Limited supply and growing demand are driving Bitcoin to become digital gold.
In the September newsletter Bloomberg analyst Mike McGlone noted that the price of Bitcoin (BTC) could approach or fall $ 500,000. McGlone reiterates his view that Bitcoin becomes digital gold. He emphasized that again Bitcoin’s limited supply and growing demand have been key indicators of the asset’s mass adoption. and made comparisons with the 2017 bull run:
“Much of the broad crypto market reflects the excesses of 2017, but the fundamentals are being consolidated thanks to the expansion of decentralized exchanges (DEX) and decentralized financing (DeFi). Limited supply in the face of increasing demand. Demand is the end result of Bitcoin. The Macro fundamentals support the march towards gold market cap, which some estimates are at $ 500,000. Or it could fall. “
The estimates the analyst is referring to may be based on the assumption that Bitcoin’s market cap will eventually reach parity with $ 9 trillion in gold. If you divide that number by the maximum Bitcoin supply of 21 million, you get $ 428,571. A similar sentiment was recently expressed by Morgan Creek Digital co-founder Anthony Pompliano.
Zero to five hundred thousand offers a pretty high margin of error. Hence, it is unlikely that anyone can prove in the short term that Bloomberg is wrong.