The concept of 'price logic' will gradually penetrate the consciousness of participants in the cryptocurrency market. This logic states that any virtual currency must have a reasonable price that conforms to a certain mathematical equation. Price logic is the ultimate judgment of the cryptocurrency market. Bitcoin must first accept this judgment; only with clear price logic will its prospects become clear, leading to a less tortuous price process. Price logic will also reveal the true nature of all altcoins, including leading ones like Ethereum, resulting in a return to rational prices.
Bitcoin is the perfect digital gold of humanity's new technological era, and its mission is to take over the role of physical gold as a practical tool and value maintainer that fully counters the inflation of fiat currency. Its ultimate role is to protect people's wealth from the relentless harvesting of fiat currency inflation. It is also through its maturity that the value-bearing system of human society becomes sound. Bitcoin can effectively absorb any bubbles of inflation, allowing users of fiat currency to completely break free from the disadvantaged position of inequality in minting rights. Therefore, it is a reasonable counterpart to the minting rights.
Physical gold is actually a crude version of the role that Bitcoin is meant to assume. Its disadvantages, such as difficulty in carrying, dividing, storing, circulating, unlimited production, and inability to preserve value precisely, prevent it from fully serving as a means for humanity to widely combat the endless inflation of fiat currency and serve as a store of value. Its crude nature and incomplete functions also make it difficult for inexperienced individuals to recognize the true need for Bitcoin, leading to many misunderstandings about it. This has resulted in significant price fluctuations during its growth period. However, humanity truly needs a practical tool that can perfectly balance fiat currency inflation and precisely maintain value without loss. New technology has given birth to such a refined and practical tool in human history, fully meeting the global public's need for personal wealth protection.
Bitcoin is an upgrade and replacement for the functions of physical gold, similar to how cars replaced horse-drawn carriages. It is by no means an enemy of fiat currency; like physical gold, it poses no harm to any country or society, only promoting wealth equality and fairness in the monetary system, contributing to financial system stability, reducing social instability factors, and enhancing human civilization. Therefore, it is important to have a correct understanding of Bitcoin. The proliferation of other virtual currencies, which have arisen amid the confusion surrounding the application of blockchain technology, is not beneficial to humanity.
As humanity gradually recognizes the complete nature of the monetary system, and due to the instinctive pursuit of a sound value-bearing system, Bitcoin cannot ultimately fail!
The process of Bitcoin's price increase and the principle of a universally applicable and precise wealth protection method is as follows:
Currently, the total amount of fiat currency globally is about 100 trillion US dollars, and each of the more than 20 million bitcoins must reach 5 million US dollars to equate to the total amount of global fiat currency. After that, as fiat currency continues to inflate, the price of Bitcoin will rise in equivalence, thus protecting wealth from depreciation.
If we equate the global wealth total of 550 trillion US dollars with Bitcoin's price, it would need to rise to over 20 million US dollars per coin to reach a relatively stable target.
Therefore, even if Bitcoin's price in the future reaches an equivalent value to global fiat currency or wealth, purchasing and storing it at that time will still be advantageous. It will ultimately be a reflector of global wealth and will continue to appreciate, unless fiat currency ceases to inflate, which it will not. With perpetual inflation of fiat currency, Bitcoin will appreciate alongside it. Thus, high-priced Bitcoin transactions will remain active in the future. At that time, Bitcoin's price will be closely tied to the equivalent value of global fiat currency or wealth, and the significant volatility of its growth period will no longer exist.
Human understanding of Bitcoin is becoming increasingly clear, and the consensus on its properties as practical digital gold will become more widespread and solid. More and more mainstream forces globally are participating in promoting the development of Bitcoin.
Therefore, before Bitcoin reaches the aforementioned goals, in the next one to two decades, its price will soar with strong internal logic!
Bitcoin is the most reliable application of blockchain technology and virtual currency. The others are mostly impractical and almost entirely speculative.
