Bitcoin will be much bigger than Bitcoiners expect
Bitcoin “market cap” just passed 1T dollars. But that is just the start. It will be bigger than most people think, including Bitcoiners.
Bitcoin is not only a new currency, but a new way of storing wealth. The problem is that most of the western world has been living under a huge bubble, that is being propped up by the government.
The way it works is that the government issues bonds at extremely low yields, and the same government prints money and buy the issued bonds. That is causing not only a massive bubble in government bonds, but also real estate and stocks are historically overvalued. The Schiller index (a way of measuring the price of houses) is at an all-time high. The Buffett indicator, a way of measuring the price of American stocks, is at all-time high as well.
This is all driven by cheap debt. The result is a bubble in the bond market, stock market and real estate market. The worse of them all is the bond market. At the end, the devaluation of the currency against real assets catch up to it all. That’s what is happening to Japan.
That means that Bonds, Real Estate, and Stocks are all overvalued, historically. On the other hand, there is a new way of storing wealth that is not debased. If you can’t store your money on fiat, because it is constantly debased, on stocks, real estate or bonds, where else would you store? The answer is in a hard asset.
Bitcoin is the best hard asset, and so it will engulf a lot of the Bond market, the real estate market and the stock market. That means that when it is all said and done, Bitcoin will be much bigger than what most people expect.