Yes – Bitcoin has the potential to reach that target before a market correction. However, I don’t want to say I’m 100% sure about this. The point I want to make is that there is such potential.
Today, the market cap of Bitcoin is over $73 billion, and it went above $80 trillion on September 02. It means that Bitcoin needs to increase its market cap by 13 times. Can it do this? I think yes.
Why? Because Bitcoin has a limited supply, while fiat money is printed without control since the Keynesian approach is pushing an inflation-based economy.
As I’ve explained in one of my previous posts:, the growth pace of USD supply is much higher when compared to Bitcoin supply, showing two opposite patterns on the chart.
It means that inflation will have its word when it comes to the US dollar, while Bitcoin will keep its scarcity.
Besides, despite being popular, Bitcoin has not reached all the aspects of the economy – it has so much room for growth that it can increase its market cap by many times. The important thing is to find acceptance among regulators of huge markets, like the EU, Japan, US, and more.
Even Bitcoin “haters” like Jamie Dimon, CEO of JP Morgan,can reach $100,000 per coin before it collapses (since Jamie thinks Bitcoin is a fraud).
Well, $100,000 per Bitcoin translates into a total market cap well beyond $1 trillion. Think about it, Bitcoin price today is over $4300 under a market cap of $73 billion. If one Bitcoin would cost $100,000 and the Bitcoin supply would keep the same, then the total market cap would be 1,659,942,500,000, which is over 1.6 trillion and 65% above your target.
And this statement comes from Jamie Dimon (!), the guy who calls Bitcoin a fraud! What would you expect from Bitcoin enthusiasts who are so optimistic about this crypto coin?
So I think Bitcoin really has this potential, though I’m not certain it would reach that level very soon. It needs a few years.
Besides, Bitcoin can reach $1 trillion after an eventual market correction (call it bubble burst). The stock market also fell after the 2008 crisis, but today it is updating records again and again.