Bitcoin one million dollars

Why $1 Million Bitcoin Is Coming

If purchases by MicroStrategy and Tesla can send bitcoin rocketing, what happens when bigger players start entering the market?

Nik Bhatia

Why $1 Million Bitcoin Is Coming

Bitcoin is officially mainstream. By the end of the last mega-bull market in 2017, most of the world had heard of bitcoin. But after Tesla recently purchased $1.5 billion for its corporate treasury and not for a speculative research and development sleeve, those still thinking bitcoin was a fad exposed themselves as woefully under-informed.

Tesla’s purchase underpins something even more dramatic than mainstreaming bitcoin as a legitimate cash-replacement for the world’s largest corporate, financial, and government institutions. These sudden influxes in demand, including a handful of recent bond-issuance-fueled purchases by MicroStrategy, are having an extreme impact on the bitcoin price. I believe we’ll see the price of bitcoin above $1 million sooner than most people can fathom.

Nik Bhatia is the author of «Layered Money: From Gold and Dollars to Bitcoin and Central Bank Digital Currencies» (2021). He is a CFA charter holder and Adjunct Professor of Finance and Business Economics at the University of Southern California Marshall School of Business.

I understand that $50,000 is already slightly discombobulating to the investment community at large, but that bitcoin price is only associated with $1 trillion of total market value in a world of hundreds of trillions of dollars in global wealth. If bitcoin’s market value reached the size of the U.S. Treasury market, for example, its price would reach $1.5 million.

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It’s easy to predict $1 million bitcoin given a long enough time horizon, considering the pace of crypto-adoption across industries and the willingness of governments and central banks to provide unlimited amounts of fiscal and monetary stimulus. But when faced with the math of how much $3.5 billion in bitcoin demand (Tesla with $1.5 billion and MicroStrategy with $2 billion) caused its price to move, the approximations led me to some staggering numbers.

Keep in mind that this exercise is far from scientific. The price of bitcoin has basically tripled since MicroStrategy’s first publicly announced debt issuance in December. While the company has been purchasing bitcoin since August, it accelerated its buy-program then by raising capital via the corporate bond market aiming to bolster its bitcoin treasury holdings. MicroStrategy U.S. dollar bond issuance has become a regularity ever since. Quantifying exactly how much of the price explosion since December was caused directly by Michael Saylor or Elon Musk is impossible. But it’s fun to guess.

During the weeks that Saylor and Musk purchased at least $1 billion worth of bitcoin, its price increased by several thousand dollars. We know that the entire price move during those weeks cannot be solely attributed to these technology giants. After some rough calculations and a hefty discount, I believe that a $1 billion bitcoin purchase resulted in at least a $25 billion increase in its total market value, or about $1,300 per bitcoin. I’m saying the $3.5 billion total purchased by MicroStrategy and Tesla over the past three months directly increased the bitcoin price by $5,000 of the $30,000 total increase over that time. Maybe the actual contribution is more or less than that, but that’s the guess with which I’ll extrapolate.

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BTC: Why will 1 Bitcoin really be worth more than USD 1 million?

And. At what price and at what market capitalisation Bitcoin will be a true currency substitute?

There are a number of forecasts that see the Bitcoin at 1 million and more. Most recently, Jesse Lund, Global Head of Blockchain Solutions and Digital Currencies at IBM , gave the 1 million forecast in an interview in February 2019.

I tried to analyze this value from a purely macro-economic perspective. And by now I come to the same result of USD 1 million. Rather the value of the Bitcoin will be even higher, because many Bitcoins are already lost. In the end, there might be 16 or 17 million bitcoins that can be used.

In the following line, I will briefly present my insights to you and invite you to discuss .

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1. When does a currency become a currency?

We see three main currencies currently. Dollar, Euro and RMB (China). Dollar wants to remain the leading currency. Euro wants to become an alternative. And the Chinese want to create a new Asian reserve currency with RMB. Of course there are other important currencies. But I will leave them for now.

