Bit price logic

The concept of "price logic" will gradually penetrate the consciousness of cryptocurrency market participants. This logic is: the reasonable price of any virtual currency must conform to a certain mathematical equation. Price logic is the ultimate judgment of the cryptocurrency market. Bitcoin must first accept such a judgment; only when its price logic is clear can its prospects become clear, and its price process will become less convoluted. Price logic will also expose all altcoins, including prominent ones like Ethereum, revealing their true forms, leading to a return to rational prices.
Bitcoin is the perfect digital gold of the new technology era for humanity, and its mission is to replace metallic gold as a highly practical tool and value maintainer that fully counters the inflation of fiat currency. Its ultimate role is to protect people's wealth from being harvested by the relentless inflation of fiat currency. With its maturity, the value-bearing system of human society will become sound. Bitcoin will effectively absorb any bubbles of inflation, allowing users of fiat currency to completely break free from the disadvantaged position of being unequal to the power of minting. Therefore, it is a reasonable counterpart to the power of minting.
Metal gold is essentially a crude version of the role that Bitcoin has to assume. Its disadvantages, such as being difficult to carry, divide, store, and its unlimited production and inability to maintain value precisely, prevent it from fully serving as a means for humanity to combat the endless inflation of fiat currency and to store value. Its simplicity and functional deficiencies also make it difficult for inexperienced people to recognize the true need for Bitcoin, leading to many misunderstandings about it. This has resulted in significant price fluctuations during its growth period being criticized by people. However, humanity does indeed need a practical tool that can perfectly balance fiat currency inflation and maintain value without loss accurately. New technology has given birth to such a perfect practical tool in human history, which can fully meet the global public's need for personal wealth protection.
Bitcoin is an upgraded version of the functionality of metal gold, its significance is akin to the automobile replacing the horse-drawn carriage. It is definitely not an enemy of fiat currency; like metal gold, it poses no harm to any country or society, but rather promotes wealth fairness and the justice of the monetary system, benefits the stability of the financial system, reduces social instability factors, and enhances the civilization of human society. Therefore, there should be a correct understanding of Bitcoin. However, taking advantage of people's vague understanding of blockchain technology applications and the proliferation of other virtual currencies that have arisen alongside Bitcoin is detrimental to humanity.
As humanity gradually recognizes the complete nature of the monetary system, and due to the inherent pursuit of a sound value-bearing system, Bitcoin cannot ultimately fail!
The price rise process of Bitcoin and the principle of a universally accessible and precise wealth protection method is as follows:
Currently, the total amount of fiat currency worldwide is about 100 trillion USD, and the over 20 million Bitcoins must reach 5 million USD each to match the total amount of global fiat currency. After that, as fiat currency continues to inflate, the price of Bitcoin will rise equivalently to protect wealth from depreciating.
If we equate the global wealth of 55 trillion dollars with the price of Bitcoin, its price would need to rise to over 20 million dollars per coin to reach a relatively stable target.
Therefore, even if the price of Bitcoin reaches a level equivalent to global fiat currencies or wealth in the future, it will still be advantageous for people to buy and hold it at that time. It will ultimately be a mirror of global wealth, continuously appreciating, unless fiat currencies cease to inflate, which they will not. Fiat currencies will eternally inflate, and Bitcoin will appreciate alongside them. Thus, high-priced Bitcoin transactions will still be active in the future. At that time, the price of Bitcoin will be closely associated with the equivalent value of global fiat currencies or wealth, and the significant volatility during its growth phase will no longer exist.
Human understanding of Bitcoin is becoming increasingly clear, and the consensus on its utility as digital gold will become more widespread and solid. Mainstream forces around the world are also participating more and more in promoting the development of Bitcoin.
Therefore, before the price of Bitcoin reaches the above target, it will experience a strong internal logic for a dramatic price surge in the next one to twenty years!
Bitcoin is the most reliable application of blockchain technology and virtual currency. The others are mostly impractical and are almost all speculative trading.
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