The Case for $30 Million Bitcoin

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Avatar for Damxchange
3 years ago
Topics: BCH, Bitcoin Cash, RogerVer, Satoshi, BTC, ...

Yes I’m sure you’ve heard the forecast for $1,000,000 per Bitcoin and you probably thought that was crazy, so $30 Million is totally insane but give me a few minutes and you just may think it’s not so insane.

Where do I start? Well let’s look at the global debt, as of the end of 2020 that figures stood at $281 Trillion, up about 40% in the past decade. The debt is set to rise in 2021 and probably will continue to do so, and will conservatively do so at a pace of 20% over the next decade. We can conservatively put a forecast of $420 Trillion of global debt by 2040.

The US alone is nearly $100 Trillion of total debt when including states, counties and towns, far beyond the $28 Trillion you hear about. The lower amount is just the Federal debt in America. This $100 Trillion is growing every year and isn’t showing any signs of slowing down.

Now let’s look at the global economy, it’s GDP ended 2020 around $88 Trillion and the US accounts for about $20 Trillion of it. It’s reasonable to expect to see the global economy grow to $180 Trillion by 2040.

Combining global GDP and debt brings the total by 2040 to $600 Trillion. All this is in many different currencies with the US dollar being the largest but all of them have one thing in common, each is being devalued.

But the US government is going to regulate Bitcoin or shut it down completely. There’s nothing wrong with regulation, it will protect us all and with companies like Fidelity and Goldman getting involved regulation is welcomed. The US government shutting it down will never happen, they know there’s no way to shut Bitcoin down in-fact I believe the US government will do the complete opposite.

I believe over the next 20 years we are going to see the US government be a leader in adopting Bitcoin in a major way and it will all start at the local level. Cities and towns will hold Bitcoin in their Treasury, some cities like Miami are already looking into it. As these cities and towns have success the US Treasury will certainly take notice and begin holding Bitcoin on their balance sheet.

The US will also lead in issuing treasuries as well as municipal bonds denominated in Bitcoin. Interest payments will be made to investors in Bitcoin as well as the maturity payments. Imagine the day when governments can reign in their massive debt loads with a currency that has deflation built into it rather than inflation. Issuing debt denominated in Bitcoin rather than the US dollar will be a windfall for the US Treasury department, of course this will happen as the volatility in Bitcoin subsides, but it will happen.

Over the next 20 years this will happen throughout the world, in all size countries. During that time we will see the majority of companies also adopt Bitcoin on their balance sheets, it will become the norm not the shocking news like we’ve recently heard from Tesla.

Putting it all together will lead to Bitcoin becoming the world’s reserve currency over the next 20 years. If Bitcoin captures just 20% of that $600 Trillion we are looking at a price of $5.7 million per Bitcoin but if it can capture all $600 Trillion we will see Bitcoin rise to $30 million.

I know it sounds so far fetched but we must stop and look at the numbers. This is not 1980 when governments threw around $1 Billion and we were all shocked, it’s 2021 and our governments are throwing around many trillions of dollars like you and I throw around $5.00

We must stop and contemplate the enormous power Bitcoin brings to the world while remaining the rarest asset (currency) on the planet. Just 21 Million Bitcoin while the world’s GDP and debt is $600 Trillion. These Bitcoin price forecasts of $500,000 to $1,000,000 are simply much too low!

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Avatar for Damxchange
3 years ago
Topics: BCH, Bitcoin Cash, RogerVer, Satoshi, BTC, ...

Comments

really confused mate

$ 0.00
3 years ago

Why are you confused?

$ 0.00
3 years ago

do not you know?

$ 0.00
3 years ago

Very very

$ 0.00
3 years ago

Yeah your article is spot on. I'm gonna share it. Not only is Bitcoin very low right now, there are gonna be lost wallets and cold storage of Bitcoin leading to even more concentration of value in those remaining liquid units of satoshis! So, saddle up those Android apps that pay up in satoshis and BTC. It's kind of insane they pay in BTC, but they do. Some gambling games too. No one knows the value of what they have just like in the earlier days of Bitcoin. You took a different angle here discussing debt and nations devaluing their currencies. I discussed the fact of adoption by a mere 100 million people is nothing compared to 5 billion people transacting in BTC or ETH daily. This could happen, there just needs to be a few more large companies accepting crypto apps that swap out from BTC and ETH. Like smart phones, there were people - myself among them - that thought we'd never need such big bright LED screens and 720p video streaming on our phones. Nowadays, no one gives a second thought - even in many very poor countries. They stream movies on phones. Crypto can be just like that. At first everyone doubts it will be commonplace and a neccessity of life. Tomorrow, who knows!? Virtually everyone playing NFT games to earn a living on the blockchain?

$ 0.05
3 years ago

Very very far fetched because the only money that matters and can ever flow into Bitcoin is the GDP which by your projection of a 180 trillion valuation by 2040 will put the BTC price at $8.57 million per coin.

This is also unrealistic as Bitcoin is not the only cryptocurrency there is. And all monies generated by the world economy cannot all be in BTC or even crypto for that matter.

The most probable BTC market share is Golds market cap of 10 trillion. Let's talk again after BTC captures golds value before anything else. Until then all these price talks and at best "hopium" on a high dose.

It was an interesting read post though. Thanks for sharing,

$ 0.05
3 years ago

Thanks. I tend to disagree with your thinking, you’re just going along with the gold narrative that spread around the crypto space. Bitcoin can capture the government level of their balance sheets as well as debt. As mentioned in my article Miami has already announced they are putting it on their balance sheet, many cities, states and countries will follow. After that the natural extension will be to issue debt in Bitcoin, it makes more sense for cities, states & countries to issue debt in Bitcoin rather than fiat. It’s a win win for not only them but the investors as well. In the US it would be akin to TIPS, the Treasuries that are issue with an inflation component. Yes it may be far fetched for many reasons but that was also my objective, make people think outside the box, make them realize $1 million Bitcoin price targets we hear is not so crazy after all. Thanks for reading.

$ 0.00
3 years ago

You're ignoring something there. You cannot "issue debt on Bitcoin" because for you to get any Bitcoin to lend to someone you have to buy it, unlike fiat that you can print.

And because the value of debt is greater than the GDP of nations, that should tell you that most of that money is in thin air. It doesn't exist. Bitcoins a hard money/asset which you can only get by buying it and you can't buy it with money that you don't have.

$ 0.01
3 years ago

Your thinking is too strapped in a box. Yes you can issue debt in Bitcoin. It would be denominated in Bitcoin. Government simply issues Treasuries denominated in Bitcoin, the investor buys with Bitcoin & is paid interest in Bitcoin until the Treasury matures at which point the investor receives Bitcoin back. It’s no different than any other exchange for debt.

$ 0.00
3 years ago

It's ok bro. Have a great day.

$ 0.00
3 years ago

Hello your topic about cryptocurrency value like bch 😉 very good thankyou for info

$ 0.01
3 years ago

no doubt this is beauty of BTC and its price and value both are going to be high and high....

$ 0.00
3 years ago

hello I'm new in this site can someone teach me what to do

$ 0.00
3 years ago