Bitcoin (BTC) Price Reaching $10 Million Could Assist in Solving the World’s Growing Debt Problems
There are several individuals and experts predicting Bitcoin (BTC) to reach new highs in the future. Most of the predictions tend to be between $20,000 and $1 million in the coming years.
Nevertheless, Lucid Investment Strategies believes that Bitcoin could skyrocket up to $10,000,000 in the future. If that happens, the debt problem that the world is currently facing could be eventually solved.
The asset management firm Lucid Investment Strategies is one of the most bullish companies on virtual currencies and Bitcoin. In a recent report released by the company, Bitcoin could reach $10 million and become the new gold standard.
This could also have a deep and positive impact on the current world debt. Indeed, back at the end of 2018, the world debt was close to $247 trillion, compared to $317 trillion that the world has in total wealth. Although the wealth around the world remains larger than the debt, the gap between both is getting closer and closer every year.
In this report, the company explains that this situation is not sustainable anymore and that the solution could be related to Bitcoin and cryptocurrencies. Two of the solutions could be to adopt a new gold standard or just start investing in Bitcoin.
Although it might not be easy to happen, Bitcoin is the best alternative for it since it would offer a permanent fix to this debt crisis that the world is currently experiencing. For the company, Bitcoin offers the greatest benefits with the least collateral damage to the least number of parties.
The company believes that Bitcoin could reach new highs close to $10 million. In this way, Bitcoin would provide enough res. On the matter, the company explained:
“Why $10 million? At that level, Bitcoin would provide a sufficient reserve to alleviate the world debt burden. Bitcoin would be worth between $180 trillion and $210 trillion (depending on when that price was reached. Assuming world debt had reached $500 trillion at that time, remember it has grown by 394% over the past 20 years, Bitcoin would represent a 40% reserve against the debt.”
Nevertheless, there is a long way for Bitcoin to reach these values. Indeed, now it is still in a bear market that started back in December 2017 when Bitcoin was traded close to $20,000. Now, Bitcoin is being traded around $3,581 and it has a market capitalization of $62.65 billion.
Bitcoin would have to move from this bear market and try to reach the last all-time high. After it, the most popular cryptocurrency will have to keep growing. In order for this to happen, Initial Coin offerings (ICOs) will have to lose their value, however, Bitcoin would have to do it at a lower rate than its competitors in the space.
After surpassing $20,000 the next step would be to reach $100,000, allowing Bitcoin to be a close rival to gold as an economic hedge. There might be a moment in which gold investors would move towards Bitcoin. The path to reach $10,000,000 would be faster if that happens.
Scaling solutions will also play an important role in increasing Bitcoin’s value. When the largest cryptocurrency in the market reached $20,000, transactions were slow and a single transaction could cost $55 in fees.
Now, Bitcoin developers are working on a solution for its scaling issues known as the Lightning Network (LN). In this way, Bitcoin would be able to process thousands of transactions per second without having to contest the whole network.
Institutional investors are also going to play an important role in helping Bitcoin to reach its $10 million dollars’ goal. There are some companies that are trying to develop new platforms for institutions and larger investors that want to gain exposure in the market.
This will be accomplishing the road to $1 million, reads the report. At $1 million per coin, Bitcoin will have a market capitalization of $18 trillion, which would make of it one of the major assets in the world. Pension funds, institutional money managers and other financial institutions will be paying close attention to this asset and ultimately reach $10,000,000.
This is something that might be difficult to achieve in the near future, but not impossible to see it.