3 - 5 minute read
Blockware Solutions, a key provider of Bitcoin mining services, has published a research report indicating that Bitcoin’s worth may approach $23 million if it becomes the dominant store of value. In a research titled “Purchasing Power Under a Bitcoin Standard,” the company predicted the future purchasing power of Bitcoin when it surpasses other asset classes.
According to the analysis, Bitcoin may account for 61.38 percent of the total market capitalization of financial assets if it “cannibalises” the monetary premium of traditional financial assets. In 2021 U.S. dollars, this would equate to a purchasing power of almost $22.8 million per bitcoin. The paper also suggested that BTC’s purchasing power would expand in perpetuity in tandem with productivity gains.
Read more about how these figures are derived with this report.https://t.co/gJuYShSu7F— Joe Burnett (🔑)³ (@IIICapital) December 31, 2022
Saturday, Joe Burnett, Head Analyst at Blockware Solutions, tweeted to his over 41,000 Twitter followers: “If Bitcoin becomes the main store of value, our analysis indicates that the BTC price might approach $23 million. The monetary premium of other asset classes will be absorbed by Bitcoin in a hyperbitcoinized world.”
Blockware Solutions is a pioneer in Bitcoin mining, providing services such as hardware procurement, colocation of mining rigs, and professional mining and staking pool operations. The analysis assessed the potential impact of a move to a Bitcoin standard on the purchasing power of BTC and the demonetization of other asset classes.
According to the paper, the nominal worth of assets is determined by their utility value plus a monetary/savings premium, and fiat currencies have traditionally failed to store wealth over time. In order to safeguard their wealth, individuals have turned to non-cash assets, resulting in a premium for these assets. According to the analysis, if Bitcoin becomes the main store of value, it might absorb the monetary premium of other asset classes.
The report’s findings indicate that if Bitcoin becomes the dominant store of value, it might have a huge influence on the value of the cryptocurrency and the global financial system.