First, according to my calculations, the intrinsic value of Bitcoin in the next 7 years is 200 000 USD.
Yes, value investing, Benjamin Graham and Warren Buffett would beg to differ with the aforementioned assumption, but history has witnessed many economic and financial technology, fintech miracles.
Bitcoin and cryptocurrencies are the epitome of financial technology or fintech for short.
Holders of the key to investments are still the Wall Street banks, especially the big 5 Wall Street giants Goldman Sachs, Morgan Stanley, JPMorgan Chase, Citigroup and Bank of America, which are leaders in terms of investment banking revenue with its verticals trading, mergers and acquisitions advisory, fixed income and equity underwriting.
In 2015 many young, fledgling technology companies partially circumvented venture capital funds mainly and less investment banks due to their infancy by raising funds via issuing cryptocurrencies.
Bitcoin in the future can easily take market share from the trading business of Wall Street investment banks. And the issuing of new cryptocurrencies already showed it can partially replace equity underwriting.
Wall Street is still highbrow about cryptocurrencies. But as Loyd Blankefein said in an interview I watched: "People also thought cell phones would not take off, because who would want to carry the cumbersome device around". Blankfein was asked about Bitcoin and cryptocurrencies, of course.
As in the book the "Innovator's Dilemma" Clayton Christensen shows many established companies were reduced to also rans when they underestimated young, niche, emerging technologies. Like the fintech cryptocurrencies. Blackberry is a case in point, Kodak also.
But the big Wall Street investment banks are showing agility because many of them are trading and clearing Bitcoin futures, which the Securities and Exchange Commission considers commodities, actually. By failing to embrace innovation, one is destined to fall behind. By embracing innovation, a firm or individual can possibly fulfil their dreams. Whether the Bitcoin and cryptocurrencies's dream will live up to its potential, it remains to be seen.
I personally think fintech and Bitcoin in particular will change our world. Crypto will enhance humanity's value creating possibilities and create many new employment opportunities.
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