Bitcoin will overtake gold in terms of market capitalization by 2028 and be worth over $1 million, one of the cryptocurrency’s earliest proponents Bobby Lee suggested in a series of tweets.
“Gold is about $8 trillion today, which is [50 times] the worth of Bitcoin,” Lee, who is best known for founding China’s first cryptocurrency exchange desk BTCC said. “I predict the [flippening] will happen within [nine] years and [bitcoin] will shoot up past [$500,000,]."
Flippening is an industry jargon used to refer to any future event where another cryptocurrency ends up dominating BTC in terms of market capitalization. Lee used it to refer to bitcoin overtaking gold.
Deflationary Value Will Help
Lee further pointed out that bitcoin’s deflationary value will be an asset in helping it reach that target, in comparison to gold.
“[Bitcoin] was designed to be [super] valuable over time,” Lee said. “First 10 [years], there were only [two] block reward [halvenings], but the next 10 years, there’ll be [three] (that’s 50% more)!”
Lee is referring to a bitcoin protocol that requires the mining rewards to be halved every four years.
There can only ever be 21 million bitcoins in existence, and more than 18 million have been mined already. The people mining, or creating, these bitcoins are rewarded with a part of it for themselves.
The rewards they receive are halved to ensure a proper supply and demand balance. These previous halvenings happened in 2012 and 2016. The next halving is estimated to occur in May 2020, followed by two more in 2024 and 2028.
They are usually followed by an increase in BTC market price, as miners try to sell the cryptocurrency for a higher price to account for their reduced income.
Predictions Run Wild In The Market
Lee further claimed there is an over-printing of currencies happening globally, which will lead to inflation and drive the world first cryptocurrency’s price above $1 million without specifying the time frame for this event.
In a conversation with Yahoo Finance in September, Lee predicted bitcoin’s price could go up to $200,000 in a “very short amount of time,” adding that this could take “months, if not a few years.”