We have all heard the phrase, "Bitcoin is going to $100k", especially if you have followed my blog for any length of time.
I have probably uttered said phrase at least 20 times or so within the last year on my posts and comments.
That being said, is it even possible or if it is possible, is it sustainable?
The short answers to both of those questions is...
For this post lest assume that bitcoin eventually makes it was to $100k after a giant rally from current levels.
At that point the market cap of bitcoin would be worth roughly 25% of the current gold market cap, something that seems entirely plausible to me.
However, once we get to that number we will need quite a bit of inflows to keep it there...
With 900 new bitcoins created every day, we would need roughly $90 million worth of inflows every single day just to keep the price steady at $100k.
For some perspective, lets say we had 10 million people buying bitcoin on a daily basis, which seems plausible in a world with close to 8 billion people...
And if those $10 million people each bought $9 worth of BTC every single day, it would offset the amount of new bitcoin being created each day.
When it's broken down like that it doesn't seem so scary after all.
And entirely possible with cash app and others implementing ways for ordinary people to have a small portion of their earnings automatically buy BTC each week etc.
While BTC may not be able to hold those lofty numbers on the first touch, there is plenty of reason over time for bitcoin to absolutely be able to trade for those seemingly impossibly high valuations.
Stay informed my friends.
Soon I buy bitcoin worth of $100 and I hold rest of my life how it goes
Your logic is flawed... No-one would invest $9/day in Bitcoin... That's below minimum purchase limit on Coinbase Pro. Coinbase Pro is still the cheapest exchange to buy Bitcoin with wire transfer as it has no deposit or withdrawal fees. They don't even deduct network fees when withdrawing... Most apps have ridiculous fees compared to Coinbase Pro as they require using credit cards.