The first question is. Which smallest unit does a currency need? In the case of the dollar and the euro , it is Cent. At RMB it is a Fen. So 1/100. Especially for currencies with similar values, the «psychological exchange» is quite easier. Since we can imagine the value better. Question therefore. How high would the value of a Bitcoin or a Satoshi have to be, so that we can deal with it well? Relatively easy to answer: 1 Satoshi = 1 Cent (Penny). By th way. It is important that we focus on the usability of Bitcoin and not on the Bitcoin price. Only from a high market capitalization on is there a real usability. And this market capitalisation should be at least at 1 million, otherwise Bitcoin would maybe remain a speculative object and would not become a real currency.

1 BTC = 1,000,000 USD = 21,000,000,000,000 USD Market capitalization (21 trillion)
1 BTC = 100,000 USD = 2,100,000,000,000 USD Market capitalization (2,1 trillion)

For comparison:
The monetary supply m2 2017/18 from
China

25 trillion USD
USA

14 trillion USD
EUR

14 trillion USD
The total amount of gold in the world has a current value of 6 trillion USD

Why is a high market capitalisation easily possible? From today’s point of view this is just 21 times the market capitalization of Apple or Amazon. Lucid Investment Strategies believes that Bitcoin could go as high as $10 million per Bitcoin if Bitcoin were to emerge as a solution to the global debt crisis. For comparison, the market capitalization of the 100 largest companies worldwide is currently around 15 trillion, perhaps even more. The current global debt level is around 250 trillion. US national debt around 22.03 trillion US dollars. By the end of 2020 at the latest, many countries will have to put the financing of large parts of their national debt on a new basis. The International Monetary Fund (IMF) has identified debt as one of the major risks for the global economy.

Conclusion: Macro-economically, Bitcoin can become a real alternative currency. Requirement the price rises.

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2. What «technical» law speaks for it?

There are some who doubt the following approach, but I think it makes sense to discuss Moore’s Law. Moore’s Law says that the technical performance of computers is growing exponentially. More specifically, the number of transistors in new processors doubles every 12 to 18 months. Moore’s Law can be applied to all digital technologies. The Bitcoin price can also be modelled with Moore’s Law or exponential growth.

However, the Bitcoin price is growing even faster than the performance of computers. For Bitcoin , the price has even doubled every five to eight months to its peak at 20,000 USD. The starting point for the forecast was chosen when the Bitcoin cost more than 10 dollars for the first time. Based on the forecast, a Bitcoin will reach one million dollars by 2028 at the latest.

I think that 1 million is also the limit around that the price will oscillate at the end.

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3. What are the costs for producing a Bitcoin?

Current estimates assume that the production of a Bitcoin will cost around 300,000 dollars in 2022. Another aspect that speaks for a rising price. The probability that Bitcoin will go against zero is very risky. Because only that would be the actual alternative.

Look at my red lines in the Chart. How high is the probability that Bitcoin will follow a course along the red dotted lines? The entire crypto market must collapse. For this case the market is already too large. I am writing this because many people compare the crypto market with the tulip market hundreds of years ago. The cryptomarket is no longer a closed system. It is a global phenomenon with market power.

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4. Will the whole banking system change?

The landscape of banking, lending and payments will change radically. The most experts now agree on this. Paper money will be an obsolete model for the coming decades. What remains are real values such as real estate, gold and silver and other commodities and, on the other hand, digital currencies, which are instruments of value «transport».

More than 7.6 billion people live on Earth in 2019. The world’s population is growing by over 200,000 people a day. Every year, the population of the earth increases by more than 80 million. According to the German Foundation for World Population, this corresponds roughly to the population of Germany. This fact alone, that billions of people will soon be able to trade with Bitcoin worldwide, changes the perspective on banking and the Bitcoin-1-million-dollars-Forecast-Idea again.

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Shortage of BITCOIN to Push Price to $1 Million Dollars!!

