The Future of Digital Assets: A Path to $100 Trillion
Understanding the “Everything Code”: A New Financial Era
In a comprehensive analysis shared on June 9, Julien Bittel, head of research at Global Macro Investor, outlined a theory he refers to as “The Everything Code.” This concept revolves around a demographic-debt-liquidity feedback loop that Bittel predicts will propel the digital asset market from its current $3.5 trillion valuation to an astounding $100 trillion mark within the next decade.
The Labor Market Challenge
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Against the backdrop of a rapidly evolving crypto market, which has notably doubled since 2024, Bittel presents a stark analysis of the labor market in developed nations. He highlights a concerning trend: the ongoing decline in labor force participation. “This structural issue,” he explains, “is compounded by the rapid replacement of human roles with AI and robotics, leading to deflationary pressures.” As workforces shrink, societal expectations for entitlements remain, creating a scenario that demands consistent economic stimulus. Bittel summarizes this as “Fewer workers, more technology, same debts.”
Debt Dynamics and Economic Survival
Bittel further delves into fiscal realities, noting that both public and private debt levels are nearing 120% of global GDP. “The only viable path forward,” he asserts, “is embracing more debt to sustain the system.” Without economic growth, Debt-to-GDP ratios are expected to escalate, a situation policymakers might address through monetary debasement rather than austerity measures.
The Hidden Cost of Debasement
Monetary debasement entails an often-overlooked annual loss of purchasing power, estimated at 8%, which compounds existing inflation. Bittel warns that “cash has quietly become among the riskiest assets,” pushing savers to seek higher returns merely to preserve their wealth.
The Emergence of a $100 Trillion Crypto Supercycle
Bittel’s analysis then transitions to liquidity, a crucial factor he and GMI founder Raoul Pal prioritize. By examining central and commercial bank credit expansions, they introduce a “Total Liquidity” measure that explains significant movements in Bitcoin and the Nasdaq-100. Bittel emphasizes that maintaining liquidity levels is essential to avoid credit contractions. In his models, this liquidity acts as a catalyst that elevates valuable, risk-sensitive assets.
Bitcoin: The Scarcity Solution
Bitcoin emerges as a central figure in this narrative. “Bitcoin has compounded purchasing power more swiftly than any asset in history,” Bittel notes, highlighting its impressive annualized returns that significantly outpace debasement rates. Since 2010, Bitcoin’s growth has eclipsed even the Nasdaq’s notable 13% real return, establishing it as the primary countermeasure against demographic challenges, rising leverage, and enforced liquidity.
The Race to Accumulate Bitcoin
Bittel envisions a future where a global race ensues among institutions, governments, and individuals to amass Bitcoin. This escalating demand, he predicts, will elevate the crypto market “from its current $3 trillion valuation to $100 trillion over the next seven to ten years.”
The Path Forward: Opportunities and Challenges
While acknowledging the arduous journey ahead, Bittel remains optimistic, describing Bitcoin as part of the solution. He and Pal regard the pursuit of scarce assets as “the greatest wealth-creation opportunity of our lifetimes.” Bittel concludes by asserting that if GMI’s predictions hold true, this era will be celebrated as “the greatest macro trade of all time.”
Bitcoin in the “Banana Zone”: A Potential Financial Phenomenon
Raoul Pal shares similar insights, describing crypto as “a supermassive black hole” that outshines other assets. He situates Bitcoin within the “banana zone,” a phase characterized by expanding liquidity and herd behavior, potentially driving prices to unprecedented heights, with projections reaching $450,000 per Bitcoin. Even without considering altcoins, Pal’s estimates place Bitcoin’s market capitalization well above $40 trillion, complementing Bittel’s optimistic outlook.
As of the latest data, the total cryptocurrency market capitalization stands at $3.37 trillion, reflecting the dynamic and rapidly evolving nature of the digital assets landscape.
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