This BTC bull run may not be the biggest in terms of percentage moves, but man has it been the biggest when it comes to the nominal value.
Hitting the 1 Trillion dollar market cap and smashing 50k is no small achievement as it breaks new all-time highs almost every month.
Since the US dollar is the world reserve currency, the focus on BTCs value is primarily compared to USD, which means other currency all-time highs often fly under the radar.
The case for BTC worth $1 Million
Calling for BTC to hit $1 million sounds delusional right now as we only broke $50 000 recently, but we have to remember that none of these numbers means anything. They are purely psychological milestones.
Value is perception; while a million dollars is still a lot of purchasing power, it’s nowhere near as much as it was 10, 20, or 50 years ago when we started this fiat experiment.
The more currency units we create each year means the existing supply of units losses it’s purchasing power when compared to other things that hold value, like food or, in this case, Bitcoin.
Counties worldwide are under massive economic stress, and instead of letting things reset and fail, more money is printed to try and stem the bleeding.
As currencies are seen as the soft underbelly of economies, this sacrificial lamb is lead to the slaughter in a bid to appease the MMT gods and keep the ship afloat.
The problem with currency printing is each country is at a different level of devaluation. Developing and poorer nations like my own, who are further down the totem pole, get to experience the devaluations first, and we can see that by the value of a Bitcoin in a range of local currencies.
Bitcoin already worth a million
If we take a look at various currencies around the world, we can see that 20 of them have already devalued to the point where Bitcoin is the better currency. The Satoshi is equal to or worth more than 1 cent in their national unit of account.
- Iranian Rial
- Indonesian Rupiah
- Colombian Peso
- South Korean Won
- Chilean Peso
- Kazakhstani Tenge
- Hungarian Forint
- Sri Lankan Rupee
- Pakistani Rupee
- Icelandic Krona
- Nepalese Rupee
- Japanese Yen
- Argentine Peso
- Russian Ruble
- Indian Rupee
- Philippine Peso
- Mauritian Rupee
- Thai Baht
- Taiwan New Dollar
- Czech Koruna
- Mexican Peso
Bitcoin continues to hit millionaire status
Bitcoin is coming for millionaire status in a country near you. When it does, many will realise the value of a satoshi as it hits 1 cent parity with the major currencies of the world.
The next 5 countries looking likely to fall into the satoshi parity zone will be:
- South African Rand
- Botswana Pula
- Norwegian Krone
- Swedish Krona
This could happen once BTC hits around $75 – $80k, which I think is possible in 2021 alone.
Developing nations have a chance that they’ll piss away
Smaller nations with shit currencies that have already devalued to the point where the Satoshi would make monetary sense to use as a unit of account have a chance to price goods and services in deflationary money that will value labour make price discovery easier.
It can bring greater efficiency of capital use and also reduce the number of inefficiencies in the legacy banking system in these countries. In my own remittances is a massive business done via text messaging, voucher codes to ATMs and store credit.
BTC could combine all of that and make it more interchangeable and give consumers more freedom and ownership of their money.
If you know anything about developing nations, you’ll know they tend to piss away most of their opportunities through corruption and infighting.
Instead of accepting the chance to adopt a new standard and reset, they will continue to hold on to fiat to the detriment of their own people.
It’s not to say fiat should be abolished in these counties, but if you’ve already hit 1 cent to satoshi parity or higher, why not make BTC legal tender and allow it to compete with your local currency.
Give the market a choice and see what people decide based on the economic incentives each currency provides.