Owning Bitcoin isn’t weird and only for the geeks anymore. Well … it still is … kind of, but during the last couple of years, the number of people who have started looking into the space have increased significantly. Already, several large corporations and asset managers have moved large parts of their savings into Bitcoin. A huge part of all Bitcoin-transactions are now done by professional financial parties – like investment companies, asset managers and funds. Every second of every day, half a million dollars worth of Bitcoin change hands. So, should one wait to see what happens, or should one get into the action and accuire a little piece of it all? Well, here’s a little input for your thought process:
How many Bitcoin exist?
In total, when all the Bitcoin is produced (mined), there will be exactly 21 million Bitcoin. There will never be more than that. That means that no central bank can decide to press a button to produce more Bitcoin, in case they should find the need for more currency … for instance to fund a new war, or some other typical thing that usually motivate them to start the press. In addition to this, at least 4 million Bitcoin is forever lost, which means that the total amount of Bitcoin will never surpass 17 million – probably it’s a lot lower.
According to Forbes, there are more than 2.000 dollar billionaires out there. If the 17 million Bitcoin were to be shared evenly among these richest people on the planet, they would end up with 8.500 Bitcoin each. Then there would be no Bitcoin for the rest of the 8 billion people walking the Earth, neither any for companies, banks, funds or anyone else. Considering that a Bitcoin costs about $19.000 at the moment, each of the 2.000 dollar billionaires would own Bitcoin for $161,5 million each.
On the other hand, if the 17 million Bitcoin were to be distributed evenly among all us 8 billion people, we would own 0,002125 Bitcoin each. Our total worth of Bitcoin would be just north of $40.
Yes, a Bitcoin can be divided into smaller parts. It’s built of Satoshis (named after he who invented Bitcoin, who called himself Satoshi Nakamoto – him/her/they – we donn’t really know who this was/is). There are 100 million Satoshis in a Bitcoin (just as there are 100 cents in a dollar). It is possible to buy 0,002125 Bitcoin and if you did, everyone else on the planet could own just as much Bitcoin as you. If you were to buy 1,7 Bitcoin, only (17.000.000 / 1,7 = 10.000.000 ) 9.999.999 others could own as much Bitcoin as you.
How much can/will a Bitcoin be worth?
Not too long ago, many experts predicted that the value of a Bitcoin could, or even most likely would, go to zero. Most of them have come to change their mind and now we learn that more and more of these experts have started investing in Bitcoin, which indicates that many more will wollow – which of course will puch the value higher.
For instance, many proclaim that Bitcoin is a better investment than gold. Predicted future valuation tend to be many times todays worth, as for example $400.000 by the year 2030, or $318.000 in 2021.
There are several arguments behind these predictions. One is the fact that central banks all over the World are printing new currency in high volumes, to offer support here and there. They find this to be necessary, due to the fact that many businesses are suffering, people are without work … all because of the lockdowns and restrictions put in play by governments in order to beat covid-19. The World Economic Forum (which is part of the same system as the World Health Organisation, the World Bank and the United Nations), have recently suggested that all people all over the World ought to have a guaranteed minimum wage, which means free money for not working. Many suggest that the whole pandemic is staged and that this has been the plan all along. These voices have been muted and erased from various social media platforms, such as Facebook, YouTube, LinkedIn and Twitter – in order to find this kind of information, one must actively search in places where government controlled agencies or companies cannot censor them.
Well, if the money printing continues and the number of workers and businesses continues to decrease, then the amount of produces products and services will also decrease. New currency is printed in order to give the population an income, but there is a decreased number of products and services to spend this currency on. Then what happens? Exactly, the prices will increase. More currency compete on a lower number of products and services, which naturally leads to increased prices. We can then see that a dollar, or an euro, woun’t pay for the amount of products and services that it used to. This might lead to the populations turn to their governments, asking for an increased salary, more stimulus and more aid. This results in even more currency being pumped into the economy, without any new products or services being produces, which again leads to even higher prices.
