I was musing the other day on how I usually thought 4-6 years ahead with Bitcoin price – and value in hand. I pushed the envelope, and realised that if I went out to ten years, using the same assumptions, valuations absolutely rocketed – such that a person starting with 0.1 BTC could realise over 100 BTC, by “buying the top, selling the bottom”. I was flabbergasted. Silly I hadn’t thought it through before.
Of course, this does make certain assumptions, such as that Bitcoin will continue to rise in price at the same rate over the next two four-year cycles. I believe it will, but nothing is certain until it’s happened.
The following document shows my workings.
In my view, this seems bonkers! (It’s so-o-o-o much!) But I really do think it’s much more likely to happen than not to happen.
What will “they” do?
At this point, I start wondering: “When there are A. large numbers of Bitcoin millionaires wandering around, and: B. Governments increasingly short of cash due to the decline of the “fiat” currencies which they adopted “temporarily” in 1971″, what will “they” do?
One possibility is an “unrealised profits tax”. In other words, anyone worth over £x million is taxed at x% of their wealth every year.
Funnily enough, President Joe Biden proposed this very tax last month! It won’t get through this time, but it tells you one way “they” might go when push comes to shove.