Bitcoin For The Next 5,000 Years: Decentralized Dream or Corporate Dystopia?
Bitcoin, valued at $200,000, surpasses the worth of any company in the S&P500. Coca-Cola, Apple – you name it – they will all be eclipsed by this self-proclaimed new form of currency. Whether $200,000 will be attained this cycle or if it's destined for $1 million remains conjecture.
Nevertheless, we're witnessing a transitional period unlike any other. Fiat currency's demise looms within a decade, as Larry Fink, CEO of BlackRock, termed crypto "the flight to safety" a few months back. Perhaps Aladin, BlackRock's AI, holds crucial insights.
For nearly five millennia, gold has reigned as "the standard" and served as currency, rendering the existence of cash a mere blip in history – a blip soon to fade into obscurity. BlackRock may be indicating the path forward, yet few decipher the signs.
Before delving deeper into BlackRock's maneuvers, let's examine gold's trajectory following the approval of its spot ETF. What transpired? It soared uninterrupted for eight years, experiencing a 350% price surge... a feat Bitcoin accomplishes effortlessly in a single summer.
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If Bitcoin replicates that, we could see a $138,000 BTC in the near future. Bitcoin won't take eight years to appreciate to such levels, but looking at gold, it seems to be hitting a plateau after reaching its peak. Will Bitcoin follow suit? That's uncertain. Bitcoin isn't a 5,000-year-old asset, so why should it halt here? Gold stalls because it's reached its limit; as times change, it might lose its value, possibly becoming as valuable as plastic in a few decades. Given the clear trajectory of technology shaping our future, what purpose would gold serve in a fully digitized era? Probably none.
Now, let's return to BlackRock, shall we? BlackRock has amassed $1.7 billion, and along with other companies offering Bitcoin spot ETFs, it has effectively absorbed the recent dip in Bitcoin's price. A $10,000 crash in Bitcoin's price has been almost entirely absorbed by these companies. So, is a $138,000 BTC really that far away?
However, what strikes me as odd about the crypto world, and even Bitcoin purists, is why they celebrate Microstrategy and BlackRock becoming the largest Bitcoin holders. Is the dollar valuation these companies are willing to pay for Bitcoin more important than the fundamentals?
For some, it seems to be the case. They claim to be Bitcoin purists but are hyper-focused on Bitcoin's price chart. If you don't rely on Bitcoin for your livelihood, don't intend to sell, and consider yourself part of the change, why celebrate the price surge and BlackRock's acquisition of so much Bitcoin?
Personally, as someone financially constrained, I wish for all crypto prices to rise so I can escape poverty. But presumably, these purists aren't financially struggling. So, what's the sense in cheering for the scenarios described above? I fail to see any logic.
Will Bitcoin endure for 5,000 years like gold? I don't know. But if it does, would you want a significant portion of it in the hands of Microstrategy and BlackRock?