According to U.Today, Bitcoin analyst Willy Woo recently initiated a discussion in the cryptocurrency community about whether Bitcoin can surpass gold's $17.7 trillion market value. Woo's argument mainly revolves around the stock-to-liquidity (S2F) model, which is an indicator that measures the scarcity of an asset by comparing its existing supply and annual production. Since Bitcoin's inflation rate is now lower than that of gold, Woo believes that Bitcoin is expected to challenge gold's dominance in the field of value storage assets.
However, Woo also reminded that it may take 5 to 10 years for Bitcoin’s market capitalization to align with its S2F valuation. He attributed this delay to various factors, including Bitcoin’s gradual integration into institutional portfolios, the development of regulatory frameworks, and the establishment of custody solutions.
Despite Woo’s cautious prediction, he stressed that retail investors who are able to self-custody Bitcoin are likely to experience the benefits of the S2F model earlier. He suggested that institutional and retail adoption timelines may differ, with the latter likely to embrace Bitcoin’s value proposition more quickly.
