The numbers make sense, but what do the facts say?
The value of Bitcoin ( BTC ) lies largely in its limited supply of 21 million coins. That means, if you own a small part, you could get a considerable amount of wealth.
Provided that it is accepted worldwide
„There is only 0.0027 BTC per person with 7 billion people currently,“ said trader, Bitcoin proponent and Twitter celebrity Davincij15 in a tweet on September 22nd . He put the total population of the world in relation to the total supply of Bitcoin. Davincij15 is known for his early Bitcoin commentaries, dating back to 2011.
„If you HODL 0.28 BTC and Bitcoin is the world reserve currency, you are in the top 1 percent. So if you HODL 1 BTC, you may have 400x more than the average person (worst case scenario).“
The math behind the idea of Divincij15 is logical. But its scenario depends heavily on a few factors, most notably the global acceptance of Bitcoin. The coin’s market capitalization is currently around $ 194 billion. Gold, on the other hand, can have a market capitalization of 9 trillion. US dollars . Bitcoin has to grow considerably to reach the status of gold. For many people this is considered to be a proven store of value.
The US dollar is currently the world reserve currency with 1.98 trillion in circulation. US dollars, according to data from the US Federal Reserve. This number is a bit closer to Bitcoin’s market capitalization. However, factors other than just circulating supply also need to be considered. The actual numbers against the US dollar could be significantly higher .
Altcoins are another factor in this equation
When people invest in other crypto assets, money is diverted away from BTC. This makes it harder for the asset to become the world’s most popular option.
Still, Bitcoin garnered a lot of attention and growth in 2020. Mainstream giant MicroStrategy also recently invested .