$3,000,000 per Bitcoin is Still “Absurdly Early”, Analyst Shares Catalyst For this Growth

According to crypto analyst Luke Broyles, even $3 million per bitcoin would represent just the beginning if adoption continues to grow exponentially. In a recent tweet thread, he laid out a case for why bitcoin’s upside remains virtually unlimited.

Despite bitcoin’s stellar performance in 2023, its market capitalization of roughly $500 billion remains tiny compared to the world’s largest asset classes, Broyles highlighted. With current adoption estimated at between 0.05% and 0.5% of the global population, 10% adoption would already represent a 100x increase in users.

At first glance, valuing bitcoin’s network 1:1 with its user base would put bitcoin at $3 million. However, Broyles argues this is far too conservative given that market cap trails price, not vice versa.

As evidence, Bank of America has estimated that each $1 chasing bitcoin historically added $118 to its market cap. This 118:1 ratio could expand radically, Broyles contends, especially if 100x more users are competing for dramatically fewer coins.

Rather than $3 million, Broyles speculates that $600 million per bitcoin would be plausible with 10% adoption and a 100x network value expansion. Despite sounding absurd today, this would be analogous to the internet’s value multiplying 100x from the 2000s as adoption hit 10% of the world.

Pushing further, Broyles ponders an eventual 80% asset allocation to bitcoin as it becomes viewed as the lowest risk, highest upside investment on a long horizon. Appreciation would allow most holders to achieve this allocation without liquidating other assets.

Finally, Broyles notes that bitcoin could become the first ever “triple point” asset, serving as a store of value, a medium of exchange, and a unit of account simultaneously. This would concentrate global economic productivity and innovation into bitcoin as a perpetually scarce asset, unlike anything before.

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In Broyles’ view, it’s not unrealistic for bitcoin to ultimately absorb over 95% of the world’s monetary value, pricing it entirely independently of fiat currencies. If so, today’s speculative highs will appear almost free in retrospect.

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Felix Küster
Felix Küster

Felix Kuester works as an analyst and content manager for Captainaltcoin and specializes in chart analysis and blockchain technology. He is also actively involved in the crypto community - both online as a central contact in the Facebook and Telegram channel of Captainaltcoin and offline as an interviewer he always maintains an ongoing interaction with startups, developers and visionaries. The physicist has couple of years of professional experience as project manager and technological consultant. Felix has for many years been enthusiastic not only about the technological dimension of crypto currencies, but also about the socio-economic vision behind them.