Bitcoin May Surge Past $600k If It Becomes World’s Hardest Asset• January 1, 2023 7:42 pm • Comments
The current price action of gold reminds many investors of the way that gold had behaved back in the 1970s.
Essentially, gold had explored in value back in the 1970s where the value of the asset had went up around 24x overall in the 1970s.
Now that the world has moved to a new digital age and people are looking for an asset that is considered “hard” money, Bitcoin may be that new replacement.
The expectation is that Bitcoin may soon become the world’s hardest asset in 2024 and this has been forecasted by many trading and research firms as well as well-known investors.
The views are quite surprising given the fact that BTC price action indicates that it is roughly 80% away from its all-time high which actually encourages investors to take an even more optimistic stance.
PROOF: BITCOIN TO $600K SOON?! | 1970s Gold Fractal Explained… https://t.co/yD2c6VLtjT
— That Crypto Guy (@CryptoGuyYT) December 29, 2022
Despite BTC price action flagging at nearly 80% below its latest all-time high, not everyone is bearish about even its mid-term outlook.
While calls for a further drop before BTC/USD finds its new macro bottom remain, Capriole believes that 2023 will be bright for Bitcoin as a revserve asset.
The reason, it says, lies in the world economy’s financial history of the past century, and in particular, the United States after the dollar deanchored from gold completely in 1971.
Gold, as the world’s premier safe haven of the time, saw “huge” gains during the decade, and fifty years later, it is Bitcoin’s turn.
“Because gold was much smaller in the 1970s (and Bitcoin today is even smaller by comparison), it had capacity to make big moves through a decade of inflation and high interest rates,” Capriole wrote:
“That’s one reason why we believe Bitcoin will do the same, and more, this decade.”
The hard money drawdown that Bitcoin is experiencing now nearly matches the drawdown data that gold had back in the 1970 and 1975 years.
Some may consider that a coincidence, but many are starting to see this as a potential opportunity to get in before the next bull run.
Others also prefer BTC over gold due to the fact that it has more growth potential because of its smaller total market cap size when compared to gold.
If economies around the world do ever start to attempt to be less dependent on fiat assets, increased demand for hard assets would benefit both gold and BTC.
As the macro economic environment of the world continues to evolve, it seems that these options become more and more attractive to investors over time.
Bitcoin price would surge past $600K if ‘hardest asset’ matches gold
The coming decade could be Bitcoin’s time to copy gold’s 1970s breakouts, says Capriole Investments. https://t.co/2DUG6kcHvC
— Patachumon ⚡ (@patachumon) December 29, 2022
There, the debate focuses on investors’ shift to Bitcoin as its inflation rate drops below that of gold, increasing its monetary “hardness” versus the metal:
“There are many other attributes that make Bitcoin stand out from gold, such as its equitable decentralization, ability to transfer instantaneously and be used for micro-payments. But most importantly, Bitcoin is harder than gold.”
This, Capriole added, will confirm Bitcoin as “the hardest asset in the world” at its next block subsidy halving in 2024.
“All-in-all, gold went up 24X in the 1970s,” Capriole summarized:
“Now imagine the 2020s, where the Fed can’t afford to be as aggressive (debt is way higher today) and we have digital, accessible, harder money: Bitcoin.”
Crypto News Alerts BITCOIN WILL SURGE PAST $600K AS IT BECOMES WORLD�S �HARDEST ASSET� IN 2024!! https://t.co/EfatBy3gzG
— møøvs (@binarymoves) December 29, 2022
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