u.today
Prominent Bitcoin analyst Willy Woo has stirred up the cryptocurrency community with his recent perspective on Bitcoin's potential price trajectory. In a bold assertion, Woo suggested that the target price for Bitcoin in the event of hyperbitcoinization — a scenario where Bitcoin becomes the dominant global currency — could reach an astounding $4.8 million.
Hyperbitcoinization refers to the hypothetical future in which Bitcoin supersedes traditional fiat currencies and precious metals as the primary medium of exchange worldwide. Advocates argue that cryptocurrency's borderless, censorship-resistant and digital nature will eventually lead to widespread adoption, resulting in the displacement of conventional financial systems.
Woo's assertion is based on a simple yet ambitious calculation: dividing the world's gross domestic product (GDP) by the fixed supply of 21 million BTC. Currently, the world's GDP stands at approximately $96.51 trillion, making Woo's target price seem astronomical compared to Bitcoin's current trading value of $73,000 and market capitalization of $1.4 trillion.
Why not?
However, not all within the cryptocurrency community share Woo's optimism. Some argue that GDP represents only the added value generated through production activities within a specific time frame and may not accurately reflect the true value of a global reserve asset like Bitcoin.
Money, presently all the world's fiat, historically tracks world GDP.
— Willy Woo (@woonomic) March 14, 2024
Money is half of everything.
Nevertheless, Woo remains steadfast in his belief that money, including fiat currency, historically correlates with world GDP. He suggests that Bitcoin's potential as a global reserve asset aligns with this trend, reinforcing his $4.8 million price projection.
As Bitcoin continues to capture mainstream attention and institutional interest, debates over its long-term value and potential role in reshaping global finance are likely to intensify. Whether Woo's prediction materializes or not, his perspective underscores the profound impact BTC could have on the future of money and the global economy.