Adam Back, CEO of Blockstream, believes Bitcoin’s market cap could skyrocket to a jaw-dropping $200 trillion. He sees this as a natural outcome of a trend he calls “hyperbitcoinization.”
Hyperbitcoinization: A $200 Trillion Market?
Back’s prediction is based on the increasing number of companies adopting a Bitcoin treasury strategy. He argues that these companies are essentially betting on Bitcoin’s future value, profiting from the difference between Bitcoin’s current price and its projected future price. He calls this a “logical and sustainable arbitrage.” This strategy, according to Back, is scalable enough for most large companies to adopt.
The Role of Bitcoin Treasuries
Back views the growing adoption of Bitcoin treasuries as a key part of a long-term shift towards pricing the global economy in Bitcoin. He predicts that Bitcoin will eventually become the benchmark for company valuations.
What is mNAV?
Back also mentions mNAV (multiple of net asset value). This refers to the ratio of a company’s stock price to the value of its Bitcoin holdings. He expects mNAV to trend towards 1 post-hyperbitcoinization, meaning the company’s value will be largely determined by its Bitcoin holdings.
The Current Bitcoin Price and Future Outlook
At the time of writing, Bitcoin is trading at around $93,773, up nearly 8% in the past week. Back’s prediction implies a massive increase in Bitcoin’s price. He notes that this price increase needs to outpace inflation and interest rates over four-year periods to sustain the hyperbitcoinization trend.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies.
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