I was at Blockshow Asia in Singapore this week and saw a ton of interesting talks and presentations. My favorite was Simon Dixon, of Bank To The Future - who stated that even at $10,000, Bitcoin was still the most undervalued asset in the world.
His claim was supported by his strong belief that institutional money has still not yet entered the space. This isn't exactly a revelation since that it a widely held belief by many bitcoin bulls, but Simon had an interesting way of describing the situation Wall Street currently finds itself in.
Dixon described bitcoin as the first investment in modern history that the small time investor has access to before Wall Street, which is hamstrung by the lack of regulation in the space. However, once Wall Street is able to enter, they will in a big way. With CME Futures on the horizon eventually paving the way for an ETF, their entry seems all but inevitable and they're not going to be buying with pocket change.
Dixon said that whether individual fund managers are believers in bitcoin or not, they will have no choice to put their clients into BTC because it is one of the few investments that at present, is completely uncorrelated to the mainstream capital markets. Finding uncorrelated assets is a very basic element to traditional diversified portfolio management (which is also discussed in Chris Burniske's Cryptoassets), so it will be a no-brainer for them whether they like it or not.
He also discussed the properties that will establish Bitcoin as the powerhouse he believes it is destined to become - the fact that it is the world's first truly neutral currency, that doesn't care about any specific country or government and can't be shut down by them either.
On fiat currencies, he does not see them ever going away but sees a future where people can spend their local inflationary fiat currencies but hold their wealth in cryptocurrencies that have zero connection to whichever country someone lives in. The fact that people will have a choice will ultimately keep governments honest because if they abuse their power, everyone will be free to move their wealth and the government will be powerless to stop it.
Lastly, he predicted that in 2018 we'll see the entire cryptocurrency market reach a trillion dollar valuation. He said that there will be will be bubbles, casualties, scams and regulation along the way but ultimately, the move towards a trillion is already fast in motion.
I'll be traveling around Asia for the next couple months writing about all of the cool blockchain and cryptocurrency tech that's developing here. You guys can support me by subscribing to my website - www.cryptoambit.com. Anything of value I learn, I'll do my best to pass it on to you guys since I've already learned a ton from the reddit community. Thanks!