Bitcoin Is Going To Hit $1 Million!
Can Bitcoin Hit Million?
Bitcoin hits $ 45,000 just one month after crossing $ 20,000! The rise in Bitcoin price will be faster after Elon Musk’s investment. That means the price of Bitcoin will continue to rise. But how long will it increase? Million-dollar?
If you're new to Bitcoin or know a little bit then it's time to increase your knowledge on Bitcoin and prove your expertise in your next friends chat or financial meetings.
What is Bitcoin?
Bitcoin often described as a cryptocurrency, a virtual currency, or a digital currency - is a type of money that is completely virtual.
It’s like an online version of cash. You can use it to buy products and services, but not many shops accept Bitcoin yet and some countries have banned it altogether.
Supply of Bitcoin
Only 21 million Bitcoins are possible to be mined. That means supply is limited. That’s why Bitcoin is compared to gold. As the gold supply will run out of withdrawals from the mine. Might be lifting golds buy sell. But there won’t be a chance for a new supply. The concept of Bitcoin is the same. Bitcoin price is rising more than gold price because Bitcoin supply is much less!
Algorithm solutions have to 'withdraw' Bitcoin, known as bitcoin mining. And if the current rate continues, it will take up to the year 2140 to mine 21 million Bitcoins.
If we have a little idea about bitcoin mining, we will understand whether its price will increase or decrease. Bitcoin mining is verifying the transaction of Bitcoin. Miners get Bitcoin as a reward through this verify. It takes 10 minutes to verify 1 block of Bitcoin. After verification, this reward is distributed among all miners around the world. In the beginning, there were 50 Bitcoins per block. Then it was 25 then it came in 12.5 and in 2020 it only 6.5 Bitcoin per block. That means the rewards of mining are decreasing day by day. This will slowly decrease the number of miners and the supply of Bitcoin will also decrease!
What Makes Bitcoin Price Go Up or Down?
The basic of the market is – stock price can only go up if there are more buyers than sellers and stock price can only go down if there are more sellers than buyers.
If the currently traded price of Bitcoin is $100 (As an example) but if there is no one is willing to sell their shares for $100, then buyers may bid higher at $101. Again when all seller has sold their Bitcoin at $101 and if there are more buyers, bidding can go higher to $102.
Another important factor that is driving up the price of Bitcoin is its supply problem.
There is only a limited amount of Bitcoin available (21 Million). Although Bitcoin can be mined, And nearly 18.5 Bitcoin is mined also, there are very few who are doing that and all other investors depend on the supply.
More Than Million?
The price depends on supply and demand. If only the current millionaires of the world tried to own 1 BTC each, there’s no way they could all get one of the 21 million Bitcoins, so a bidding war would ensure resulting million-dollar bitcoins to the winners.
If the supply of Bitcoin decreases, the price will continue to rise naturally. Bitcoin will be more expensive than the price of gold or diamond! And since the number of Bitcoins is also limited, the supply will soon be zero. And those who own Bitcoin when it becomes zero can take it to a skyrocketing price if they want. That’s a lot more than a million dollars. That’s why investors around the world like Elon Musk are investing in Bitcoin. And yes, soon after its supplies become zero it’ll cost more than a million-dollar to own a Bitcoin.
So you don’t have to be an economist for this particular question. Either bitcoin has a great future as some sort of global world currency or at least gold replacement, and the price will eventually reach way over $1 Million, or it will fail to get there for one reason or another and be worth very little, maybe a few bucks one day.