Given all the negative press that Bitcoin has to fight against, the arguments in favor of Bitcoin may sometimes be lost in all the noise. So let’s have a look at the typical attacks on Bitcoin and how the community could respond to them.
The price of Bitcoin is too high
Despite being down more than 60 percent from its all time high, the price of 1 Bitcoin – around $7,000 at the time of writing ($7,116 at press time – Cointelegraph) – still deters many people from entering the market. Even though Bitcoin is on the main page of many online newspapers since mid-2017, most people still do not know they can buy a fraction of a Bitcoin. So let’s set the record straight: 1 Bitcoin can be divided into 100 million satoshis (the smallest Bitcoin unit). Just because one cannot afford a full gold bar – which are $600,000 a piece – does not mean one cannot buy a gold coin or invest as little as $126 through a Gold ETF to get exposure to gold. The same thing can be done with Bitcoin.
Assuming a world population of 7 bln people, it means that there are 300,000 satoshis available per human being, or 0.003 Bitcoin. Since several studies have estimated that 3 to 4 mln Bitcoins have been lost in the early years, the true number is probably closer to 220 – 250,000 satoshis per person.
This problem led to an exuberant rally at the end of 2017, when all the coins below $1 suddenly started going up as many thought they were “cheap”. As each coin has a different supply, the price of one coin is irrelevant, what matters is the market capitalization of the outstanding supply and whether a particular coin has a future or not. Since this rally, most of these coins have gone down 80 percent + as these increases never made sense in the first place.
Remember that there are more millionaires in the world than there will ever be Bitcoins, so the price of 1 Bitcoin will soon not be the right metric, but rather 1 mBTC (1 thousandth of a Bitcoin) or even 1 satoshi. The current market capitalization of Bitcoin is $120 bln, while the US Dollar M2 Money Supply is $14,000 bln and the value of all the gold ever mined is $8,000 bln, so there is still plenty of upside left. At $7,000 per Bitcoin, the price of 1 satoshi is 0.007 US cents – at this price anyone can invest.