10xResearch: If the market cap of Bitcoin is targeted at non-jewelry areas of gold, BTC may still have 5 times rise potential.

BlockBeats News, on December 13th, 10xResearch posted on social media that the BTC network’s prioritization of Decentralization over increasing transaction throughput has played a key role in solidifying BTC’s identity as ‘digital gold’. This classification provides a framework for TradFi investors to understand BTC’s role in portfolio management as digital gold, a risk mitigation tool, or an inflation hedge tool. It also provides insights into the potential valuation trajectory of BTC. The total above-ground gold stock is approximately $18 trillion, with $8 trillion coming from jewelry, which BTC is unlikely to replace in this field. However, BTC can occupy $4 trillion in private investments (gold bars and coins), $3.1 trillion in Central Bank reserves, and $2.7 trillion for other uses such as industrial applications and Financial Institution holdings. This $10 trillion portion of the gold market represents the potential target for BTC. BTC’s current market valuation is $2 trillion, indicating its potential for a 5-fold rise as it continues to position itself as digital gold. There are significant differences in ownership between gold and BTC. Approximately 1 billion people own gold as jewelry, with an additional 150 million people holding it as an investment, either directly through gold bars and coins or indirectly through financial instruments such as ETFs. In contrast, BTC ownership is estimated to be higher, with up to 600 million individuals holding it as an investment. This gap is expected to widen as research and surveys show that 25% of millennials are holders of cryptocurrencies (including BTC), compared to only 4% of the baby boomer generation.