What is the value of Bitcoin? How much will it rise in the future

To understand the value of Bitcoin, we can first answer a few classic soul-searching questions: What problems does currency solve? Why is gold so valuable? How does finance solve problems? What are currencies used for now? What problems do they solve? What problems do Bitcoin and Ethereum solve respectively?

The following is my personal understanding of the above questions: Thousands of years ago, when there was no currency, if one person wanted to exchange something with another, he had to use barter. For example, I have 10 axes here, you have 10 cows, and I have 2 axes that are idle and I want to exchange them for your two cows. It happens that you also need axes, so the deal is done. If this axe master wants to exchange for more resources, it will be embarrassing, because not everyone is short of axes. At this time, gold shines. Everyone is willing to exchange various items for this metal, so gold is so valuable. Why can gold stand out and become a hard currency? Because it has the following characteristics: rare, limited, stable, permanent, portable, and divisible, all of which hit the G-spot of human nature.        

Let’s talk about the nature of assets. Money has become a commodity, which is called capital. If money is regarded as a scarce resource, it can also produce various financial products. Pricing risks is called insurance and futures, pricing companies is called stocks or bonds, and pricing houses is called real estate. These priced scarce resources have become assets in our understanding.

In the last wave of Internet boom, money flowed out of the Federal Reserve, went to Wall Street, and spread to the world. Why can many Internet companies go public without making money? Because there is a lot of money in the market, which is actually a game of passing the buck. This is the reason why junk Internet concept stocks have plummeted in the past two years.        

The emergence of Bitcoin and blockchain technology is to solve the drawbacks of sovereign currencies. Bitcoin is a peer-to-peer electronic payment system, and Ethereum is a platform tool that applies this financial concept to other systems. If Bitcoin is compared to gold, when the total market value of Bitcoin is equal to the total market value of gold, the price of Bitcoin will reach $500,000 per Bitcoin. #币安上线NEIRO #美国大选如何影响加密产业？ #加密市场反弹 #美联储利率决议公布在即