Venture capitalist Tim Draper has been very prominent in recent years saying that bitcoin will succeed at $250,000 by late 2022 or early 2023. Trip Chowdhry at Global Equities Research doesn’t have what Draper has, however, his $4 million target is more upward than Draper’s. .
The generation of bitcoins is configured to create 21 million bitcoins, currently there are approximately 18. 8 million dollars in flow for an approximate value of 41,500 dollars, which raises the market limit of all bitcoins to around 780,000 million dollars.
If bitcoin reaches Chowdhry’s $4 million target and all bitcoins are created, the cryptocurrency’s market cap would be $84 billion, even Draper’s $250,000 target would give them $5. 25 trillion.
The five reasons why bitcoin can succeed at $4 million according to Chowdhry
Trip Chowdhry has five reasons why a single bitcoin will cost $4 million.
1) Bitcoin is a “push” for renewable energy
Chowdhry believes that as the value of bitcoin increases, the number of miners and systems to create a bitcoin will increase, leading to an increase in the demand for renewable energy to exploit them.
I agree that as it becomes worth building, more miners and bitcoins will be created. I see the link between a construction in the call for energy, whether renewable or fossil, which leads to an accumulation in the value of bitcoins.
2) Bitcoin to give a special touch to the IRS
Chowdhry issues that Bitcoin transactions below $10$000 will need to be reported to the IRS under the proposed law and therefore profits will be taxed. invoice, which can be modified in the existing invoice before or after the Congress.
It turns out that lately laundering sales regulations do not apply to cryptocurrencies, an investor can sell bitcoins if he suffers a loss and not wait the 30 days needed to sell and redeem an inventory to reap a tax loss.
3) Sec admits bitcoins on the sheets of state-owned enterprises
This is another effort to say that each and every company and each and every mutual fund will buy bitcoins. A large majority of CFOs are too conservative to have a highly volatile asset like bitcoin on their balance sheet. the number of shareholder judgments will skyrocket.
It would be unexpected to see a smart number of ICUs put some of their assets under control in bitcoins or other cryptocurrencies, however, it will be at least a few years, if any, before they are allocated a giant amount of capital.
4) Bitcoin will skyrocket
This explanation of why is similar to the fact that MicroStrategy buys bitcoins when the value drops. While the company has committed to buying bitcoins, as stated in this Forbes article, it has become heavily indebted and has already used any excess to be had money to buy bitcoins and possibly would not have much more buying power than the value of bitcoin.
5) Regulators can’t do anything because bitcoin homeowners and similar entities are the administration’s main donors.
Chowdhry doesn’t provide further details, at least in the note I’ve seen, to say why this is the existing scenario and will remain. The political winds would possibly change, and what was once certain may not be safe in the future.
How $84,000 billion of bitcoins compares to investments
If bitcoin can succeed at $4 million and the $21 million is created (which will be if the value approaches $4 million), its market capitalization would be $84,000 billion This would also make other cryptocurrencies go up, but for now let’s put aside its cost. of this analysis.
The overall market capitalization of the 500 in the S
This week’s Bureau of Economic Analysis said the duration of the U. S. economy is not enough. U. S. It’s $22. 7 trillion. With 84,000 million dollars, bitcoins would constitute 3. 7 times the total economy of the U. S. U. S.
The World Bank estimates that global GDP has grown from $87,600 billion in 2019 to $84,700 billion in 2020. All bitcoins would be the full global GDP if it reached $4 million according to bitcoin.
CompaniesMarketCap. com estimated that there are $11. 5 trillion in above-ground gold reserves. For bitcoin to fit gold’s market capitalization, it would have to succeed at around $547,600.
I provide independent studies on generation corporations and in the past I was one of the two analysts who decided to generate assets for Atlantic Trust (top level of Invesco)
I provide independent studies on generation corporations and in the past I was one of two analysts who decided to generate assets for Atlantic Trust (Invesco’s highest net worth group), a corporation with $15 billion under management. Internet Security Software Analyst for Smith Barney (where I wrote the industry’s most comprehensive report “Internet Security Software: The Ultimate Internet Infrastructure”) and Enterprise Server Hardware Analyst at Salomon Brothers. IBM in various sales and production positions. I have a bachelor’s degree in Industrial Engineering from Stanford University and a postgraduate degree in Economics from the University of Sussex, England.