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.
I can not say anything to the USD, but oil and gold will lose their value over time.
If we talk about oil, the current technology is in development and people are starting to use alternative energy. Even cars now work with electricity.
Gold is so expensive that it is limited in the world and it is just a type of metal. I mean, there's a lot of metal that can take it place.
The trend of Bitcoin will not continue lifelong, generally Bitcoin doesn't worth a billion dollars, but it is the present-day trend, and it is not worthy of the current price.