Can Bitcoin replace a local currency for an entire country?
And what would the price look like then? 🧠🪙
A question often asked: does Bitcoin need to rise in price to accommodate the economy of a country??? $BTC
The direct answer: yes, and on a massive scale.
The reason is simple: the number of Bitcoin units is permanently capped at 21 million coins only (and millions of them are lost). For this limited amount to cover an entire economy, the value of each coin must surge to cover the volume of money in circulation.
📊 Simplified example: El Salvador (the first country to adopt Bitcoin)
The size of the economy and liquidity (M2): estimated at $20 billion.
Bitcoin available for trading globally: approximately 15 million coins.
If we hypothetically assumed that El Salvador’s entire economy moved to Bitcoin alone:
👈 The required increase in Bitcoin’s price = about $1,330 added on top of its current price for each coin.
So what if a larger economy like Japan were to move over (its liquidity exceeds $10 trillion)?
Then Bitcoin’s price would exceed $660,000 per coin just to cover that liquidity alone!
☕ How would we buy our daily needs?
You wouldn’t pay with a "full Bitcoin", but with satoshi (Satoshi):
1 Bitcoin = 100 million satoshi.
Just like cents and riyals, daily purchases become simple amounts of satoshi through fast payment networks.
#btc #RussiaUkraine72-hourCeasefire #BTCReaches$80000
And what would the price look like then? 🧠🪙
A question often asked: does Bitcoin need to rise in price to accommodate the economy of a country??? $BTC
The direct answer: yes, and on a massive scale.
The reason is simple: the number of Bitcoin units is permanently capped at 21 million coins only (and millions of them are lost). For this limited amount to cover an entire economy, the value of each coin must surge to cover the volume of money in circulation.
📊 Simplified example: El Salvador (the first country to adopt Bitcoin)
The size of the economy and liquidity (M2): estimated at $20 billion.
Bitcoin available for trading globally: approximately 15 million coins.
If we hypothetically assumed that El Salvador’s entire economy moved to Bitcoin alone:
👈 The required increase in Bitcoin’s price = about $1,330 added on top of its current price for each coin.
So what if a larger economy like Japan were to move over (its liquidity exceeds $10 trillion)?
Then Bitcoin’s price would exceed $660,000 per coin just to cover that liquidity alone!
☕ How would we buy our daily needs?
You wouldn’t pay with a "full Bitcoin", but with satoshi (Satoshi):
1 Bitcoin = 100 million satoshi.
Just like cents and riyals, daily purchases become simple amounts of satoshi through fast payment networks.
#btc #RussiaUkraine72-hourCeasefire #BTCReaches$80000
