I’m still amazed that individuals in high positions within the financial industry continue to claim that Bitcoin has no value because it doesn’t provide services like a company does.
But what does a bank do? It securely holds your money for savings and capital accumulation, offers investment assets to guard against inflation and grow purchasing power, provides access to networks for sending money to family, business partners, or merchants, and, in some cases, facilitates the issuance of new money under specific rules. Nobody argues that these functions are useless, nor that banks have no value.
Bitcoin, however, provides all these services—often more effectively than any bank. It offers safer storage for savings and capital accumulation, acts as a speculative investment with an unparalleled track record (outperforming any asset offered by banks over the last decade), and enables money transfers to anyone globally at a fraction of traditional banking costs. Furthermore, Bitcoin’s network handles systemic issuance through mining rewards, which are completely predictable and transparent, unlike the ad hoc and often excessive money printing by banks.
So, if banks have value, how can anyone argue that Bitcoin lacks it? In fact, Bitcoin should arguably be valued much higher, given that its services outperform those of banks in all major aspects.
Currently, the combined market capitalization of all banks worldwide is approximately $10 trillion, while Bitcoin’s market cap is around $2 trillion. One could argue that Bitcoin is significantly undervalued and, as adoption grows, it could match or surpass the $10 trillion mark based on the superior services it provides.
Moreover, Bitcoin has the potential to capture market share from other asset classes, such as gold or real estate. Considering this, it’s reasonable to suggest that Bitcoin’s market cap could easily surpass $20 trillion in the long term.
That’s $1M per 1 BTC, which is cent parity with satoshi. This event will likely mark the point of bitcoin singularity, beyond which the valuation of BTC is unpredictable and also loses meaning in fiat terms. We may see a total paradigm shift away from fiat currencies around the world and the start of hyper-bitcoinisation.
