Common sense dictates that when an asset has a finite supply, the value increases as the demand increases.
Bitcoin, just 0.01 of it might cost only $500 today, but it could be worth $1 million sometime down the road – so why hasn’t every savvy money manager jumped on the craze?
That’s where the situation gets sticky. The simple explanation is that the “finite” nature of the cryptocurrency could change before the final bitcoins are mined — around the year 2140.
So, yeah, that’s a long time to wait for your investment to pay off.
But we’re so close, it appears. As of March 1, the total supply now is 18.64 million bitcoins, 2.37 million short of the 21 million coins at completion.
Let’s look into the math – stay with us: According to cointelegraph.com:
“Buying 0.01 BTC today, roughly a $500 investment at current prices, can assure one a top 13% holder position. When comparing the relative wealth concentration of the fiat (legitimate government-approved currency from the central banks) and Bitcoin markets, being among Bitcoin’s top 13% shares the same exclusivity as being a fiat millionaire.”
Sounds good, being a fiat millionaire, but …
Investopedia reports that the bitcoin network itself could change dramatically.
The possibility of new protocols, methods of recording and processing transactions, and any number of other factors may impact the mining process.
Just this January, the Office of the Comptroller of the Currency (OCC) wrote a letter authorizing the use of crypto as a method of payment.
Major companies have jumped into line, including Paypal’s introduction of bitcoin, and Tesla’s acceptance of bitcoin to purchase Tesla cars and solar roofs.
But that doesn’t guarantee investors will soon find themselves to be millionaires.