Macro expert Lyn Alden outlines the reasons why she believes Bitcoin’s (BTC) market cap will surge by over 1,000% to surpass gold’s massive valuation.
In a new interview with Tom Bilyeu, Alden states that Bitcoin possesses several properties that make it a superior store-of-value asset and medium of exchange than gold.
While some people believe Bitcoin’s current valuation is huge, Alden notes that BTC’s market cap is still tiny compared to other global assets.
“Right now, even at a $2 trillion-plus market cap, it seems big. But it’s something like 0.2% of global assets. Gold at something like a $20 trillion network size, estimated, is around 2% of global assets. So, I think Bitcoin is going to grow into the role that gold fills, to some extent. But then, it potentially has an avenue to grow further still, because it’s able to solve things that even gold itself, as a money, can’t solve.
So, there are certain things, obviously, gold can do that Bitcoin can’t do. You can use it in industry. It has all these practical purposes. But as a money, Bitcoin is in many ways more powerful. It’s able to beam around the world in 10 minutes, even faster by using some higher layers.”
On top of Bitcoin’s portability, Alden highlights that Bitcoin has achieved network effect dominance, putting BTC in a position to remain irreplaceable for decades to come. She says Bitcoin is essentially a communication protocol, and its total addressable market is bigger than gold’s.
“And I think another way of kind of thinking about it is, because especially with your audience and in general, anyone who’s technologically minded, our first thought is, well, the first technology is going to be the one that gets displaced. It’s going to be some later thing that comes and displaces it. And the way that I’ve kind of conceptualized this is the really big exception for that is communication protocols.
Those so far tend to have a very long lifecycle of lasting. So whether it’s Ethernet, whether it’s simple mail transfer protocol, whether it’s TCP/IP, whether it’s USB, once these things kind of become dominant in their fields, they tend to, one, they update over time. So what displaces USB is the next USB, rather than literally a competitor.
And two, the complexity and the fast-moving parts, that tends to happen at the periphery or on higher layers, whereas the core of the system itself is kind of very simple. I think that Bitcoin is following a similar approach, which is this new communication protocol that exists.
In this case, it’s a communication of value. It’s achieved basically network effect dominance. It becomes increasingly less likely that something within its own field will displace it in a similar way that Ethernet and USB and others have achieved dominance. Therefore, it’s going to grow into whatever the total addressable market it has, which I think is north of gold’s current 2% of global assets.”
At time of writing, Bitcoin is trading at $112,141 with a $2.234 trillion market cap. Gold is worth $3,774 with a market cap of $25.449 trillion.
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