One million dollar bitcoin

$1 Million Dollar Bitcoin (Top Trading Expert Says It’s Possible)

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Where is the price of Bitcoin headed to? We’ve gone from bearish to bullish on Bitcoin in the blink of an eye. This seems to be a pattern we’ve seen with Bitcoin at the beginning of each month. But where does this Bitcoin cycle say we will go next?

Today, I’ve teamed up with a Bitcoin technical analysis expert. He’ll join us to give you the BEST Bitcoin price targets while diving deep into some Bitcoin analysis. Our interview with Chris from MMCrypto will discuss topics such as longing and shorting Bitcoin, the latest Bitcoin news, and Michael Saylor. At the end of the video, we’ll reveal whether or not a MILLION DOLLAR BITCOIN is possible. Stay tuned to find out.

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0:00- Intro
1:33- Interview with MMCrypto
2:42- Bitcoin Chart
6:47- Where should we be by summer
9:09- BTC Price Prediction

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All of our videos are strictly personal opinions. Please make sure to do your own research. Never take one person’s opinion for financial guidance. There are multiple strategies and not all strategies fit all people. Our videos ARE NOT financial advice.

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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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$1 Million Dollar Bitcoin (Top Trading Expert Says It’s Possible)

Спасибо! Поделитесь с друзьями!

Вам не понравилось видео. Спасибо за то что поделились своим мнением!

Where is the price of Bitcoin headed to? We’ve gone from bearish to bullish on Bitcoin in the blink of an eye. This seems to be a pattern we’ve seen with Bitcoin at the beginning of each month. But where does this Bitcoin cycle say we will go next?

Today, I’ve teamed up with a Bitcoin technical analysis expert. He’ll join us to give you the BEST Bitcoin price targets while diving deep into some Bitcoin analysis. Our interview with Chris from MMCrypto will discuss topics such as longing and shorting Bitcoin, the latest Bitcoin news, and Michael Saylor. At the end of the video, we’ll reveal whether or not a MILLION DOLLAR BITCOIN is possible. Stay tuned to find out.

Follow MMCrypto ➡️
My appearance on MMCrypto ➡️

0:00- Intro
1:33- Interview with MMCrypto
2:42- Bitcoin Chart
6:47- Where should we be by summer
9:09- BTC Price Prediction

Connect with Me & the BitSquad!
Join the BitSquad ➡️
Join the BitBoy Lab ➡️
Join BitSquad Traders ➡️
Join Me on Twitter ➡️
Join Me on Instagram ➡️
Join Me on TikTok ➡️ @BitBoyCrypto
●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●
Find deals on hardware wallets, trading indicators, exchanges & more.
Find Crypto DEALS ➡️
●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●
All of our videos are strictly personal opinions. Please make sure to do your own research. Never take one person’s opinion for financial guidance. There are multiple strategies and not all strategies fit all people. Our videos ARE NOT financial advice.

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The Case for a Million Dollar Bitcoin

A far— fetched dream or a probable reality?

*Disclaimer: Any information and opinions found on this page are not to be considered as financial advice. You should do your own research before making any investment decisions.

January 3rd 2021 was the 12th birthday of Bitcoin since the inception of the genesis block. And there are good reasons to celebrate. The news of Bitcoin constantly breaching new highs is a welcoming narrative by all HODLers and bulls alike. While the price is still going parabolic as we speak, the million-dollar question is now again on the table — how likely is it for Bitcoin to add six zeros in its value?

I posted this question on Reddit mid-December and has since gathered more than 50 opinions in the discussion thread. I studied and compiled the opinions and analysed the rationales behind them.

The Probability

F rom single-digit to double-digit probabilities, most certainly a non zero chance.

Most arguments seem to align with the narrative that Bitcoin will continue to raise its prominence as the preferred store-of-value asset, outpacing the flow of capital into bank savings, pension funds, and even gold.

When we look at the numbers, for Bitcoin to worth a million bucks apiece, the entire market cap has to reach a staggering 20 trillion dollars, which is about 28 times of its current market cap (around 800 billion dollars at the time of writing) and twice as big than that of gold’s.

