The Case for BITCOIN $100,000 – Part One

Back in May of this year we ran a series of notes outlining why we thought that Bitcoin could reach $100,000 by year-end.

Given the recent move in Bitcoin, we are going to share these notes again this week.

We are much more confident in our view than ever before.

Bitcoin is hitting new highs and higher gold prices along with a new cryptocurrency-friendly Trump administration make us even more BULLISH.

We also want to share the view that we think Bitcoin $100,000 is just the first step to Bitcoin $1 million!

It is sometimes useful to take a step back and think of all the incredible technological advancements that have happened throughout our lifetimes.

I was born five decades ago and 90%+ of the technology that I interact with every day didn’t exist only a few decades ago. Not to mention my engagement with that technology is a hundredfold what it was for my parents.

Now – whether that is a good or bad thing –it certainly is where we are in the world today.

As much as it feels very “normal” at this point, one of the biggest developments in technology in the last few decades has been “blockchain technology”. Specifically, the “cryptocurrency” bitcoin.

This is a moment where we want you to take a step back…

While bitcoin seems like the most ordinary thing in the world today, imagine if two decades ago I told you that an anonymous Japanese software developer (Satoshi Nakamoto) was creating a massive mathematical algorithm for a new digital (and safe) currency.

Sounds like something out of the “Matrix” movies.

Yet here we are in 2024 with this sci-fi idea having almost a $1.3 trillion market capitalization and trading over $18 billion a day. This idea is one of “The Magnificent Seven”!

It is easy for many older people to dismiss Bitcoin as digital “fool's gold”. It is some made up software algorithm with no inherent value, no cash flows and no history.

We don’t disagree!

That being said – what is “gold gold”? It is a rare metal with minimal industrial use that millions of people have decided to ascribe a value to for thousands of years.

This gets to our point about bitcoin.

GOLD is “gold” because humans have decided to ascribe the value to it. There was a real question about whether bitcoin would ever achieve that same status and we think it has.

One of the most fascinating aspects of bitcoin is to think about the future of ownership.

Look it up and you will see that there are currently just over 46 million bitcoin “wallets” that hold at least $1 in bitcoin. In the history of bitcoin there have been about 460 million wallets created.

Let’s put that into perspective of the almost EIGHT billion people on planet Earth…

This means only 0.5% of the planet’s population owns bitcoin today. We don’t know where that number is going in the future but we are pretty confident it is going higher.

The current market capitalization of gold is over $14 trillion, or more than ten times the market cap of bitcoin.

We think gold is great - and probably a buy right here – but it is not very useful. When is the last time you used gold to buy groceries or a car? Maybe it can be done but it is quite complicated.

While you can’t directly buy groceries with bitcoin, it is a lot easier of a process than gold.

Let’s go back to the ownership numbers we discussed before.. it is difficult to get real data but most sources think about 10% of Americans own gold in some form. That is around 33 million people or two-thirds the number of people who own bitcoin in the world.

Again – there are EIGHT billion people on the planet! If just 1% decided to own bitcoin, that would be a +50% growth to the demand…with basically no growth in supply.

Currently, almost 94% of the bitcoin that will ever be created has already been created. Take a bitcoin price of just about $65,000 and add +50% growth in demand with no real supply growth and know what price target you get?

$100,000!

We aren’t saying you should only own bitcoin or even that it should be the majority of your holdings, what we ARE saying is we think it has a ton of potential.

Check out Enrique Abeyta’s conversation with Eric Wade of Stansberry Research on the HX Podcast. 

Eric is the Editor of the Crypto Capital and Stansberry Innovations Reports. Enrique and Eric discuss the book, crypto, and the true nature of capitalism. They also compare family histories in New Mexico; building churches and building bombs!