Netizen brain time: Can Bitcoin really reach $1 million?

2020 is coming, and high-profile bitcoin supporter John McAfee has repeatedly stressed that bitcoin prices will reach $1 million by the end of next year.

Bitcoin

Because of the enthusiasm for shouting slogans in the circle, most people laugh at similar views. But recently on Reddit, someone asked questions and wanted to know what netizens think about Bitcoin's breakthrough of $1 million. This old topic, which has never been seriously discussed, has attracted many netizens, and there have been more than two hundred responses in an instant.

Viewpoint 1: The speed of legal currency is increasing to catch up with Mount Everest.

Among the netizens who have posted many messages, the most common point is that with the continuous depreciation of the French currency, today's $1 million and the purchasing power of $1 million in decades are completely different.

Some even say that the rate of issuance of legal currency is faster than Everest, which is "longer" every year.

"Why do you think that $10 million is still a huge sum after 30 years? The rate of money issuance is faster than Everest!"

According to netizen King_Yautja analysis, the premise of one million US dollars is that while the value of bitcoin is growing, the value of the dollar continues to fall.

"Once this happens, it will be based on the following two premises:

1. Bitcoin value growth; 2. Dollar value fell.

The US dollar (like all legal tenders) deliberately depreciates every year, so a bitcoin will eventually be worth $1 million in the case of continued inflation, although you may pay $500 for a bread.

Another premise is that bitcoin prices will rise as more people use bitcoin. The supply is fixed, so the more users, the easier it is to dilute each person's currency. This will make the price rise.

I think that through the combination of these two methods, Bitcoin will eventually reach $1 million. Others' views are more metaphysical: as long as everyone thinks this way, they will be able to achieve it.

"If there are enough people to think like this, it will become a self-fulfilling prophecy."

Viewpoint 2: Bitcoin of $1 million is unlikely, which is determined by market rules.

As the value of Bitcoin continues to grow, more and more people see it as a hedging tool, so it is more often used to compare with gold. Netizen justinjustinian based on the analysis of gold market value, it is impossible to make $1 million in bitcoin. In his view, the highest "theoretical" value of Bitcoin is $300,000-400,000.

"(in terms of the purchasing power of the US dollar in 2019) Frankly speaking, the answer is no. The problem is not in bitcoin, but in the laws of the market.

People should think about why the market value of gold has not exceeded 20% of the global narrow money supply for so many years. We can conclude that only some people use money as a means of preservation, and almost none of them put money. They are all placed in the same asset class.

Based on the purchasing power of the US dollar in 2019, the $1 million bitcoin means a market capitalization of $21 trillion, accounting for about 50% of the world's narrow money supply. If gold has never reached half of this level, why do you think Bitcoin will be achieved? Where will these magical capital flows come from?

The theoretical maximum I can see is a range of $300,000 to $40,000, and even this can take a long time. Viewpoint 3: A bitcoin is a bitcoin, don't pull other pricing units

Another interesting point is that when everything is measured in Cong (the smallest unit of Bitcoin), Bitcoin can reach $1 million. But by that time, no one would care about the value of the currency of Bitcoin. A bitcoin is a bitcoin.

“Imagine that when Bitcoin was only 5 cents a decade ago, we asked the question: Will the price of Bitcoin reach $1,000? I can imagine all the negative responses.

In the past 10 years, has the dollar or the euro depreciated so much that Bitcoin has come to the right place today? impossible. I believe that most Bitcoin holders and investors know that the legal tender system is doomed to failure. World debt has not grown at a parabolic rate for one day. But when will the currency fail? This is the answer that bitcoin prices will reach $1 million or more.

But when this happens, everything will be valued by Satoshi due to market stability. No one will ask if bitcoin will rise from $1 million to $100 million. The dollar, the euro, and the yen are no longer important, and they won't even be part of the equation.

A bitcoin will always be worth only one bitcoin, no more and no less. Can Bitcoin cost reach $1 million? What do you think?