How much bitcoin will be worth

Bitcoin price soars: How much $ would be worth today if you had invested earlier. By. Chris Morris. February 8, AM PST. On the heels of Tesla's.
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Many governments and societies have found that fiat currency is the most durable and least likely to be susceptible to deterioration or loss of value over time. Aside from the question of whether it is a store of value, a successful currency must also meet qualifications related to scarcity, divisibility, utility, transportability, durability, and counterfeitability. Let's look at these qualities one at a time. The key to the maintenance of a currency's value is its supply. A money supply that is too large could cause prices of goods to spike, resulting in economic collapse.

A money supply that is too small can also cause economic problems. Monetarism is the macroeconomic concept which aims to address the role of the money supply in the health and growth or lack thereof in an economy. In the case of fiat currencies, most governments around the world continue to print money as a means of controlling scarcity.

Many governments operate with a preset amount of inflation which serves to drive the value of the fiat currency down. In the U. Successful currencies are divisible into smaller incremental units.

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In order for a single currency system to function as a medium of exchange across all types of goods and values within an economy, it must have the flexibility associated with this divisibility. The currency must be sufficiently divisible so as to accurately reflect the value of every good or service available throughout the economy. A currency must-have utility in order to be effective.

Individuals must be able to reliably trade units of the currency for goods and services. This is a primary reason why currencies developed in the first place: so that participants in a market could avoid having to barter directly for goods. Utility also requires that currencies be easily moved from one location to another. Burdensome precious metals and commodities don't easily meet this stipulation. Currencies must be easily transferred between participants in an economy in order to be useful. In fiat currency terms, this means that units of currency must be transferable within a particular country's economy as well as between nations via exchange.

To be effective, a currency must be at least reasonably durable. Coins or notes made out of materials that can easily be mutilated, damaged, or destroyed, or which degrade over time to the point of being unusable, are not sufficient. Just as a currency must be durable, it must also be difficult to counterfeit in order to remain effective. If not, malicious parties could easily disrupt the currency system by flooding it with fake bills, thereby negatively impacting the currency's value. To assess Bitcoin's value as a currency, we'll compare it against fiat currencies in each of the above categories.

When Bitcoin was launched in , its developer s stipulated in the protocol that the supply of tokens would be capped at 21 million. To give some context, the current supply of bitcoin is around 18 million, the rate at which Bitcoin is released decreases by half roughly every four years, and the supply should get past 19 million in the year Changing the protocol would require the concurrence of a majority of the computing power engaged in Bitcoin mining , meaning that it is unlikely.


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The approach to supply that Bitcoin has adopted is different from most fiat currencies. The global fiat money supply is often thought of as broken into different buckets, M0, M1 , M2 , and M3. M1 is M0 plus demand deposits like checking accounts. M2 is M1 plus savings accounts and small time deposits known as certificates of deposit in the United States.

M3 is M2 plus large time deposits and money market funds. Since M0 and M1 are readily accessible for use in commerce, we will consider these two buckets as mediums of exchange, whereas M2 and M3 will be considered as money being used as a store of value. As part of their monetary policy, most governments maintain some flexible control over the supply of currency in circulation, making adjustments depending upon economic factors.

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This is not the case with Bitcoin. So far, the continued availability of more tokens to be generated has encouraged a robust mining community, though this is liable to change significantly as the limit of 21 million coins is approached. What exactly will happen at that time is difficult to say; an analogy would be to imagine the U. Fortunately, the last Bitcoin is not scheduled to be mined until around the year This can be seen with precious metals like gold.

Notably, 21 million bitcoins are vastly smaller than the circulation of most fiat currencies in the world. Fortunately, Bitcoin is divisible up to 8 decimal points. The smallest unit, equal to 0.

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This allows for quadrillions of individual units of Satoshis to be distributed throughout a global economy. One bitcoin has a much larger degree of divisibility than the U. While the U. It is this extreme divisibility that makes bitcoin's scarcity possible; if bitcoin continues to gain in price over time, users with tiny fractions of a single bitcoin can still take part in everyday transactions. One of the biggest selling points of Bitcoin has been its use of blockchain technology.

Blockchain is a distributed ledger system that is decentralized and trustless, meaning that no parties participating in the Bitcoin market need to establish trust in one another in order for the system to work properly. This is possible thanks to an elaborate system of checks and verifications which is central to the maintenance of the ledger and to the mining of new Bitcoins.

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Best of all, the flexibility of blockchain technology means that it has utility outside of the cryptocurrency space as well. Thanks to cryptocurrency exchanges , wallets , and other tools, Bitcoin is transferable between parties within minutes, regardless of the size of the transaction with very low costs. The process of transferring money in the current system can take days at a time and have fees. Transferability is a hugely important aspect of any currency.


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While it takes vast amounts of electricity to mine Bitcoin, maintain the blockchain, and process digital transactions, individuals do not typically hold any physical representation of Bitcoin in the process. Durability is a major issue for fiat currencies in their physical form. A dollar bill, while sturdy, can still be torn, burned, or otherwise rendered unusable. Digital forms of payment are not susceptible to these physical harms in the same way. For this reason, bitcoin is tremendously valuable.

It cannot be destroyed in the same way that a dollar bill could be. That's not to say, however, that bitcoin cannot be lost.

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If a user loses his or her cryptographic key, the bitcoins in the corresponding wallet may be effectively unusable on a permanent basis. Thanks to the complicated, decentralized blockchain ledger system, bitcoin is incredibly difficult to counterfeit. Doing so would essentially require confusing all participants in the Bitcoin network, no small feat. The only way that one would be able to create a counterfeit bitcoin would be by executing what is known as a double-spend.

Mar 22, , am EST. Edit Story. Oct 4, , am EDT. Billy Bambrough Contributor. I write about how bitcoin, crypto and blockchain can change the world.


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    8. Follow me on Twitter. Billy Bambrough. Read Less. A halving is when the Bitcoin mining reward is cut in half. The halving occurs every four years, there have been three so far, and the most recent was just this past year. The takeaway here, people who want to own a Bitcoin or use a Bitcoin have to buy one of the few that are already out there. Technically, the way that the BTC network is set up, there are already an infinite of addresses.

    The system is set up that way to help make it more difficult to find a specific address and hack into it. That figure posted a YOY increase in that has the total number of wallets in use at over 1 million. In total, BTC whales are holding nearly 2. The latest data shows hashing power or the amount of computing power attributed to the BTC network at a new all-time high. The proof of this is in the coins market dominance of its percentage of the total cryptocurrency market cap.

    The takeaway here is that when the world turns to crypto Bitcoin is the first name they seek. And the world is warming up to crypto. As if the limited and dwindling supply was not enough to support BTCs price movement there is the lost BTCs to consider.