Welcome to CryptoGod-1's blog on all things crypto. Today I will be looking at the recent announcement from Jesse Myers where the fund manager and Bitcoin maximalist states his claim that Bitcoin can become a multi trillion dollar asset and reach $10 million and beyond.
Who is Jesse Myers
A graduate of Stanford University of Business, Myers is a self professed Bitcoin maximalist and works as a fund manager for Protocol Capital, a Bitcoin only investing fund with 19 high net worth clients. He is an entrepreneur who has previous opened his own surf shop, along with working in the business world as an associate and consultant.
Currently he works primarily at Protocol Capital, a company he founded in 2017. Protocol Capital described themselves as a cryptocurrency hedge fund. 'We focus on investing in protocol-level assets to generate exceptional capital appreciation as the blockchain space matures into tomorrow's Internet of Value.'
The image below is from Myers Linkedin
Bitcoin Potential
According to a blog post called Bitcoin's Full Potential Valuation released by Jesse Myers on the 16th of February 2023, he is predicting that Bitcoin can eat into as much as 25% of the global wealth. According to Myers the volatility of Bitcoin is not a deterrent, but instead should be accepted as a continuation of the constant struggle it face in breaking into the upper levels of global wealth. He is in no doubt about its long-term price trajectory, with Bitcoin's ability to appreciate over time a positive which will undoubtably drain wealth from other asset classes. This is due to Bitcoin's scarcity, and the fact the asset is on course to fulfil its ambition of becoming digital gold.
“Bitcoin has an unthinkable property: it gets more valuable over time. Gold is good at storing purchasing power, but Bitcoin grows purchasing power. Value stored in Bitcoin becomes worth more over time because of Bitcoin’s design of increasing scarcity, meaning you just have to outlast the (admittedly brutal) volatility along the way.”
This is far from a new take on the value of Bitcoin, with many popular beliefs being that bitcoin will be a potential future global currency. To reach the predated 25% of global wealth, there is still a lot of growth required from Bitcoin. Currently, according to Myers calculations, it stands at around 0.05% of available wealth in 2023. This equates to about $400 billion, or 1/2000th of global asset value. For Bitcoin to push to the levels Myers is expecting, it would require a single Bitcoin to be worth $10 million as a “conservative estimate.”
“With that in mind, we have to ask ourselves an important question: when Bitcoin’s mechanics continue to play out (causing it to continue appreciating reliably in value every 4 years), will more than 0.05% of the world’s capital eventually realize it wants to be in an asset like that? I think the only logical conclusion is ‘yes.’”
This could be achieved, as shown in the image below from his blog post, with Bitcoin amassing users as predicted by Nakamoto (Bitcoin Creator) in a positive feedback loop for the more users who enter the space, the higher the value of an individual Bitcoin becomes. To break into the upper levels of global wealth, according to Myers, a $200 Trillion Market Cap for Bitcoin would be the aim, broken into finer categories such as gold, real estate, fine art, stocks, and bonds.
To that some perspective, the current global total addressable market (TAM) is valued at around $900 Trillion. He bases his theories that while adoption and growth will happen, there will also be a delicate balance between Bitcoin and other means of currency. Not everyone can adapt to Bitcoin and store enough of it to make it a usable currency, but similarly he expects the levels of use and adoption to grow beyond the current 0.05%. It is a fascinating take and of course would be beneficial to everyone who is currently already involved in crypto and Bitcoin. Myers adds:
“My conservative estimates suggest an outrageous full potential for Bitcoin’s price: $10m/Bitcoin, in today’s dollars. To put this another way, I believe Bitcoin’s full potential is to eat ~25% of the world’s value… while today it constitutes just 0.05%. That’s absurd. That means that I believe Bitcoin could 500x over the coming decades, in real (inflation-adjusted) terms.”
Whether or not this will happen in our lifetime is another question altogether. With every Bitcoin halving the scarcity increases as does its value, meaning there is a long journey ahead. For Bitcoin to 500x for its current position will take year, decades, even a century. Adoption and acceptance, along with understanding its function, use, and potential, is imperative in this growth. To visualise what that level of growth means, Myers added this image to contrast the current Bitcoin market with the current gold market, and where it would be if Bitcoin reached the coveted $200 Trillion mark.
A massive growth and leap for sure, but a cool $200 Trillion valuation of Bitcoin's full potential (according to Myers) would make a pretty return on investment for todays prices. While he is certainly a 'man in the know' given his business acumen, it is difficult to really put a full potential price on Bitcoin. Markets and values will change over time, and there may be a new more advanced currency / store of value which emerges over the coming decades to eclipse Bitcoin. For now however, Bitcoin is the focus and its value as 'digital gold' is looking more and more possible. It has certainly made a handsome return on investment for some, while there seems like plenty of more scope for growth with it going forward. Lets hope Jesse Myers' conservative estimate is just that, conservative.
Have a great day.
CryptoGod-1.
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