We all love Bitcoin I get it. We all want Bitcoin to moon so we all get rich. I get it, I really do. But I started to wonder the other day what is the ceiling of Bitcoin? What is the highest price it could reach and still be a realistic cryptocurrency?
I know what your going to say. "Bitcoin has no ceiling!". And I understand that in theory it doesn't. However it depends on how you look at Bitcoin and what Bitcoin will be used for in the future. There are 2 options for Bitcoin.
Option 1: It is used as a payment currency to pay for goods and services.
Option 2: It becomes the gold standard that other crypto's are based and backed off of.
With Option #2 I will agree that realistically there isn't a ceiling for it. If the whole world starts to move to cryptocurrency and truly adopt it then Bitcoin price is going to keep skyrocketing.
However if you go with Option #1 then I would wager that the ceiling of 1 BTC is $100,000. Go on fight me! 😁
How did I come up with $100,000? Well let me explain.
Right now 1 BTC can be broken down into 100,000,000 satoshi's. That way even if BTC is worth say $100 and you want to buy a $1 candy bar you don't have to pay them $100. You could pay them 0.01 BTC which would be worth $1 in this example. The Satoshi is the limiting factor for us. There will only ever be 100,000,000 Satoshi's per Bitcoin.
That means we need to look at what is the smallest/highest price 1 Satoshi could realistically be worth and still be used as a form of payment.
My opinion is that the highest 1 Satoshi could be worth is $0.001. That is one/tenth of one penny. I think having 1 Satoshi worth 1 penny wouldn't work. I mean sure it would work in the United States but if this is to be a global economy based on blockchains there needs to be wiggle room. If 1 Satoshi was worth say $1 then the least you could pay for something is $1 and that just wouldn't work.
Now that $100,000 price goes out the window if Bitcoin becomes option #2. Realistically one BTC could be worth $1,000,000 if it is not a payment cryptocurrency. I still don't see it though because if BTC becomes the standard it still needs to be weighted against other cryptos. You would still need to say you could trade like 5 Doge for at least 1 Satoshi of BTC. If values were so out of whack that you needed say 1,000 Doge to equal 1 satoshi of BTC it wouldn't work.
Then again maybe it would deter many of the shitcoins. If some new coin was released maybe it wouldn't gain credibility until say 100 of their coins equaled 1 Satoshi in value. That would also only happen if the price of BTC stabilized and they won't ever happen until it becomes a true universal monetary currency.
Only time will tell what the ceiling of Bitcoin is but I am still holding onto my $100,000 price tag for a payment Bitcoin future.
