Could Bitcoin Price Really Hit $43 Million? Mark Moss Thinks So—Here’s Why
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On ‘Rich Dad Radio Show, the author Uncommunist Manifesto, Mark Moss, explained why one should invest in Bitcoin despite the proliferation of alternative cryptocurrencies like Dogecoin, Solana, and Ethereum; Moss cited historical data showing significant price appreciation following previous halving events.
The Logic Behind the $43 Million Prediction
Mark Moss envisions Bitcoin reaching $43 million per coin in less than 50 years. When asked about the basis for this calculation, Moss likened it to pitching a disruptive idea like Uber in Silicon Valley years ago. He explained that by capturing a small percentage of various industries, such as taxis, limos, and van shares, a valuation of $100 million could be justified.
Applying this logic to Bitcoin, which competes as a store of value against assets like gold ($14 trillion), luxury items ($25 trillion), stocks ($12 trillion), real estate ($350 trillion), bonds ($300 trillion), fiat currency ($120 trillion), and offshore accounts ($30-40 trillion), Moss estimated the combined value of traditional stores of value at around $900 trillion. Moss highlighted the challenge of adjusting to thinking in terms of Bitcoin rather than dollars, given the constant printing of the latter.
Bitcoin’s Halving Effect
Moss highlighted that Bitcoin’s new supply undergoes a halving every four years, effectively reducing it in half. He simplified the economic dynamics, explaining that the balance between supply and demand determines prices. With a decrease in new supply and assuming constant demand, the natural outcome is a price increase, which has been observed.
Moss pointed out that the recent entry of Wall Street into the Bitcoin market through ETFs has further boosted demand. This reduced supply and increased demand combination aligns with basic economic principles, likely leading to price appreciation.
He contrasted Bitcoin’s predictable supply issuance with fiat currencies, noting that while central banks can adjust the supply of fiat at will, Bitcoin operates on a predetermined schedule. The capped supply of 21 million Bitcoins, expected to be reached by 2140, ensures scarcity. Moss stressed that Bitcoin’s recent halving has made it even scarcer than gold, which is historically considered one of the hardest assets.
Filed under: Bitcoin - @ May 8, 2024 7:10 am