Many people like to compare cryptocurrencies to gold, especially Bitcoin. It is often heard that if Bitcoin can just attract a small portion of those who store value in gold, the price of Bitcoin could be in the tens of thousands or even hundreds of thousands. But closer examination along with some new data from JP Morgan may suggest that those predictions are too far on the conservative side. That’s right, cyrpto could feasibly surpass gold and it’s due a very unique property of crypto currencies and how it relates to the net flow of cash in and total market cap.

Currently, the total crypto market cap sits at about $330 billion. According to JP Morgan’s Nikolaos Panigirtzoglou, he has concluded that the net inflow into crypto has been $6 billion since 2009 but it has resulted in an amazing $330 billion dollar market cap. The belief for this unprecedented ratio is due to the fact that there is no increasing supply with a surge in price in cryptocurrencies. It’s a unique property of the way crypto supply is handled by mathematics and diminish over time.







The staggering conclusion if this research turns out to be true is that if only $6 billion in inflow can result in a $330 billion market cap, then a tiny percentage of gold inflow into crypto could result in crypto market caps exceeding that of gold itself quite easily since going up 5x would not need an incredible amount of inflow at all.

Overall, a very bullish signal for cryptos in general and especially the leaders such as Bitcoin.