What Bitcoin is worth (My humble opinion)
Bitcoin / Human Population
By dividing the total bitcoin that will ever exist by the current total human population, we can get a rough estimate for how many bitcoin each person can own in an equal distribution (Hint: It’s nowhere near 1 bitcoin).
Bitcoins can be divided into smaller units called “sats” or “satoshis”. Each bitcoin is equal to 100 million sats. A satoshi is the smallest denomination of bitcoin.
Each person, if equally distributed, would have ~300,000 sats or 0.003 bitcoin. This number is assuming a 7 billion human population and a fully diluted 21 million supply. It’s a rough guess because not every person will own any bitcoin, at least for a while, and the total amount of bitcoins in circulation will probably only ever actually be 17 million. Lost coins and Satoshi’s coins are considered gone forever.
Compressing wealth into sats
First, 300,000 sats is roughly equivalent in today’s price to $60.
Second, keep in my mind, this is all the bitcoin that each person could ever possibly hold. This simple fact might be hard to wrap your head around, but new bitcoins can’t be created to account for more wealth.
This means that ALL the assets, lifetime income, savings, investments, and property over the course of forever and apply this to every individual that is alive and will ever be alive. All of this value to be accounted for in this 300,000 sats and lower that amount with an increasing population. Definitely not a perfectly accurate representation because what people own varies across the world. But, this also doesn’t account for publicly owned property, land, utilities, infrastructure, corporations, governments, factories, and various other types of capital.
What this amounts to is the fact that ANY amount of bitcoin is life-changing over a long-enough time-horizon, and the more you own, the shorter that time-horizon is for it to be life-changing.
Current Day
We are at a strange point in time where Bitcoin exists but is not the world reserve currency. To be clear, Bitcoin will either become the money of the world, or it will break and cease to have any utility. There can’t exist a world where Bitcoin simply exists and doesn’t grow and absorb monetization from all other assets and currencies. By its nature, it will become more scarce and more resilient to attack. It’s been on this course since its inception, and this is the default path it will take on its way to becoming global money.
We have the unique opportunity to be aware of this before its full transition and can gain a massive head start into a new monetary system with a fixed supply.
19 million bitcoin have already been created, there are only 2 million left to be found.