Why shouldn't you measure your wealth in dollars anymore?
The dollar today is no longer what it was; it loses part of its real value every year due to inflation and the printing of more money. If you think that Bitcoin or digital currencies are just a speculative tool.
So listen to this: There are those who set their long-term Bitcoin price target not against the dollar, but against each Bitcoin's share of global GDP.
The equation that will change the way you think:
Bitcoin's goal = global GDP ÷ 21 million (the final number of Bitcoins).
What does this equation mean?
✔️ Global GDP is the total value of all goods and services produced in the world in one year.
✔️ Bitcoin is a limited digital currency, with no more than 21 million units to be produced.
🔴And simply put, for example:
Imagine that global output is a "big cake," and Bitcoin is a limited number of "slices" that can be divided among this cake. As the value of the cake (global output) increases, the value of each slice (Bitcoin) increases.
Numbers speak:
Expected global output in 2025 = 110 trillion dollars
After 20 years (optimistic estimate) = 200 trillion dollars
Where each Bitcoin's share (200 trillion ÷ 21 million) = 9.52 million dollars per Bitcoin
If we take a margin of error ±50%:
The minimum price of Bitcoin ≈ 4.76 million dollars
The maximum price of Bitcoin ≈ 14.29 million dollars
How does inflation affect Bitcoin?
1️⃣Bitcoin is limited in supply (only 21 million), making it resistant to inflation. It cannot be "printed" like paper currencies.
2️⃣With ongoing inflation and money printing, the dollar becomes less valuable, making Bitcoin more attractive as a means to preserve wealth.
The impact of economic growth on Bitcoin
1️⃣As the global economy grows and the value of GDP increases, the value of Bitcoin also rises, as it represents a fixed share of that output.
2️⃣ In the past, gold was the "hard money" that preserved value. Today, Bitcoin competes with gold because it is limited in supply and easy to transfer and trade.
#Future_Predictions
If inflation continues at 5% annually, and economic growth at 2% annually, then global output in dollars after 20 years could reach 425 trillion dollars. This means Bitcoin could reach a value of 20 million dollars per unit, with a margin of error ±50%.
A simple example to illustrate the idea
Imagine that you have 21 pieces of gold, and all the people in the world want to buy these pieces. The more people there are and the more wealth they accumulate, the more valuable each piece of gold becomes. The same idea applies to Bitcoin, but the difference is that Bitcoin is digital and can be easily traded online.
Why is Bitcoin the future option compared to gold and paper currencies?
1️⃣Limited supply: Bitcoin will always remain at 21 million units only, no more can be produced.
2️⃣It cannot be counterfeited or printed.
3️⃣A transparent and decentralized system.
4️⃣Ease of purchasing and trading globally without intermediaries.
Is there an exaggeration in this vision? And why is it important for you as a trader?
This theoretical study assumes Bitcoin continues to be an accepted global financial asset, and the inflation of paper currencies continues unabated.
This growth may be delayed, or the path may change based on the policies and regulations of countries, or even the introduction of new technologies.
But the most important:
-Every year that Bitcoin establishes its position increases confidence in its future.
-More large investors and institutions enter the market annually.
-Bitcoin has become a hedge not only for individuals but also for economies and countries.
Imagine that one Bitcoin could someday be worth millions of dollars, will you be among those who missed the opportunity?
Start understanding global financial transformations today and don't wait until the variables are out of your control.
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