According to the co-founder of Mechanism Capital, there is a vast amount of global wealth and income that could potentially flow into the world of Bitcoin. Andrew Kang, an expert in investment and cryptocurrencies, believes that around 10% of global investors now hold cryptocurrency. Kang points out that many analysts mistakenly attribute the recent surge in Bitcoin’s value to the introduction of BTC-ETF shares. However, he argues that there has been a strong demand for Bitcoin even before these exchange-traded funds were approved.
“People tend to forget that the demand for Bitcoin has always been significant. Mechanism Capital alone has amassed nearly a trillion dollars in assets over the past decade. It is a common mistake among crypto investors to underestimate the excess liquidity in the world and its potential to flow into cryptocurrencies. Even if cryptocurrency owners allocate just 1% of their annual income to Bitcoin, it could result in a potential cash flow of at least $52 billion per year, or nearly $150 million per day.”
Kang believes that his estimates are quite conservative and may not account for the business and institutional financial flows that could further drive the demand for Bitcoin. He is confident that the market will absorb the expected sales of bitcoins from miners and large holders, such as the Mt.Gox exchange. Additionally, financial giants like BlackRock and Fidelity estimate a possible influx of funds ranging from $150 billion to $200 billion over the next three years. Kang cites this as an example of the potential growth in Bitcoin.
The seasoned investor is bullish on Bitcoin’s price, predicting that it will not remain stagnant at $40,000 and could rise to $50,000 or even $60,000 by March. As of Monday afternoon, February 12, Bitcoin is trading at $47,779, with its capitalization reaching $48,556.
In a quirky turn of events, US President Joe Biden posted a photo of himself on social media sporting red laser eyes, which is regarded as a symbol of support for Bitcoin.