My Best Attempt To Simplify The Math Of A $50 Million Dollar Bitcoin [1₿=$50 Million]
₿ Only 21 million Bitcoin will ever exist, unlike the dollar that is infinitely printed. This is why the dollar and fiat currencies like it lose value over time. A Bitcoin is infinitely divisible through second-layer network solutions like the lightning network, so no matter how expensive 1 ₿itcoin gets, infinite fractions of it can be purchased and used.
You don’t have to buy 1 whole ₿itcoin. Its value is the money and things of value that are traded behind it, ÷ the number of ₿itcoin that exist in circulation. There are 56.1 million millionaires in the world today with a combined $158.3 trillion dollars in assets. So by the time most of them try to grab a full ₿itcoin when it becomes a must-have asset, then there won’t be enough for all of them to get even half of a ₿itcoin. That easily places 1 coin past $1 to $2 million dollars in value when a majority of them try to grab a whole coin.
Then there is $1.2 quadrillion in all the global Global Liquid Assets in the world through stocks, bonds, and derivatives, etc, or what others call the institutional financial markets. Which, in 20 to 30 years will likely be double to quadruple the dollar value it has now, with the exponentially increasing rate of inflation that the dollar and fiat currencies like it have.
The first US institutional financial markets have already opened up to and are buy ₿itcoin today too, as many of you here already know. Once bitcoin is allowed to be traded for stocks, which is only a matter of time now with the institutional financial markets already being open to ₿itcoin’s markets today, that makes the $1.2 quadrillion in the global liquid asset markets open to being traded behind ₿itcoin’s network of 21 million limited finite supply of whole coins. When that starts to happen, then $1.2 quadrillion divided by 21 million ₿itcoin, puts 1 ₿itcoin at over $50 million dollars per coin; or $57 million dollars a ₿itcoin to be exact. This will likely happen in our lifetimes with everything that is happening now. Especially when considering the fact that the 1.2 quadrillion it is worth today will likely double or quadruple in value in just a few short decades thanks to fiat currencies like the dollar’s exponentially increasing rates of inflation. This means that every $1 dollar invested in ₿itcoin at even a $50k ₿itcoin price, will by then appreciate to have the value of over $1k worth of ₿itcoin in potentially 20 to 30 years at this rate. ₿🤖
Don’t believe the above will ever happen? Well, the same company that handles Crypto for Paypal; “Paxos Trust Company, LLC”, was granted a feasibility study to settle security trades like stocks and derivatives on the blockchain in 2019. There is only a small step from there to trading securities directly for ₿itcoin.
There’s more to it like the halvings; about every 4 years the distribution of ₿itcoin going out gets cut in half. In the first 4 years, 10.5 million ₿itcoin went out and the demand and use were small, so the price was cheap. From less than a penny cheap in 2009 to over $1000 in 2013 after it first halved. After that, from 2013 through 2016 only 5.25 million ₿itcoin were being mined/made. Then it halved again in 2016 for a second time and the price ran up to $20k a ₿itcoin because the supply got cut in half to only 2.125 million ₿itcoin being created/mined, while demand and use case were skyrocketing. Now? Well, now we have 1.05125 million new #bitcoins getting created until 2024, with an exponentially growing $1.2 quadrillion in value of institutional markets opening up to it.
The potential for the next halving with the halved new coin supply, plus increased institutional level demand and use cases is anywhere from $1 million to $10 million. Hell, just the demand and supply curve we’re seeing now projects Bitcoin to be $100k to $500k, and potentially higher in the short term by late 2021 or early 2022. Then potentially a 50% drop as usual, well not as usual since usually we’ve dropped 80%+ in the past. But, now that we have the institutional interest, then our best example is a coin like Chainlink where IBM and Microsoft are backing it, which has kept it at a 50% correction pattern at best. But in short, at the current prices, you’re in a good position to be fine after the next correction/drop that’ll come after the supply shock pressure from last year’s halving skyrockets the price.
And if you don’t think this kind of absorption by Bitcoin’s network from the institutional markets is possible in our lifetime, then consider that even if just 10% of that($120 trillion) goes behind ₿itcoin in your lifetime with the institutional markets already entering into it as they are now, then that still puts 1 ₿itcoin at $5.7 million dollars per coin. Which still grows every single 1 dollar into ₿itcoin at a $50 thousand dollar price per ₿itcoin into $100 dollars worth of ₿itcoin by then.
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Want to see why I’m terrified about the traditional financial system enough to avoid it and stick to Bitcoin instead? Then check out this article:
The Modern Financial System is A Debt-Based Pyramid Scheme & An Investment-Based Ponzi Scheme With Extra Steps…
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I’ll leave you with this NFT Collection of the Bitcoin Reverso card artwork that I made for the Bitcoin and Cryptocurrency communities, in case anyone wants to collect them:
https://opensea.io/collection/inflation-bitcoin-reverso
Make an offer, I’ll be accepting offers from readers. Comment your NFT wallet address below too if you want a free NFT gift.
NFTs:
Description:
“When activated, every player loses 4% inflation across all their fiat currencies”
Description:
“Use this card to reverse the effects of inflation of any currency”
Fiat Inflation Card Vs Bitcoin Reverso Card Set
Description:
A rare collection of 2 cards that play a vital role in every HODL’rs fundamental understanding of finite, infinitely divisible, Bitcoin vs infinitely printed fiat currencies.
This set of cards portrays the message of Bitcoin’s long-term calculation that every HODL’r understands and realizes once they become a HODL’r.
The equation of: (Infinitely Printed Fiat Currency+Time)÷(A network of 21 Million, Finite, Infinitely divisible[through second-layer networks like the lightning network] Bitcoin).
It takes ten thousand hours of research to even understand the implication of that equation, but this NFT Meme helps get that understanding across a little bit quicker. If not in the technical sense, then, in a basic level understanding sense. A start to get one on the path of curiosity to one day becoming a HODL’er, and a DCA seller of their paper debt chains that do nothing but melt away the financial energy of their work, making the buying power of their savings worthless perpetually over time.
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Bitcoin & Cryptocurrency Donation Tip Addresses:
BTC: 3DoZtWkXAW8ha3Si2xGeZu3LZMwkSbCXsb
ETH: 0x2bbff5a0007433a4157300d46a83acdfcc45af13
LTC: MQs9oyG3N9Q2vkRz95yX5Han2ut3p5erxW
LINK: 0x2bbff5a0007433a4157300d46a83acdfcc45af13
BAT: 0x2bbff5a0007433a4157300d46a83acdfcc45af13
