It's hard to imagine 100,000 dollars each; many people will ask why?
Why does a decentralized currency, which only has value as a store of value and not much use value, rise to 100,000 dollars each? Let me share my viewpoint. In fact, many people's understanding of Bitcoin is a bit shallow. They still talk about decentralization, distributed ledger, and so on, which is the weakest layer.
Second, some think Bitcoin will replace the dollar because the dollar's credibility is low; thus, a currency like Bitcoin, which won't be overissued and is decentralized, has a limited supply, so its value is high. I think that’s also incorrect. I believe the real reason is that it has become a co-conspirator to the dollar. Many people think Bitcoin and the dollar are in opposition, but I think it's the opposite.
You see, the U.S. dollar's debt is now 35 trillion, right? Does the U.S. want to pay it off? Have they ever thought about repaying any debt? It's impossible, they can't pay it off, right? So what do they do at this point? You see how the U.S. has operated over the years? First, they pegged to gold, it should be the Bretton Woods system, right, saying the value of the dollar is tied to gold. Later, the Bretton Woods system collapsed, and everyone thought it was a scam, saying they all wanted gold from the U.S., but then found out they couldn't get the gold. Later, the U.S. president voluntarily said they wouldn't tie to gold anymore, so what did they tie to? To the world's blood, just like they tied to oil, and then the dollar was tied to oil, and oil had to be settled in dollars. Then, by pegging the dollar to oil, they spread their dollars all over the world.
Ah, now it seems like oil is also becoming unstable, and the tie to oil seems increasingly unreliable, but I can’t repay the debt; what should I do? The U.S. is deep in thought, and then suddenly realizes, look, virtual currency Bitcoin, right? The value of Bitcoin as the next digital asset that anchors the dollar, using it to absorb a large amount of U.S. debt and overissued currency, is very good, and there's nothing wrong with that.
So you see, companies in the U.S. like BlackRock, Grayscale, and the recently popular MicroStrategy are hoarding a lot of Bitcoin, right? So why do some Wall Street analysts say Bitcoin will be worth 1 million dollars each in the future? Many ordinary people think it's crazy, how could that be? What value does it have to be worth 1 million dollars each? Ten years ago, you needed 100 Bitcoins to buy a pizza, right? What’s the logic behind 1 million dollars? What’s the functional logic exactly? Don’t think about these functional logics, and don’t think about what it means to replace the dollar, don’t think about those; these logics are useless. The important thing is that it fulfills a function called a reservoir for the potential strategic reserves of the dollar. When you understand this point, when the 35 trillion in U.S. debt needs to be stored with Bitcoin, you will understand that 1 million dollars each is not expensive! Yes, this is equivalent to China's real estate.