According to a report by CoinShares, Bitcoin could significantly rise in price if it captures certain market shares in global financial markets.
Connection Between Global Liquidity and Gold Market
The report indicates that global liquidity, expressed as global M2, currently stands at $127.3 trillion. The total market value of all mined gold is valued at $23.9 trillion. The analysis suggests that if Bitcoin captures a small share of these significant financial markets, it could experience substantial growth.
Scenarios According to TAM Model
The TAM model is leveraged to predict the maximum market size that a product or service can attain. CoinShares has adapted this method for Bitcoin to analyze potential future valuation levels. "It’s unlikely for Bitcoin to compete with corporate treasuries or foreign reserves, and it’s presumed to gain zero shares in these areas; however, by capturing 2% of the global M2 and 5% of the gold market, Bitcoin could foresee a value of $189,000 per unit."
Bitcoin's Role and Future Outlook
The report highlights that as Bitcoin becomes more functional as a form of money, its chance of gaining a bigger share in monetary markets increases. CoinShares suggests that increasing trends of the digital asset’s functionality and adoption rates could significantly grow in the future.
According to CoinShares' evaluations, if Bitcoin manages to capture the indicated market shares, its price could appreciate by approximately 65%. Experts indicate that the role of digital assets in the financial system could vary depending on market conditions and investor interest.
