Bitcoin and Gold are two major assets that are often compared in terms of their store of value. Jan Van Eck, the CEO of VanEck, a US-based investment firm, predicts that Bitcoin will eventually reach at least half the market capitalization of Gold. VanEck holds hundreds of millions of dollars worth of BTC and is one of the nine financial firms with a spot Bitcoin Exchange Traded Fund (ETF) in the United States. Van Eck believes that it will take another five to ten years for Bitcoin to reach this milestone due to confusion among traditional finance clients.
Gold, with a current market capitalization of around $15 trillion, is the largest store of value worldwide. If Bitcoin were to reach half of Gold’s market cap, its total market capitalization would be over $7 trillion, and its price index would shoot up to around $400,000. This bullish cycle may be difficult to achieve, but the anticipated 2028 bull market could be a fair target for this growth trajectory.
Bitcoin’s popularity is on the rise, especially in the USA, following the approval of the first Bitcoin Exchange Traded Funds (ETFs) in the country earlier this year. VanEck was among the firms that lobbied for ETF approval and were successful. The firm’s Bitcoin ETF shares are traded under the ticker HODL on US stock exchanges. Bitcoin’s major price upside potential is attracting many investors, despite its volatility, making it more appealing than Gold in some cases.
Despite Bitcoin’s popularity, Gold remains a significant historical investment class that is likely to retain its importance over time. However, Bitcoin is playing catch-up and is gaining ground on Gold as a store of value. In the next decade or so, Gold may keep ceding ground to Bitcoin until the premier cryptocurrency becomes a major competitor and potentially surpasses Gold as the primary store of value.
In conclusion, Jan Van Eck’s prediction of Bitcoin reaching at least half the market capitalization of Gold in the near future reflects the growing interest and potential of the digital currency. As Bitcoin’s popularity continues to rise, it may present a formidable challenge to Gold’s status as the ultimate store of value. With the approval of Bitcoin ETFs and increasing adoption of cryptocurrency, the future looks bright for Bitcoin’s prospects in the financial market.
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