Bitcoin To A Million?
This is something that caught my attention, not so much because of the forecast but, rather, because of who said it.
We see many projections for the price of Bitcoin. We know John McAfee is on record as saying Bitcoin at a million by the end of 2020. Also known is what he will do if it does not reach that level.
In an interview, IBM's VP of blockchain said he foresees Bitcoin being a million dollars at some point. That would put the Satoshi on par with this United States penny. It would also create a market of about $20 trillion providing the world with enough liquidity to ensure commerce could take place.
This is not a unique viewpoint. Twitter CEO Jack Dorsey also sees Bitcoin becoming the defacto currency that people use on the Internet, which in 10 years will be everywhere.
What is interesting is people who are involved in corporate mainstream development, like working for IBM, tend not to be involved in the speculation game. This shows how the justification is more than just financial, there is a technical basis.
IBM is one of the leading developers of blockchain. It is focusing upon the enterprise world which could be akin, on some levels, to selling snake oil. Some of what they are doing is little more than a database design. However, they are looking to expand out, even possibly into the Bitcoin world for development.
This would be a massive shot in the arm for the world of blockchain and cryptocurrency. While this might sound a bit outlandish, it is actually in keeping with a recent trend. We are seeing many traditional corporations spending big money for open source companies.
The aforementioned IBM is spending $34B for Red Hat. This is startling consider Red Hat is a provider of open source software.
I feel forecasts like this, from individuals who are involved in the corporate development, show the potential we are sitting upon. When you consider an ecosystem like Steem, if Bitcoin moves anywhere near this level, we will see STEEM skyrocket. This is not far-fetched to many on here who view the projected path for Steem as exponentially growing as more applications are added that, ultimately, entice users.
While we know there was a lot of hype surrounding this entire sector. The simple fact is the development is going to dictate the level of success. We are seeing a steady increase in the number of applications in the entire industry. Over time, I expect this to accelerate as more people are turned onto it.
Some suggest that it is a good idea to have at least one Bitcoin. That could be true if these forecasts are correct. However, having oneself a bit of STEEM is a good idea also. We could see numbers that make us all kick ourselves for not buying more at these levels.
For the full article about the forecast:
https://cointelegraph.com/news/bitcoin-will-hit-1-million-says-ibms-vp-of-blockchain-jesse-lund
If you found this article informative, please give an upvote and resteem.
I like to add to this Clif High's webbot hits showing bitcoin being used to settle trade deficits between countries.
Meaning, that bitcoin will be seriously up there in price.
I do not agree with that IBM chap about bitcoin being used everywhere, i feel by the time most people start getting into and using cryptos, that bitcoin will be priced out of their reach. That bitcoin transaction costs, even with lightening network will be too high for anything short of buying a car.
But, i do forsee litecoin and digibyte being used a lot.
I am more in the store of value camp myself.
I also do not believe there will be one currency used for transactions.
Litecoin is interesting especially considering they are pursuing privacy coins.
How would Bitcoin with the LN be to high to used to buy a car?
Lets say that fees stay pretty low, like 50 satoshi's / byte.
At 226 bytes per per transaction that's 11,300 satoshis.
Now, imagine that 1 satoshi = 1¢, that's $113 per transaction.
Which is ok if you are buying a car, but is not very good if you are buying a cup of coffee.
With more demand on the system, there would be higher fees, but there would be more people providing lightening networks... i don't see the transaction fees being lower (in satoshis) than today.
I kinda confused... your saying fees will be high bc satoshi will get more expensive? Why can't more digits be added? You can get sub/kilo/nano satoshis on the LN and if need be add more 0s to it on LN bc it easier to add 0's and be backwards compatible in LN.
Also if satoshi=1 cent, bitcoin are a huge success :)
This is known as unit bias. What happens when exchanges realize this and decide to sell bitcoin by the mBTC or the satoshi? One can still buy a satoshi very easily and it can still retain its value or go up unlike fiat that devalues over time.
A satoshi is the smallest current unit of bitcoin.
Since i can't imagine 0 transaction fees, then buying satoshis and having them transferred to an address would not be feasible.
Right now fees are low, but are still like 10,000 satoshis.
So, either bitcoin will be divided even smaller, or it will just be used by rich guys to do big transactions. And with the 1/3rd MB block size proposals, i believe that bitcoin will not divide smaller.
