Benzinga - Blockstream CEO, Adam Back, a key player in the development of technologies like the Bitcoin (CRYPTO: BTC) Lightning Network, said the apex cryptocurrency will have to reach $700,000 to outperform physical gold.
What Happened: Back said on X, “Digital gold bitcoin will surely flip physical gold sooner or later; and probably this halving cycle. So within a year or two. Currently, it’d take $700k/BTC but it maybe partially a substitute (some people start selling gold to buy bitcoin crossing the market caps below that).”
Back’s confidence in Bitcoin potentially eclipsing gold’s market cap within the next couple of years hinges on the impact of the upcoming Bitcoin halving—slated for April next year.
This event reduces the number of new Bitcoins entering circulation by half, thus constraining the supply and potentially driving up the price if demand remains steady or increases.
digital gold #bitcoin will surely flip physical gold sooner or later; and probably this halving cycle. so within a year or two. currently it'd take $700k/BTC but it maybe partially a substitute (some people start selling gold to buy #bitcoin crossing the market caps below that).— Adam Back (@adam3us) December 4, 2023
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Why It Matters: Back's company Blockstream, is recognized for its role in developing the Bitcoin Lightning Network, which has made it easier how micropayments are conducted with Bitcoin—resulting in transactions that are both cheaper and faster than traditional Bitcoin payments.
Earlier in August, Back projected that Bitcoin would soar to new heights, surpassing $100,000 before the next halving in 2024.
Price Action: At the time of writing, BTC was trading at $41,741, up 2.26% in the last 24 hours, according to Benzinga Pro.
Photo by Oier Aso on Shutterstock
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