CZ Predicts Bitcoin Could Surpass Gold in Value During Next Market Cycle

Changpeng Zhao, commonly known as CZ, the founder of Binance, has expressed his belief that Bitcoin (BTC) could soon surpass gold in total market value. Speaking at a recent Bitcoin Asia event, he noted that the current gap between Bitcoin and gold is approximately tenfold, a difference he believes could close in the upcoming market cycle if Bitcoin continues to be recognized as a reserve asset by nations.

During the fireside chat, CZ emphasized that gold's dominance is not solely due to its material properties but rather the established systems of custody, valuation, and reserves that countries have built around it. He acknowledged that transitioning a major economy's reserves to Bitcoin would take time, but he remains optimistic about this shift occurring eventually. However, he cautioned that a competing digital asset could potentially disrupt Bitcoin's lead, though he considers this scenario unlikely at present.

This discussion comes as U.S. lawmakers are currently deliberating on the concept of a Strategic Bitcoin Reserve, which would involve holding Bitcoin as a reserve asset. Meanwhile, central banks worldwide are increasing their gold reserves at an unprecedented rate.

Currently, Bitcoin's market capitalization is around $1.6 trillion, while the estimated total value of gold is approximately $14 trillion, according to the World Gold Council. To match gold's market cap, Bitcoin would need to reach a price of around $697,000 per coin, based on a circulating supply of about 20.08 million BTC. However, if considering gold's total above-ground stock, which includes jewelry and industrial uses, the target price for Bitcoin could rise to $1.54 million, as gold's stockpile continues to grow annually.

Ultimately, the future of Bitcoin's valuation relative to gold hinges on whether sovereign wallets will continue to favor Bitcoin over gold and the potential emergence of rival digital assets.