We can not allow Bitcoin continues to exist as peer payment system ( peer to peer ). The destabilizing effects of such currency in the capital markets threaten to be devastating.
At present, the price of bitcoin over $ 2000 and continues to rise. Even worse is the fact that, if you look at the curve you have drawn the price for the past eight years, the increase in the value appears to be exponential. For those who understand the effects of this type of growth, it is obvious that, unless immediate measures are taken, Bitcoin will be unstoppable here a few years .
For hundreds, or even thousands of years a simple secret has been very effective in subduing both individuals on foot or entire countries to the will of those who know how to make use of others to leverage and reach positions money of great economic power. Any enlightened person will understand that this secret is the frequent inability of the human mind to appreciate the impact of exponential growth or, more specifically, compound interest.
The fascinating thing is that most people tend to dismiss the importance of this impact even before indisputable numbers show its effects. Thanks to this curious fact, we can use a small interest rate to make others pay for a loan two or three times its value if we are willing to wait, and we can multiply these capital returns again offering more loans to those conditions.
The key is a small initial investment (which is now practically nil and free of risk for banks), patience, and a firm reliance on the exponential effects.
We apply our understanding of the problem at hand: today there are more than 3000 daily closures bitcoin price. Broken down annually, the average value and average daily growth per year looks like this :
2009: 0.00 Dollars / 0.00%
2010: $ 0.06 / + 0.88%
2011: USD 6.54 / + 1.23%
2012: USD 8.47 / + 0.34%
2013: US $ 188.79 / + 1.43%
2014: US $ 525.33 / -0.17%
2015: US $ 271.83 / + 0.16%
2016: US $ 588.76 / + 0.25%
2017 (not yet defined): US $ 1.211 / + 0.650%
Calculating the average daily price change bitcoin since its inception in 2009 until today, we can see that it has increased, on average, an impressive 0.52126% per day.
Obvious therefore that, given the current price of bitcoin and its apparent ability to maintain the increase in value, the figures shown above may be used to project the emergence of a bitcoin at a price of one million dollars.
If we go by the price action in the past, the bitcoin could reach a million dollars to the August 13, 2020 . Bitcoin prices projected for the end of this year and the next five years is as follows:
2017: 6,906.60 dollars.
2018: 46,068.41 dollars.
2019: 307,285.77 dollars.
2020: 2,060,343.08 dollars.
2021: 13,742,910.71 dollars.
2022: 91,668,031.51 dollars.
Unless we do something about it, if this trend continues Bitcoin will become the most important payment system of our planet. Towards the end of 2022 they have been issued more than 19 million bitcoins, with a market capitalization of nearly 200 trillions of dollars market.
Even if we reject the evidence before us and we were to assume that the bitcoin is now overbought and may not maintain its past rate of growth, the projections do not change in substance. For us to be more conservative in our estimates, the inevitable could not be delayed more than a few years :
With an estimated current value of $ 2,000 per bitcoin and an expected growth of 0.4% daily reach $ 1 million on August 30, 2021.
With an estimated current value of $ 1,500 per bitcoin and an expected growth of 0.3% daily reach $ 1 million on June 5, 2023.
With an estimated current value of $ 1,000 per bitcoin and an expected growth of 0.2% daily reach $ 1 million on November 13, 2026.
Unfortunately, this system has characteristics opposite to those we need. Bitcoin is deflationary , so that gives control over their own money to adopt it , and yet -¡peor - nullifies the influence of third parties on the value of money that people save.
What can be done to prevent this catastrophe? Obviously, it is necessary to maintain the ability to extract benefits from the savings of the people through traditional methods . After all, it is imperative that control of capital remains in the right hands.
So, the first thing to do is limit the ability . If transactions can not be done, then Bitcoin can not function as currency. Fortunately, this is easy to achieve, since the software current limit imposes a negligible 3-4 transactions per second that prevents the growth of Bitcoin. This remains largely by the refusal or inability to have exhibited system agents to remove this restriction. The Bitcoin community seems trapped in an endless stalemate. Fortunately, there seems to be enough support for a practice known as "Segregated Witness" (solution Segwit ), which would ensure a limited capacity less than 10 transactions per second for many years.
However, this may be insufficient or unreliable enough to stop Bitcoin.
Besides restricting growth, another highly recommended approach that could ensure the desired result. I mean prevent widespread adoption by imposing arbitrary fees, using the limit to the capacity of the network. Thus, the use of the system could become uneconomic for most. In the best case, the rates will be high enough to discourage lower value transactions but not those who can transfer large amounts of capital .
This system also offers another great opportunity if we are able to use the strategies outlined above in order to convert currencies into something similar to fiat money. We simply need to create a second more traditional financial layer, we control the forced Therefore , allowing users to abandon the original system. There is already a proposal called " Lightning Network " which, although it has been widely accepted within the community, requires that the value is backed by bitcoins. So, at first we must mobilize the capital needed to support this proposal. Then we can repeat the history of money with gold backing, and create a fiat legal tender to remain in the right hands, completely detached from the commodity it used to back it up .
