Bitcoin has lost more than a third of its value since last Monday, continuing the bear market. In the midst of this downward trend, when the Bitcoin price reached a new low for the year of less than USD 4,400, Bobby Lee, co-founder of BTCC and brother of Litecoin’s Charlie Lee, took the floor via Twitter and compared the digital gold – Bitcoin – to demphysical gold.
Adam Black, CEO of Blockstream took up this statement and explained that the Bitcoin/ Gold flippening is the “true” flippening. Bobby Lee explained that all BTCs in circulation (market capitalization: 80 million) are now one hundredth of the value of gold, allegedly 8 trillion dollars. Considering this relatively small valuation and his considerations that Bitcoin’s unique nature as a scarce, limitless, insensitive and transparent repository, Lee hinted that BTC could displace gold over time.
Lee asked his followers the following question: How will the ratio (gold/BTC) be in 10-20 years and could BTC be worth more? In a tweet responding to Lee’s astute insights and comments, Adam Back, CEO of Blockstream, described the BTCC co-founder’s long-term optimistic mood.
Back, known as “Cypherpunk” and the creator of HashCash, wrote:
This is the real Flippening. Personally, I consider $250k-$500k/BTC plausible in the coming years, from digital gold, censor-resistant competitors to physical gold and internet-native digital money.
The Blockstream CEO, as described above, noted that “in the coming years” BTC could exceed Tim Draper’s 2022 forecast of $250,000 to eventually reach $500,000, only if Bitcoin takes a step towards gold market dominance.
That’s the real flippening @bobbyclee! personally I consider $250k-$500k/BTC plausible in the years ahead, from the digital gold, censor-resistant competitor to physical gold, and internet native digital money. https://t.co/hSq2aHvg8z
– Adam Back (@adam3us) November 20, 2018
While Lee rejected Back’s call in an obvious sign of support, as was later determined by the BTCC co-founder, Bitcoin’s long-term step up is not going to be easy. Lee explained that the current bear market could by no means be over. Following previous analysis conducted by BitMEX Research’s team and CEO Arthur Hayes, Bitcoin Foundation board member Arthur Hayes said the bears could retain control of this market until Bitcoin’s next block of halving is activated. Lee stated:
This is a long time for everyone except true believers. Enough time to scare away all weak long positions.