Bitcoin can get to $100k, and it may be an easier get than some people think...

People love to throw out the BTC @ $100k number like it's going out of style, but when you really think about, that is really a big number compared to where bitcoin is today.

And really compared to where it has ever traded at in its entire trading history.

As it stands right now, bitcoin is worth roughly $200 billion while currently trading for a shade under $11k.

That means in order for it to get to $100k, it needs to go up by about 10x (we'll be conservative with our numbers and based them off a $10k starting point), and add about $1.8 trillion to its market cap.

A trillion here, a trillion there, pretty soon we are talking about real money!

Considering that bitcoin has never traded for more than $400 billion, getting to $2 trillion is no small feat.

So, how does it get there???

Well, in all honesty, it got a whole heck of a lot easier when this whole pandemic really kicked off earlier this year.

I don't mean that the virus had anything to do with bitcoin getting to $100k, but the government's response sure does.

Central Banks globally have all basically responded to the current pandemic/economic crisis by throwing money at it.

We have already seen several stimulus bills passed in the trillions of dollars and we are still going to get more.

This debasement of fiat currencies helps things go up that are priced of those fiat currencies.

So, that is the first part of how it is going to get there, weakening fiat currencies globally. The other way it is going to get there is based on the news that came out late last week...

News that can be seen here btw:

@jrcornel/banks-can-now-custody-bitcoin-and-that-is-yuge-news-going-forward

Banks were given clarity on their ability to custody bitcoin on their own accord as well as on behalf of their clients.

This is absolutely huge news and here's why...

• Banks currently are sitting on roughly $20 trillion in reserves
• The top 15 banks alone are said to be custodying another $150 trillion on behalf of clients

If just 1 percent the money mentioned above were to take some sort of allocation in bitcoin, whether it be as an investment a hedge or insurance (or something else entirely), that would equate to roughly $200 billion coming from banks and roughly $1.5 trillion coming from clients that banks hold assets for.

Add that all up and we are looking at $1.7 trillion worth of buying that COULD come into bitcoin, and that is just at a 1% allocation and only talking about the holdings of the 15 largest banks when it comes to client assets.

If you are curious how bitcoin gets to $100k, there is your answer right there...

Bitcoin is currently $1.8 trillion short of that $2 trillion and $100k number and the math above shows a 1% allocation by these institutions would just about make up the entire difference.

By the way, if that much money actually came into the bitcoin market the price of bitcoin would likely go much higher than the total fiat dollar amount coming in.

I read a report a while back that talked about the multiple being something like 10x during the bull market of 2017, meaning that for every dollar that came in, the crypto market went up by roughly $10 during that time.

If anything close to that happened, bitcoin would go well north of $100k if $1.7 trillion flowed in over the coming years.

Also, keep in mind that this model assumes a 1% allocation across the board, what if that number was actually closer to 1.5% or 2%?

I'll let you do the math on that one...

As you can see, bitcoin getting to $100k is a lot more "getable" than most people think and the odds of it actually happening got a whole lot better at the start of this year and even more so based on the news last week.

Stay informed my friends.

Image Source:

https://www.newsbtc.com/2019/03/01/crypto-bitcoin-price-long-term/

-Doc