Why Bitcoin will hit $1,000,000 a coin. (It’s unlike any asset in history).

What does a man truly own?

If your answer is the money in his wallet, the house he paid for, or his body and his freedom; You’d be wrong on all accounts. His freedom is leased to him and in most cases, it is held hostage such that he sacrifices some part of it in the form of the working days of his life, such that he doesn’t lose all of it to poverty.

His body and its effort, much the same. Held hostage and forced to pay for survival with its exhaustion.

His money bears the face of a stranger on it. Stored in institutions he doesn’t control, and forcibly confiscated from him for a variety of reasons: Divorce, breaking of laws, or simply theft via oversupply and inflation.

This has been the case for most of modern human history…

In 2008, Bitcoin came onto the scene and changed this. Here is an asset cryptographically secured by mathematics itself. It’s ownership guaranteed to an individual, without requiring the permission of a chieftain, a company, employees working for him, employers he works for or a government.

When you own Bitcoin you own it like you own nothing else in life. It is yours and there is no force on heaven or earth that can pry that bitcoin away from you other than your own willfulness.

For that reason, it is the most resilient asset that can be owned. Resilient not only to devaluation by external forces but resilient to societal encroachment itself. This is unique. No other currency or asset on the planet allows truly allows this.

When having a discussion about Bitcoin with my father, he replied that the value of bitcoin will stop growing because:

“Given how succesful bitcoin has become, they will simply make more of it.”

This arguably is the level of understanding of most people regarding Bitcoin. The majority of the planet would have the above opinion including many business owners, and people in positions of power.

It is however only a matter of time until the masses can fully grasp the idea of what Bitcoin actually is: A finite, perfectly ownable asset. More similar to non-renewable resources buried in the ground for millions of years than US dollars.

By that point Bitcoin will become the currency with which major global powers do business with each other, replacing gold in its traditional use case. After all who in their right minds wants an unlimited supply of US Dollars.

At what point do the productive industries of the US realize that they would much rather have you pay for that car with Bitcoin rather than with rapidly depreciating fiat?

At what point do shareholders demand their dividends paid in bitcoin? Do companies hold “cash” coffers not in fiat, but in bitcoin?

And what does this mean for fractional reserve banking itself? The practice of banks holding $100 for one client but lending out $300 secured by that same $100 with the assumption that not all clients will attempt to withdraw their money at the same time?

The world will change rapidly in the next few decades. Financial institutions that were built over centuries will suddenly find that their age-old strategies simply no longer work effectively.

And in the background to all of this. Human productivity will slowly inch forward. People will build bigger factories, producing more cars, more apples, more entertainment, and more exciting experiences… and all of this will compete for the same limited supply of bitcoins.

Thus the price of bitcoins in the long term is ultimately limited only to the ingenuity of human advancement.

Long before the price hits $1,000,000 a coin we will have stopped measuring things against fiat currencies.