Will Bitcoin Ever Be Valued At $1 Million A Piece?
Hey there! I’m back again for another question.
In your opinion, can Bitcoin be valued at $1 million a piece?
Earlier I’ve read an interesting article about a very popular YouTuber (no, I’m not talking about Pewdiepie) who made a very bold statement: Bitcoin could potentially be priced at $1 million dollar.
Yes, 1 BItcoin = $1 million.
Seeing that the price of Bitcoin is currently sitting at $62,000 at the time of writing; Tim Pool’s statement is without a doubt, quite bold.
Who is Tim Pool, you asked?
For those not in the know; Tim Pool is a political commentator who owned a few popular YouTube channels like the Timcast. Tim Pool, Timcast IRL, and Pool’s podcast.
From what I gather; Tim Pool has always been a big fan of Bitcoin, and if he’s still not considered a maximalist before he’s without a doubt a maximalist now with his recent statement.
But was Tim Pool right? Could Bitcoin really be valued at $1 million in the future?
Personally, I don’t think that Bitcoin would ever be valued at $1 million. A few hundred thousand dollars is possible but one million? I think that’s going too far.
Sure I’m aware of the popularity of Bitcoin but that popularity alone would not be enough to propel its value to a $1 million. Of course personal opinion alone would not be enough to counter Tim Pool’s claim so I would be listing three reasons why Bitcoin could never be priced at $1 million.
Three Reasons Why Bitcoin Would Never Be Valued At $1 Million A Piece
Government Interventions and Regulation
Let’s start off by tackling the biggest elephant in the room. One of the main reasons why the Bitcoin would never be priced at $1 million would be due government interventions and regulations.
Cryptocurrencies, specifically Bitcoin had always been a thorn on our governments’ sides and had been doing all they could to regulate cryptocurrencies. And when I say “everything” I meant everything. Remember how the new crypto bill came to be?
Yeah, the US government sneakily inserted the new Crypto Bill into Biden’s new Infrastructure Bill…
If the US government were willing to do that to have more control on cryptocurrency, imagine what they would do once the price of Bitcoin reached one $100,000 let alone $1 million.
An Outdated Technology
Bitcoin is more than a decade old and it shows. Compared to other cryptocurrency in the market today, Bitcoin is old. Of course being old isn’t always bad. For examples, antiques are valuable as art pieces, and wines tasted better with age. But Bitcoin? Not so much…
I mean, it’s outdated, slow, very expensive to use in transactions, has scalability issue and devours electricity like a black hole. Moreover, it’s not too environment friendly. Sure steps had been made to reduce Bitcoin mining’s impact on the environment but there’s little to no solution to the issue of energy consumption.
The cryptocurrency community (even the maximalists) is fully aware that Bitcoin could not compete in term of speed, security, and scalability to other cryptocurrency which is why its supporters market it as a store of value – a replacement to gold of some sort.
Of course I’m not implying that Bitcoin is useless. No. Far from it. Bitcoin could still be used to transact and is especially useful for big transactions. It’s just that it’s not very practical to use due to its transaction speed and absurd fees. Bitcoin Cash, and other cryptocurrencies are actually much better to Bitcoin in that regard.
Other Cryptocurrencies Are Eating Into Bitcoin’s Dominance
In 2021, about 70% of the cryptocurrency market shares belong to Bitcoin but in just half a year it dropped to just 48% which was less than half of the global market share. Don’t misunderstand though, 48% is still a huge number but the fact that Bitcoin’s shares were slashed by 22% is an indicator that Bitcoin’s dominance might soon come to an end.
How soon you asked?
It could be a year from now, five years, from now, or even a decade from now. It’s difficult to say. What I’m certain though was that Bitcoin would only keep losing market shares to altcoins as time goes by until to the point that its market share was reduced to just a single digit.
Will Bitcoin be gone for good?
Bitcoin would most likely remain in the market even after most of its market shares were devoured by other cryptocurrencies. As the progenitor of cryptocurrency, Bitcoin would continue to have supporters and remain valuable. Moreover, I doubt that it would end up like other failed cryptocurrency-related projects that could not even survive one or two market crashes.
Since Bitcoin had shown its resilience over the years and survive countless market crashes, it should be strong enough not to suffer the same fate as the aforementioned failed projects. But as for being priced at $1 million in the near future; I highly doubt it.
That is all for now. Thanks for reading.
Lead Image Source: Pixabay
Disclaimer: This article was checked for plagiarism using the online tool; plagiarism detector, and was proven to be 100% original.
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