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TL;DR - It's worth more!
1) The Value
Let's jump to the point directly. When you pay for something in Bitcoin now, like today, for something like, say a mobile phone worth $500, you already know that you're not paying 500 bucks, but 500 bucks worth of Bitcoin which in a few months could be worth $1000, or even $10000 in a couple of years, may be; who knows!
In short, by the time you are ready to change your phone to a new one, your $500 phone would be worth less than a hundred bucks, while the Bitcoin you used to buy them would be some 20x. Would you be ready to buy a mobile phone with Bitcoin?
Bitcoin is deflationary and is only increasing in value with more adoption. This is in direct contrast to Dollar or any other fiat currency which loses value in course of time due to inflation, the probable exception being Swiss Franc, where inflation is heavily controlled. (A big reason why whales put their money is Swiss Banks)!
So, I don't see a reason why a sane person would be ready to trade their bitcoin for something else, unless that 'something' is worth more than Bitcoin, or that person is planning to buy back the Bitcoin at a lower price :P
2) Institutions
Common people own very little Bitcoin. Most of the Bitcoin are owned by Institutions who keep them as a hedge, and then a big bulk is still with Satoshi Nakamoto, whom we are not sure who he is, or even if he's alive or not!
Sorry to break the bubble, but No, they are not going to spend their Bitcoins for something else (unless it is more valuable than Bitcoin, of course)! Professionals know that Bitcoin will still rise in price for another decade for sure, and what happens after that, nobody knows. I don't see them selling their Bitcoin any time soon, unless Bitcoin plummets in value. And, in that case, this entire discussion becomes irrelevant. But Bitcoin and crypto markets have grown too big to just plummet like that!
Image source
3) Technicalities
No, I'm not talking about technicalities about transaction speeds or scalability or anything. They can be solved using Lightning Network and other methods.
What I'm talking about is a small glitch I came to know. I am not sure if it is a real issue, or is it just another technicality that can be easily solved. Whatever be it, hear it out!
What is the smallest unit of Bitcoin? SATOSHI.
1 BITCOIN = 100,000,000 SATOSHI (8 zeros)
That is, 1 Satoshi is 100 millionth of a bitcoin.
Now imagine Bitcoin becomes 1 million USD in value. Many analysts believe this estimate is completely possible in the coming decade.
When that happens, 1 Satoshi = 0.01 USD.
i.e., 1 Satoshi becomes 1 cent.
So it means that you can pay for anything that's less than 1 cent, not just in USA, but in any country. And this is when Bitcoin reaches 1 million. What about 10 million then? It means you can't pay for anything less than 10 cents.
Does this mean Bitcoin is in an 'Uncertainty Principle' like situation, where the more value it has, the lesser of a currency it becomes? Or is it just a small technical issue that can be solved by introducing further divisions of Satoshis, like
1 Satoshi = 1,000,000 Nakamoto (just kidding)
4) Possible prediction
When I thought about it, the most probable way Bitcoin could function in the future is as a Standard (like a Gold Standard; no wonder why Bitcoin is called Digital Gold). All other cryptocurrency could be valued against a Bitcoin. Bitcoin needn't be used for transactions directly, other cryptocurrencies could be used. Or even better, Bitcoin could be used as the reserves for each countries! Instead of just digging up Gold, why not just use something we already have in its entirety, or almost will, in the coming years!
Anyway let's wait and see how it all pans out!
PS: This is not Financial Advice
Thanks for reading till the end.
Cheers ??