Imagine a currency where money printing is not possible – this is Bitcoin and this is what makes it so very different from the currencies used by all the nations today. Today, every Country can decide to print more currency, but one cannot print new Bitcoin – there is no way. As Countries continue to print more currency, it is a natural consequence that not only bread, cars and houses incease in price, but that the increase will go for everything that cannot simply be printed into existence – Bitcoin, too, will rise in value in such a World.
If a Bitcoin is worth $19.000 today and there are 100 million Satoshis in a Bitcoin, then a Satoshi is worth $0,00019. If a bread costs $2 today, it would cost 10.526 Satoshi. If Bitcoin was now at its right value, that would mean that a bread would cost 10.526 Satoshi for all time, unless one found better and more cost efficient ways to produce a bread (“The Industrial Revoluiton v2”). The reason would be that no more Bitcoin would be produced – there is no inflation in the currency … which makes it very different to the dollar, the euro and every other currency used in the World today.
However, Bitcoin found its woth yet – its purchasing power – and the reason is that so few has bought it yet. Let’s say that the “right” value of a Bitcoin is $500.000. If so, a bread valued $2 would cost 400 Satoshi.
If all Countries introduce a basic income, the price of a bread will soon become $3, $4, $5 and $10 – but it would remain at 400 Satoshi, since no new Bitcoin is printed.
The price of a Bitcoin is affected by many factors. One thing is that no more than 17 million Bitcoin will come into existence, while another is that still very few have exchanged any of their dollar and euro into Bitcoin. Basic salary, currency printing and a whole lot of other factors will play a role in the valuation of Bitcoin – thus we don’t yet know what the value of a Bitcoin will be – we will have to see how things play out.
How do I buy Bitcoin?
There are several ways to go about it. With Bitcoin, you receive a wallet (a crypto wallet). This is a code that you have to keep safe. If anyone else gets acces to your wallet, it’s like if you give them a duplicate of your VISA – they can empty your wallet. Because of this, there are solutions like Ledger, which is one of the absolute most trusted providers of secure crypto wallets. If you purchase one of their wallets, you can buy Bitcoin directly from the wallet.
Another way, is to open an account on a crypto exchange. A crypto exchange is just like another exchange, just that you can buy and sell cryptocurrencies instead of ordinary stocks or currencies. There are several great options, like Bitpanda and Binance. This way of purchasing Bitcoin may be easier, but even if you start out on a crypto exchange, you still ought to get hold of a socalled hard wallet, for instance by purchasing one from Ledger – for keeping your crypto safe and secured.
The same procedure works for both individuals and businesses.
What’s the risk?
As for all thing, the rist is that the investment can become worthless, or that you manage to loose it some way or another. In the old days, a gold digger be robbed, in more recent days, a pickpocket could steal your wallet and nowadays you can be looted when using your card in an ATM, online and in several other ways. It’s the same way with Bitcoin and other cryptocurrencies. If anyone get access to your secure codes, they can use and abuse them.
At the same time, there are numerous scams in the crypto space – just like there are scams in any other space involving valuables. We are offered worthless stocks, funds with high fees, subscriptions that’s not worht the price … we have to be present mentally when handling valuables, no matter if it’s Bitcoin, jewellery, stocks or whatever.
So, what’s the consequence of all this? As for all other investments, it goes for Bitcoin as well: Don’t invest more than you can loose. If you take on this approach, you’re safe. However, it woun’t take you places either. What characterizes people who manage to move up in life, is just that – they take risks. That doesn’t mean that they have to be reckless – there is a thing called a calculated risk.
If you enter into a new space and figure out that it’s worth more than the asking price, then you might have stumbled over an under valued asset – which means it might be a very good investment. If that’s the case, it might be a smart move to hit it hard. Some are better equipped than others, when it comes to sleeping through the night in such a setting. How you are put together, that’s up to you to figure out. Managing to sleep through the night should be a priority.
If any of the thoughts above should materialize, it could absolutely be spart to transfer some of your worth into Bitcoin – that goes both for your personal funds, but also for your business.
And, here it is: If you would want any assistance, just reach out and we’ll help you.
BINARY , CRYPTOCURRENCY, BITCOINS đź’Ą 