How high can bitcoin get?
This high:
Oh, wait, you meant price?
Bitcoin’s price is theoretically infinite. But you can say the same about any asset, even the money in your pocket. Price is not value, it’s just a number.
Imagine bitcoin hit $1 million.
WHOA! AMAZING!
But what if that happens because the U.S. dollar collapses, triggering massive inflation and causing the world’s banks to abandon dollars as their primary reserve currency?
In that case, $1 million won’t get you very far. Not because bitcoin is more valuable, but because dollars are less valuable. Price is relative.
I mean, look at how much the dollar’s gone up this past year:
After hitting a low on March 8, 2018, it’s been zooming. Do you think it will ever hit 1 bitcoin? Or is it in a bubble?If that sounds silly to you, you can understand why price doesn’t matter.
That said, bitcoin may end up at $0 but it could realistically hit $1 million sooner than you think—if bitcoin can solve its scaling problems and become the payment network of choice for daily financial transactions.
To get there, few people could actually own bitcoin. It’s too volatile for daily use. Instead, most people would use an app, card, or point-of-sale system to connect with the bitcoin network via some intermediary, but use local currency. All transactions will settle instantly using bitcoin instead of payment processing companies, with the resulting demand of more than $18 trillion worth of bitcoin at any one time.
At that point you’ll have about 17 million bitcoins, maybe 18 million once that happens (it could take a while). Therefore the price of a single bitcoin will have to be at least $1 million—with room to grow. When you have $200 trillion to $1 quadrillion worth of “things” that can get bought or sold at any time, $18 trillion isn’t that much.
Do you realize this means bitcoin will no longer be used as a currency? It will be a payment system. A peer-to-peer electronic cash system.
Imagine that.
Hope I was helpful,
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