It is widely known that Bitcoin [1] attains much of its value from digital scarcity. It has some properties of digital cash/currency and some of digital Gold. Only 21 Million coins will ever be created and many coins private keys have been lost forever.
Given the market capitalization of global fiat currencies is approximately $5 Trillion and the Gold market is around $7 Trillion [2]. It seems perfectly feasible that Bitcoin could attain 10% of this asset pool, which would equate to a market cap of around $1.2 Trillion. If this were to be achieved, the value of 1 BTC would equal.... 1.2 Trillion / 21 Million = Roughly $57000.
https://uk.tradingview.com/x/yVHb4ZEc/
Conclusion:
The author believes it is prudent for the intelligent investor to purchase at least 1 BTC and hold it as a long term investment.
References:
- https://bitcoin.org/bitcoin.pdf
- http://www.marketwatch.com/story/this-is-how-much-money-exists-in-the-entire-world-in-one-chart-2015-12-18
Disclaimer:
Investing in crypto-currency is highly speculative.