Cryptocurrencies, and specifically Bitcoin, is oftentimes said to be akin to ”digital gold” in regard to cryptos financial market stability. Now, however, one crypto observer is out with a fresh prediction that Bitcoin’s market capitalization could surpass that of gold – and sooner rather than later.
Will Bitcoin’s market cap surpass gold’s in 2028?
Specifically, this latest prediction comes from the well-known cryptocurrency industry figure Bobby Lee. Lee runs a Bitcoin wallet startup and is one of the co-founders of the Chinese crypto exchange platform BTCC.
Bitcoin and gold are often shown in comparison to each other as relatively stable stores of value. However, their market capitalizations nonetheless are quite different. At the time of writing, gold’s market cap amounts to a massive valuation of roughly $8 trillion. Bitcoin’s market cap, on the other hand, is currently around $160 million.
Lee recently sent a number of tweets, in which he predicts when Bitcoin’s market capitalization will overtake gold’s market capitalization. Although this means that Bitcoin’s market capitalization will have to increase roughly fifty-fold, Lee believes this could happen by 2028.
”I predict the #flippening will happen within 9 years and $BTC will shoot up past USD $500,000. And with all of the money printing that is happening globally, $BTC will actually very likely be over $1 million,” Lee said in one of his tweets. Moreover, he is basing this argument on how Bitcoin is of finite supply.
Stock-to-Flow model has been helpful in predicting Bitcoin prices until now
Specifically, Lee attributes much of Bitcoin’s success on the premier cryptocurrency’s decreasing coin supply, stemming from block reward halvings. As such, Lee goes on to note that the amount of Bitcoin miners receive for each block will halve three times. Consequently, the price of Bitcoin will increase rapidly – seeing as the scarcity of the cryptocurrency will surpass that of gold.
”By 20th year, daily new output will just be ~255 BTC — yearly inflation of less than 0.5%. More scarce than #gold!”
Furthermore, Lee’s reasoning is in line with the so-called Stock-to-Flow model. This charts the Bitcoin price as increasing as a consequence with the decreasing block rewards. For example, the social media analyst PlanB believes that Bitcoin’s price could increase to $100,000 just two years from now.
Nevertheless, as Bitcoin continues to halve, the Stock-to-Flow model could potentially stop working. According to PlanB, the Federal Reserve in the US could also disrupt the Bitcoin price forecast if it continues to print more money through quantitative easing.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.