Bitcoin Trillionaire  

Very fast penetration of the internet to almost every geographical location and diversification of mode of payments in a continuously changing complex business scenario have been silently creating the ground for emerging rule of crypto currency. Relatively trouble-free transactions and remittance of fund by dint of a digital currency have also been changing the mind-set of people in favour of a decentralised digital payment system.

It is observed that a crypto currency payment mode can lower cost and time involvement of many transactions within and between jurisdictions than other existing modes of payment system. The innovative procedure is such that geographical and political hurdles cannot stop a payment in crypto currency. By reducing the number of intermediaries, risk of identity theft, 'recurring cost' and 'charge back' of card payments, the new age currency is bound to be more popular. Hence, with the advent of digital recording and authentication of various transactions, a physical place for a number of transactions will no longer be necessary.

In this background Bitcoin is most likely to dislodge traditional modes of payment in many more new areas. Because, unlike Bitcoin which is a world- changing invention, other crypto currencies are mainly copy-cat with sole intention of speculative gain from pre-mined and hoarded units.

Fundamentals of Bitcoin are so strong that it is likely to spread rapidly like the internet in the 1990s and a significant part of daily global transactions will eventually take place via peer-to-peer method. Domination of world finance based on centralised institutions will gradually diminish paving way for a giant public ledger where everybody knows what everyone else knows.

Since, as per the original Bitcoin protocol, more than half of the mineable units of BTC have already been mined, small to smaller fractions will be used in future to meet growing volume of transactions in BTC. It implies, more valued items will be sold/purchased against small fractions of BTC. This tendency will gradually increase unit value of Bitcoin.

Now, the question is whether a Bitcoin trillionaire is an acceptable idea or a mere wild guessing. From rational point of view it appears a reality if two conditions are simultaneously satisfied. If anybody holds a huge chunk of BTC (suppose 1 million) and .0000001 BTC equals 1 USD, there will be an eventual BTC trillionaire. This is not a wild guessing in the context of current asset-demand for BTC which is effectively reducing the velocity of circulation of already mined Bitcoins and requirement of increasing computational power (= expenditure) for mining of each new BTC.

But it is irrational to guess at present exactly when a BTC trillionaire will emerge in future. As we have seen above, it will be determined by the pace of spread of BTC as a medium of exchange in one hand and as a store of value on the other. There are many variables/future events which will influence the 'pace of spread' and the asset- demand for BTC. Hence, nobody at present can ascertain the time for eventual emergence of BTC trillionaire. What is certain that long run trend line for value of BTC will go upward with occasional kinks.

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