In a recent prediction, investor Luke Broyles suggests that Bitcoin (BTC) will absorb all prosperity gains in the future, leaving those without exposure behind. Broyles envisions Bitcoin becoming society’s base money and highlights its unique attribute of a fixed, immutable supply as a future-proof asset.
According to Broyles, every innovation, including artificial intelligence (AI), will compete to drive prices down. On the other hand, countries will strive to print more currency to push prices up and sustain credit markets. These opposing forces will accelerate over time. In contrast, Bitcoin will maintain a constant emission, making even a small exposure to BTC significantly valuable compared to having no exposure at all.
Broyles argues that Bitcoin is already trading for substantial amounts of fiat currency in many nations, but the real significance lies in the fact that all future prosperity gains from innovations will flow into Bitcoin as society’s base money.
This viewpoint aligns with the recent perspective of Arthur Hayes, the former CEO of BitMEX, who believes that AI will instinctively choose Bitcoin as its financial lifeblood due to Bitcoin’s unique qualities compared to other assets, such as gold. Hayes even suggests that AI alone could drive the price of Bitcoin beyond $750,000 per token.
The race to secure the remaining Bitcoin supply may have already begun, as indicated by Broyles. He argues that Bitcoin liquidity reached its peak during the cross-market crash in March 2020 and will not retrace its steps. Additionally, the announcement of a Bitcoin spot-based exchange-traded fund (ETF) filing by BlackRock, the world’s largest asset manager, has led to increased BTC activity in the United States.
On-chain analytics firm Glassnode notes that following the BlackRock Bitcoin ETF request, the share of Bitcoin supply held and traded by US entities has experienced a noticeable uptick. This trend suggests a potential shift in supply dominance if sustained, as illustrated by a chart demonstrating regional changes in BTC supply ownership.
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