- This story was first published in LinkedIn on May 24, 2017 https://www.linkedin.com/pulse/bitcoin-only-usd-2250-deal-roberto-capodieci/
With the price (value?) of Bitcoin going up at rocket speed, each person should invest USD2k to buy one, as it will be worth more and more as time goes by. Yet, as of today, there are ONLY a little more than 16'000'000 (sixteen millions) bitcoins in circulation, 10% of them declared “lost” (i.e. they don’t move since 2012). Lost Bitcoin are also my fault as many years ago I have formatted an HDD with inside the private keys for about 300 Bitcoin — at the time worth nothing, now they would be worth more than half million dollars!
Once all the Bitcoin will be in circulation there will be 21'000'000 (21 million) of them minus those that are “lost”. As of today, if each person wants to buy and keep 10 bitcoin, there would be Bitcoin for only 1'400'000 people (1 million and 400 thousands people). That would satisfy the population of a medium sized city, while Bitcoins are collected by people from everywhere on our planet (a few billions potential buyers)!
Even without Bitcoin hoarders there are so little Bitcoin available, that will make it so scarse that having 0,0001 of a bitcoin will be worth a lot of money. This hoarding game has started, and people are now looking to invest and buy just 1 bitcoin. The risk? Losing USD2k, which isn’t a catastrophic event for many. The possible win? Well, being able to sell that 1 bitcoin for much much more than USD2k!
If there was an equal distribution, only 14 million people would be able to own a single Bitcoin, and thus less bitcoin are available in the market, more the price will go up! Those buying today at USD2k will probably sell at USD5k in a few months, those that buy them at USD5k at the end of the year will sell at USD10k a year later, and so on, until people will invest in owning just a small portion of a bitcoin, because a full bitcoin will be worth millions! That day (in 10 years?) only millionaires will be able to afford to buy 1 bitcoin! Now you can own one at only USD 2250! What a deal! :)
NOTE: I am not affiliated with any bitcoin exchange, I don’t sell bitcoin, and own less than 2 of them now. I am not a financial advisor, and this in not a financial advising article, I am just sharing my thoughts on bitcoin price. My suggestion is to never invest in Bitcoin what you are not ready to lose.
EDIT: It is only 2 days that I posted this article, and…
I wrote this article 2 days ago. I am checking the price (value?) of BTC now: USD 2778 by conservative Google (many exchanges are trading it for more than USD 3k). On one thing I was right two days ago: a BTC for USD 2'250 was really an amazing deal!!! If my article inspired someone to buy one single Bitcoin, this person has made USD500 in two days (and maybe 1h of work). I have gut feelings that BTC will reach USD5k soon, and 10k in not so long time…
DISCLAIMER: I am not a financial advisor, do not take this article as an advise on financial choices. As a friend I can only say “invest only what you are ready to lose!”