Bitcoin | USD - Long Term View
With all the charts I see on trading view very few people are planning well into the future or even looking at charts on larger time frames.
I wanted to share with you my thoughts for bitcoin and the future of crypto in general to give new traders a better understanding bitcoin in general.
The bitcoin network just reached 100 100-quintillion hashes and is expected to increases with that same amount every 2-3 weeks.
Bitcoin is a cryptocurrency which isn't managed by a bank or agency but in which transactions are recorded in the blockchain that is public and contains records as such miners are required to secure the ledger and to process the transactions. At this point in time the bitcoin network has more computing power than all the super-computers in the world and as such provides extensive security to the system.
So where dose the bitcoin value come from?
Quite simply "freedom" with bitcoins decentralized nature and vast costs weighed by mining farms Many people, even well regarded figures in the crypto world, like to say Bitcoin is a store-of-value (SOV), just like gold. But when you look at it from a fundamental valuation perspective, this is not an apt comparison.
To make the comparison with gold work, Bitcoin would need an economic use case, just like gold. For Bitcoin, that use case would be as a transaction currency. So let’s look at the MV=PQ equation again, which shows how a currency can be valued.
For example :
Bitcoin achieves a velocity of seven
10 million of its 21 million coin supply is freely traded for economic transactions
Total value of transactions (“PQ”) is $700 billion
V = 7, PQ = 700B and we are solving for M.
M per freely-traded Bitcoin = 700B (PQ) / 7 (V) / 10 million = $10,000
Bitcoin market cap = $10,000 per Bitcoin * 21 million Bitcoins= $210 billion. Our assumptions plugged in result in a price not too far off from today’s Bitcoin market cap. Of course, this also shows that 1) the more transactions that occur with Bitcoin and 2) the lower the freely traded supply, the greater the value of each Bitcoin.
Bitcoin has a solid future ahead at some point more energy efficient miners will become available in turn lowering the cost to entry for mining and adding more computing power to the network.
The last bitcoin are not dew to be mined until the year 2140 with fee's being the main source of income once block rewards have gone.
We are in a hashrate arms race to scoop up those coins and build for the future.
I wanted to share with you my thoughts for bitcoin and the future of crypto in general to give new traders a better understanding bitcoin in general.
The bitcoin network just reached 100 100-quintillion hashes and is expected to increases with that same amount every 2-3 weeks.
Bitcoin is a cryptocurrency which isn't managed by a bank or agency but in which transactions are recorded in the blockchain that is public and contains records as such miners are required to secure the ledger and to process the transactions. At this point in time the bitcoin network has more computing power than all the super-computers in the world and as such provides extensive security to the system.
So where dose the bitcoin value come from?
Quite simply "freedom" with bitcoins decentralized nature and vast costs weighed by mining farms Many people, even well regarded figures in the crypto world, like to say Bitcoin is a store-of-value (SOV), just like gold. But when you look at it from a fundamental valuation perspective, this is not an apt comparison.
To make the comparison with gold work, Bitcoin would need an economic use case, just like gold. For Bitcoin, that use case would be as a transaction currency. So let’s look at the MV=PQ equation again, which shows how a currency can be valued.
For example :
Bitcoin achieves a velocity of seven
10 million of its 21 million coin supply is freely traded for economic transactions
Total value of transactions (“PQ”) is $700 billion
V = 7, PQ = 700B and we are solving for M.
M per freely-traded Bitcoin = 700B (PQ) / 7 (V) / 10 million = $10,000
Bitcoin market cap = $10,000 per Bitcoin * 21 million Bitcoins= $210 billion. Our assumptions plugged in result in a price not too far off from today’s Bitcoin market cap. Of course, this also shows that 1) the more transactions that occur with Bitcoin and 2) the lower the freely traded supply, the greater the value of each Bitcoin.
Bitcoin has a solid future ahead at some point more energy efficient miners will become available in turn lowering the cost to entry for mining and adding more computing power to the network.
The last bitcoin are not dew to be mined until the year 2140 with fee's being the main source of income once block rewards have gone.
We are in a hashrate arms race to scoop up those coins and build for the future.
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