Daniel Roberts, the CEO, and founder of IREN, a tech company listed on the Nasdaq, stated in a recent interview that the Bitcoin market cap must reach a minimum price of $900,000 to surpass gold, and he predicts that this will happen by 2030. As evidenced by the rise of this cryptocurrency during the pandemic, many consider it a haven in economic instability and is scarce, much like the well-known precious metal.
Daniel Roberts’ Bitcoin Market Cap Prediction
During the cryptocurrency rally in November 2024, Roberts said Bitcoin (BTC) is “dirt cheap.” He also expressed his opinions about Bitcoin’s future value using gold’s metrics.
According to him, Bitcoin’s market cap should surpass gold within the next decade because it is increasingly seen as a security asset equal to or superior to gold. With an overall evaluation of $1.95 trillion for Bitcoin and $19.3 trillion for gold, Bitcoin requires a 10x price increase to achieve equality.
The tech firm CEO added that when Bitcoin’s price reaches $1,000,000, its market capitalization will surpass that of gold. Roberts points to the popularity of ETFs and well-publicized institutional investor purchases of Bitcoin as reasons for the cryptocurrency’s rapid rise in price.
The market capitalization of gold could also increase significantly by 2030. The price of gold has risen by more than 80% in the past five years. Based on Roberts’ reasoning, Bitcoin might need to increase by more than $1 million by 2030 to catch up to gold, or it might take longer for Bitcoin’s market capitalization to surpass that of gold.
Gold versus Bitcoin
Roberts’ view of Bitcoin as the better gold is not unusual. Numerous other professionals and experts in the cryptocurrency community and even the broader financial sector say they prefer Bitcoin over gold.
Investors flocked to assets they perceived as a haven after the US trade war against China entered a new phase, and gold emerged as one such asset. While Bitcoin was in correction for two straight days due to the imposed tariffs, gold’s price hit a new historical high on February 5 at over $2.8K per ounce.
In an interview with Bloomberg earlier this week, Cathie Wood, the CEO of Ark Invest, acknowledged that Bitcoin is a new asset class, a market leader, and a fresh monetary system globally. According to Wood, her mentor, economist Art Laffer, told her in 2015 that he had been waiting for Bitcoin since the US government shut the gold window in 1971.
In 2023, Wood referred to Bitcoin as a security hedge from inflation and deflation, adding that Bitcoin “hands down is better than gold.” According to her, the younger generation would rather own Bitcoin than gold because it is a more recent asset that is not closely linked to institutions.
Sygnum Projects $1B Reserve May Increase Bitcoin Market Cap by $20B
Meanwhile, Sygnum, a global crypto bank, has released its prediction regarding the Bitcoin market cap and price. According to Katalin Tischhauser, Head of Investment Research at the bank, a 20x multiplier effect could happen for every $1 billion invested in Bitcoin.
This prediction implies that the market value of BTC could increase by up to $20 billion for every additional billion dollars that the US invests in its strategic Bitcoin reserve.
According to Tischhauser, the bank’s prediction depends on the coin’s scarcity. She stated that BTC’s price would skyrocket if there were an unexpected demand spike and a squeeze on the already limited liquid supply.
Tischhauser pointed out that the 20x price increase might not occur immediately. She explained that subsequent billions would lead to the price spike, while the initial inflows would result in modest price increases.
Who Could Push the Bitcoin Demand?
The study mainly focused on governments as a possible source of demand for Bitcoin. But Tischhauser thinks that everyone can contribute to this demand. According to the Sygnum research head, corporate treasuries, big institutional investors, and state and local governments can all contribute to Bitcoin’s price increase.
Tischhauser also has other grounds for optimism regarding this multiplier prediction. She pointed to the rise of stablecoins as a key sign that Bitcoin is about to experience a bullish period.
In the past, an increase in stablecoin market caps typically indicates that more money is joining the cryptocurrency market. Hence, there could be significant demand for BTC soon.
