The case for $1 million per Bitcoin isn't as crazy as it sounds...
$1 million BTC is actually more achievable than it sounds...
We have heard all kinds of price forecasts for bitcoin over the years, including many pie in the sky numbers.
None more memorable than that McAfee $1 million BTC by the end of 2021 prediction or he eats his you know what...
Since that time he has pulled back on that prediction saying it was a publicity ruse... um ok John, you got us.
Either way, that $1 million dollar number may not actually be as crazy as it initially sounded.
Especially if you give it some time to play out.
Ok, so how does it happen?
Xapo CEO Wences Casares recently said all that it will take is for more people to start using it.
It's that simple...
Ok, so how many more people?
His quote:
"My preferred way of guessing how the price of Bitcoin may evolve is much more prosaic. I have noticed over time that the price of Bitcoin fluctuates around ~ $7,000 x how many people own bitcoins. So if that constant maintains and if 3 billion people ever own Bitcoin it would be worth ~ $21 trillion (~ $7,000 x 3 billion) or $1 million per Bitcoin."
(Source: https://cointelegraph.com/news/veteran-investor-says-bitcoin-price-surge-to-467-000-is-achievable)
Ok, so we need roughly 3 billion people to start using and owning bitcoin...
That is roughly half of the world's entire population, which means this would be no small feat.
Though, we have continued to see wallet address holding at least some bitcoin continue to grow and grow since inception.
Which means, given a long enough time line, getting to 3 billion isn't out of the realm of possibilities.
Bitcoin just needs to overtake gold and become an ecosystem...
Raoul Pal, the CEO and founder of Real Vision, says that bitcoin just needs to overtake gold and become a widely used ecosystem and could reach that number...
Specifically:
"If it becomes an ecosystem, and we believe it will be and it will take the whole ecosystem with it as well, then yes, I think a $10 trillion number is easily achievable within that process."
(Source: https://cointelegraph.com/news/veteran-investor-says-bitcoin-price-surge-to-467-000-is-achievable)
Meaning that people will need to use it widely to transfer wealth and store value in a similar fashion that gold is currently.
Gold is valued at roughly $8 trillion currently, which is more than 45x the total market valuation of bitcoin currently.
If bitcoin eventually just takes the current market valuation of gold, we are looking at bitcoin around half a million dollars.
Then the strong ecosystem gets it the other half a million valuation.
Several very wealthy people are predicting that bitcoin will eventually be a strong ecosystem that is used to transfer and store wealth in a similar fashion to gold that will eventually make it worth close to $1 million per coin.
Perhaps holding some "just in case their right BTC" makes a lot of sense...
Stay informed my friends.
Image Source:
https://busy.org/@joshsigurdson/will-bitcoin-hit-1-million-dollars-the-answer-might-surprise-you
-Doc
This seems yet another case when theory doesn't meet reality... If Bitcoin would ever be worth 1 million, just transferring the minimum usable amount would cost so much that most of the people would vomit hairballs like our pet cats...
Digital gold. How often is gold transferred or used for purchases? I think if bitcoin ever reaches $1 million it will be because bitcoin is used as a settlement layer for central banks and counties. You are right that the current iteration of bitcoin can never be used at scale for every day purchases.
Gold is used a lot when it comes to jewelry... You can pay jewelry using gold, or silver, because it can be reused as material.
Yes, but I read something a while back talking about a very small percentage of gold "consumed" is for industrial uses. Which means most of its value comes from people wanting it as a store of value, investment, jewelry. If it's price were to go down I imagine the demand for it in jewelry would actually be less as well, ironically. It's somewhat a status thing.
Nowadays lead crystal is more valuable than silver or gold... Few years ago I bought my gf lead crystal earrings and necklace. It's like cheaper version for diamond, but not too cheap...
what's the point in having 1 million Bitcoin if it cost so much to send it. Honestly people should pay more attention to other projects instead of jumping on the bitcoin hype train. Bitcoin will always be here to protect your value. Honestly since i been in crypto space. I see more value in steem than bitcoin. But thats just my take on it
Digital gold. How often is gold transferred or used for purchases? I think if bitcoin ever reaches $1 million it will be because bitcoin is used as a settlement layer for central banks and counties. You are right that the current iteration of bitcoin can never be used at scale for every day purchases.