Technology

Bitcoin Network Reaches $100 Billion Dollars Net Worth

On 2nd of September 2017, the bitcoin network reached a $100 billion dollar valuation at Try A Million, reaching a peak price per bitcoin of $4,980 – just shy of $5,000 each. With this kind of level, it was time for bitcoin to make it into the Try A Million magazine.

It has both been an innovative time and a difficult time of hurdles for what we believe to be the next upgrade in the Internet.

Bitcoin started in 2009 when a pseudonamed Satoshi Nakimoto released the bitcoin source code on the Internet. Since then it has produced the highest returns out of any asset or thing in the World.

How did we at Try A Million derive this valuation?
Basing the current price trend from bitcoin exchanges and then keeping in mind that only 21 million bitcoins will ever exist.

With the $4,980 price, we find that Bitcoin is 104 billion dollars or $104,580,000,000.00 to be precise.

Though this does not factor in just what is the circulating supply, of which we can reduce that figure quite a bit, it still is an important aspect of finding out a base valuation of crypto’s as they are called. Without it, we would never be able to get a correct figure, but by knowing only 21 million bitcoins will exist in the future, we have a clearer way of finding a solid ground with price without considering the extra circulating supply that happens over time before the end result of only 21 million ever being available.

It may make some people wonder certain things, such as what could the price be in the future, and how far can the price grow.

I recently wrote an article about how money – in dollars, pounds, euro’s, etc are inflationary, and so will always tend to zero, but these crypto generally operate with a deflationary model.

Something interesting with crypto’s vs stocks and share for example is that more people have a chance to access them. Stocks and share may require thousands of dollars before even remotely thinking about buying and selling shares or stocks, but when it comes to crypto’s, people can get something even for a few dollars.

There is no exclusion in bitcoin and other crypto’s – unless obviously governments try to impose on the technological innovations.

With this wider access whether someone is in the poorest countries of the world or the richest, we find that this accessibility of crypto’s compared with the traditional world of stocks and shares being only for the rich and affluent can do pretty amazing things with price.

Right now, there are more than 7.5 billion human beings on Earth and only about a million people or so using bitcoin right now. Considering these factors, as well as industries moving over to bitcoin and other crypto currencies, the price can become much more than people expect it could reach, especially considering that unlike stocks and shares which requires considerable sums of money to participate, bitcoin is more than the stock of Apple or Microsoft, it is a technology in its infancy still.

If we look years from now, the total network worth could reach hundreds of trillions of dollars because again, this is not the stock of Apple or Microsoft. It is like talking about the Internet. Where before the Internet was simply your desktop computer, we have the Internet of Things, and so our cell/mobile phones have become smart and now pretty much use the Internet for all manor of things. Even our televisions and watches have become smart and it is even possible to put your home heating on through your phone and the Internet, even though you are out and coming home from work for example!

This is what I mean about the price of bitcoin and it’s total worth in years time being a number that can be mind boggling, because just like the smart phone or the smart television, Bitcoin can extend so far to be mind boggling and above simply what we expect or can calculate. Add to this that the world is inflating all the time with more human beings on Earth at one time and usages we can’t even fathom at this time.

Let us look at some history. Bitcoin started in 2009, and this year that this article has been written is 2017, which makes Bitcoin only 8 years of age. When Bitcoin came out, New Liberty Standard set a price to buy bitcoins at 1,309.03 bitcoins for $1 USD, which makes a price of $0.000763924 each Bitcoin and a network valuation of $16,042.41 based on the above calculation methodology.

It is easy to see how adoption and limited supply can have such a drastic effect on price. Couple this with the fact that to access other crypto’s, you will need some Bitcoins shows that Bitcoin has room to grow even larger, but this is not a given considering that governments interferring with the technology and hackers could be detrimental to the long term future of Bitcoin and other crypto currencies.

If we consider that the Internet started in 1969 with only 4 computers, we can see how global adoption of a technology that can grow and become new things can make the mind boggle and it is the same as computers starting life filling up a warehouse sized location and only being available for very big companies who could make use of them to today where they can even fit in your pocket.

Something to consider is that this valuation considers a very standard model of calculation the networks worth. People purchase bitcoin at different prices and sell bitcoin at often lower prices which holds same as buying gold or any other item and if we consider people selling bitcoins to friends, family and others with a premium price, this valuation could be much higher.

This article is not investment advise but for informational purposes only. Bitcoin like other technological innovations could be here next year or they could disappear. Bitcoin and other crypto’s are not money, but by their inherent nature hold a number of usage solutions.

We will be happy to hear your thoughts

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