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Bitcoin at 2 Million

I think we need to talk more about what a world with fully adopted Bitcoin will look like. Now it’s impossible to say wht the target price for full adoption will be as on its way to full adoption, the USD will collapse anyway. Back in 2009 Hal Finney made a really rough estimate that Bitcoin could be come worth [10 Million](https://loginportal.funnyjunk.com/comments/+_e437d8d8a236b84cafe2547a0efe833d.jpg) per coin (in 2009 Dollars, now equal to [12.4 Million](https://westegg.com/inflation/infl.cgi?money=10000000&first=2009&final=2020), not counting this years inflation)
but it will be a long way till then and also the global economy will be completely different by then (interplanetary economy? Maybe not, but maybe we’ll get a lunar economy by then)

But since a common criticism for Bitcoin is that the only reason why people invest in Bitcoin are because they want to get rich quick and dump when Bitcoin becomes worth so much it won’t do an x10 anymore I think we should talk more about what a world would look like that actually adopted Bitcoin and prices things in Bitcoin.

So let’s go to the year 20XX, Bitcoin is valued at 2 Million and it’s sufficiently adopted that the average Joe is aware of Bitcoin and uses it in every day life to purchase things, gets paid in Bitcoin and thinks in SATs. I really only picked 2 Million for convenience because it’s a graspable goal, Bitcoin would be at a market cap of 40 Trillion which is roughly the market size of all physical money (still not even close to real estate or stock market) and because at 2 Million per BTC 50 Satoshi is equivalent to 1 Dollar and that’s a price range we can think about.

So when you buy Ice cream in 20XX you don’t pay 1 Dollar, you pay 50 Satoshi. Your net salary isn’t 2k USD, it’s 10k Sats. A house doesn’t cost 500k USD, but 25 Millions Sats or a quarter of a Bitcoin.
One thing you’ll notice in a world like this, is prices will go down with time, not up. Instead of paying 1.10 USD next year for Icecream, now I’ve costs 45 SATs instead of 50 SATs. This also means your salary will become worth more with time and instead of asking for a raise every year from your boss to combat inflation, your boss will ask you to negotiate a salary decrease every year. Sounds annoying at first, but realize this shifts power to the worker and you should talk to your boss about your salary every year ANYWAY. Only this time the cards are in your favor and your boss has to make you understand that it’s necessary to decrease your salary because of deflation instead of you asking your boss for a raise because of inflation.
Workers are now the first to benefit from economic growth but also the average person will be much more educated on the economy.
Next you’ll notice the stocks market becomes a lot more stable. Since Bitcoin is the best store of value there is no reason to speculate money into low performing companies. Investments in companies will become much more mindful and people will look at real value production again, because the only reason you’d convert Bitcoin into stocks is because you expect a company to earn you more Bitcoin. This will mean a lot of zombie companies that don’t add any value to society but drain value from it, propped up by cheap inflating money will drop out and we’re going to be left with real value producing companies and have a much more robust economy overall. This will mean however that growth will be slower, but we won’t see any boom and bust cycles anymore. You won’t be able as a generation to take out a hundred Trillion Dollar loan, live a life above your value output and hand the bill to your kids (Sorry for all you guys that dreamt to become the next Boomer generation).

This will affect not just the stock market but many asset markets. Speculation on commodities will go down, because why would you hoard oil, silver and gold when you can just hold Bitcoin.
The housing market will come down. While obviously people will always need homes, they will be purchased by people that actually want to live in them and not by people that prop their value up with 0 interest loans and letting you pay for it with rent. Houses are illiquid and have maintainance cost a huge part of the real estate market is its store of value aspect. If you can reliably store money in Bitcoin a lot of reasons why people who already have a lot of houses to buy more houses go away. Real estate will reflect real demand again and rent will go down for the same reason.

All in all the entire world will suddenly feel so much easier to the average person. Banks won’t really exist anymore and you won’t hear about the government bailing out a failing bank that lied about Billions and stole millions of customer money. Money will actually mean what most people think money means. You won’t have to inebt your children and children’s children just so you can afford to live. Instead you will partake in economic growth in real time.

This is what I imagine a Bitcoin future to be like. I wonder if many other people think like this too or what you people think a Bitcoin world will look like



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4 Comments

  1. I was (pleasantly) surprised when El Salvador adopted Bitcoin, but time will tell if that is works well in practice. I think there are too many technical inconveniences that Bitcoin has that makes it ill-equipped to be the primary currency used for day to day transactions. I do not know how El Salvador’s Chivo wallet works, but the ability to reverse transactions is essential for society.

  2. [Isaac Newton gave us the Gold Standard](https://en.wikipedia.org/wiki/Gold_standard), the best monetary system ever created so far.

    Satoshi Nakamoto gave us Bitcoin, the hardest money ever invented in the history of humankind. It’s also much better than gold.

    It’s up to us to opt for a superior monetary system, the Bitcoin Standard. Just like the gold standard, the earlier you adopt it, the better you’ll be.

  3. Sounds positive, i would like to hear your opinion about deflation, loss of vacancy’s, loss of company investments (becouse every debt/loan grows over time), together with a government that cannot impuls the economy.

  4. This financial and economic revolution you describe needs to happen quickly. Otherwise, I would fear that the big banks and corrupt governments will crush crypto before it can grow to widespread adoption. But if we can achieve this, it will be truly utopia and the world will, as you said, become a much better and easier place to survive in.

What do you think?

Bitcoin infrastructure firm Blockstream (…) “raised $210 million as part of a Series B financing at a valuation of $3.2 billion. (…) Blockstream’s Modular Mining Units can be accessed through the Blockstream satellite network from anywhere in the world (…) with renewable energy sources.”

ECB President Christine Lagarde Insists Cryptos Are Not Currencies, Calls Them Highly Speculative, Suspicious – Regulation Bitcoin News

ECB President Christine Lagarde Insists Cryptos Are Not Currencies, Calls Them Highly Speculative, Suspicious – Regulation Bitcoin News