In the beginning, when Satoshi Nakamoto wrote the original Bitcoin white paper, the pseudonymous crypto pioneer tells us the reason he created Bitcoin in the very first sentence of the introduction: “Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments.”
It’s from this white paper that the original crypto-culture of anarchy, libertarianism, and personal freedom from the financial establishment was born. 13 years after Satoshi proposed a solution to stop relying on financial institutions, those very same institutions are now jumping aboard the Bitcoin train.
Satoshi later refers to Bitcoin being used for “small, casual transactions.” But today, Bitcoin is almost exclusively used as a speculative store of value, and will soon be driven by big, institutional money.
To put this in perspective, consider that Bitcoin is starting to be seen as “digital gold.” The market cap of gold is between $10 trillion and $11 trillion, which means at the time of writing, Bitcoin is about 10% of that market cap. If Bitcoin were to reach the same level, this would imply the price of Bitcoin multiplying by ten.
But that’s only gold. What about the other assets traditionally used as a store of value that are slowly becoming less attractive than the cryptocurrency market? Imagine if institutions took their money out of real estate, bonds, equities, or sovereign debt, and put it into Bitcoin instead? Under these circumstances, there is no reason why Bitcoin can’t assume a $100 trillion market cap at some point in the next decade or so.
We’re not the only ones speculating this. In a recent letter to its private banking clients, JPMorgan posited that if the price of Bitcoin were to be determined by its max supply compared to the current price of gold, Bitcoin would be worth $540,814. If it were priced by comparing it to the total value of the entire money supply, it would be worth $1,900,000.
While JPMorgan is feeling out the Bitcoin market, other corporate giants like Tesla, Stanley Druckenmiller, Meitu, and Michael Saylor’s Microstrategy have already gotten in. Bitcoin has made it from $0.0001 to $57,000 largely without the help of institutions, so we can imagine what can happen should they decide to start helping out.
Dr. Charles Nenner
Dr. Charles Nenner’s firm is one of the top Bitcoin research firms in the world, and Nenner himself comes directly from the web of financial institutions who are now about to enter the crypto market.
Using proprietary Bitcoin trading research models, Nenner is analyzing the new capital flows from institutions to pinpoint exact entry and exit points to help investors capitalize on the price action.
For all the best Bitcoin investment research, familiarize yourself with the work of Dr. Charles Nenner.