Hedge fund manager Jesse Myers is confident that Bitcoin will reach an astronomical $10 million per BTC.
In a recent interview with Coin Stories, Myers explains the math and timeline behind his ambitious prediction.
Myers says Bitcoin is becoming a go-to store of value in a world of increasing debt and currency devaluation.
“We have now entered an era where the value proposition of holding bonds or holding fiat money is very bad, because the national debt and the unfunded liabilities going forward are going to necessitate a level of printing that will outpace the nominal yield on holding bonds.
That’s the only way out we have. We now have $31 trillion of national debt, $170 trillion of unfunded liabilities in the US alone.
Then you’re talking about $3 trillion a year in interest expense when we’re already running a multi-trillion dollar deficit in our budget. So you’re talking about something like $4 trillion dollars of deficit going forward that you have to print in order to make that up…
So that’s what Bitcoin is competing with as the lowest hanging fruit, I think in terms of where people have their value parked.”
Myers says Bitcoin is competing in an asset world that totals about $900 trillion in size, with a current level of global crypto adoption that is far below some analysts believe.
“It’s a question of how much can Bitcoin win, how much value can Bitcoin actually take here. It is currently a $400 billion asset in a $900 trillion ocean. That means it’s 1/2000th of the world’s value, and that means collectively the world has a 0.05% percent allocation to Bitcoin.”
Myers says Bitcoin’s maximum supply of 21 million BTC will create a massive supply shock as the leading cryptocurrency’s rate of adoption rises.
He then breaks down the math that brings him to $10 million per BTC in today’s dollar terms, which is centered on Bitcoin capturing half of gold’s market cap as well as additional percentages of the world’s top store of value categories.
As for his timeline, Myers says the key factor is how long it will take for the general public to gradually learn more about Bitcoin and understand its true value proposition. He believes his price target will become a reality within the next few decades.
“I think we have begun the Bitcoin era, where having BTC as a major if not primary pillar of your personal savings strategy is the winning formula. And it will take a generation for people to really get the picture.