Bitcoin (BTC) is a true monetary revolution that could solve the many issues plaguing the current flawed fiat system.
As the money protocol for the internet, BTC essentially offers a hedge against inflation and a store of value during times of market uncertainty.
Many prominent investors already understand that bitcoin is emerging as the new gold. Chris Burniske, partner at Placeholder formerly of Ark Invest, projects that the coin will hit $50K and secure a $1 trillion market cap in the near future.
Despite showing impressive growth and winning the support of many investors, the world’s leading crypto remains surprisingly undervalued. Triple-digit percentage gains in recent months and hitting a market cap of $220 billion have not helped in its valuation either.
BTC’s On-Chain Activity Confirms the Asset is Undervalued
The metric shown on the chart below further compounds the notion that BTC is undervalued and still has room to run, despite hitting highs of $12K recently.
BTC’s Market Cap to Thermocap Ratio by Glassnode
BTC’s “Market Cap to Thermocap Ratio”, which is a metric that measures if an asset is trading at a premium, shows levels that are 5 to10 lower than previous tops.
This data thus indicates that the world’s largest digital asset is currently undervalued based on the total revenue generated by BTC’s network activity.
The ongoing Covid-19 has accelerated people’s interest in digital assets, particularly Bitcoin, in what can be termed as a turning point in the adoption of crypto.
More individuals are interacting with the BTC as indicated by the surging numbers of unique addresses on the network.
Unique Bitcoin addresses on the rise by Blockchain.com
This metric indicates that new investors are taking a long-term approach to their Bitcoin investments by accumulating vast amounts of coins.
The ongoing accumulation provides a strong fundamental foundation that will likely propel BTC’s value higher in the months and years ahead.
The King Coin’s Value Will Rise as Adoption Increases
Despite being currently undervalued, the future looks bright for BTC as it gains more acceptance in the eyes of the public.
The current Covid-19 has created uncertainty in the global markets, pushing both individual and institutional investors to seek BTC as a hedge against inflation and as a store of value.
According to the Winklevoss twins, prominent investors and BTC enthusiasts who own over a billion dollars in crypto, BTC will see a valuation surge with increased adoption.
The twins told CNBC in a video interview that BTC will remain undervalued until it hits a $7 trillion market cap, at which point its value will surpass $333K.
As the number of trusted custodians for crypto increases, and the digital asset’s space benefits from better regulation and security, the trajectory of Bitcoin’s growth over the coming years will likely surge higher.
Such growth, coupled with rising inflation and uncertainty in the fiat economy, will eventually propel bitcoin to compete against gold as an established store of value.
