Bitcoin.
What seems like a gamble in Bitcoin investment is actually a sure bet.
And you and I, every Bitcoin believer, will ultimately be the winners of this bet.
