Most of the value of Bitcoin (BTC) falls within the limited supply of 21 million coins, meaning that owning a small portion could result in great wealth – if global adoption occurs.
“This is only 0.0027 BTC for 7 billion people currently,” said trader, Bitcoin evangelist and Twitter personality Davincij15 in a tweet on September 22nd, referring to the total global population in relation to the total supply of bitcoin. Davincij15 is known for his early bitcoin comments, which date back to the early days of the original in 2011.
“If you have a HODL of 0.28 BTC and Bitcoin is the reserve currency in the world, you will be in the top 1%. So HODLing 1 BTC means you can have 400 times the average (worst case scenario).”
The math behind Divincij15’s idea makes sense, although her thinking is influenced by several factors – mainly the global adoption of Bitcoin. The current market value of the asset is around $ 194 billion. On the other hand, the market value of gold is $ 9 trillion. Bitcoin requires significant growth in order to reach gold, and it is one of the assets most of the world sees as a time-tested store of value.
The US dollar is currently the global reserve currency, with a turnover of $ 1.98 trillion, according to the US Federal Reserve, and is somewhat closer to the market value of Bitcoin. However, the numbers are affected by other factors besides the quantity traded. The relevant actual comparison of the numbers against the US dollar could be much higher.
Alternative currencies represent another flaw in the equation. If people invest in other digital currencies, the money will be diverted away from BTC, which makes it difficult for the asset to reach the highest billing level as a global option.
However, Bitcoin received a lot of attention and growth in 2020, including investments from the mainstream giant MicroStrategy.