The dollar today is no longer what it used to be; it loses part of its real value every year due to inflation and the printing of more money. If you think that Bitcoin or cryptocurrencies are just a speculative tool.
Listen to this: There are those who set their long-term Bitcoin price target not against the dollar, but against the share of each Bitcoin of the global GDP.
The equation that will change the way you think:
Bitcoin's target = global GDP ÷ 21 million (final number of Bitcoins).
What does this equation mean?
✔️ The global GDP is the total value of all goods and services produced in the world within a year.
✔️ Bitcoin is a limited digital currency, where no more than 21 million units will be produced.
🔴And simply as an example:
Imagine that the global GDP is a 'big cake', and Bitcoin is a limited number of 'slices' that can be divided from this cake. The more the cake's value (global GDP) increases, the more the value of each slice (Bitcoin) increases.
The numbers speak:
Expected global GDP in 2025 = 110 trillion dollars
After 20 years (optimistic estimate) = 200 trillion dollars
Where the share of each Bitcoin (200 trillion ÷ 21 million) = 9.52 million dollars per Bitcoin
If we take a margin of error of ±50%:
The minimum price of Bitcoin ≈ 4.76 million dollars
The upper limit of Bitcoin's price ≈ 14.29 million dollars
How does inflation affect Bitcoin?
1️⃣Bitcoin has a limited supply (only 21 million), making it resistant to inflation. It cannot be 'printed' like paper currencies.
2️⃣As inflation and money printing continue, the dollar becomes less valuable, making Bitcoin more attractive as a means of preserving wealth.
The impact of economic growth on Bitcoin
1️⃣The more the global economy grows and the value of the GDP increases, the more valuable Bitcoin becomes, as it represents a fixed share of this output.
2️⃣In the past, gold was the 'hard money' that preserved value. Today, Bitcoin competes with gold because it has a limited supply and is easy to transport and trade.
#Future_Predictions
If inflation continues at a rate of 5% per year, and economic growth at a rate of 2% per year, then the global GDP in dollars after 20 years could reach 425 trillion dollars. This means that Bitcoin could reach a value of 20 million dollars per unit, with a margin of error of ±50%.
A simple example to illustrate the idea
Imagine you have 21 pieces of gold, and all the people in the world want to buy these pieces. The more people and their wealth increase, 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 option of the future compared to gold and paper currencies?
1️⃣Limited supply: Bitcoin will always remain only 21 million units, no more can be produced.
2️⃣It cannot be counterfeited or printed.
3️⃣A transparent and decentralized system.
4️⃣Ease of buying and trading globally without an intermediary.
Is there an exaggeration in this vision? And what does it mean for you as a trader?
This theoretical study assumes that Bitcoin continues as an accepted global financial asset, and that the inflation of paper currencies continues unabated.
This growth may be delayed or the path may change based on countries' policies and regulations, or even the introduction of new technologies to the arena.
But more importantly:
-Every year Bitcoin proves its position, it increases confidence in its future.
-More large investors and institutions are entering the market every year.
-Bitcoin has become a hedge not only for individuals but also for economies and countries.
Imagine that one Bitcoin might 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 changes are out of your control.
Share your opinion: Do you think Bitcoin can become the 'gold of this era' or are there greater challenges ahead?
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