Researchers believe that Bitcoin (BTC) could eventually surpass the market capitalization of gold. There is an increasing enthusiasm around Bitcoin and the future of the digital asset. There are several institutions and companies that seem very interested in this virtual currency.
Max Keiser, an important and recognized Bitcoin supporter, mentioned that Bitcoin is also a ‘gold system’ and that it will be world-changing.
At the same time, scarcity is very important for Bitcoin, which has a fixed supply of 21 million BTC. Although not all the coins have been mined, the max supply will eventually be 21 million. There are several individuals and experts that consider that Bitcoin is digital gold.
The Australian cryptocurrency expert and researcher, Willy Woo, mentioned that “Mathematical scarcity beats perceived scarcity.”
He mentioned that Bitcoin will easily exceed gold’s market capitalization in the future. Woo went on explaining that perceived scarcity comes from the technological limitations that we have today.
The comments he gave were related to the fact that there is a $700 quintillion asteroid that could allow humans to extract gold from it and send it back to earth. Thus, increasing the supply of gold on our planet.
This is the reason why I think Bitcoin will easily exceed golds market cap.
*Mathematical scarcity beats perceived scarcity*
Perceived scarcity comes only from the technological limitations of today. https://t.co/TtIh41zz3F
— Willy Woo (@woonomic) February 1, 2019
In the future, the de-facto store of value could change as demand for gold continues and supply could eventually increase after creating new technologies to extract minerals in the space. However, millionaires around the world would not even be able to acquire one Bitcoin each due to its scarcity.
At the same time, there could be close to 4 million BTC lost after different situations. That means that the real supply of Bitcoin will be lower than 21 million BTC. The Canadian cryptocurrency exchange QuadrigaCX informed that it lost access to its cold storage wallet. This is due to the fact that the founder of the exchange died some time ago and was the only one with access to these funds.
Furthermore, other companies and large investors have stored several BTC coins, thus, reducing Bitcoin’s supply even further, at least in the short term. That shows that there is not enough Bitcoin for everyone in the world, increasing Bitcoin’s pressure to keep growing in the future.
If the demand for the digital currency increases in the future, the price of the most popular digital asset would clearly follow a positive trend.
During a conversation with Bloomberg, Lou Kerner, mentioned that consumers will realize that gold underperforms Bitcoin. If other individuals and companies realize that, it might be a catalyst for money to flow into the most popular digital asset.
At the time of writing, Bitcoin is being traded around $3,480 and it has a market cap of $60 billion. Now, Bitcoin needs to go out from this bear market and start to grow once again.