Could bitcoin rise to $1 million?
Theoretically, yes, although consider what that would mean. As of this writing, there are approximately 16.35 million bitcoins in circulation. A price of $1 million each would translate to a total value of $16.35 trillion for all of the bitcoins in existence. Currently, the total value of bitcoin is about $39 billion.
Meanwhile, the U.S. money supply (M2), which includes all physical currency, demand deposits, savings accounts, and money market accounts, is about $13.5 trillion. And this is just one country's money supply -- bitcoin, on the other hand, is a truly international currency. In fact, U.S.-based transactions are one of the smaller sources of bitcoin volume. With that in mind, consider that the global M2 money supply is estimated to be about $68.7 trillion, expressed in U.S. dollars.
My point is that while bitcoin would have to work a little to become a major player in the global currency market, the total bitcoin market value at $1 million each isn't an outlandish amount of money.
Also, consider that going from the current price of around $2,400 to $1 million would represent a rather mild gain when compared to the gains of the past seven years. In fact, $100 worth of bitcoin purchased seven years ago, when a bitcoin was worth approximately $0.003, would be worth roughly $80 million today, a gain of about 800,000%. Meanwhile, a jump from $2,400 to $1 million would represent a gain of "only" 42,000%.
What would need to happen?
Simply put, widespread mainstream acceptance is what would need to happen before bitcoin could reach the $1 million level, or anything close to it.
However, there are some obstacles preventing the mass market from fully embracing the online currency. Volatility is a big one -- bitcoin plunged by more than 50% on three separate occasions between 2011 and 2014 and is still much more volatile than the currencies of developed nations. There is a solid case to be made that the reasons for prior crashes no longer apply, but volatility is certainly still an issue.
In addition, bitcoin is widely used for illegal activities, such as drug transactions and ransomware attacks due to its anonymous nature.
Even so, there are many in the industry that are optimistic. For example, Wences Casares, a member of PayPal's board of directors and CEO of bitcoin wallet Xapo notably predicted that bitcoin will hit $1 million within 10 years.
Others have even gone so far as to say that bitcoin could eventually replace gold as the financial "safe haven" or become a major reserve currency.
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://www.fool.com/investing/2017/05/25/could-the-price-of-bitcoin-go-to-1-million.aspx
Great job nice information
Bitcoin will probably not have to work much because FIAT currency is going to fail in droves in the next few years as the CENTRAL BANKING policy of MOAR stimulus will unleash insane inflation. FIAT has destined itself to the fate of all others before it. 100% of fiat currencies fail because they simply cannot control themselves and print to oblivion. That is where we are at today.
The result? People are already flocking to Bitcoin. Every single time there is a disaster of some sort, people are moving to Bitcoin. Brexit? No problem... buy Bitcoin. Korea launches a missle? Buy Bitcoin. Trump becomes president? Buy Bitcoin. Faith is being lost. If you can't see it then you might want to make sure you are not a frog in a pot of boiling water because it's getting awful hot.
Bitcoin is an emerging technology. It's going to change how the world works. Given that 4% own 95% of all Bitcoin... not necessarily for the better. Given that the sixth mass extinction is already underway, there are no guarantees we'll even be around to witness it.
One thing is certain: Central Banking policies of endless QE are doomed to failure and fiat currency will end as we know it. The social unrest, the wealth inequality, the inflation in the markets, and the migration to Bitcoin prove that it's already happening.