Do you own any Bitcoin yet? How much should you own? Will Bitcoin be valuable in the future? Will it be the currency of choice for global payments in the future? These are the common questions around Bitcoin and I will attempt to answer those questions in this article.
I am not a Bitcoin expert, but rather an enthusiast who believes in the long term advantages of Bitcoin.
Why should you own Bitcoin? Bitcoin has been around for more than 10 years and it has been declared dead by the mainstream media over 300 times already. When mainstream media gives so much attention to something, you need to realise that Bitcoin is more than a threat to the conventional traditional financial systems. As the infamous saying goes ‘First they ignore you. Then they laugh at you. Then they attack you. Then they join you and you win.’ This is becoming such a true statement for Bitcoin already.
Bitcoin is unlike conventional money and cannot simply be printed when a government runs out of money. There will only ever be 21 Million Bitcoin in the world and the final Bitcoin will come into existence in 2140. Eventually Bitcoin will be the scarcest commodity and currency in the world.
Bitcoin is unregulated and free from any government involvement and this makes the people in authority nervous as it threatens their very existence; if they cannot control your money, how are they going to control you?
How much Bitcoin should you own? As many as possible is the correct answer, but not everyone has enough to buy one Bitcoin which is currently valued at over $8500 per Bitcoin. Fortunately Bitcoin is digital and a single Bitcoin consists of 100,000,000 Satoshis or 1,000,000 Bits. So you could own as little as 10 Satoshi or 1 Bit.
Currently if you own 0.02 Bitcoin (which is equivalent to 20,000 Bits or 2 Million Satoshis) at a current value of just over $ 170, you would be better positioned than 99% of the world to take advantage of Bitcoin’s future growth.
What will the value of Bitcoin be in the future? There are many predictions and some people believe that Bitcoin will ultimately reach a value of $1 Million per Bitcoin and that could be possible in the next 21 Years until the last Bitcoin is mined. Shorter term predictions have Bitcoin at around $100,000 per Bitcoin by 2022.
Therefore the 0.02 Bitcoin you own today at a value of $170 could be worth $2000 in 2020 or ultimately could be worth $20000 in 20 years’ time. Then the next question should be: Why would you only want to earn 0.02 Bitcoin?
Will Bitcoin become a Global Currency that is the common choice of everyone? Yes it has the potential as it does what Gold could never do, and that is being able to be divided into small portions and used to send small digital payments. The fees on Bitcoin transactions are a fraction of what the banks charge and the speed of transfer internationally is within minutes as opposed to a bank that takes a few hours to a few days. As an example, on October 16 2019, a Bitcoin user moved 29,999 BTC worth $194 million with a $11 fee, a transaction which with banks would cost tens of thousands of dollars.
When people realise the advantages the Bitcoin then the rate of adoption and the demand will increase, thus pushing the price even higher. Ultimately predictions could be very low considering the real potential of Bitcoin.