Among crypto fans and crypto opponents it is discussed again and again whether the Bitcoin is better than gold. But while one can argue excellently about whether the Cyberdevise is suitable as a safe haven or value store, at least one thing cannot be argued away: At the moment, gold is much more valuable than Bitcoin – at least if you take a look at its market capitalisation.
This is currently around eight trillion US dollars for the yellow precious metal – about 50 times higher than that of the crypto currency, which is currently around 160 billion US dollars. In order to pass gold in this area, the Bitcoin price would have to rise about 50 times – and according to Bitcoin expert Bobby Lee it will in the next few years. He is firmly convinced that the market capitalisation will soon turn in favour of the virtual currency and that Bitcoin will be more valuable than gold.
Bitcoin Halvings to Fire Rate of Crypto Currency
Bobby Lee, co-founder of China’s first crypto exchange, BTCC, predicted a few days ago on Twitter that Bitcoin would overtake gold in market capitalisation by 2028 – and that the Bitcoin price would shoot over the USD 500,000 mark. A Bitcoin currently costs around 8,750 US dollars and it is getting more interesting for gamblers too, read more at www.bestbitcoinbetting.com.
The Bitcoin bull justified his very optimistic prediction mainly with the way the crypto currency was designed: „Bitcoin was designed to become super valuable over time,“ said the euphoric Lee. In fact, the currency has a deflationary character, since the number of Bitcoins is limited to a total of 21 million, and these must first be generated by complex computing processes on the computer – Bitcoin mining. So that not all Bitcoins can be generated within the shortest time, these processes become more and more complicated and there is also the so-called Bitcoin Halving. Every four years, this halves the number of Bitcoins that the miners receive per generated block.
According to Bobby Lee, it is precisely these „halving events“ that will cause the Bitcoin course to reach astronomical heights over the next nine years. By 2028, there will be three halves: 2020, 2024 and 2028. In the last ten years, however, there have only been two Bitcoin halvings, 2012 and 2016. According to „Yahoo Finance“, these two events in the past led to a rising Bitcoin price, as the miners would try to offset their losses by a higher selling price for the cybercoins produced.
Bobby Lee also seems to be hoping for a price jump in connection with the Bitcoin halvings. He is enthusiastic that in the next ten years there will be „50 percent more“ halvings than before and that in 2028 only 255 Bitcoin will be produced per day. This means that Bitcoin is „scarcer than gold“.
Bitcoin exchange rate of 1 million US dollars is probable
In fact, since the creation of the blockchain in 2008, the Bitcoin exchange rate has risen from a few US dollars to several thousand US dollars, but this is likely to have something to do with the growing popularity and acceptance of the currency and not just with the halving events. In addition, some price rises have proved to be unsustainable.
By the end of 2017, the Bitcoin exchange rate had risen to more than 20,000 US dollars – possibly supported by the Bitcoin halving in 2016 – but then collapsed again in the next twelve months to around 3,200 US dollars. It is therefore not clear what part of these price movements can be attributed to the Bitcoin halvings – precisely because the last halving took place at a time when Bitcoin was still rather a niche phenomenon and not in the middle of society.
- Nevertheless, Bobby Lee is apparently certain that the coming Halvings will ignite the turbo at Bitcoin’s price and carry it over the $500,000 threshold. But the expert doesn’t even see the end of the possibilities.
- „With all the money printing that is going on globally at the moment, the Bitcoin price will very probably rise to over a million dollars,“ Lee says in his tweet.
- But the expert did not reveal when the cybercoin, supported by the expected inflation of conventional currencies, will even tend so high in his opinion.