Bitcoin will hit a valuation of $8 Trillion in 10 years predicts Wealth Manager Andy Edstrom
Bitcoin to be an $8 Trillion Economy according to Wealth Manager
Bitcoin (BTC) has a good share of critics and naysayers in the financial industry, but the ones who believe in it seem to have a lot of conviction. Andy Edstrom from California-based investment advisory WESCAP is certainly one of them.
He shared his thoughts on Bitcoin in a recent episode of the Citizen Bitcoin podcast. He firmly believes that in the next 10 years the Bitcoin economy could reach a whopping $8 Trillion in market value. He takes a multi-faceted approach to come at this conclusion taking into account various factors like geopolitics, devaluation of fiat currencies, speculation among others.
“When I set the upside case from an investment point of view, I take a 10-year view. And I think the total valuation on 10 years that I use is about $8 trillion and that comes from various buckets, whether it’s taking share from gold, or taking share from fiat, or taking share from offshore assets, or slightly demonetizing other stores of value like real estate or new uses that we haven’t thought of or are still under construction.”
Bitcoin currently has a tiny valuation of $170 billion when compared to other stores of value like gold, real estate or fiat currencies. Even a small percentage of diversification of the wealth from these assets could increase the value of Bitcoin dramatically, as Anthony Pompliano from Morgan Creek says – a 1% allocation to Bitcoin is no longer crazy.
Edstrom also highlights the fact that firms like Fidelity and Bakkt (which is owned by Intercontinental Exchange) offering Bitcoin products is legitimizing Bitcoin as a mainstream investment vehicle, he says:
“If I step across the table back to the dark side where I came from, from the financial establishment, I could care less whether a company named Xapo or a company named BitGo has “qualified custody”. I start to care when Fidelity and the New York Stock Exchange’s parent company are real. So that is, definitely in my mind, a shift. So that’s one thing.”
Edstrom also highlights technological developments in Bitcoin like the lightning network which serves a real use case, he says:
“Whether it’s micropayments or things enabled by Lightning, or it’s Abra or similar systems whereby you can get synthetic exposure to any asset in the world just by holding Bitcoin as collateral. So there’s all these areas of upside.”
Companies like Abra are using Bitcoin as a bridge to offer synthetic assets (like stocks) to their clients all over the world.
Bitcoin is currently valued at $9423 with a market cap of $171 Billion. It has been on an uptrend since the start of this year going from $7000 all the way to $9400 which is an increase of 34%.
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