Bitcoin (BTC) will suck up “all prosperity gains” in the future and leave those unexposed behind, according to a new prediction.
In a Twitter feed on July 8, investor Luke Broyles laid out a bold vision of how Bitcoin would become “the base currency of society.”
Investor tells potential Bitcoin buyers, “Get rid of zero”
What started as a commentary on how artificial intelligence (AI) welcomes BTC quickly became a dramatic insight into how it should become the world’s go-to currency.
For Broyles, Bitcoin’s key attribute – a fixed, unchanging supply – makes it unique as a perennial asset.
“Every innovation (even AI) will rush as fast as possible to drive down prices competitively. Every country will rush as fast as possible to print money to drive up prices and support credit markets. These two forces will increase in speed,” he wrote.
BTC, on the other hand, will remain constant in its issuance, and therefore even a tiny bit of exposure is a world away from nothing at all.
“We have less in common with the future than with the past…Bitcoin already trades for hundreds of millions of political currency units in many countries. But the real big problem is that all prosperity gains from all future innovations will go into the base currency of the company – BTC,” Broyles continued.
“That’s why it’s CRUCIAL that people ‘stop at zero’. Saying, ‘Bitcoin is digital gold’ is like saying a locomotive is an iron horse.”
His view matches one recently published by Arthur Hayes, former CEO of crypto derivatives exchange, BitMEX.
As Cointelegraph reported, Hayes believes the AI will instinctively choose BTC as the financial engine, again thanks to its unique qualities compared to other assets, including gold.
As a result, AI alone could push the price of BTC past $750,000 per token.
BTC Supply Dominance Reaches “Inflection Point”
The race to secure the remaining supply of BTC, meanwhile, may have already begun.
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Broyles argued that Bitcoin’s liquidity actually peaked during the March 2020 inter-market crash and will never retrace its steps since.
When the world’s largest asset manager, BlackRock, announced a Bitcoin-based exchange-traded fund (ETF) repository, BTC activity in the United States exploded.
As noted by on-chain analytics firm Glassnode, the United States appears to be reassessing its own exposure.
“Following the announcement of the Blackrock Bitcoin ETF demand on June 15, the share of Bitcoin supply held/traded by U.S. entities has seen a notable uptick, marking a potential inflection point in the dominance of the market. ‘offer if the trend continues’, it commented July 8.
An attached graph showed the differences in the regional change in BTC supply ownership.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.