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1 Bitcoin=$1 Million Dollars. Is it possible & how will it happen? The limited supply is beginning to show it’s power & a BTC shortage is on the horizon. Millionaires and billionaires will want their share of BITCOIN & there’s not enough to go around!! Will BTC reach its price destiny? Tune in to find out!

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⏰ Time Stamps ⏰
00:08 She Got Them Booker T Moves On!
00:43 BTC Breaks 12k Resistance!!
01:06 This is Unknown Territory for Bitcoin
02:07 Will the Past Indicate the Future for this Level?
03:18 The Long Term Bullish Case for the Bitcoin Blockchain
03:38 Bitcoin’s Limited Supply
04:29 Satoshi Predicted Bitcoin Taking Over the Money Supply
05:24 The Whole World & Million BTC
06:00 There Isn’t Enough Single Bitcoin For Every Millionaire
07:00 The Millionaires Flock to Crypto & Change Their Minds
07:37 The Billionaires Flock to Bitcoin & Get Returns!
10:36 Millionares & Billionares Are Coming For Your BTC
11:15 Outro

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**Disclaimer**
Please be advised that I own a diverse portfolio of cryptocurrency as I wish to remain transparent and impartial to the cryptocurrency community at all times, and therefore, the content of my media are intended FOR GENERAL INFORMATION PURPOSES not financial advice. The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Purchasing cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome. Past performance does not indicate future results.

This information is what was found publicly on the internet. This is all my own opinion. All information is meant for public awareness and is public domain. Please take this information and do your own research.

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21 Bitcoin (BTC) is now worth over one million dollars, but which would you prefer to have?

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Bitcoin has rallied 8% today, breaking $54k resistance for the first time since mid-February. As pointed out by @DocumentingBTC, owning 21 BTC now makes you a millionaire in U.S. dollar terms.

Responding to this, Bitcoin-bull Willy Woo said he would prefer to have 21 BTC over a million dollars. His reasoning comes from a belief that the ratio of BTC to $1mn will lower over time, making this choice the smart play to make. Especially so, taking into account its fixed supply and the number of lost coins, which will likely increase in the future.

46.8m millionaires in the world (2019 figure), only ever gonna be 21m bitcoins, and 17.2m that aren’t already lost.

That’s easy maths, I’d rather have the 21 BTC than a million dollars. https://t.co/tXowL2P3KM

The number of Bitcoin millionaires is poised to increase

The words Bitcoin and millionaire, while not synonymous, still have a strong association.

Data from bitinfocharts shows that there may be as many as 100,000 people who have the equivalent of $1mn or more in Bitcoin. CBS News noted that the growth of Bitcoin millionaires had jumped exponentially, particularly from a year ago.

“That’s up from just 25,000 bitcoin millionaires three months ago. A year ago, there were about 15,000 millionaire bitcoin accounts.”

However, considering the pseudo-anonymous nature of cryptocurrency wallets, these figures may not be accurate. It holds that multiple wallets could be held by the same person, therefore exaggerating the numbers.

Nonetheless, the trend is clear. Bitcoin’s staggering growth since its inception has increased the personal fortunes of investors. Only adding to the millionaire narrative. More so, the early adopters and crypto pioneers who believed when few did.

As alluded to by Woo, this is likely to accelerate going into this bull cycle.

Bullish sentiment recaptured

Bitcoin continues its march back towards its previous all-time high of $58k. With that, investor sentiment has flipped bullish once more.

Despite the three major corrections so far this year, 2021 is still shaping up to be a stand-out period for the leading cryptocurrency. The past five days have seen consecutive green candle closes, shaking off the hangover from the recent 20% dip.

Having broken $54k resistance today, BTC has its previous ATH firmly in sight. What’s particularly notable is that this performance has come despite a strengthening dollar.

Since the end of February, the DXY has been on the rise. This would suggest an unwinding of risk-off correlation between the two, heightening expectations for Bitcoin to challenge record highs.

However, a bump in the road may come from the Federal Reserve’s rate announcement next early week. Inflationary fears have some analysts braced for a rise.

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