Bitcoin: $1 Trillion US Dollars
Summary
Bitcoin passed $1 Trillion US dollars in market capitalization
Banks are going out of business
You can now buy a Tesla with 1 Bitcoin
Background
Bitcoiners,
On February 19th, 2021, Bitcoin crossed the average price point of $54,000 US dollars per Bitcoin. At the time, there was 18.63 million Bitcoins circulating in supply. Bitcoin officially became a TRILLION dollar asset according to its market capitalization, which is a fancy way of saying what an asset is worth.
Let’s do some simple math to figure out Bitcoin’s market capitalization:
Market Capitalization = Current Price x Circulating Supply
Market Capitalization = $54,000 US dollars x 18,630,000 Bitcoin
= $1.006 Trillion US dollars
It is pretty hard to fathom $1 Trillion US dollars. I like to think of what the word “trillion” means in terms of time.
100,000 seconds = slightly more than 1 day
1 million seconds = 11.5 days
1 billion seconds = 11,574 days (slightly less than 32 years)
1 trillion seconds = 32,000 years
Below is an example of what $1 Trillion US dollars looks like:
Quick Story
I have been personally fascinated with the company Tesla since 2013 when I was a junior in high school. It was the first stock I ever followed. I loved (and still love) everything about the mission behind the company. I am not much of a car guy, but dreamed of one day owning a Tesla.
At the time of publishing this article, one Bitcoin is now worth enough to purchase a brand new Tesla Model 3. I can buy my dream car, but I think I will wait a bit longer for a good deal to pop up!
Why is this Important?
Let’s get to the good stuff.
Bitcoin reaching a $1 Trillion US Dollar market capitalization means it is by far the largest bank in the world.
Yes, Bitcoin is a bank. It is unlike all the other centralized banks. Bitcoin is a decentralized bank. All you or I need is some software downloaded on a computer to be better than what JPMorgan Chase & Co can provide. I will let the data speak for itself:
JPMorgan Chase was founded in the year 2000. Now 21 years later, it is the largest centralized bank in the world. Not bad for only officially being around for 21 years.
Bitcoin and its inherent network started in the year 2009, shortly after the worldwide Great Recession. Today, Bitcoin appreciated to more than double the market capitalization of JPMorgan Chase in half the time.
Price is truth. Bitcoin’s price may be volatile now, but there is truth to why that is happening. People are waking up to the fact that our current fiat based monetary system is flawed. Central banks are printing fiat money like never before.
Money is power. Unfortunately, most people do not have a vote when it comes to deciding how much new money should be printed and put into our society. With Bitcoin, you have a vote. Buying Bitcoin and other crypto based assets is your vote against the centralized banks.
It is hard to comprehend what one trillion means. Imagine trying to comprehend one hundred trillion in the near future :)
Happy Friday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz