As the value of Bitcoin (BTC) continues to soar, analysts and traders are making more optimistic predictions about its potential for growth. While some may seem unrealistic, there are also more grounded predictions, such as Fidelity Investments’ forecast that Bitcoin could add another $500 billion to its market cap.
Fidelity’s prediction is based on the idea that Bitcoin is becoming a preferred store of value and hedge against inflation, similar to gold. This has led some to refer to Bitcoin as “digital gold” and use the size of the gold market as a reference for its potential value.
Fidelity believes that Bitcoin could soon account for 25% of the monetary gold market, which includes the gold held by central banks, financial institutions, and governments. With the current size of this market at around $6 trillion, this shift towards Bitcoin could result in a significant increase in buying.
While this 25% figure may seem far-fetched, it may not be as implausible as it seems. Currently, Bitcoin’s market valuation makes up about 20% of the monetary gold market. And other institutions, such as Goldman Sachs and Ark Invest, have made even higher predictions for Bitcoin’s potential market share.
However, it’s important to be cautious about overly optimistic predictions for Bitcoin’s value. In the past, Fidelity Investments had forecasted that a single Bitcoin would be worth $1 billion by 2038. While the potential for growth is there, it’s important to consider all factors and not get carried away with inflated numbers.
Despite this, there are still strong reasons to be bullish on Bitcoin. With major Wall Street institutions now backing and creating new investment products for Bitcoin, its future potential appears to be limitless. It’s crucial to stay informed and cautious, but the potential for Bitcoin’s growth is undeniable.