Massive Expansion of Cryptocurrencies Imminent, Suggest Macroeconomic Analysts, According to Recent Reports
In a riveting thread posted on 9 June, Global Macro Investor's head researcher, Julien Bittel, coined the term "The Everything Code"—a fascinating demographic-debt-liquidity feedback loop. This thrilling prediction promises to soar the digital-asset complex from its current $3.5 trillion capitalization to a mind-boggling $100 trillion within the next ten years.
Bittel's argument is grounded in the grim reality of the labor market, where he unequivocally states that declining workforces coupled with unrelenting entitlement promises create a toxic brew, necessitating continuous stimulus to keep the system afloat. He eloquently points out, "Fewer workers, more tech, same debts."
Moving onto fiscal matters, Bittel asserts that with public and private liabilities already teetering on the brink of 120% of global GDP, the only solution lies in piling on more debt. He forewarns that if growth stutters, debt-to-GDP will continue to rise, an unsettling trend policymakers will likely counteract through monetary debasement instead of austerity.
As debasement signifies a hidden 8% annual loss of purchasing power, it serves as an alarm bell for savers, forcing them to hunt for double-digit nominal returns just to tread water.
Transitioning into liquidity, a variable Bittel and GMI founder Raoul Pal have elevated to foundational status, the thread reveals that when combined with central-bank balance-sheet expansion and commercial-bank credit creation across major economies, the resulting "Total Liquidity" gauge offers a compelling explanation for about 90% of Bitcoin's moves and 95% of the Nasdaq-100's.
When it comes to Bitcoin, Bittel argues that it has been compounding purchasing power faster than any asset in human history, boasting an astounding 150% annualized growth since 2010. In comparison, even the Nasdaq's stupendous 13% real return falls short by 99.94% compared to Bitcoin since 2012.
Bitcoin emerges as the sole macro-scale antidote to the policy cocktail of demographic drag, rising leverage, and forced liquidity. Embracing a transformative perspective, Bittel sums up that we're in the early stages of a frenzied institutional and individual scramble to amass Bitcoin, convinced that this will drive the crypto universe from a $3 trillion asset class to an astounding $100 trillion over the next seven to ten years.
Doing the math, this transition calls for a compound annual growth rate of around 61% over ten years, or a more aggressive 40% if the window narrows to seven years—ambitious, yet not unprecedented in earlier crypto cycles.
Crypto visionaries and analysts echo Bittel's optimistic vision, though their estimates vary. Raoul Pal, himself, places Bitcoin in the "banana zone" — a reflexive phase where expanding liquidity and herd behavior collaborate to fuel killer gains, with a cycle target estimated at approximately $450,000 per coin. This estimate would put the Bitcoin capitalization above $40 trillion even without altcoins—glistening like a pearl in the vivid landscape Bittel paints for the coming scrum to seize scarce assets.
At the time of publishing, the total crypto market cap stood admirably at $3.37 trillion. Even as we brace for the wild ride ahead, it's impossible not to be tantalized by the prospect of this grand macro trade—a titanic battle for Bitcoin that could go down in history as the trade of the century. Let's strap in and see where this remarkable journey takes us.
- Bittel's vision includes a significant rise in the value of altcoins, as he predicts a shift from a $3 trillion crypto universe to an astounding $100 trillion, suggesting that altcoins could contribute a substantial portion to this growth.
- Crypto visionaries and analysts, like Raoul Pal, support Bittel's optimistic vision, and they predict that Bitcoin's value could reach approximately $450,000 per coin, surpassing $40 trillion even without considering the value of altcoins, implying a potential high appreciation for altcoins within this grand macro trade.
