As a seasoned analyst with over two decades of experience in the financial markets, I find Willy Woo’s insights on Bitcoin intriguing and thought-provoking. His approach to analyzing potential Bitcoin valuations is groundbreaking, leveraging simple math and realistic institutional investment scenarios to predict a range for BTC prices that seems almost unbelievable at first glance.
Willy Woo, a well-known trader and cryptocurrency entrepreneur, recently engaged with his followers on social media about the possible long-term height Bitcoin might reach.
He suggested there are two levels, minimum and maximum ones, depending on how much of all global wealth assets will be allocated into BTC.
Here’s how high Bitcoin can go, per Woo; “$24 million never gonna happen”
As a researcher delving into the realm of digital currencies, I’ve come across an intriguing perspective from a trading expert regarding Bitcoin’s potential price ranges. Using straightforward arithmetic, he posits that the lower band for Bitcoin could be around $700,000 per BTC, while the upper band might stretch as high as $24 million. However, he swiftly qualifies this extraordinary figure of $24 million, stating it’s highly unlikely to materialize due to the immense scale of investment required. For such a scenario to unfold, an unprecedented shift would be necessary, where all existing wealth assets worldwide—amounting to approximately $500 trillion—would need to be reallocated into Bitcoin.
As an analyst, I’ve been pondering over Woo’s recent tweet, where he delves into the potential allocation of institutional investors globally towards the largest cryptocurrency. His reasoning seems to be rooted in the idea that, much like money tends to flow conservatively, these investments will likely follow a similar pattern.
As a seasoned investor with years of experience under my belt, I have seen countless financial markets rise and fall. While it’s impossible to predict the exact price of Bitcoin, I believe that simple mathematics can provide us with an upper bound. The total value of all wealth assets currently stands at around $500 trillion. If Bitcoin were to capture this entire market (which is highly unlikely), then each coin would be worth approximately $24 million, considering today’s value before any future inflation adjustments. It’s fascinating to ponder what the future may hold for Bitcoin, but I remain cautiously optimistic and always remind myself that past performance does not guarantee future results.
— Willy Woo (@woonomic) August 1, 2024
He mentioned Fidelity’s recommendation to allocate 1-3% of funds into Bitcoin; however, then Woo reminded followers that BlackRock invested 85%. While taking the 3% figure as a “sensible allocation” (the number that comes from as early as 2014), the lower band of valuation for Bitcoin is $700,000.
According to Woo’s estimation, theoretically, Bitcoin could potentially reach a value of up to $24 million. However, for this to occur, an extremely unlikely event would have to take place: essentially, all $500 trillion worth of global assets would need to be invested in Bitcoin. Given his perspective, Woo believes that such a scenario is highly improbable and unlikely to happen.
Based on the Adoption S-curve chart, Bitcoin global adoption currently stands at approximately 4.7%. Once adoption levels range between 16% and 50%, as suggested by Woo, we can expect the price to rise to the previously mentioned figures.
Here’s what will be able to beat Bitcoin in the future: Woo
In continuation, Woo stated that when Bitcoin’s total market value surpasses all existing fiat currencies due to a significant increase in its price, investors may become less concerned with the exact value of Bitcoin itself, as this perspective is rooted in the traditional understanding of fiat currencies based on current circumstances.
Investors are expected to seek out assets that can outperform Bitcoin. Initially, they may focus on purchasing shares of companies that plan to store their earnings in Bitcoin.
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2024-08-01 14:09