Going forward, Bitcoin (BTC) will “soak up all the wealth gains,” leaving behind those who have no engagement, according to a new forecast.
in one Twitter thread On July 8th, investor Luke Broyles presented a bold vision of how Bitcoin would become the “base money of society.”
Investor tells potential bitcoin buyers: “Go away from zero”
What started as a commentary on how artificial intelligence (AI) is welcoming BTC soon turned into a dramatic blueprint for how it should become the world’s currency of choice.
For Broyles, bitcoin’s key feature — a fixed, unchanging supply — makes it unique as a future-proof asset.
“Any innovation (including AI) will advance as quickly as possible to lower prices in competition. Every country will print money as quickly as possible to push up prices and prop up credit markets. Both forces will increase in speed,” he wrote.
BTC output, meanwhile, remains steady, so even a tiny exposure is far from nothing.
“We have less in common with the future than with the past… Bitcoin is already trading for hundreds of millions of political currency units in many countries. But the real big deal is that any wealth gains from any future innovation will flow into society’s base money – BTC,” Broyles continued.
“That’s why it’s crucial for people to ‘get from zero’. Saying “Bitcoin is digital gold” is like saying a locomotive is an iron horse.”
Bitcoin supply dynamics data. Credit: Luke Broyles/Twitter
His view aligns with that recently published by Arthur Hayes, the former CEO of crypto derivatives exchange BitMEX.
As Cointelegraph reported, Hayes believes AI will instinctively choose BTC as their financial lifeblood, again due to its unique properties compared to other assets, including gold.
As a result, the AI alone could drive the BTC price to over $750,000 per token.
BTC supply dominance reaches a ‘tipping point’
The race to secure the remaining BTC supply may already have started.
Related: BTC Price Remains “Undoubtedly Bullish” as $30,000 Bitcoin Buyers Emerge
Broyles argued that bitcoin liquidity actually peaked during the cross-market crash in March 2020 and has never declined since.
When the world’s largest asset manager BlackRock announced the filing of a bitcoin spot-based exchange-traded fund (ETF), BTC activity in the US skyrocketed.
As noted by on-chain analytics firm Glassnode, the US appears to be reassessing its own risk.
“Following the announcement of the Blackrock Bitcoin ETF inquiry on June 15, the proportion of Bitcoin supply held/traded by US companies has seen a significant increase, marking a potential tipping point in supply dominance if the trend continues,” it reads in this commented on July 8th.
An attached chart shows the differences in regional ownership changes in BTC supply.
Annotated chart of regional BTC supply change year-on-year. Source: Glassnode/Twitter
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This article does not contain any investment advice or recommendations. Every investment and trading activity involves risk and readers should do their own research in making their decision.