To The Moon Alice!
Using the information below as a reference point,
let’s do some rounding and truncating and assume the following:
- The total market capitalization of gold is $10T
- The total market capitalization of negative interest bonds is $10T
With 15M BTC in circulation, the current market capitalization of Bitcoin is around $10B. If (when?) Bitcoin eventually manages to steal just 10% of the market capitalization from each of those two assets, its market cap would balloon to $2T, resulting in a gain of 200X. Yepp, that’s “X” and not “%”.
Bitcoin’s current price per USD is around $750. Multiplying this price by 200 yields a new price of $150,000 per BTC.
Of course, the BTC price could collapse to $0 at any point in time. However, since its launch in 2009, it has been declared “dead” by various experts over 106 times – and still counting.
If you’ve got $750 of play money laying around, fuggedaboud searching for the next Amazon/Apple/Google/Netflix to invest in and hoping that the esteemed management of your new investment doesn’t fuck up for a decade. Consider doing the following instead:
- Opening an account on a reputable Bitcoin exchange (I use coinbase.com (USD-to-BTC exchange fee of 1%)).
- Buying 1 Bitcoin
- Becoming your own bank and immediately moving your 1 BTC out of your online exchange wallet and into your own PC-based wallet (I use Electrum), or mobile phone-based wallet (I use Blockchain), or hardware-based wallet (I use Trezor).
If BTC collapses or (more likely) you screw up taking full personal control over your BTC, your maximum loss will be $750. However, your upside is “to the moon Alice!“.