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Investing.com – In an interview with Coin Stories, hedge fund manager Jesse Myers posted some startling predictions for the , even taking into account that he talks about a very long-term goal.
Indeed, Myers said he predicts that the is on the verge of reaching the staggering sum of $10 million per BTC.
His theory is based on the fact that bitcoin is becoming a solid and scarce store of value in a world of ever-increasing debt and currency devaluation.
“We have entered an era where the value proposition of holding bonds or fiat currency is very bad, because national debt and unfunded liabilities are going to require a level of printing that will exceed the nominal bond yield” he explained.
Pointing out that the US national debt today stands at $31 trillion and unfunded liabilities reach $170 trillion, Myers pointed out that this represents “$3 trillion a year in interest charges , while our budget already has a deficit of several trillions of dollars” and pointed out that “there is therefore a deficit of some 4,000 billion dollars that will have to be printed to fill it…”
According to Myers, bitcoin competes against a world of assets totaling around $900 trillion.
“The question is how much bitcoin can gain, how much value it can actually take here. It is currently a $400 billion asset in a $900 trillion ocean. That means it represents 1/ 2000th of the world’s value and that collectively the world has a 0.05% allocation in bitcoins.”
However, according to Myers, the maximum supply of 21 million BTC for bitcoin will create a massive supply shock as the adoption rate of the main cryptocurrency increases. He predicts that in “a few decades”, the allocation of bitcoin will reach 25% of global investments.
He then breaks down the calculations that bring him to $10 million per BTC in today’s dollars, which centers on Bitcoin capturing half of the market capitalization of as well as additional percentages of the major categories of stores of value in the world.
Myers, for example, provides in his hypothesis that Bitcoin captures 15% of the stock market, 30% of the bond market, or even 15% of real estate.
Regarding its timeline, Jesse Myers suggested that “a generation” might be needed for Bitcoin to penetrate the mainstream financial landscape sustainably and deeply.
“I think we have entered the era of bitcoin, where having bitcoin as the main pillar of your personal savings strategy is the winning formula. It will take a generation for people to really understand” a- he indeed declared.
Finally, regarding potential risks to Bitcoin’s future, Myers says regulatory hurdles are a major concern, also stressing that Bitcoin’s virality is key to its future, and it is imperative that those who understand its benefits are spreading the word and educating the next wave of investors.