It’s a scenario we’d all like to see… and of course, eradicating world debt would also be a good thing. But is there a path to get there? Possibly, according to Lucid Investment Strategies. Hang onto your hats though; it’s going to be a bumpy ride.
FIVE TO ONE, BABY. ONE IN FIVE.
The world financial system has journeyed down an unsustainable path where unconstrained debt growth has become uncontrollable.
Thus begins a new article charting Bitcoin’s potential climb to a price of $10 million. As premises go, it’s hard to argue with. Figures from The Institute of International Finance estimate world debt as around $247 trillion, and world wealth as $317 trillion. Significantly though, over the last 20 years, the debt has increased 394%, while the wealth only increased 133%.
The rise to dominance of the Bitcoin standard is one of five options posited as potential resolutions of this situation. But it’s the one we’re most interested in, so let’s ignore the other four.
NO ONE HERE GETS OUT ALIVE.
At $10 million, Bitcoin could provide the world with a stable reserve currency, incapable of inflation or deflation. It would replace sovereign currencies, and represent the ultimate ‘store of value’. Of the five alternatives suggested, Lucid believes it offers a permanent fix, providing the greatest benefits, with the least collateral damage.
But as it stands, Bitcoin’s tremendous initial promise has been diminished by the thousands of copycat altcoins. These are crippling the entire space with their ‘improvements‘ to the original, although regulators like the SEC are starting to draw distinctions between Bitcoin and the rest.
So the “next big step in this journey will be the utter decimation of altcoins.”
YOU GET YOURS, BABY. I’LL GET MINE
So altcoins are dead, meaning demand for Bitcoin increases. As the “most democratic market-driven asset in history” increased demand equals increasing BTC price $3576.34 -0.09%. But first we need to bottom, which Lucid thinks will be below $1000. Sorry. But then…
the road will be clear up to $6,000. Above $6,000, there will be minor bumps at $7,500 and also at $8,500. The range between $10,100 to $11,100 will be the second major challenge. Above that, resistance will fall quickly. However, additional resistance appears at $13,750, and $17,500, which will be tested and overcome. New highs above $19,666 remain the final barrier.
At this point Lucid foresees media frenzy. The road becomes smooth as hedge funds and family offices jump on board, and investors gain confidence. We see temporary hurdles at $50,000 and $100,000, but now market cap has taken $1.7 trillion from the worldwide stock market. Latecomers are forced to act.
GONNA MAKE IT, BABY, IF WE TRY.
Bitcoin begins to eat into the $7.5 trillion gold market. At $400,000 gold’s market cap has been usurped. Earlier if gold prices go down as investors switch to Bitcoin.
We now need three things to happen in order to reach $1 million. The developers must deliver the promised speed, transparency, and cost. Institutions must fully embrace Bitcoin. Regulators worldwide must determine that Bitcoin is a separate entity from any remaining cryptocurrency.
This achieved, we have a clear run to $1 million. It is a serious asset and can no longer be ignored by even the most conservative institutions. We board the high speed shuttle to $10 million.
Of course, we no longer own any significant amount. We all had our price to sell at. Now, Bitcoin is in the hands of central banks. It is their best chance to save the system and retain their power, according to Lucid.
Original article written by Emilio Janus at Bitcoinist