Why comparing against the gold you ask? Gold has largely played an important role in human history as a reliable store of value for more than 2000 years (

550BC to 2021). In response to Nixon shock in 1971, gold has decoupled itself as a medium of exchange against the dollar, effectively paving its new role as a deflationary asset. Ever since gold has appreciated from roughly $30 an ounce to $1,900 today, a 60x gain over half a century as monetary inflation occurred. Bitcoin, which is still relatively juvenile in comparison, exploded from less than a penny a decade ago to almost 40 thousand dollars on January 10 2021. Certainly, if history rhymes, both gold and bitcoin will continue to appreciate against fiat currencies but given the magnitude, Bitcoin will certainly outpace gold given its stronger momentum of growth.

In another perspective, there are approximately $1.2 quadrillion dollars in all investments, derivatives and cryptocurrencies. All we need is 1.75% of that and we hit $1 million per bitcoin. Put simply, if everybody put 1.75% of their investments into Bitcoin, we would have landed on the moon. That doesn’t seem that far fetched anyway.

The Timing

The conservative answer would predict this likely scenario to happen sometime 10–20 years from now. Well-known investor Chamath Palihapitiya, one of the earliest bitcoin evangelists and a former Facebook executive has made the case for a million-dollar bitcoin in the next 20 years. However, in a slightly more (cautiously) optimistic case, the most common answer is approximately 5 years. This is aligned with what Raoul Pal, a former Goldman Sachs hedge-fund chief has recently said in an interview.

Statistically, when the functional relationship can be established between a relative change in one quantity in affecting the proportional relative change in the other quantity, it’s attributed as the power law. By modelling Bitcoin’s historical price using power law, it’s not difficult to spot that the price development falls within the corridor of the defined power-law. Harold Burger, an AI lead at Selligent Cortex has concluded in his article that the price will reach $1 ,000, 000 per bitcoin no earlier than 2028 and no later than 2037.

The Fundamentals

Apart from the power law, the stock-to-flow model is perhaps the most widely discussed and contentious fundamentals in modelling bitcoin’s price development. Stock-to-flow model is based on the ratio for a commodity annual inventory or reserves in relative to its annual supply and is one of the significant reasons that back gold’s monetary importance. Bitcoin shares the similar feature as gold for being scarce, and thus its stock-to-flow ratio can be interpreted as the current number of bitcoins in circulation against the number of coins mined in a year.

Plan B first article argues that bitcoin’s price can be modelled by quantifying the scarcity using stock-to-flow. While gold’s total supply is unknown, bitcoin’s total supply is capped at 21 million coins and its production rate is subject to the halving event which happens on average every four years. Thus, by plotting a linear regression of bitcoin’s stock-to-flow value against its market value on a logarithmic scale, it has an R2 of 95%. The model predicts that the market value for bitcoin after May 2020 halving is $1trn, which translates in a bitcoin price of $55,000. Bitcoin’s price currently hovers around the $40,000 mark, some 6 months after the halving. If this projection holds true for the next halving, which is expected to happen in 2024, the price will hit the $1 million mark in 2025, about one year after the halving.

Takeaways

“History doesn’t repeat itself, but it does rhyme.”

As coined by Mark Twain, this aphorism applies with recognisable patterns resembling not just to economic history but extends well into the financial markets. In such cases, there’s an inclination that future project developments try to follow along the lines of the historical “pattern” — until that no longer works. In the last two rounds of bitcoin’s meteoric bull runs, the exponential growth of the price tends to correlate with the halving events, albeit with a time lag from a couple of months to almost two years.

However, given the novelty of bitcoin and its infamous volatility in price, there is not enough historical knowledge to truly understand the macroeconomics of the cryptocurrency. The current narratives mostly mimic that of precious metals, especially— gold. Thus bitcoin is also sometimes dubbed as “digital gold” given its similar deflationary nature and scarce supply.

While we continue to debate on which direction the price is going, what we really should be asking is how long until we no longer compare the value of bitcoin to that of fiat currencies. According to Satoshi Nakamoto, bitcoin was originally envisioned as the first independent electronic cash, free from interference from any governments or financial institutions. The reason why we are so enthralled by the price of bitcoin is none other than to get rich, so we can all one day cash out in fiat money to buy that Lamborghini. What if I tell you that one day you can drive home your dream Lamborghini with just bitcoin? No more exchange or swaps that stands in the way anymore. But until then, governments and central banks have to give in and yield their control on the money supply and let the free market dictate its own currency. Or perhaps cryptocurrencies will co-exist with fiat money under new regulations? Either way, we are definitely living in an exciting time of monetary evolution, and bitcoin is just a proof-of-concept, not any kind but most certainly a successful one.

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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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