Much of Bitcoin’s (BTC) value lies in its limited supply of 21 million coins. This means that if there is a mass adoption of cryptocurrencies, a small percentage can lead to significant wealth.
“There is only 0.0027 BTC for the current 7 billion people”, said the merchant, bitcoin evangelist and twitter personality, Davincij15, in a tweet on September 22, Indicates the total population of the world in relation to the total supply of Bitcoin. Davincij15 is known for his early comments on Bitcoin, from the beginning of the asset in 2011.
“If HODL (hold) is 0.28 BTC and Bitcoin is the world’s reserve currency, the value is 1%. Hence, HODLing 1 BTC means you can have 400 times more than the average person (worst case scenario).” .
The calculations behind the idea of Divincij15 are logically founded. Although your train of thought is highly dependent on a few factors, mainly the massive adoption of Bitcoin. The asset currently has a market capitalization of approximately $ 194 billion. Gold, on the other hand, has a market capitalization of $ 9 trillion. Bitcoin needs significant growth to achieve the same status as gold, an asset that most of the people in the world see Consolidated as a store of value over time.
The US dollar is currently the world’s reserve currency with an amount of 1.98 trillion US dollars in circulation. This comes from data from the US Federal Reserve, which is a little closer to Bitcoin’s market capitalization. However, in addition to circulating supply, there are other factors that affect numbers. The comparison of the corresponding real numbers to US dollars could be significantly higher.
Altcoins represent another setback in the equation. When people invest in other crypto assets, the money is siphoned off from BTC. This makes it difficult for the asset to achieve its goal of being the world’s most popular option.
Still, Bitcoin has attracted a lot of attention and growth in 2020. including an investment from conventional financial giant MicroStrategy.