Bitcoin market capitalization will reach $1 trillion
Willy Woo, analyst and partner at Adaptive Capital, believes Bitcoin’s market capitalization will exceed a trillion dollars in the coming years alone. After Bitcoin has let off a little steam, the next cycle will bring Bitcoin’s market capitalization to levels that compete with gold in terms of value.
The analyst has a quite unique, strongly expanded Bitcoin perspective. He sees the asset in the wider money context and sees Crypto as the true beginning of the “digital age”.
Could Bitcoin reach $50,000 by 2022?
Trader and Bitcoin optimist Willy Woo spoke this morning in the Coinist podcast about his current assessment of the crypto industry.
After discussing his work with Adaptive Capital and his research on on-chain trading signals, Woo speculated about Bitcoin’s future. Woo’s earlier assessment that Bitcoin’s market capitalization would reach gold’s by 2024 is now a little too optimistic about the timing. The forecast dates back to 2012, when he only spent a few months in the very new Bitcoin industry. Bitcoin mining is becoming more difficult.
He explained that Bitcoin still has two to three years left in the current market cycle. Then there would be a lull – and in the upward phase after this lull, BTC would outperform gold as the planet’s primary store of value.
However, this should not mean that the recent upward trend will not continue to be impressive. The Adaptive Partner expects the Bitcoin price to rise to $50,000 in the next few years. This would bring the market capitalisation to around one trillion dollars.
Bitcoin as money: the 10,000-year perspective
Perhaps the most interesting part of the interview comes at the end. With a much longer-term perspective on Bitcoin in the context of money technology itself, Woo claims that Bitcoin represents the dawn of a new era of civilization.
- As we have evolved from a hunter-gatherer existence to agrarianism, industrialism and beyond, the forms of money and the demands placed on them are gradually changing.
- Shells were replaced by gold because it was better money, and gold was replaced by banknotes (deposited with gold) because they were more useful for the economy.
- Woo believes that the first digitally scarce facility, Bitcoin, is a crucial step forward for people:
- If we are in a digital age, we really want a digital currency, and this is our first native digital currency. Bankers call Bitcoin a bubble, technologists call it a disruption, but history students would call it the beginning of the digital age.