Eric Jackson from EMJ Capital anticipates Bitcoin’s evolution from digital gold to a neutral global collateral, suggesting a bold valuation of $50M per coin by 2041.
Summary
- Eric Jackson at EMJ Capital forecasts Bitcoin could achieve a value of $50M per coin by 2041.
- He proposes that Bitcoin is transitioning from “digital gold” to a neutral global collateral suitable for sovereign debt.
- Jackson asserts that to replace the Eurodollar-based collateral system, Bitcoin’s value must increase dramatically.
According to a recent interview, EMJ Capital CEO Eric Jackson believes that Bitcoin could reach $50 million per coin by 2041, positioning this forecast as one of the most ambitious long-term price predictions in the cryptocurrency realm.
Jackson’s projection is based on the idea that Bitcoin (BTC) will evolve from being viewed as “digital gold” to becoming the central collateral layer that underpins the global financial system, as he expressed during the interview.
The CEO drew parallels to his investment strategy with equities, mentioning his firm’s investment in Carvana following a sharp decline in its share price in 2022. Despite negative market sentiments at that time, he noted that the business model remained robust, with customers sharing positive experiences with the platform.
Bitcoin could reach new heights
Jackson applied a similar analytical approach to Bitcoin, arguing that short-term price fluctuations and polarized market opinions often cloud the cryptocurrency’s inherent potential. He observed that market participants include both critics who label Bitcoin a Ponzi scheme and advocates who predict valuations that disregard fundamental analysis.
The investment executive began his valuation framework by comparing Bitcoin to gold as a store of value. He questioned whether Bitcoin could ever reach gold’s market capitalization, suggesting that its digital and programmable features might resonate more with younger generations than traditional precious metals. However, he conceded that Bitcoin has yet to see widespread adoption as a medium for everyday transactions, recalling a landmark transaction in which the cryptocurrency was used to buy pizza in 2011.
Jackson’s thesis expands beyond the store-of-value narrative to what he termed a “global collateral layer” that facilitates borrowing for sovereign nations and central banks. He traced this foundational layer’s historical progress from gold to the Eurodollar system that emerged in the 1960s, which remains closely linked to today’s sovereign debt markets.
In what Jackson describes as “Vision 2041,” Bitcoin would supplant the Eurodollar system, acting as a neutral asset foundational to other balance sheets. He argues that Bitcoin provides unique advantages as collateral, owing to its digital nature and detachment from central bank policies and political pressures. He clarified that this evolution does not seek to challenge the U.S. dollar or Treasury securities but aims to establish a new basic layer for the international financial architecture.
Jackson forecasts that in the next 15 years, sovereign nations currently engaged in issuing and refinancing debt could turn to BTC as collateral. He contends that due to the magnitude of global sovereign debt markets, if Bitcoin becomes the prevalent collateral substrate, its price per coin would need to significantly increase from current levels to accommodate this role, culminating in his 2041 price target.
This projection represents a marked shift from current Bitcoin valuations, which have ranged from approximately $15,000 to $69,000 over recent years, based on market data.
