The value affects the price, and I'm going to analyze the value of the decade.
To understand the value of bitcoin, we start with the basic value of money, which is also money.
Money is the most common and effective mutual trust system ever. In any form of currency, its value is essentially: "does anyone believe" why the dollar is the most valuable? Because the world believes in it.
The popularity of bitcoin has grown rapidly in recent years with the development of the Internet. I predict that the price of bitcoins in 10 years should be more than half a million dollars.
I think there's quite an error in our logic of how crypto will grow economically, especially when it comes to bitcoin and handling its predictive price movements.
Firstly,
Money is the most common and effective mutual trust system ever. In any form of currency, its value is essentially: "does anyone believe" why the dollar is the most valuable? Because the world believes in it.
Decentralisation has posed more risk (good risks if you ask me), than centralised system and that's largely because it took more than a decade or two for a trust-system of money to be sustained this far. Bitcoin is barely a decade, and the technology isn't as decentralised as should, as there are many people who can not understand how it works or even how to use it. But we are on track - hence the good risk - as we learn, we grow.
Secondly,
The popularity of bitcoin has grown rapidly in recent years with the development of the Internet. I predict that the price of bitcoins in 10 years should be more than half a million dollars.
The value of bitcoin reaching over half a million USD is an outrageous speculation, especially with the BTC Futures contracts acting as a leash. We would have broken that barrier, however, that would have revealed too quickly and wrongly that bitcoin is a Ponzi. Adoption and real-world usage are what can make BTC gain respectable stands in the society, and not just prediction of the price index.
The internet may be worth billions, even trillions of dollars, but the bitcoin protocol itself isn't just an industry but a section of it. And that's like saying a single Facebook shares or any other popular social media enterprise will be worth over half a million USD per share. Outrageous!
