10 million dollars for a bitcoin
The price of Bitcoin could reach $10 million, says asset management firm.
Asset management firm Lucid sees Bitcoin as the best alternative for solving the rampant debt crisis the world is facing. Although global wealth has climbed over the last 20 years, the debt burden has increased three times as much during the same period.
According to Lucid, mass investments in Bitcoin are our best chance of resolving the debt crisis permanently.
According to Lucid, the ratio of global debt to wealth has spiraled out of control. As of the end of 2018, total world debt was an estimated $247 trillion, compared to $317 trillion in total world wealth. And the gap is quickly closing. While our wealth has increased by 133 percent the past 20 years – debt has ballooned by 394 percent.
Lucid claims this development to be unsustainable and stresses the need for a solution to the debt crisis. Lucid sees five likely strategies:
- The adoption of a gold standard
- The creation of a new commodity
- Outright default on sovereign debt
- Economic growth
- Mass investments in Bitcoin
“Bitcoin is our best alternative”
Lucid maintains investments in Bitcoin to be our best alternative, since it would provide a “permanent fix” to the debt crisis. At the same time it would limit the damage that will accompany widespread economic crisis.
– [I]s this [mass bitcoin adoption] feasible? Probably not. But we believe it is possible and we believe it offers the greatest benefits with the least collateral damage to the least number of individuals, corporations, institutions, and countries. Most importantly, it would provide a permanent fix, a quality that none of the other solutions provide, Lucid President and Chief Investment Officer Dean Tyler Jenks and Executive Vice President Leah Wald wrote in the report.
“The price of Bitcoin: 10 million dollar”
If Lucid were to be right, the Bitcoin price would skyrocket. But how high could it go? Lucid says that $10 million is a good estimate. At that level, Bitcoin would be worth around $200 trillion and provide a sufficient reserve to alleviate the world debt burden.
“Do we believe Bitcoin will be chosen [as the solution to the debt crisis]? That is the wrong question,” Jenks and Wald said as they concluded the report. “The right question is: will there be a choice?”