Strategic investor Lyn Alden believes that the growing power of the Bitcoin network, coupled with favorable macroeconomic factors, could increase the market value to $ 1 trillion over the next few years.
Back in 2017, Alden was skeptical about Bitcoin (BTC) as the network effect of the mainstream cryptocurrency was still relatively weak:
“I was interested in downsizing. […] So if there is no single network effect that maintains control, you can see this type of market value spread across several different protocols. ”
Three years later, Bitcoin has not only maintained its dominance in the market, but its influence on the network is also expected to grow further. In fact, some analysts believe PayPal’s latest cryptocurrency integration could triple Bitcoin’s user base.
The macroeconomic environment created by the COVID-19 pandemic also favors Bitcoin, Olden said.
In particular, printing money at the central bank and dropping interest rates to historic lows increases the attractiveness of scarce assets that retain value in the face of inflation, such as gold and bitcoin. Therefore, Alden predicted large capital inflows from traditional assets to the leading cryptocurrency in the coming years.
“If bitcoin reaches $ 1 trillion, it will still account for 10% of the gold volume. […] Can he hit the 10% ceiling in the gold market? ” – she said.