Bitcoin just crossed the $10,000 mark again for the fourth time in its 11.5-year life.

And it’s no coincidence.

Bitcoin’s third halving in May has doubled its scarcity again. And trillions of dollars’ worth of fiat currency are being printing around the globe to combat COVID-19.

The combination of these two things is creating a positive tailwind for the world’s first and only truly decentralized cryptocurrency – Bitcoin.

That’s because, like gold, Bitcoin is limited in supply. So, the value of each Bitcoin increases when more fiat money is printed by central banks and the value of those currencies (like the dollar, euro, yen, etc.) subsequently decreases.

It’s all relative…

If you have no idea what I’m talking about, you absolutely have to read this.

Here’s How Bitcoin Could Reach $55,000 By Next Year…

Bitcoin – the world's first and only decentralized cryptocurrency – has a market cap of $207 billion.

That means the market values Bitcoin nearly as much as it values Bank of America Corp. (NYSE: BAC) – which is worth $215 billion at the time of writing (Aug. 3, 2020).

Bank of America has a CEO, 204,500 employees, 66 million customers in 35 countries, and public financial statements that show it profited $27.4 billion in fiscal 2019.

Bitcoin has none of these things.

You can't value it using traditional financial metrics like the P/E ratio or the D/E ratio.

That's because Bitcoin is not an income-producing business with earnings or debt. There are no future cash flows to estimate and discount back to the present to calculate its intrinsic value.

But that clearly does not make Bitcoin worthless…

You just need a different method to value the cryptocurrency.

Today, I’m going to show you how to value Bitcoin using a different model – one which allows us to compare its value to other scarce assets like silver ($502 billion market cap) and gold ($9 trillion market cap).

You see, Bitcoin should be compared to these precious metals, since they also aren't income-producing businesses. Yet, they hold significant value in this world because they're also limited in supply, unforgeable, and useful in a number of ways.

To date, this model has correctly explained 95% of the price of Bitcoin within two standard deviations of its projected mean.

And it predicts Bitcoin's market cap will surpass $1 trillion (or $55,000 per bitcoin) by 2021.

That’s a 5x increase from its current price of $11,000 per coin.