According to Yassine Elmandjra, one of Tesla’s main investors, in a period of 5 to 10 years, the value of Bitcoin, in terms of market capitalization, will reach between 1 and 5 trillion dollars. This is an analysis that many describe as exaggerated. However, the analyst firmly believes in what he says.
It should be noted that, after the Halving of last May, the value of Bitcoin did not explode as many expected. On the contrary, it remains to this day in a band not very different from that presented before the cut.
Throughout 2020, the price of the main cryptocurrency has been presented to us like a roller coaster. After the Halving, there was a period of low volatility of several months. However, the price has not been able to consolidate.
Bitcoin won’t be the same in ten years
The truth of all this is that the experienced investor, Elmandjra, assures that in less than ten years the value of Bitcoin will be really high. One of the reasons for this argument is found in the large number of investors turning to cryptocurrency as a store of value, which will make its market capitalization skyrocket.
The economic crisis that the Covid-19 pandemic brought with it, has caused unprecedented spending by the State in printing money. Faced with this, many investors fear a possible inflationary escalation from the dollar.
At the same time, there is a certainty among analysts that this current crisis was not a consequence of the pandemic, but that the coronavirus simply accelerated it. Under this premise, Elmandjra ensures that, in a period of five or ten years, the market capitalization of Bitcoin will reach between 1 and 5 trillion USD.
“Bitcoin offers one of the most compelling risk-reward profiles among assets, as our analysis suggests that it should scale from approximately $ 200 billion today, to between 1 and 5 trillion market capitalization in the next 5 years.”, Explains this analyst and investor quoted in Forbes.
No one should ignore it
Among other statements, reflected in his report, Elmandjra assures that, for the investors’ own good, they should not ignore Bitcoin. It’s a digital currency that guarantees great returns and security, he explains, so no investor should overlook it as an asset class.
It is important to bear in mind that, despite the ups and downs of the pioneering cryptocurrency, Bitcoin was, with a marked advantage, the best asset of 2020. But not only this year, if its behavior is reviewed, its numbers stand out, with which it can be reach the certainty that it has been the best asset of the last decade.
“Bitcoin is in an early stage on its way to monetization with substantial potential for appreciation”, He points out. In ten years, he continues, Bitcoin will cease to be a curiosity for hundreds of millions of people, and will become a reality of everyday life.
Some problems that can interrupt this path
On the other hand, the investor considers that Bitcoin’s path to becoming the king of assets is not without its setbacks. There is, he claims, an uncertain regulatory future that may jeopardize the development of the massive capitalization that Bitcoin is moving towards.
The most recent example of these threats to a gigantic capitalization of Bitcoin in ten years is the prosecutions of the United States justice agencies against companies. Such is the case with BitMEX.
However, the future that Elmandjra paints seems very safe for Bitcoin, not only in terms of the consolidation of its price, but also the increase in market capitalization.
Data to take into consideration
- Tesla investor Yassine Elmandjra says that, in ten years, the market capitalization of Bitcoin will reach 1 to 5 trillion USD.
- He explains that one of the reasons for the growth that the pioneer cryptocurrency will experience is excessive government spending on money printing.
- Investors fear escalating inflation in the US dollar, so they seek a store of value for their capital.
- Although a successful future is projected for Bitcoin, the aforementioned analyst believes that there are also risks such as regulations in the US.