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Keiser – Crypto Headed For $1 Tln Market Cap

Following the launch of Bitcoin futures
on the Chicago Board Options Exchange, the
financial world is trying to come to grips with what Bitcoin
really is.

The total market cap of cryptocurrencies has surpassed the $500
bln mark – and it’s fair to say that every financial
institution is sitting up and taking stock of virtual
currencies and their underlying Blockchain technology.

However, many people are still in the dark and have less than a
basic understanding of cryptocurrencies.

Keiser – three characteristics of Bitcoin

In the latest edition of the Keiser Report on RT, show host Max Keiser
speculated on the effect that Bitcoin futures would have on the
Bitcoin market.

As per usual, he threw some pretty big numbers around,
insisting that the launch of futures has made the pipeline
bigger for fiat currencies to flow into Bitcoin.

However, his analysis of what truly makes Bitcoin an
exceptional store of value is intriguing, given that it
challenges Satoshi Nakamoto’s Bitcoin whitepaper published
back in 2009:

“People don’t understand that at its heart, Bitcoin is a
messaging app first, a store of value secondly and a medium
of exchange third. The Satoshi whitepaper is a bit misleading
because it leads off by calling Bitcoin digital cash.”

“That’s kind of misleading. It’s not really digital cash
until it first establishes itself as a messaging app. Money
and economics are the history of communication, trade and
language. Language explodes onto the scene, trade explodes
onto the scene, messaging apps explode onto the scene and
similarly Bitcoin has exploded onto the scene.”

Bitcoin is eating debt

Bitcoin has constantly been called gold 2.0 by various financial experts
including the likes of the Winklevoss twins and Keiser himself. However, the American
broadcaster insists that Bitcoin’s price needs to be related to
global debt to realize it’s true potential value.

“You have to look at Bitcoin in relation to global debt. It’s
not like $7 tln in gold, there’s $300 tln in debt – I’ve done
the calculations. That would imply a Bitcoin price of over $2
mln a coin to monetize and get rid of that debt.”

Futures paving the way to $1 tln market cap

It’s fitting that the overall market cap of cryptocurrency has
reached half a trillion dollars in the first week of Bitcoin
futures trading. In relation to other markets, it is small, but
considering this marks the start of mainstream financial
acceptance, more money will flow into virtual currencies.

As Keiser explains, the capacity for future value is only being
made bigger:

“It will create a bigger pipe for more money to flow into
Bitcoin. Right now the pipe is small, it’s a relatively
minuscule market compared to the bond futures, currency
futures and stock futures. $5 tln in forex per day is the
market. Bitcoin in that arena is a pipsqueak.”

“By expanding these futures contracts and derivatives,
bringing Wall Street and Chicago into the mix, your taking
that small straw which is an onramp for fiat into Bitcoin and
your making it massively bigger.”

With global debt amounting to hundreds of trillions of dollars,
Keiser sees Bitcoin sucking that up as the value of
cryptocurrencies rises.

“The cryptocurrency market cap will top the trillion dollar
level and hit multi-trillion levels because it has this
amazing quantum effect, pulling all the fiat money into the
Bitcoin black hole store of value.”

Check out the latest episode of the Keiser Report.

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Credits : https://cointelegraph.com/news/lights-camera-crypto-advertising-campaigns-for-new-money

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