It’s not because the same people who backed Google and Twitter back in the day said so. It’s not because they just poured loads of money into Coinbase and other Bitcoin startups. It’s math.
The math is simple.
Right now, Bitcoin is worth about $700 ea. If 100 Times more people buy Bitcoin, even if we just go linear, each Bitcoin will be worth $70,000. If 140 Times more people use bitcoin, We will raise the value of each coin to about $100,000.
Technically, if you factor in speculation and media hype, all we need is about 30 Times more people to start using it than there are now, in the first quarter of 2014.
So we have three natural questions that pop up.
1. Since #Bitcoin is a tech product and all tech products become obsolete fast, won’t Bitcoin get hacked, destroyed, stole, ruined, or otherwise worthless in 1 year?
A: Not with friggin geniuses like Andresen upgrading it every fiber of his baddassness.
2. Even if the eventual total BTC number is capped at 21 Million, won’t the value of Bitcoin keep dropping as copy cat crypto currencies keep popping up?
A: The smartest computer science PhDs from MIT to Cal Tech were the first to mine Bitcoin. Each of them have up to thousands of bitcoin in their offline paper wallets. That said, what do you think are the chances they would let some late-comer clone devalue the coins they already own plus the ASICs they just bought for $12,000 each.
3. What are the chances 140 Times more people will start using Bitcoin this decade?
A: Over 9,000. See bandwagon. It’s growing every second. Last month, there was only one tweet every few hours.
Every day, there are more and more companies accepting it. They have to if they want to grow. This is especially true for online eCommerce stores. Have you ever tried to get a merchant account for your Magento web store to in another country? It’s a nightmare. The international bank fees are ridiculous. It takes about a week to get paid. The worst part is that international credit card payments have a 1 year or even 2 year charge back period. So your customer can just take your goods and wait 2 years to take back the money you got paid.
I’m wrong. There’s something even worse than that. If your average net profit is 3.9% after you cough up the international shipping costs so you can stay competitive with your competitors who actually live in the countries your customers are in, the fee to process each payment is about 3.5%. That means that 80% of your profit is going to the local bank. I’m not even going to go into international taxation.
Everybody who owns an ecommerce store and wants to sell internationally or just cut out their bank’s 3.5% merchant account fee or Paypal’s 3.2% fee will start accepting it. Have you seen how many ETSY and Magento Stores there are today?!
If you want to buy or sell Bitcoin with me. I’m in San Diego, Seattle, and Korea. — Robert Kim.