Why the bitcoin surge is not a bubble. Bitcoin has been around since 2009. It was, by design, made to only have 21,000,000 bitcoins at its maximum including all coins that have yet to be issued to miners who will maintain the blockchain network behind Bitcoin. 16M are already in use. The rest will be issued to miners for their work. So, in a sense, bitcoin is very rare. The designer, Satochi Nakamoto (maybe assumed name) laid out a plan that isn’t complete for 100 years.
How rare is Bitcoin? Think about this. There are 5.5 billion ounces of golden the world. There are 7.5 billion people in the world which works out to about 3/4 ounces of gold for every man woman and child on the planet. If gold is about $1325. these days, that equals about $1000 in gold per person. If the 21 million Bitcoins were to someday be as popular as gold in representing wealth, each person would have .0028 bitcoin. If .0028 bitcoin equals $1000, then a whole bitcoin would equal $375,000.00. Possible? xxxx xxxxx says bitcoin will be worth $100,000 by the end of 2018. This gives you some idea of bitcoin’s potential worth. Let’s say we were talking about US dollars. How many dollars are there in the world? Including cash and certificates of deposit, I’ve seen some estimates of 25 trillion dollars. That would be about $3333. per person on the planet. Today, bitcoin at its current value is worth about 88 billion dollars, about half the value of General Electric Corporation. Not bad for a startup. 🙂