2020 is a special year for the Bitcoin since in May, the third Halving in the history of Bitcoin will take place. A very strong bull market is expected in the context of this event if we rely on what happened in 2012 and 2016 during the two previous Halvings. Bitcoin started the year 2020 with a price of $ 7,200 to know a fairly exceptional month of January during which its price gained 30%. At the end of the month, its price was therefore $ 9,300.
The approach of Halving but also certain unexpected world events, such as the imminent risk of a war between the United States and Iran or the coronavirus crisis, justify this historic month of January 2020 for Bitcoin. For many, Bitcoin has now entered a bullish phase and as soon as its price has crossed $ 10K again, nothing can stop it in its ascent.
Given the scarcity of Bitcoin, many are finally starting to realize that owning 1 whole Bitcoin could make them someone extremely wealthy in the future. The race to own 1 Bitcoin is now underway and time is running out if you want to get there before it’s too late.
Only 21 million Bitcoin for all the inhabitants of the Earth
Satoshi Nakamoto designed Bitcoin to be comparable to a commodity like gold. Bitcoin therefore exists in finite quantity since it is limited to 21 million units.
The production of new Bitcoins slows down over time as a result of automatic events called Halving.
Currently, 12.5 BTC are newly created and offered as a reward to minors validating a block of Bitcoin Blockchain transactions (approximately every 10 minutes).
After the May 2020 Halving, the amount of this reward will increase to 6.25 BTC. The Halving process is registered in the source code of Bitcoin and by 2140, all Bitcoins will have been mined.
When all Bitcoins have been mined, we will therefore have 21 million Bitcoins available to all the inhabitants of the Earth.
In reality, there is even a risk that there will be even fewer since it is estimated that almost 3 million Bitcoins have already been lost permanently.
This would only further reinforce the rarity of Bitcoin and the importance of having at least one.
The latest estimates published by the UN indicate that the Earth should have 9.8 billion inhabitants in 2050 and 11.2 billion inhabitants in 2100.
Estimates do not go as far as 2140, but the world’s population will likely be even larger at that time.
So, taking as a reference the estimate of 2100 published by the UN, this would give us Maximum 21 million Bitcoins for 11.2 billion inhabitants.
There will be a maximum of 1 Bitcoin for 533 people.
Assuming there is a fair Bitcoin allocation for every inhabitant of the Earth, each inhabitant could have a maximum of 0.001875 BTC.
In addition to these calculations, Bitcoin is already establishing itself as a store of global value.
Phase 2 of its adoption began with merchant support for transactions to be developed in the coming years.
If Bitcoin reaches phase 3 of its mass adoption by becoming a unit of account, we would be at the beginning of hyperbitcoinization in the world, the very one that makes many Bitcoiners fantasize.
In other words, people who own 1 Bitcoin in full will therefore have a significant advantage over the majority of other inhabitants of the Earth.
Less than 1 million people own at least 1 Bitcoin
Possess 1 whole copy of something that may become as in demand as Bitcoin in the future is something you can’t get past in my opinion.
I don’t know if Bitcoin will succeed in its revolution or not. However, I don’t want to risk missing out on this revolution if Bitcoin brings it to fruition.
If you are sensible people, I imagine that you also do not want to miss out on such an opportunity for your future. As the month of February 2020 begins, I find it interesting to look in detail at the distribution of Bitcoin by addresses on its Blockchain :
After analyzing this distribution, you should have noticed that only 631,814 addresses have at least 1 Bitcoin. You remember, we were talking about it a while ago when we explained that Bitcoin had in 10 years “manufactured” 17,000 millionaires.
People can have multiple addresses in Bitcoin, it is possible that people have several addresses with amounts less than 1 BTC but whose cumulative amount exceeds 1 BTC.
Nevertheless, it is reasonable to consider that less than 1 million people own at least 1 Bitcoin on Earth.
By making the decision to buy 1 full Bitcoin, you will be de facto one of the 2.18% addresses richest in Bitcoin.
Coinbase CEO Brian Armstrong shares the same analysis as many Bitcoiners:
“For better or worse, I think owning a whole Bitcoin is going to get more and more important. Only 21 million will be produced, and some people already own far more than one. ”
? -? Brian Armstrong, CEO of Coinbase
With a complete Bitcoin in your possession, you will therefore leave with a phenomenal advantage over a majority of inhabitants on Earth if Bitcoin is adopted en masse and the world’s hyperbitcoinization takes place.
Last year with Bitcoin below $ 10K
Many people make the mistake of only paying attention to the highest price achieved by Bitcoin year after year since its creation in 2009. These people see that the Bitcoin price failed to reach its historic record high of $ 20K in December 2017.
Many people therefore have the impression that since the end of 2017, the price of Bitcoin has not increased further.
In reality, the real number that counts for Bitcoin is its lowest annual price. And in this area, the price of Bitcoin has been increasing since 2010:
This graph shows us that the evolution of the lowest annual price of Bitcoin generally follows an upward trend.
The evolution of the price of Bitcoin is cyclical and each cycle lasts 4 years, starting with a Halving.
The year of a Halving marks the start of a bull market for Bitcoin, the strongest of which is concentrated in year N + 1.
In the N + 2 and N + 3 years following a Halving, we generally see a correction in the price of Bitcoin but the lowest price still remains above what it was previously.
With Bitcoin Halving coming in May 2020, the price of Bitcoin will necessarily exceed $ 10K this year.
The strongest of the rise in the price of Bitcoin is to be expected for 2021. However, the price of Bitcoin could already well exceed $ 20K by 2020.
The lowest Bitcoin price since the start of the year, which is $ 6,950, may well be the lowest in all of 2020.
There is a high probability that 2020 will be the last year with a Bitcoin whose price is below the $ 10K mark.
Buying Bitcoin at this price therefore remains clearly affordable given the sharp increase that is expected in the coming months.
The last year to buy 1 Bitcoin in full
The strong bull market awaiting Bitcoin in the coming months may well carry its price between $ 20K and $ 30K at the end of 2020. As I explained earlier, the biggest rise in the price of Bitcoin is usually in the N + 1 year of a Halving.
The year 2021 may well see the price of Bitcoin rise even more sharply to reach a price between $ 50K and $ 100K.
No one can predict the future, including me, but all of these numbers regarding the price of Bitcoin are assumptions to be taken seriously.
If the price of Bitcoin were to reach such a price, it would become impossible for ordinary people to own a whole Bitcoin.
2020 is therefore probably the last year to buy a whole Bitcoin.
Beyond this year, it will be too late to target ownership of a whole Bitcoin since its price will be too high. The more reasonable target will then be to target the possession of 0.1 BTC.
With the current distribution of Bitcoin, Owning 0.1 BTC would place you among the 2 million richest addresses on the network, or among the 7% richest.
All this is interesting but less than having 1 Bitcoin in full. You still have a choice of what you want to do with Bitcoin for your future and it’s a real luxury considering what lies ahead for the future. It’s up to you to make the best decision for your future so that you will have no regrets when you have no choice.
A developer by training, I discovered Bitcoin in 2014 but I did not immediately understand the importance it could have for the world of tomorrow. I got into it more deeply from the start of 2017 and since then I haven’t given up on the business.
Passionate about Bitcoin and the new system it is trying to build for the future, I decided to participate in its evangelism at my modest level by writing on Bitcoin, Blockchain and crypto currencies on different supports.
It is with pleasure that I publish some of my texts in French on The Coin Tribune.
I also write a lot about personal development and self-improvement.
Do not hesitate to exchange with me via social networks or in comments on my articles if you have questions about my articles.