Looking at Bitcoin’s current price of around $26k, many feel that it is already too expensive for them. Despite the recent price drop they still feel they missed their chance to buy it while it was cheap. Then adding the recent news of BlackRock filing for a spot Bitcoin ETF in the US, many will assume that Wall Street has already entered the market as well. Resulting in people feeling that they not only missed their chance to buy Bitcoin while it was still cheap but have now missed their only opportunity to front-run Wall Street.
They are wrong.
The truth is that we are still very early in Bitcoin, and you do have the chance to front-run Wall Street. But, time is running out quickly.
With all of that said, before we even talk about how Bitcoin is still very early on in its life, you need to understand the risk that comes along with this asset. Bitcoin is arguably the most volatile and risky financial asset that you can invest in. Due to this risk and volatility, it has the potential to appreciate up to incredible price levels. But it could just as easily go to zero. You need to understand and be ready for either outcome.
The fact is that Bitcoin is playing a different game than most cryptocurrencies on the market. It is attempting to change how financial markets have existed for centuries. First, it is taking on gold to be the best method of wealth preservation. Then it will be taking on the US dollar to become the world reserve currency. That is the direction that Bitcoin is heading in, and it will be an incredibly difficult journey.
In terms of price and adoption, Bitcoin is currently similar to where the internet was in the 1990s. To anyone that used the internet during that time, you will understand how much innovation and adoption has taken place since then.
Bitcoin has long been compared to gold, except that it is better in nearly every possible way. Gold currently has a market cap of nearly $11 trillion, and Bitcoin’s is nearly $600 billion. If Bitcoin is able to overtake gold’s market cap it would result in a Bitcoin price of over $500k per coin.
However, most people don’t think it will stop there. In fact, many financial experts have been predicting that Bitcoin will have a price of millions of dollars per coin by 2030.
Where things become much more interesting is if Bitcoin is able to overtake the US dollar, and have all debt come into Bitcoin. In the world, there is currently over $300 trillion worth of debt. If only a small percentage of that debt would come into Bitcoin, that is when the price potential of Bitcoin begins to sound outlandish. All of a sudden those price predictions of Bitcoin reaching several million per coin don’t seem so crazy.
We must also take into account that we don’t even know the full potential of Bitcoin yet. This was proven this year with the implementation of Ordianals and BRC20 tokens. An entire ecosystem is beginning to develop around Bitcoin and the future is unknown.
However, you must ask yourself this question.
If Bitcoin was able to reach a price of $69k without an ecosystem surrounding it, without a BlackRock ETF, and without a major country adopting it. Then where will the price go when all of those things begin to happen?
Then taking into account the soaring debt around the world, inflation, and banking crisis. People will eventually begin rushing into Bitcoin to find safety. We are still early to Bitcoin, but your chance to be “early” might soon be running out.