Satoshi units will be meant for when the price of bitcoin is very high, obviously. You can currently buy 100 mBTC for about 391 USD...
One doesn't have to only be stuck with buying whole bitcoins. In fact I've never bought a whole bitcoin at any given time.
unit-bias-fallacy-21-million-bitcoins-is-not-scarce
Not sure what you're trying to say here, but I agree with practically everything in your article. However, in bitcoin, scarcity isn't achieved by the 21 million units. That's not the digital scarcity problem that Satoshi Nakamoto was trying to solve. Scarcity was achieved when Satoshi solved the double spend problem by using hashes to confirm whether tampering had occurred against UTXO's (unspent transaction outputs). Everything else that is digital can be replicated which was the biggest problem with digital cash in the early days (such as egold and digicash). Chaining the blocks of transactions together with hashes verified their authenticity and POW insured their tamper resistance. This is what creates scarcity. The 21 million units is a relatively arbitrary value.
Yep. I'm just agreeing with you.
It's impossible to be priced out of Bitcoin.
It's very alarming that people think they can get priced out of Bitcoin though,
because of unit bias.
It would be a good next step for exchanges to swap bitcoin for mBTC units instead. One mBTC is about $4.00 USD right now.
Added to the fact who says their won't more zeros added? I'm pretty sure it can be soft forked in and/or used in the LN(which can update unit and still be compatible with old additions)
That 1/3 block size proposals is from the same guy who proposed POW change. Didn't happen did it :P
Luke is a special case...
If Steem had roughly the same market cap as Bitcoin (57 Billion) my upvote would be worth $80. Your upvote would be worth $393. Each Steem Power coin would have an upvote strength of one penny.
Is 57 billion really so outlandish? With Bitcoin at 20 trillion... not really.
Not to count chickens before they hatch, but exponential growth can go out of control very fast. We need to be ready for anything as it comes our way.
I think one day we will all be kicking ourselves and it won't be so bad as we all have Steem anyway. I think I would rather have the value of a Bitcoin in Steem as you can grow it organically. If Bitcoin hits those dizzying heights Steem will be holding a huge value as well.
IBM can have influence to make it more legitimate in the eyes of seriously large companies. The fact that they have bought Red Hat which promotes open source and have engaged with the Stellar Lumens blockchain for some projects makes you think how they can drive adoption with some initiatives.
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I cannot honestly ever see Bitcoin hitting $1 million per BTC. I know everyone wants it to happen and in trading circles (crypto and traditional markets) "self-fulfilling prophecies" are a real phenomenon. What's the catalyst, is it scarcity? is it adoption?
One of Bitcoin's biggest problems is nobody can decide if Bitcoin is a currency you use for day-to-day transactions or it is a store of value like a stock or bond that you buy and put away for 10 years? Some people say HODL, others say I want a way to pay my bills with BTC and buy groceries.
Maybe when the day comes that governments and councils accept BTC for bills, when banks accept BTC for mortgage repayments, when you can walk into a car dealership and send a deposit to a Bitcoin wallet and walk out with a new car, maybe we'll see its value increase. Right now, I cannot really see Bitcoin used beyond niche dApps and small-time retailers experimenting with the Lightning Network.
Nobody truly knows what the future holds for anything, so we'll see. I think anyone investing into Bitcoin based on the promise of it reaching $1 million one day are investing for the wrong reasons and will probably end up losing their investment.
In order for society to stay ahead of the techies and government we need to accumulate AMAP ASAP
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If this news is true more people get the level of being poor
One should always be a bit skeptical of centralized IT's interest in a technology. We don't want a "Google" to come along to monopolize and track every single transaction writing its own code to usurp the freedom aspects of bitcoin or steem. Some tech is being written right now for statist authority to convert open blockchains into a system of control (chain analysis for example). If they can buy out bitcoin core and insist on certain changes to the code that advantage the state, then it will be up to the educated enough to refuse to operate such adapted nodes (and the miners). The problem is that most people simply go along with whatever is available without thinking of the consequences of using a technology.
I see steem doing the same. In fact, I even see it surpassing Bitcoin. You know why? Because it's not just a currency. It's part of a social network, something that we can actually strive for achieving. And, having fun doing it. You don't see that often with Bitcoin. After all, the only way to get it? To either buy it, or waste tons and tons of electricity. We don't have that problem here. I vote for steem.
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