The mind-blowing reason why bitcoin could eventually reach a price of $1 million

Back in April, legendary investor Cathie Wood of Ark Invest turned heads in the crypto world when she predicted a mind-blowing $1 million price for bitcoin. That was, of course, before the market crashed. Now, six months later, Ark Invest has reiterated its $1 million price target for bitcoin. After analyzing the numbers, the investment firm concluded that bitcoin’s three basic use cases allow for a future market capitalization of $28 trillion, or over $1 million per bitcoin.

What’s really mind-blowing about this calculation is that the Ark Invest team arrived at this $28 trillion market capitalization figure by adding a new use case for bitcoin: “an insurance policy against arbitrary asset seizures“. This most likely refers to the concerns that many libertarian bitcoin supporters have with governments in general. Ark Invest seems to imply that people might choose to invest in bitcoin as a way to protect their savings from government confiscation. Unbelievable.

Arbitrary seizure of assets

In the past, the “arbitrary seizure of assets” was something that only happened in dystopian novels like George Orwell’s 1984. Unless it was criminal activity or some other mischief, governments could not simply take your money. But consider what is happening in Western society right now. We are moving very quickly from the “de-platforming” to the “de-banking” of people based on their opinions. Spurred on by the efforts of Big Tech social media companies to ban, censor, and de-ban people with certain views or opinions, it now appears that financial services companies are beginning to move down that same slippery slope.

Read:  250 million dollars! Who paid this astronomical sum to free Sam Bankman-Fried? Does his fortune come from his clients' funds?

Just look at what’s going on right now with Kanye West. JPMorgan Chase is now looking to sever its relationship with Kanye West because of the problematic and highly offensive comments he has made online and in public. Similarly, payment services giant PayPal was recently criticized by the public for its controversial plan to fine its customers $2,500 every time they spread false information online. To its credit, PayPal immediately reversed its decision and apologized.

Bitcoin Against Censorship

In a recent interview with Bloomberg TV, Ark Invest pointed out that bitcoin is “censorship resistant.” This implies that investing in bitcoins allows you to say certain things – even if they violate the terms of use of a particular platform – because you don’t have to fear censorship. Ark Invest also noted that bitcoin is “non-sovereign“Which means that a sovereign government will never be able to peek into your crypto-currency wallet and see what you have inside. You know, just in case they don’t like what you say about them online. We saw this scenario in Canada earlier this year, when the Trudeau government tried to freeze the bank accounts of anyone helping the “Truckers’ Convoy“in Ottawa. The easiest way to silence the opposition, apparently, is to debunk it.

From this perspective, bitcoin could be a way to bypass the current system and make your assets safe from foreclosure. This could be another of the benefits of crypto-currencies. Ten years ago, it was bad actors trying to hide their shady dealings from the state. This time, it’s the people who no longer trust sovereign governments to do the right thing. That’s not to say that’s the only reason people are investing in bitcoin – the overwhelming majority are simply looking to make a profit. Already, crypto-currency enthusiasts are urging Kanye West to launch a new crypto-currency or invest in bitcoin as a way to avoid de-banking. Perhaps not surprisingly, Kanye West has already been spotted in public wearing a Satoshi Nakamoto baseball cap as a nod to the anonymous creator of bitcoin.

Read:  Nigeria denies prisoner exchange after release of 23 hostages kidnapped in March

The Three Pillars of Bitcoin’s Valuation

Of course, the Ark Invest team isn’t suggesting that this fear of censorship and asset seizure is the only reason supporting a $1 million price tag for bitcoin. As one of the firm’s crypto analysts said in an interview with Bloomberg TV, bitcoin’s use cases are additive – you can stack them on top of each other to arrive at a final valuation. The first use case for bitcoin is as a digital store of value, similar to gold. The second use of bitcoin is as a payment and settlement network. The third and final use case is as an “insurance policy against arbitrary seizure of assets.

A million dollar price tag for a bitcoin may seem absurd and fanciful, but if society continues to try to de-bank people it doesn’t approve of, it may not seem so outlandish in a few years. At that point, the only people who will be able to say what they really think and feel will be those who had the foresight to move their money from fiat currency to crypto.

The Best Online Bookmakers July 18 2024

BetMGM Casino

BetMGM Casino

Bonus

$1,000