This is how we avoid disaster.
At present, the price of bitcoin over $ 2000 and continues to rise. Even worse is the fact that, if you look at the curve you have drawn the price for the past eight years, the increase in the value appears to be exponential. For those who understand the effects of this type of growth, it is obvious that, unless immediate measures are taken, Bitcoin will be unstoppable here a few years .
For hundreds, or even thousands of years a simple secret has been very effective in subduing both individuals on foot or entire countries to the will of those who know how to make use of others to leverage and reach positions money of great economic power. Any enlightened person will understand that this secret is the frequent inability of the human mind to appreciate the impact of exponential growth or, more specifically, compound interest.
The fascinating thing is that most people tend to dismiss the importance of this impact even before indisputable numbers show its effects. Thanks to this curious fact, we can use a small interest rate to make others pay for a loan two or three times its value if we are willing to wait, and we can multiply these capital returns again offering more loans to those conditions.
The key is a small initial investment (which is now practically nil and free of risk for banks), patience, and a firm reliance on the exponential effects.
We apply our understanding of the problem at hand: today there are more than 3000 daily closures bitcoin price. Broken down annually, the average value and average daily growth per year looks like this :
2009: 0.00 Dollars / 0.00%
2010: $ 0.06 / + 0.88%
2011: USD 6.54 / + 1.23%
2012: USD 8.47 / + 0.34%
2013: US $ 188.79 / + 1.43%
2014: US $ 525.33 / -0.17%
2015: US $ 271.83 / + 0.16%
2016: US $ 588.76 / + 0.25%
2017 (not yet defined): US $ 1.211 / + 0.650%
Calculating the average daily price change bitcoin since its inception in 2009 until today, we can see that it has increased, on average, an impressive 0.52126% per day.
Obvious therefore that, given the current price of bitcoin and its apparent ability to maintain the increase in value, the figures shown above may be used to project the emergence of a bitcoin at a price of one million dollars.
If we go by the price action in the past, the bitcoin could reach a million dollars to the August 13, 2020 . Bitcoin prices projected for the end of this year and the next five years is as follows:
2017: 6,906.60 dollars.
2018: 46,068.41 dollars.
2019: 307,285.77 dollars.
2020: 2,060,343.08 dollars.
2021: 13,742,910.71 dollars.
2022: 91,668,031.51 dollars.
Unless we do something about it, if this trend continues Bitcoin will become the most important payment system of our planet. Towards the end of 2022 they have been issued more than 19 million bitcoins, with a market capitalization of nearly 200 trillions of dollars market.
Even if we reject the evidence before us and we were to assume that the bitcoin is now overbought and may not maintain its past rate of growth, the projections do not change in substance. For us to be more conservative in our estimates, the inevitable could not be delayed more than a few years :
With an estimated current value of $ 2,000 per bitcoin and an expected growth of 0.4% daily reach $ 1 million on August 30, 2021.
With an estimated current value of $ 1,500 per bitcoin and an expected growth of 0.3% daily reach $ 1 million on June 5, 2023.
With an estimated current value of $ 1,000 per bitcoin and an expected growth of 0.2% daily reach $ 1 million on November 13, 2026.
Unfortunately, this system has characteristics opposite to those we need. Bitcoin is deflationary , so that gives control over their own money to adopt it , and yet -¡peor - nullifies the influence of third parties on the value of money that people save.
What can be done to prevent this catastrophe? Obviously, it is necessary to maintain the ability to extract benefits from the savings of the people through traditional methods . After all, it is imperative that control of capital remains in the right hands.
So, the first thing to do is limit the ability . If transactions can not be done, then Bitcoin can not function as currency. Fortunately, this is easy to achieve, since the software current limit imposes a negligible 3-4 transactions per second that prevents the growth of Bitcoin. This remains largely by the refusal or inability to have exhibited system agents to remove this restriction. The Bitcoin community seems trapped in an endless stalemate. Fortunately, there seems to be enough support for a practice known as "Segregated Witness" (solution Segwit ), which would ensure a limited capacity less than 10 transactions per second for many years.
However, this may be insufficient or unreliable enough to stop Bitcoin.
Besides restricting growth, another highly recommended approach that could ensure the desired result. I mean prevent widespread adoption by imposing arbitrary fees, using the limit to the capacity of the network. Thus, the use of the system could become uneconomic for most. In the best case, the rates will be high enough to discourage lower value transactions but not those who can transfer large amounts of capital .
This system also offers another great opportunity if we are able to use the strategies outlined above in order to convert currencies into something similar to fiat money. We simply need to create a second more traditional financial layer, we control the forced Therefore , allowing users to abandon the original system. There is already a proposal called " Lightning Network " which, although it has been widely accepted within the community, requires that the value is backed by bitcoins. So, at first we must mobilize the capital needed to support this proposal. Then we can repeat the history of money with gold backing, and create a fiat legal tender to remain in the right hands, completely detached from the commodity it used to back it up .
This is how we avoid disaster.