a bitcoin, text asking how a 1M bitcoin would function

If Bitcoin was worth 1M, we would pay a staggering $76 in gas


Let us do a little thought experiment with Bitcoin. I know there are many people who believe, and want, Bitcoin to break that 1M per coin value. But what would that actually look like? I mean for the use of Bitcoin. Lets us take a look and see what that would mean for us today if bitcoins would be valued at a staggering 1M per Bitcoin.


The 1M coin

First of all, having the Bitcoin be worth 1M per coin would most likely be a huge milestone. As it is, at least judging by how things are looking right now, the most likely contender to be able to break this 1M barrier. It would also mean that even a Satoshi would not have fair, and somewhat meaningful value. It would be worth only $0.01 but that is still more than many coins.

Will the breaking of the 1M barrier for Bitcoin mean that Satoshi Nakamoto finally will reveal themself? That is probably unlikely. If that person has not yet revealed themself, breaking the 1M barrier is not likely to change that either. They are more likely to reveal themselves at their deathbed then, or not at al. Those are the two likeliest scenarios I think. Unless the person known as Satoshi Nakamoto isn't already dead.

Back to the Bitcoin thought experiment. If we go by today's bitcoin gas fee, of 0.00007600 Bitcoin. This would mean that the cost of an average transaction would be $76. And that would look more like what the Ethereum gas fee was during the recent NFT crace. And before you all go yelling at me in the comment section, I know that is not a propper way to calculate the gas fee. Let us then instead do the proper match.

Today's average gas fee is at a cost of $2.32. This would instead change the fee from 0.00007600 to 0.000000232 Bitcoin. And this would still allow Bitcoin to perform its functions.

What would Bitcoins value need to be in order for it to be a problem?

I would argue that Bitcoins functionality will be fine as long as the value of 1 Satoshi, or 0.000000001 Bitcoin, remains valued below the $1 mark. Or thereabout. As with a Satoshi valued at $1 then the smallest incremental price increase would be $1 as well. And then it would start to cause a real problem for the basic function of the Bitcoin Blockchain.

But a value of $1 per Satoshi would also mean that the value of 1 Bitcoin would be a staggering 100 million US dollars. So I think we are probably pretty safe, at least for the foreseeable future.

Probably way before then Bitcoin also has transitioned into becoming more like gold. Meaning it is not used for everyday purposes anymore. It has already garnered the moniker Gold 2.0.

And should Bitcoin still be in use similar to what it is today. Then most likely a new form of transferring it will most likely already have been developed.

What are your thoughts on this whole 1M bitcoin, is it just a pipedream or is it a reality? How do you think a 1M pricetag would change Bitcoins use? Please share your thoughts in the comment section down below. I hope you have found this little thought experiment entertaining and at least somewhat informative in these troubling times. And I do apologize for the clickbaity misleading title of the post. =)

Please consider following me, reading some of my other posts or why not do both. You can find them here and here.

I have also just started a new series of weekly posts, that will go live every Friday. You can catch the first step here:

My Journey to Financial Freedom - My Journey Starts Here

 

See you on the interwebs!

 

 

 

Picture provided by: https://pixabay.com/

Bitcoin transaction prices were taken from: https://bitinfocharts.com/comparison/bitcoin-transactionfees.html#3y

 

 

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Patch
Patch

I am a patchy reader and writer of words...


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