Why $1 Million Bitcoin Is Coming

Bitcoin is officially mainstream. By the end of the last mega-bull market in 2017, most of the world had heard of bitcoin (BTC, +3.7%). But after Tesla recently purchased $1.5 billion for its corporate treasury and not for a speculative research and development sleeve, those still thinking bitcoin was a fad exposed themselves as woefully under-informed.

Tesla’s purchase underpins something even more dramatic than mainstreaming bitcoin as a legitimate cash-replacement for the world’s largest corporate, financial, and government institutions. These sudden influxes in demand, including a handful of recent bond-issuance-fueled purchases by MicroStrategy, are having an extreme impact on the bitcoin price. I believe we’ll see the price of bitcoin above $1 million sooner than most people can fathom.

Nik Bhatia is the author of “Layered Money: From Gold and Dollars to Bitcoin and Central Bank Digital Currencies” (2021). He is a CFA charter holder and Adjunct Professor of Finance and Business Economics at the University of Southern California Marshall School of Business.

I understand that $50,000 is already slightly discombobulating to the investment community at large, but that bitcoin price is only associated with $1 trillion of total market value in a world of hundreds of trillions of dollars in global wealth. If bitcoin’s market value reached the size of the U.S. Treasury market, for example, its price would reach $1.5 million.

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