Expert Analysis: How Bitcoin Could Hit $23 Million in Value

In the Brief:

  • Blockware Solutions estimated Bitcoin's value at $23 million if it becomes the dominant store of wealth.
  • As BTC surpasses other asset classes, the analysis predicted its purchasing power.
  • Bitcoin might account for 61.38% of financial asset market cap if it "cannibalises" the monetary premium of traditional financial assets.
  • According to the study, productivity raises BTC's purchasing power forever.

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.

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.

Source: Blockware Solutions

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.

Disclaimer: The content in this article is provided for informational purposes only and should not be considered as financial or trading advice. We are not financial advisors, and trading carries high risk. Always consult a professional financial advisor before making any investment decisions.

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