A cryptocurrency analyst has just made one of the boldest Bitcoin predictions yet.
He expects the digital currency will reach a total market cap of $160 trillion, making the price of each coin as much as $10 million.
It sounds crazy…. But what if he’s right?
The analyst who made the bold claim is Murad Mahmudov – a well known Bitcoin maximalist.
He was appearing on a podcast presented by cryptocurrency figure Anthony Pompilano, who described the episode as “the most important you will ever listen to.”
Mahmudov believes failings in the current monetary system will lead to an enormous transfer of wealth.
“Right now, some of the better currencies are the US dollar, Euro, the Swiss franc, etc,” he said.
“But really, people use those because essentially, they’re picking the least bad thing.”
Mahmudov points to the fact inflation sees the supply of the US dollar regularly increase, whereas the supply of Bitcoin will always be fixed.
“Bitcoin is limited to strictly 21 million units (and) it is believed that several million have already been lost,” he said.
“I believe that when all is said and done, the global supply of Bitcoin is going to be somewhere between 16 and 17 million.
“It’s extreme scarcity. I like to say we’ve never had an object, let alone a money, as scarce as BitCoin before.
“Even gold is expanding at a rate of around 1.6% per year over the last 10 years. I believe that by the late 2020’s, that number for Bitcoin is going to be lower than one percent.
“Bitcoin being compared to digital gold is an understatement. Really what it is, is digital monetary nuclear weapons. “
“Really, if you extrapolate this phenomena and extrapolate this sort of financial change, Bitcoin will be a black hole that will absorb a tremendous amount of value.”
Mahmudov believes Bitcoin has the potential to absorb up to $200 trillion worth of wealth and reach $10 million per coin.
“So, that’s a 2,000 x that is still possible between right now and what is probably our death,” he said.
“I think there is still a tremendous opportunity here and I think high net worth individuals are more edgy, open-minded, tech savvy institutions, and eventually, government institutions will push this to the extreme.”
Pompilano interjected and said “these are big numbers you’re talking.”
“(Do you) you realise that very few people in the world believe what you believe right now?” he asked.
“I realise that,” Mahmudov replied.
“But, if you spend months and months studying this, it sort of becomes self-fulfilling prophecy to you.
“I’m very confident Bitcoin will be bigger than the U.S. dollar and potentially even bigger than all (traditional currencies) combined.
“(Cryptocurrencies) are harder to tax, harder to seize, easier to transfer, harder to steal, cheaper, easier, faster to send around the world.
“They’re borderless, they are uber competitive, they’re highly deflationary.
“All of these reasons combined, I believe, will make Bitcoin incredibly big.
“Similar to what the gold standard was in the late 19th century but, given the fact that the economy is much bigger today and given the fact that it is digital and much more fluid, I believe it will be far, far greater than even that.
Mahmudov said he thinks that over the next 36 months we’re going to see an inflow of capital from very sophisticated people that most of the financial world is not expecting.
“Even the most hardcore Bitcoin believers are actually drastically underestimating what we’re talking about here and what the potential is.
“This is the most important piece of technology that the world seen.
“Crypto might be the last easy way to get rich in my generation.”