There are many different opinions about Bitcoin's (BTC) growth potential. We have heard several predictions over the years. One even higher than the other. It's just that the market has changed a lot since 2017. For example, we've seen several non-crypto companies and individuals enter the market, such as the payment giant PayPal and the billionaire Paul Tudor Jones. However, this could be the start of a new wave of Bitcoin buyers, according to Brian Estes, chief investment officer and managing partner at Off The Chain Capital.
Estes said the following in an interview with Cointelegraph:
"I think that eventually all corporate treasuries will have a small portion of their reserves in Bitcoin." As mentioned, the recent news from PayPal is of course a "big deal," but the investments from MicroStrategy and Square, which recently bought about $ 425 million and $ 50 million in BTC respectively, shouldn't be overlooked either. "Those are two of the Fortune 1000 companies and I think there are 998 more to go," said Estes. With this prediction in mind, Off The Chain, in collaboration with some of its partners, has devised a few hypothetical scenarios, comparing each company's supposed investment opportunities against potential Bitcoin purchases. "There are $ 4 trillion in treasury reserves in public corporations today," said Estes. "If only 1% of that goes to Bitcoin, that's $ 40 billion."
He went on to:
The multiplier effect for every dollar that goes into Bitcoin, Bitcoin rises anywhere from $ 20 to $ 100 in market cap. If $ 1 million in Bitcoin is bought, Bitcoin's market cap will increase between $ 20 million and $ 100 million. ” At the lower end of the spectrum, multiplying the estimate of $ 40 billion by 20 would increase Bitcoin's market cap by $ 800 billion, Estes speculated. This would push Bitcoin's market cap above $ 1 trillion, a significant increase from its current evaluation of $ 253 billion. He said the following: “If 1% of publicly traded companies' treasury reserves go into Bitcoin, Bitcoin will reach a market cap of $ 5 trillion on the conservative side, and it could be a market cap of $ 5 trillion if we use the 100 number. This does not include central banks and other institutions that may come in later. ”
