How will institutions project Bitcoin in relation to gold?

[tinopener]

Now that the institutions are entering the Bitcoin space, with large companies such as Microstrategy adding it to their balance sheet and financial institutions such as JP Morgan speculating on price, we will start to see more credence in their price / market cap projections.

One issue with Bitcoin as digital gold though is that we also now have the Litecoin digital silver narrative too.

So if we assume Litecoin will survive how do we project its Litecoin's market cap? Does it happen in relation to the market cap of silver?

At this point things could could get silly. Just to play devil's advocate, someone could claim an altcoin is digital copper. Someone could even make something more limited than Bitcoin and claim it is digital platinum.

You get my point.

Anyhow, with this in mind, I think institutions could eventually start to come up with very loose equations for bitcoin market cap such as this.

bitcoin = (gold - gold instrinsic value) - litecoin
(note: silver is not in play here)

Please bear in mind this is just a pseudo calculation off the top of my head to stimulate discussion and assumes litecoin will survive and thrive.

How do you think the institutions will eventually price Bitcoin?

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[mk4]

I really want to take the optimistic stance and think that institutions now how extraordinarily bad litecoin's "silver to bitcoin's gold" narrative is. We like dunking on institutions a lot, but I think they're really not THAT stupid(at least most aren't).

With that said, since most cryptocurrencies(including litecoin of course) move up and down following bitcoin, then yes an increase in it's marketcap is also to be expected. I think they're just going to ignore litecoin though, because it's literally pointless investing into some sort of Bitcoin testnet.

[aoluain]

JP Morgan to date have not bought into Bitcoin, while they are very positive towards it the have
created their own coin JPMcoin.
Its their relation Morgan Stanley who have shown more interest and invested indirectly by investing in Microstrategy.

The threat of another project with limited coins threatening Bitcoin has come and gone.
There are over 1000 failed projects.
Bitcoin has a proven 11 year record, it is where we are predominantly inputing our energy.

As regards marketcap and JP Morgan, they stated when the price was at $31,000 that the
market cap would have to grow by 4.6 times to match that of Gold so yes the institutions are
making predictions on marketcap but they are estimations.

[so98nn]

I really want to take the optimistic stance and think that institutions now how extraordinarily bad litecoin's "silver to bitcoin's gold" narrative is. We like dunking on institutions a lot, but I think they're really not THAT stupid(at least most aren't).

With that said, since most cryptocurrencies(including litecoin of course) move up and down following bitcoin, then yes an increase in it's marketcap is also to be expected. I think they're just going to ignore litecoin though, because it's literally pointless investing into some sort of Bitcoin testnet.

Hmm, litecoin is not the thing of future really. It’s just there because of its characteristics that is lightening network   Which people are preferring over other coins and specifically bitcoin. 
Large institutions won’t fall for the altcoins because they have weaker market cap and chances of increasing it solely depends on investors which they don’t have.

With multifold increase in bitcoin price as well as market cap no one is going to divert into alts. Bitcoin test net is old thing or what can I say, things have been changed after bitcoins current leap.

[fiulpro]

I do think if we are really going to talk about something like this then bitcoins might be diamond, ETH might be gold , plus Litecoin I don't know if it would be as valued as sliver though.

The value of Litecoin did rise to a considerable amount in the past but right now I do think there are many other coins and tokens with a higher level of considerable value as compared to Litecoin for sure.

Plus I don't think this statement would be same for everyone and every institution since you should understand the fact that it's more of a personal thing.

I think equations won't be credible for sure. They cannot peg one currency against another for sure. Their ups and downs are too uneven to even fit into one equation.

[tbct_mt2]

You need to compare similar assets: one cryptocurrency with other cryptocurrencies. One precious metal with other precious metals.

Compare Bitcoin with gold, silver is not correct and not fair. Bitcoin is better than other crpytocurrencies. Gold is better than other precious metals and it used to be a standard for global currency decades ago.

If you want to compare bitcoin (digital gold) to litecoin (digital silver), you can but it is worth to note for you: Bitcoin is decentralized  and satoshi is unknow person but Litecoin is not decentralized and Charlie Lee is well-known.

[mk4]

Hmm, litecoin is not the thing of future really. It’s just there because of its characteristics that is lightening network   Which people are preferring over other coins and specifically bitcoin. 

You meant faster block times and bigger block sizes, right? Because both Bitcoin and Litecoin networks are compatible with the lightning network.

Large institutions won’t fall for the altcoins because they have weaker market cap and chances of increasing it solely depends on investors which they don’t have.

Not really. If anything, they'd sometimes actually prefer an asset to have a lower marketcap because it means that they get to jump in far earlier. It's mostly because Bitcoin is the most secure and decentralized network and it has the most adoption, dwarfing other cryptocurrencies in terms of everything besides transaction speed.

[suzanne5223]

Litecoin have lose it digital silver name to ETH long time ago and it barely benefit from the current institutions accumulation despite it been also listed on Paypal. Lets this be more clear that the institutions which once said negative things about cryptocurrency (especially Bitcoin) which now saying positive things and also invest in it must have later study to understand it concept before putting Billions of dollars in it which the reason why they invested mostly in Bitcoin.
Having said that, the institution projected Bitcoin to be digital gold.

[The Cryptovator]

I don't think institutions considering Bitcoin as a bar of digital gold or Litecoin is digital silver. I believe they are entering on Bitcoin because they realized the goal of Bitcoin and on the other hand they want to secure & multiply their investments. I never compared Bitcoin with digital gold. Because gold is a metal and would be used in real life, it wouldn't be digital anyhow. Also, we can't see always the same trend as Bitcoin and gold. When Bitcoin was above $40K then Gold was stable almost. So how Bitcoin would be digital Gold?

[tinopener]

I don't think institutions considering Bitcoin as a bar of digital gold or Litecoin is digital silver. I believe they are entering on Bitcoin because they realized the goal of Bitcoin and on the other hand they want to secure & multiply their investments. I never compared Bitcoin with digital gold. Because gold is a metal and would be used in real life, it wouldn't be digital anyhow. Also, we can't see always the same trend as Bitcoin and gold. When Bitcoin was above $40K then Gold was stable almost. So how Bitcoin would be digital Gold?

The bitcoin / gold thing is more of an analogy than a literal pegging to gold.

The trouble is that these analogies can affect the market which is heavily influenced by the media.

[figmentofmyass]

Now that the institutions are entering the Bitcoin space, with large companies such as Microstrategy adding it to their balance sheet and financial institutions such as JP Morgan speculating on price, we will start to see more credence in their price / market cap projections.

One issue with Bitcoin as digital gold though is that we also now have the Litecoin digital silver narrative too.

So if we assume Litecoin will survive how do we project its Litecoin's market cap? Does it happen in relation to the market cap of silver?

why the focus on market cap? totally unpredictable, just like predicting where BTC will finally top out. market share of all crypto investment seems more interesting to ponder.

precious metals investors are generally skewed heavily towards gold, but just like stock investors, they love to "diversify". this is a typical investment mindset. i predict this dynamic will translate into a similar orientation towards bitcoin and altcoins: investors will show a heavy preference for bitcoin---it will continue to dominate the market---but altcoins will persistently stick around.

"silvers" and "coppers" will certainly emerge. i dunno if litecoin is gonna cut it long term though. for all we know, the future #2 coin hasn't even been launched yet.