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During the encrypted run of 2017, the forecasts and speculation of how high Bitcoin the cryptocurrency train should be kept running smoothly. There were wild promises and unrealistic price targets set by almost all crypto-influencers. Most of these offered significant benefits, particularly in the short term.
While the cryptocurrency bear market continues, these types of price targets seem absurd and outdated. Even the major promoters of Bitcoin renounce to predict the price of the currency, suggesting that the market has not done enough to determine its true value. Many suggest that Bitcoin is worth much more than where it currently resides.
Global debt paves the way for Bitcoin
Even during this bear market, there are those who are still willing to make a bullish forecast. Lucid Investment Strategies, an asset management company, has suggested that Bitcoin could reach a day up to $ 10 million. They also offer that it could put an end to the debt crisis that afflicts much of the world as it becomes the new gold standard.
Based on Lucid's comments, the debt with the wealth we are currently seeing out of control has created a huge imbalance in inequality. We are continuing to see the wealth of the world out of its debt, however, the gap is shrinking. In the last two decades, wealth has risen by 133%. Although initially it looks good, it pales compared to the 394% where the debt went up.
The company continues to suggest that this trend is not sustainable and that a solution needs to be found for our current debt crisis. Lucid offers several strategies, including the adoption of the gold standard, debt default or Bitcoin investment.
Of course, this is not the most probable result, however, Lucid claims that Bitcoin is the best option. It will permanently correct our debt crisis and at the same time limit the damage of a generalized economic adjustment. It is for these two reasons that Bitcoin offers a solution that none of the other solutions can match.
If that happened, then Bitcoin would see huge gains. Lucid suggests that the price could reach up to $ 10 million. At that point, digital money could provide a reserve that would alleviate global debt. With a price of $ 10 million, Bitcoin would therefore have a reserve of 40% against the world debt.
Make the climb for $ 10 million
But how can we expect Bitcoin to reach $ 10 million when it has trouble overcoming the $ 3,500 point? Firstly, the currency would need to come out of its collapse, which may not happen anytime soon. Lucido, like many others, believes that Bitcoin has not yet reached the bottom.
Another factor that would help establish the Bitcoin fund is the complete destruction of all other altcoin and ICO tokens. This would show that Bitcoin is the standard and anyone else is just an economic imitation. While this process is slow to take shape, it has already begun. However, much of this requires regulators to create regulations. In the meantime, Bitcoin will continue to fall, however, so will its competition.
Once it hits the bottom, Bitcoin could then begin to grind again. Expectations are that at the beginning they would face resistance, but once the currency has passed certain technical points, it will quickly gain traction and will soon hit the historic record of $ 20,000.
New Gold Standard
The next challenge for Bitcoin would have come to $ 100,000. At this point, the digital currency would begin to compete with gold as the world's first economic option. It is at this point that Bitcoin could quickly outweigh the gold if investors began to sell the metal for peak cryptocurrency. Even if that does not happen, it is still possible that Bitcoin will eclipse the gold, it will only take a little longer.
Now comes the moment when resizing becomes a problem. Developers must focus on providing a viable solution for resizing the Bitcoin protocol so that it can manage a larger network. If this problem can be resolved and institutional adoption occurs, Bitcoin would be on its way to becoming the currency reserve for the entire world.
If these parameters are met, the path to hit $ 1 million now becomes linear and flowing. At $ 1 million, Bitcoin would have a market capitalization of nearly $ 18 trillion. It would become the main advantage of the rich. It would become a legitimate competitor among other world currencies.
At this point, Bitcoin would be the fastest growing asset in the world. It could no longer be ignored by those operating in the financial sector as a passing mania or popular trend among those in the technological arena. When wealth funds, governments and money managers get up and take notice, the $ 10 million trip has all the fuel it needs.
Focus on the right question
While it is unlikely that this scenario actually occurs in the way it is presented here, the point is that it could happen. If it could happen, then why not take the risk of it happening, even if it is on a smaller scale.
The wrong question here is if Bitcoin will be selected as a solution to our debt crisis. The question to ask is instead whether or not we will have a choice. At this point in time, it is difficult to see other possible options.
Image source: "Pexels"
