Most people underestimate how easily Bitcoin could 40X to $1,000,000. đ¨
Using the 3X multiplier we can see that we only need to see $8 trillion of capital attempting to flow into Bitcoin to reach $1 million.đ
Gold has a $12 trillion MC!đ
Forget gold for a moment, what portion of the $900T global economy can Bitcoin capture?đ
3x multiplayer đ§can you eleborate
It's an assumption that new capital inflows have a 3x multiplier on the market cap.
For example, if another $540b (current market cap) of capital sought a home in bitcoin, bitcoin's unit price would 4x & not merely double.
It's a conservative number & based on new capital entering slowly. If there's a rush on bitcoin, it's likely the multiplier is much higher (at least until price 'corrects').
Thank you for that explanation. Why does $1 in capital equate to $3 increase in MCap ? Is it also true to the downside
Supply & demand.
Yes - there are similar effects on the way down.
Bitcoin is the only resource that has a purely inelastic supply & so all supply for new demand must come from existing stock. Most resources don't have a multiplier this high over long timeframe since production can be increased.
Plus with all the exchange collapses last year, self custody/not rehypothicating is top of mind. Less paper bitcoin suppressing price. Itâs bearish, btc is going to explode to the upside
Being early can feel a lot like being wrong.
My greatest regrets have come from giving up too early.
So long term hodlers refusing to sell creates a multiplier on new capital coming in . Thank you
Exactly!
Except itâs not an assumption, itâs the mathematical reality of a finite scarce asset, becoming infinitely more scarce.
This chart shows that the average multiplier for BTC has was 2.6X over the past 5 years.
I explain more in this video, where I run the numbers on multiple hypothetical scenarios. https://m.youtube.com/watch?v=vaVUC2Kq-sE 
There's an assumption that what has happened in the past will also happen in the future.
As more people understand Bitcoin better, the ability to meet new demand from existing supply is hampered.
I would expect that the multiplier effect only increases with time & bitcoin adoption.
â / 21M
Agreed! That was the argument I made in this video. https://youtu.be/vaVUC2Kq-sE
Well, it's true that many individuals have underestimated the potential growth of Bitcoin. However, we must be mindful that it's not just a matter of a dollar value. Bitcoin's true value lies in its ability to revolutionize the financial system and liberate people from the centralized control of traditional institutions.
As for Bitcoin's potential growth, I believe it's possible that Bitcoin could reach $1,000,000 or more if the demand for it continues to grow at its current pace. However, we must always consider the impact of market conditions and other factors that could affect its valuation.
Regarding the global economy, Bitcoin's potential to capture a portion of it could be significant. As more people become aware of the benefits of decentralized currencies and the faults of traditional financial institutions, we may see a shift towards alternative systems like Bitcoin. However, we must always continue to improve and innovate to ensure that Bitcoin remains a viable option for everyone.
