Analyst Describes How Bitcoin (BTC) Can Hit $100K By Being A Better Store Of Value Than Gold
Analyst Talk About How BTC Could Hit $100K By Being A Better Store Of Value Than Gold
For most people, BTC use case is not quite clear. However, a lead investor recently explained on Bloomberg that BTC is a store of value at its most basic. He even claimed it was better at this than gold.
BTC Better Than Gold
Lou Kerner, a renowned venture capitalist and a founder of CryptoOracle was recently on Bloomberg where he eulogized BTC quite eloquently. On the value proposition of BTC, he said that it had the potential to replace gold as the primary store of value. Right now, gold has a cumulative market cap of about $8 trillion.
He even noted that if BTC were to fail to surmount gold, it could still experience a major appreciation. He is not the only one to laud the potential of BTC as a store of value. Ryan Selkis, the CEO of Messari, a go-to crypto resource, recently echoed the sentiments. He said that it was a great way to hedge against inflationary recession.
Selkis had worked at JP Morgan before the Great Recession of 2008. He noted that at some point, the capital markets would deflate with the waning of asset inflation. He had a very harrowing vision for centralized assets such as government bonds and stocks. The CEO said that investors would flock to BTC when the going got tough. In his assessment, BTC was the digital embodiment of gold.
The 2018 Bear Run
Lou Kerner was then questioned about the decline of crypto in 2018. In his defense, he cited Amara’s Law, which claims that the impact of new tech is overstated over the long haul but was understated in the short term. He added that crypto was more revolutionary than the internet in his opinion. Thus, crypto would continue to be subjected to Amara’s Law.
The interviewer then asked if the day of BTC hitting $20,000 were over. The CryptoOracle chief stated that while gold had a five-year run; BTC would overtake it with time. He noted that this would happen once people began to realize that BTC had various benefits over gold. In his opinion, BTC would easily surpass the $100K mark.
Fiat Is A Ponzi Scheme
Kerner went on to state that the dollar was a Ponzi scheme. He said that all fiat currency up until 400 years ago had dropped to zero in value. He went on to note that while the dollar was a Ponzi scheme, it was not the fault of the US government. Rather, he noted it was due to how the financial system currently operates.
He noted that no one, even the president of the US, expected that the over $180 trillion in debt globally would ever be rectified. Thus, to maintain the purchasing power over time, capital allocation in gold had become the go-to choice. Travis Kling, a major crypto investor also noted that BTC would offer consumers the ability to opt out of the fiat monetary experiment.