Many have gotten rather excited with the prospect - introduced by various long-term price projections - of Bitcoin reaching a value of $1,000,000 USD.
However, accompanying several of these projections - whether directly or consequent of the core economic dynamics validating the possibility - is also the presupposition/prediction that the US dollar will experience a crash.
Thus, while a numerical valuation of one million dollars sounds great at this point - from our current frame of reference with the USD valuation where it’s at now - the reality of such an outcome might not be as potentially worthy of salivating over, in consideration that $1,000,000 then might not be nearly as high of a figure as it is now, given the reduced purchasing power of the USD...
Let’s say there is a crash of the US economy, and the USD loses 90% of its value...
Today, we might be dreaming of buying our Lambo and dream home when BTC hits a million. But, when/if that time comes, one BTC will only actually be the equivalent of $10,000 in today’s money.
So, what really are we getting so excited about...?
And sure enough, there’s also the possibility that the USD could crash even harder, losing, for example, 99% of its value. In such a case, one Bitcoin worth $1,000,000 would only actually be worth the equivalent of $1000 in today’s money. And considering that BTC is priced at $6400 now, that’d be an even worse outcome - regardless of the allure of the “one million dollars” prospect.
Moral of the story?
Maybe it’s that we shouldn’t be too quick to think that investing in crypto - even if it is destined to ascend in financial-economic dominance and value - is going to be our easy road to riches.
That even if we do end up profiting, it might be nowhere near as much as our egos hope.
And that in spite of that very-feasible possibility, it remains ever-important to keep focused in service - not expecting our riches to come by sitting on our asses while market forces do the work, but continuing expanding our own capacities for creating value- persisting in investing our time and energy into growing the foundations of true wealth: the purpose, passion, talent, knowledge, contacts, and character with which we may leverage our & others’ efforts to immunize ourselves against economic fluctuations through the capability to create opportunity no matter the weather.
(Though should our crypto investments moon such that we may all retire and buy Lambos soon, that’s perfectly welcome and cool, too. 😎)