Competition among cryptos is on the rise as well
Some time ago US anti-virus software guru John McAfee made the bold claim that he would devour his own manhood if Bitcoin doesn’t pass $500,000 by the end of 2020. Given the cryptocurrency’s exponential rise since April he doubled on that, saying that he’ll do the said feat if bitcoin doesn’t pass $1,000,000.
Theoretically it’s possible. The entire world Money supply as of the end of 2017 is about $90 trln. That’s a snapshot of all the physical cash + the money in savings accounts – essentially the money we use in our everyday handlings.
There are maximum 21 million bitcoins. If they all replace all the world’s money as of today (they’ll probably go up, because central banks like stable prices in an expanding economy which gets them to print more money), then a single bitcoin can fetch up to $4,300,000.
But that would require all the world switching to bitcoin. And McAffee’s bet would require like a quarter of the world doing so. Not that it’s impossible, but bitcoin isn’t the only cryptocurrency in the world.
The underlying technology blockchain has helped create about 1000 only till this day. What we can conclude from the past few months’ rally is that cryptocurrencies HAVE indeed become mainstream. Bitcoin – early to say.
There are many more cryptocurrencies that have grown this year more than bitcoin. It is true – BTC is the most recognisable since it was among the first, so the rest start from a lower base.
But it’s also true that the second currency – ethereum has a slightly better technology up to this point. The underlying base of its technology – “smart contracts” allows your money to invest, save and spend themselves, while blockchain is just a payments method.
Whatever technological improvements will be made on their respective platforms, we really are witnessing the very shattering of our money foundations that we’ve used for millennia. The most important change we need to see is in the field of security. Whoever ensures that will become rich beyond their wildest dreams.