Will Bitcoin surpass gold? What do experts predict about the future of "1 million yen per bitcoin"?
Hello, this is John from Blockchain Navigator!
Recently, some exciting news has come out about Bitcoin, which is attracting attention as the money of the future.
The president of a well-known investment company predicted that "Bitcoin will eventually replace gold and its price will reach $100 million (more than 1 million yen at current rates!)"!
Many people may be wondering, "Is Bitcoin really that amazing?" and "What does it have to do with gold?"
In this article, we will explain the background and meaning of this news in an easy-to-understand manner even for those who are new to blockchain technology (a technology that records and manages information by linking it in a chain)!
"Bitcoin will be the gold of the new era," says Novogratz
This bold statement was made by Mike Novogratz, the CEO of a large financial services company called Galaxy Digital.
He spoke about Bitcoin's future prospects in an interview with CNBC, a famous American economic news program.
Novogratz said Bitcoin isDigital GoldIt seems that they believe that it will establish itself as a ``currency'' and eventually have the potential to partially replace the role of value that real gold has.
Gold has long been considered to have stable value and has been treasured around the world as a "safe asset" (something that is easy to maintain its value in times of emergency). Bitcoin may play a similar role in the coming digital age.
Why is Bitcoin compared to "gold"?
So why is Bitcoin (a type of digital money that can be used on the Internet) being compared to old-fashioned gold? Let's look at a few points.
- Because of scarcity：The maximum number of Bitcoins that can be issued by the program is set at about 2100 million from the beginning. This is similar to the limited amount of gold buried on Earth. It can be thought of as something that is limited in number being more likely to increase in value.
- It's easy to carry and store: For example, it is quite difficult to transport a large amount of gold bars safely and store them in a safe. However, since Bitcoin is data, it can be easily managed on a smartphone or a small dedicated device called a "hardware wallet." It can also be quickly sent to someone across borders via the Internet.
- Support from a new generation: Especially for the younger generation who are familiar with the Internet and digital devices, Bitcoin, which is digital and can be handled smoothly, may seem more attractive than gold, which is a physical "thing."
For these reasons, Novogratz predicts that in the future, many people will choose Bitcoin over gold as a means of storing their valuable assets.
Is a $100 million Bitcoin price really possible?
And perhaps the most intriguing prediction is that the price of one Bitcoin will reach $1 million.
If we calculate 100 million dollars at 1 yen to the dollar, it would be1 billion yenIt's an amount that's hard to imagine, isn't it?
The basis for this prediction is based on a scenario in which Bitcoin truly becomes widely recognized around the world as "digital gold" and replaces even a small portion of the gold market (which is a market in which a huge amount of money moves!), which is currently held as "something of value" by people and large companies around the world.
The value of the entire gold market is so huge that even if just a portion of it were to be transferred to Bitcoin, the price of each Bitcoin could rise several times, or even dozens of times, its current value.
Of course, this is merely Novogratz's personal "prediction," and there is no guarantee that it will definitely happen in the future. There are various opinions in the investment world, and it is known that the price of Bitcoin rises and falls significantly in a short period of time (this is called price fluctuation).
What does it mean that "lost bitcoins" can increase in value?
In the interview, Novogratz makes another very interesting point.
that is,"The number of bitcoins that have been lost so far is likely greater than the total number of new bitcoins that will ever be mined (the technical term for this is "mining").”.
Here, let me explain a little bit.
- What is Bitcoin mining?: Bitcoins are issued little by little as a reward to those who verify new transaction records and correctly record them on the "blockchain (a kind of digital transaction ledger that is shared and managed by everyone)." This process and mechanism is called "mining" because it is similar to digging up gold from a gold mine.
- What does it mean for Bitcoin to be "lost"?: Bitcoins are stored in digital wallets called "wallets," and to open them you need a very long and complex password-like password called a "private key." If you forget this private key, lose the paper on which it was written, or if the person who owns the bitcoin dies and no one knows the private key, no one will be able to move that bitcoin again. This is called a "lost bitcoin." It's like losing the key to a safe and being unable to open it.
The maximum number of Bitcoins that can ever be issued is set at approximately 2100 million, but it is said that a significant number of them may be permanently inaccessible for these reasons.
As Novogratz says, if the number of "lost bitcoins" really is greater than the number of new bitcoins that will be issued in the future (bitcoins that have not yet been mined), then the number of bitcoins that can actually be traded on the market will become increasingly fewer.
In other words, Bitcoin's scarcity (difficulty in obtaining it) will increase even further, which may be one of the factors that will boost its value.This is an important point.
John's words
The comments of such an influential person as Mr. Novogratz make us feel big dreams and possibilities for the future of Bitcoin! I found his talk about "lost Bitcoins" increasing rarity particularly interesting, as it shows the unique characteristics of digital currency.
Of course, this is just one perspective, and no one knows exactly what the price of Bitcoin will be in the future. But I think it's very exciting to keep an eye on new information about how these new technologies have the potential to change our lives and the economy!
This article is based on the following original articles and is summarized from the author's perspective:
Bitcoin Will Replace Gold And Go To $1,000,000, Says Galaxy
Digital CEO Mike Novogratz