In the new technological era, Bitcoin is the perfect digital gold, serving as a tool to counteract fiat currency inflation and a store of value. Its ultimate role is to protect wealth from the relentless harvesting of fiat currency inflation. With its maturation, the value-bearing system of human society will be complete. It can fully absorb inflation, allowing fiat currency users to completely escape the disadvantaged position of inequality with the right to mint currency.
The process of Bitcoin price increase and the principle of wealth protection are as follows:
Currently, the total amount of fiat currency in the world is about $100 trillion, and each of the more than 20 million Bitcoins would need to reach $5 million to be equivalent to the total amount of fiat currency. After that, as fiat currency continues to inflate and depreciate, the price of Bitcoin will rise correspondingly to protect wealth from diminishing.
If we equate the total global wealth of $550 trillion with the price of Bitcoin, its price would need to rise to over $20 million each to reach a relatively stable target.
Therefore, even if the price of Bitcoin in the future reaches a price equivalent to global fiat currency or wealth, purchasing and holding it will not be a loss for people. It will continue to appreciate unless fiat currency stops inflating, which it will not. Thus, high-priced Bitcoin transactions will still be active in the future.
Human understanding of Bitcoin is becoming clearer, and the consensus on its property as digital gold will become more widespread and solid.
Therefore, before Bitcoin's market value reaches the aforementioned equivalent scale, in the next ten to twenty years, its price will soar, driven by strong internal logic!
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