So because of the recent downward volatility I have been reading a lot of threads and posts about how bitcoin is a bubble and could crash to zero. I have a different theory: bitcoin will one day become a reserve currency!
Right now countries typically hold US Dollars, Gold and Oil in reserves. The amount of these reserves is critical for smaller countries. Bitcoin is not on that list...yet.
According to the World Gold Council, the total value of all gold ever mined is about $7.8 trillion. The oil market is worth $1.7 billion/per year. There are also 1.56 Trillion USD in circulation. At the moment, bitcoin is worth around $145.9 billion.
If bitcoin were to become part of the reserve mix for even small countries, its value would skyrocket. I can easily see it having a market cap in the trillions.
Sure we could very well see BTC being a reserve currency in 10 years or something but do you expect those entire 10 years to be just up without crashes and bear markets?
In my opinion, when the bitcoin becomes the reserve currency, it is not yet certain, because there is still a new currency or another backup, and can also still not acceptable bitcoin in all countries