According to Blockstream CEO Adam Back, Bitcoin (BTC) has the potential to surpass the market cap of gold within the next two years, driving its price up to $700,000 per coin. Back, who is considered a “Bitcoin OG” and a possible creator of Bitcoin, Satoshi Nakamoto, believes that Bitcoin, often referred to as “digital gold,” will eventually outperform physical gold as a store of value.
Bitcoin as the New Digital Gold
The nickname “digital gold” highlights the parallel characteristics between Bitcoin and the traditional precious metal. Both assets are scarce and offer various benefits. However, Bitcoin’s digitization brings additional advantages such as portability, divisibility, and minimal storage and auditing costs.
“Digital gold, bitcoin, will surely flip physical gold sooner or later; and probably this halving cycle. so within a year or two.”
– Adam Back, Blockstream CEO
These factors have attracted many investors to consider Bitcoin as a potential replacement for gold. Back suggests that some individuals might even start selling gold to purchase Bitcoin, causing a shift in market caps.
Bitcoin Price Predictions and Perspectives
Back’s prediction of Bitcoin surpassing gold applies to any point within Bitcoin’s next halving cycle, which commences in April 2024. In line with this, Back previously predicted that Bitcoin could reach $100,000 before the halving.
While Bitcoin’s potential is debated, notable figures within the cryptocurrency industry have expressed equally bullish perspectives. BitMEX co-founder Arthur Hayes anticipates Bitcoin to reach $1 million per coin by 2026, during a period of hyperinflation for scarce assets. Former Blockstream CTO Samson Mow believes that Bitcoin could achieve the $1 million mark within weeks of a Bitcoin spot ETF receiving approval.
Investment analysts, although offering more conservative outlooks, also support a positive trajectory for Bitcoin. Standard Chartered has reiterated its BTC price target of $120,000 by the end of 2024, while Bernstein estimates that Bitcoin could reach $150,000 by mid-2025 due to factors such as Bitcoin ETF approval and supply constraints resulting from the halving.
