“Have you got any money in Bitcoin?” It seems like that question is the talk of the town around the office water cooler these days.

With the world’s premier cryptocurrency surging back to almost triple its all-time high of $20,000, people are starting to notice this once-obscure digital asset.

With experts speculating that BTC could hit as high as $100,000 or more by the end of 2021, more people are moving to crypto as a way to diversify their portfolio or speculate on asset prices.

How high will Bitcoin go? That’s anyone’s guess, but we can expect it to continue to climb in value as global currencies continue to lose buying power, thanks to the effect of inflation on the expanding money supply.

The United States unleashed a tsunami of stimulus in the wake of the coronavirus pandemic sweeping the world. The result? Turmoil in the bond and stock markets, and depreciation in the dollar.

According to FRED data, the United States printed more than 65% of all dollars in history in 2020. The printed boosted the FED balance sheet to over $6-trillion. That’s a staggering fact, considering it had only printed around $800 billion by 1990.

As a result of asset classes not providing returns, institutional investors are adding BTC to their portfolios at a staggering rate. Elon Musk caused shockwaves in the crypto sphere after announcing Tesla bought $1.5-billion in BTC.

More companies are following suit, and these large intuitional purchases are pushing the price to the moon.

There’s much speculation surrounding the potential of Bitcoin becoming the next world reserve currency. To achieve this status, Bitcoin would need to surpass the Dollar and the other four world reserve currencies (Euro, Pound Sterling, Yen, and Yuan).

The only scenario where BTC would emerge as the new world reserve asset; would be through hyperinflation of world reserve assets. While the US turned on the money printer with a vengeance in 2020 and again in 2021, with a $1.9-trillion stimulus package, official inflation figures are slow to respond.

However, there is a marked difference between official inflation figures and consumer inflation – anyone that been on a trip to the grocery store has noticed prices rise significantly in the last six months.

Will we reach the tipping point for global hyperinflation? Sure, anything’s possible, but no economist in the world can confirm this theory.

Lately, the market is claiming Bitcoin is the new “digital gold.” However, it’s a non-comparison and akin to comparing apples to firetrucks.

Gold might have the longest history as sound money, but it’s a dying relic in commerce. Bitcoin has more going for it than gold – it’s a modern currency for a digital age.

We’re not stating that gold won’t have a place in the new financial system, but it certainly won’t be a medium of exchange.

To fulfill its prophecy of becoming the new global standard for money, Bitcoin needs to meet certain sound money criteria.

Durability – The blockchain never goes down, unlike the FED network.

Portability – Carry your BTC in a hard wallet in your pocket, or keep it in a virtual wallet, accessible from any internet connection in the world.

Divisibility – A “Satoshi” is 0.00000001 BTC. Therefore, it’s more divisible than gold and fiat currency.

Uniformity – Each block of Bitcoin mined is the same as the next. It holds a global price set by the market, not a government or issuing authority.

Limited supply – There are 21-million Bitcoins to mine, and when the algorithm finishes, there is no more to mine. Compare that to the FEDs out-of-control money printer.

Acceptability – More people and businesses are accepting BTC every day. When Amazon starts accepting BTC for payments, we can expect more people to start investing in BTC and other crypto assets.

Bitcoin looks good to us as sound money. What do you think?

Trade accordingly.