(Paraphased excerpt, commentary and musings by Boston C from an article by Vijay Boyapati)
Bitcoin is begining to come into being...
...and transitioning into a store-of-value. It is a non-sovereign monetary good and will indeed become Global money in the future. The adoption of Bitcoin is lighting up the path to it's bright future.
Satoshi Nakamoto 2010 quote:
"If you imagine it being used for some fraction of world commerce, then there’s only going to be 21 million coins for the whole world, so it would be worth much more per unit."
An equally compelling quote is from cryptographer Hal Finney, the recipient of the first bitcoins sent by Nakamoto.
"[I]magine that Bitcoin is successful and becomes the dominant payment system in use throughout the world. Then the total value of the currency should be equal to the total value of all the wealth in the world. Current estimates of total worldwide household wealth that I have found range from $100 trillion to $300 trillion. With 20 million coins, that gives each coin a value of about $10 million."
That quote, my esteemed ATSTT community, gets Boston C really, really excited!
Start stacking those SATS!
In terms of asset value, even if Bitcoin were not to become global money and simply competes with gold as a non-sovereign store of value, it's obviously undervalued and to be desired and accumulated. The crypto community calls that stacking SATS or Satoshi's! 100 million Satoshi's will always equal 1 Bitcoin as a reminder.
The market capitalization of above-ground gold supply (approximately 8 trillion dollars) to a maximum Bitcoin supply of 21 million coins gives a value of approximately $380,000 per bitcoin. This is where one's intuition needs some fire in the belly!
Bitcoin is superior to gold except for established history. As time passes and the Lindy effect (go look it up) takes hold, history will no longer be a competitive advantage for gold. Therefore, Boston C says,
"Bitcoin will surpass gold’s market capitalization and is going to change all of our futures!"
$100,000 and $200,000 is Inevitable
A large fraction of gold’s capitalization comes from central banks holding it as a store of value. For Bitcoin to achieve or surpass gold’s capitalization, nation-states will need to come along. Will Western democracies participate in the ownership of Bitcoin? Many say ding-dong dictatorships and kleptocracies will be the first to enter into the Bitcoin money energy-system.
Even if no nation-state removes it's self-inflicted cognitive dissonance, as a non-sovereign store of value used only by retail and institutional investors, Bitcoin is extremely early in its adoption curve — the so-called “early majority” are now jumping into the crypto eco-system, while the late majority and laggards are still years away from entering. With ever-increasing participation from retail and institutional investors, a price level between $100,000 and $200,000 is inevitable in Boston C's opinion!
Owning bitcoins is one of the few asymmetric hedges that the entire world can now participate in. Bitcoin's size and potential possibility is limited only by the desire of the world’s citizenry to protect their savings from government economic corruption.
A bright light on the horizon!
Bitcoin rose like a phoenix from the ashes out of the 2008 global financial blood-bath — a catastrophe brought on by deliberate corrupt policies of central banks like the Fed, and it's rise as a non-sovereign store of value will have geopolitical consequences. Global reserve currencies will force nation-states from inflation into direct taxation. Not a good desired outcome. States will shrink in size due to the pain of transitioning to taxation as their means of funding. Global trade will be settled in a way that satisfies Charles de Gaulle’s aspiration that no nation should have privilege over any other.
Bitcoin is a path made available to all, and to all a bright light!
Boston C, Up and Away!
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