On-chain cryptocurrency analyst Willy Woo says Bitcoin could eclipse gold’s use as a financial hedge in less than a year.
Woo tells his 210,000 Twitter followers that the portion of gold’s market cap that is actually used as a hedge against inflation could rapidly lose its dominance to Bitcoin.
[adinserter block="1"]Woo says only two-fifths of gold’s supply, worth $4.4 trillion, is currently serving a financial purpose. Assuming the price of gold stays constant, BTC would overtake the yellow metal as a financial hedge at a price of $240,000. Woo says the “flippening” could happen in a matter of months.
“The Flippening. 40% of gold’s supply is available for financial use; the rest locked up in jewelery/industry.
Gold cap: $11T
Gold’s “financial use” cap: $4.4T
At gold’s present price, #Bitcoin at $240k will flip Gold’s use as a financial hedge. This could happen in 12 months.”
Bitcoin is currently trading at around $37,500 and would have to appreciate by about 540% to reach Woo’s price target.
Woo says he believes Bitcoin will never again revisit the $20,000 price level.
“We’ll never see $20k BTC again. $24k support would need a black swan event to breakdown.”
The cryptocurrency analyst further predicts that the number of Bitcoin users will grow by over 600% by January 2025 to reach one billion users.
January 2021
137m users, 18.6m BTC, 3.8m lost
=> 0.11 BTC per personJanuary 2025
1b users (estimated), 19.8m BTC, 3.8m lost
=> 0.016 BTC per personAt full global adoption:
8b+ users, 21m BTC, 3.8m lost
=> 0.002 BTC per personThat's how early you are.
— Willy Woo (@woonomic) January 4, 2021
Woo says that as Bitcoin continues on its major upward rally, investors should deploy strategies used by venture capitalists buying into new technology.
“In the traditional world, good investors sell near highs and buy near lows. These are assets at market saturation. With technology gaining adoption, the VC strategy is to buy successive rounds at ever increasing highs, they don’t invest in down rounds. Treat BTC as the latter.”
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