The third bitcoin halving, which is scheduled to take place in May 2020 has seen some lofty predictions on bitcoin prices. Billionaire bitcoin bull Tim Draper believes that the price of one bitcoin could rise to $250,000; Buffett’s Books founder Preston Pysh thinks that bitcoin could skyrocket to $300,000 after the halving; former Goldman Sachs GS hedge fund manager Raoul Pal predicts that the price of bitcoin to hit $1,000,000 within 3 years.
Bitcoin, as a construct outside existing financial systems, poses a potential solution to the fundamental problems with fiat money that have been created over the last 50 years.
If the use of Bitcoin as a means of payment becomes widespread worldwide, then we will be able to hope for a hyperbitcoinization of the world that would be the final phase in its mass adoption.
Bitcoin is a real revolution. It’s a multifaceted revolution that has been gaining momentum block after block for more than eleven years now. Once you really get a sense of what Bitcoin can do for the world, there is no turning back.
In this article I solidify the basis of the current S2F model by removing time and adding other assets (silver and gold) to the model. I call this new model the BTC S2F cross asset (S2FX) model.
Bitcoin is therefore the perfect antidote against the Cantillon Effect to which the decisions made by central banks and governments expose you.
In any case, Bitcoin is ready when you are. It won’t go away, and nobody will be able to stop you from acquiring some if you are ready to do so. That’s the beauty of Bitcoin: it will always be there for you, whether you make use of it or not.
Smart investors will use this new money to purchase hard assets, which serve as ‘hedges’ against the devaluing of currency – also known as inflation. When inflation causes fiat currencies to lose value, these hedges go up in value. Bitcoin is the biggest asset that features Quantitative Hardening events increasing its hardness over time.
Two hundred years ago the Bank of England was forced to confront some of the same questions it faces today: What is money? What should it be made of? What does it represent? And what should be done regarding the attendant problems of counterfeiting?
In 2120, singular bitcoin production now operates at a rate that we mortals struggle to match. >100 years are now needed to mine one bitcoin.