Okay, everyone. I've been waiting to get into this for a while.
What will be the price of Bitcoin?
Well, the interesting thing about this question is... the idea that anyone could ever say they know the answer to this question. Well, let me tell you right now that nobody knows the answer to that question. What people can say instead, is what they have heard, and what their theories are.
Those who have more influence can add weight if what they say is backed up by evidence and logic.
Let's say Warren Buffet, today, said that $BTC would be worth $500k by the end of 2025, and then provided a significant amount of evidence to suggest that this is smack dab in the middle of his sensitivity analysis based on a multitude of factors. In that case, I would feel inclined to take note of such an opinion.
I'm just going to leave this video below about Cathie Wood of Ark Investments, discuss the value proposition of Bitcoin. Before you click the link, read the below quotes:
"If companies in the S&P500 were to put 1% of their cash into Bitcoin, that would increase the price of Bitcoin by $40,000. If we saw 10%, that would add $400,000."
"Institutions will have a significant impact on price."
SEC has allowed banks to become nodes.
It has the lowest correlations of any other combination.
If our analysis in how institutions will look (monte carlo simulation) institutional involvement could increase the price of bitcoin by $200k if they want to minimize volatility to $500k if they want to maximise their sharpe ratios
This is some serious business up in here.
I'm definitely excited to invest in the stock market from the position of companies that choose to use bitcoin as a tertiary, secondary, or with some companies, primary source of cash. If i believe in their products, and they are making sound financial positions for the future, they automatically demand a premium in valuation in my opinion.
A good filter for companies trading on the NYSE and the NASDAQ would be to filter for low cap companies, with a good product use case, that has at least 1% of their cash in Bitcoin.
