In a tweet published Jan 8, 2019, he hinted that cryptocurrencies such as Bitcoin (BTC) would become increasingly relevant among financial institutions and take up a significant chunk of their portfolios — similar to established assets such as precious metals.

Essentially no capital allocated to #Bitcoin or crypto-currencies.

Empty infinitely expandable wealth storage vessel to absorb capital flows. As sterile asset, $BTC price increase is wealth transfer from other assets. A black hole on the world’s balance sheet. Will be legendary. pic.twitter.com/1ISjBrFLgS

— Trace Mayer (@TraceMayer) January 8, 2019

Bitcoin: An Investment ‘Black Hole’

While CoinMarketCap estimates the market capitalization of the entire cryptocurrency sector to be around $136 billion as of the time of publication, there is no doubt that institutions are only contributing a small percentage to that figure. According to the infographic tweeted by Mayer, this figure amounts to no more than $5-7 billion.

In 2017, when the cryptocurrency market was near its all-time high valuation, the industry’s total market cap was nearing the $1 trillion mark for the first time. In October of that year, Mayer predicted that the price of Bitcoin would shoot up to around $27,000 within six months. However, the sudden downturn in 2018 never allowed it to reach the trillion dollar milestone or his prediction.

Nevertheless, the cryptocurrency industry has seen explosive growth and has certainly started to attract institutional attention.

Gold, regarded to be one of the best and most stable investment options, is currently worth over $8 trillion. The global stock market is worth an estimated $67 trillion. Mayer, on the other hand, ambitiously believes that Bitcoin and digital currencies could overtake all assets to become the world currency.

Who is Trace Mayer?

Mayer claims to be the first popular blogger that publicly recommended Bitcoin to the masses, back in 2010.

He also popularized the annual Proof of Keys movement, which saw its last celebration on Jan 3, 2019 — ten years after Bitcoin’s Genesis Block was mined. The movement encourages cryptocurrency users to move their holdings off exchanges into their personal wallets to ensure greater security and accountability on the part of centralized exchanges.

Today, Mayer hosts the Bitcoin Knowledge podcast, which features interviews with noteworthy personalities in the crypto and blockchain industries.

Do you agree with Mayer’s belief that Bitcoin will become more and more relevant in the institutional space? Let us know your thoughts in the comments below! 

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