As BTC continues to hit its all-time high of $93,000, the market value of Bitcoin has surpassed silver, ranking eighth in the world's asset market value.

Data shows that the current BTC market value is approximately 1.8 trillion US dollars. As Bitcoin continues to attract more capital inflows, some experts predict that its market value will continue to grow and may even further threaten the status of gold. If it increases 10 times to 1 million US dollars, it will surpass gold to become the world's largest asset.

Bitcoin is not only the first cryptocurrency to reach such a market value, but also marks the position of digital assets in the global asset landscape.

Cathie Wood, the owner of the US ARK Fund, has also reiterated many times that she believes the price of Bitcoin will one day reach $1 million.

She said her conclusion was based on Bitcoin’s scarcity, security and growing acceptance in the investment community.

“So as institutions get involved, that scarcity value is going to drive the price up significantly,” she said, adding that the path to a million-dollar token just requires a little more trust.

“Now, with the price of Bitcoin at around $90,000, it doesn’t take much for institutions to put 2% to 5% of their asset allocation in Bitcoin, and we can easily achieve this goal.

Matthew Sigel, head of digital asset research at VanEck, said that with the US debt reaching $35 trillion, if central banks use Bitcoin as a reserve asset, Bitcoin will reach $3 million by 2050.

David Bailey, a former Trump cryptocurrency aide, believes nation states are about to enter the Bitcoin market and predicts that sovereign funds and central banks will invest billions of dollars per month.

From traditional companies, all are configuring or planning to configure Bitcoin.

On October 25, technology giant Microsoft said it had also begun considering whether to include Bitcoin on its balance sheet.

According to documents recently submitted to the U.S. Securities and Exchange Commission (SEC), Microsoft plans to invest 1% of its total assets in BTC and will vote on the "Evaluation of Investing in Bitcoin" proposal at the shareholders' meeting to be held on December 10, 2024.

Even more aggressive towards Bitcoin is MicroStrategy. As of November 10, 2024, the company and its subsidiaries held approximately 279,420 bitcoins, with a total purchase price of approximately US$11.9 billion and an average price of approximately US$42,692.

As of November 10, MicroStrategy's bitcoin holdings have a return of 26.4% so far this year.

MicroStrategy has been buying non-stop recently. Around November 10, 2024, the company purchased approximately 27,200 bitcoins for approximately US$2.03 billion in cash. Including fees and expenses, the average cost price was approximately US$74,463.

Total Bitcoin holdings in global ETFs

As of October 8, 2024, the global BTC ETF holds more than 1.1 million BTC (about $68.726 billion), accounting for 5.26% of the total supply

Next is the national level

On August 2, Republican Wyoming Senator Cynthia Lummis formally submitted the Bitcoin Strategic Reserve Act.

The bill will instruct the U.S. government to set up a reserve fund for Bitcoin, a scarce decentralized asset, and plans to purchase 5% of the total supply of Bitcoin as a strategic reserve asset, or 1 million Bitcoins. Currently, there are only more than 2 million Bitcoins in circulation and can be traded.

This bill is very likely to be passed after Trump takes office. Once passed, it will cause FOMO in Europe and other countries around the world, and they will rush to buy up stocks.

Other supporters believe that the logic supporting Bitcoin to $1 million is this: large-scale excessive issuance of legal tender will trigger inflation, legal tender will depreciate, and people will flock to gold, Bitcoin, etc. Since Bitcoin is easier to divide, carry, trade, and store, it will cause Bitcoin to soar to $1 million.

If you do not hold gold, Bitcoin and other value-preserving assets, the purchasing power of the fiat currency in your hands will be devoured by inflation. It is not Bitcoin that exploits you, but the excessive issuance of fiat currency that exploits you. Bitcoin simply provides a new way to escape exploitation.

No matter what the rate is, Bitcoin will cause the largest wealth redistribution in human history, and no one can stay out of it, just like not buying a house in the past 20 years and now it’s very difficult.

For two people with the same income from work, the size of their assets will differ by an order of magnitude if they buy a house or not.

The fundamental reason for this gap lies in the seigniorage. my country's M2 has grown by an average of 20% per year. In the past decade, apart from real estate, no other major asset class has been able to consistently outperform inflation.

Therefore, not buying a house is equivalent to being charged 20% of the seigniorage every year, while buying a house is equivalent to being exempted from the seigniorage. The reason for buying Bitcoin now is the same as buying a house ten years ago.

More and more foreign investors regard Bitcoin as their preferred asset for hedging and storing value, and it will have no problem outperforming the world's average inflation rate.

Moreover, Bitcoin is still in its early stages, and the potential for network effects is enormous. The combination of these two factors makes the potential growth of Bitcoin much greater than that of real estate ten years ago. The disadvantage is that it is very volatile, so you must have a good mentality, otherwise you will not be able to resist.

If it reaches $1 million, even if the U.S. reserve bill is not passed, central banks around the world will have to consider buying Bitcoin, including it in their foreign exchange reserves, and possibly issuing legal tender partially anchored by Bitcoin. Some people ask how the central bank can add fuel to the flames? Suppression is more like it. Yes, it will definitely be suppressed at the beginning.

However, there is a competitive relationship between central banks of various countries. If the central banks do not buy but the Federal Reserve does, the Federal Reserve will get a great advantage. At that time, the central bank will have no control over it. At that time, people who hold Bitcoin will not only not have to pay seigniorage, but can also share the seigniorage income with the central bank.

People who do not hold Bitcoin will have to continue paying seigniorage. The difference between holding currency and not holding currency will be much greater than the difference between owning a house or not holding a house now.

No one can escape the influence of Bitcoin, whether he realizes it now or not. The only difference is whether he actively accepts it now or passively accepts it a few years later.

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