How Much Can Bitcoin Really Cost?
On the one hand, the answer is simple - as long as you are prepared to pay for it. But if you are the owner of just one BTC and built on it, God forbid, what do you have, what price increases should you expect? This is a very important question, especially given that we are increasingly hearing prophecies of $ 50,000, $ 100,000, and even $ 250,000. Let's try to look at the arguments of bitcoin maximalists and opponents. With bitcoin opponents, everything is simple. The main arguments are the Ponzi scheme, the BTC price is not covered, these are geek oddities. According to Warren Buffett, it's a tulip obsession v 2.0, red venom squared. In their view, the final price of BTC is zero. Let us consider the other extreme point of view. According to it, Bitcon will become a global currency and all operations around the world will be conducted using BTC. Other currencies will cease to exist and all countries will use bitcoins. Sounds like a man's theory, but let's still calculate how much bitcoin could cost. The world's money supply is difficult to measure with great precision, but a quick Google search reveals that it is valued by the CIA at around $ 80 trillion. Meanwhile, Bitcoins will have a maximum turnover of $ 21 million. If they change the entire world money supply, then $ 80 trillion divided by 21 million BTC will give us the result that each BTC coin will cost about $ 3.8 million. A very unlikely story. So, we have two completely opposite scenarios and the truth is usually somewhere in the middle - 0 to 3.8 million. US dollars. If BTC were equities, we could perform a discounted cash flow (DCF) valuation, anticipating and discounting future cash flows to this day. This is the standard daily value method for businesses. But Bitcoins have no company, no stock, no cash flow, so there's nothing to value. Then there remains the possibility of relative estimation. But in what respect? Let's start with gold because the term "digital gold" is quite commonly used for bitcoins. How much does all the gold on the planet cost? About $ 3 trillion. Divided by 21 million BTC, they give us $ 143,000 per bitcoin price. This is almost in line with some of the predictions we see in the press
How much can bitcoin really cost
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