Bitcoin HODLer Shares How BTC Can Explode To Gold’s Market Cap In The Next 2 Yrs
It won’t be the first time when a Bitcoin enthusiast, proponent, and HODler is expecting or predicting for that matter, for the leading cryptocurrency to exceed the gold’s market cap of over $7 trillion in the coming years. From Winklevoss Twins that believes Bitcoin is better at being gold than the yellow metal itself to the crypto analyst like Willy Woo who says “Mathematical scarcity beats perceived scarcity.”
Now, Bitcoin HODler with the pseudonym, Moon Rekt shared a prediction thread on Twitter where he talks about “unprecedented economic crisis” and Bitcoin exploding to $400k in the next two years, all because of “the fed (and other central banks) forcibly propping up asset prices (including bitcoin) to keep their own system afloat.”
He starts with a series of events that could lead to an economic crisis that is unprecedented following the time period of 2019 to 2021.
“This year, the Fed will make no further rate hikes, as they already watched the S&P 500 fall 20% in late 2018, and do not want to risk further panic.”
At last month’s end, the Fed reported that there won’t be any hike in interest rates in the light of global economic and financial developments. This would mean the US equities (SPY) will reach its peak before the year ends as this “10-year bull run comes to an end,” which mainstream experts have been pointing out.
“The downfall will simply be a result of the short-term credit cycle coming to an end. Global debt as a % of global GDP has peaked at over 300%.”
In order to prevent this catastrophic deflationary spiral, he says due to the dynamics of the fiat banking system will either create more money (QE) OR or incentivizing more debt (lower interest rates).
“Of course, the global cartel of central banks will not let this happen, and they will lower interest rates below zero, and do even more QE. This time around the political left won’t fall for these tricks. With clear evidence, that QE and low-interest rate policy drastically increases wealth inequality, many socialists will get elected across Europe and the US. Programs like AOC’s Green New Deal will be passed to drastically increase government spending/handouts to reduce wealth inequality. Taxes will skyrocket on the top 1% to levels never seen before.”
Bitcoin Hodler says this will lead the top 1 percenter to look for an “unconfiscatable” asset which will mark the entry of Bitcoin. As for middle and lower classes, Bitcoin will work as an alternative store of value that can’t be forcibly taken from them or be inflated by central banks.
“As the top 1% begin piling 1-5% of their net worth into Bitcoin, and the average American also begins storing 10-20% of their net worth in Bitcoin, the price will explode to roughly the size of gold (8 Trillion) or 10% of the global monetary base. 1 BTC ≈ $400k+”