Bill Barhydt, Abra’s CEO and a former employee of Goldman Sachs, recently said that if only 5% of the liquid assets owned by the top nine firms in the S&P 500 go into Bitcoin, BTC will fluctuate:
“In the S&P 500, 9 companies alone have close to $ 600 billion in cash and short-term investments. Moving 5% of that to Bitcoin ($ 30 billion) would likely increase the price of Bitcoin by 5 times, given the shortage of vendors. ”
This calculation requires looking at fiat amplifiers. Amplifier is a concept that explains that for every fiat dollar invested in Bitcoin or cryptocurrencies in general, the market value of the field will grow by more than $ 1.
Predictions show that the fiat amplifier is anywhere from two to 25 times the market cycle, depending on what stage the cryptocurrencies are in.
The fiat amplifier is growing as investors do not want to sell their coins too early during the times when investors are waiting for a rise.
Increasing BTC Adoption
Barhydt’s corporate adoption case analysis comes in as he tries to increase adoption for Bitcoin.
CEO pointed to inflationary trends:
“Given the acceleration in currency inflation and the possible subsequent price inflation, it seems that a better Fluctuation could come than the current situation.”
He said that returns in old markets such as stocks would likely “decline in the next five years.” This trend can have the effect of pushing capital into alternative assets that can generate healthy returns such as gold and Bitcoin.
The CEO’s comments are reminiscent of comments by some other investors who have significantly increased their Bitcoin investments. For example, Real Vision’s CEO Raoul Pal owns more than 50% of his liquid net worth.