How much in Bitcoin do you need, per person, to do okay in case Bitcoin becomes the big thing? Obviously this depends on your personal situation, but let’s look at two numbers: Total amount of Bitcoin, and amount of humans.
Bitcoin is divisible
Did you know that you don’t have to buy a full Bitcoin? You can buy as little as one one hundredth million of a Bitcoin, known as a “Satoshi“. Bitcoin has 8 decimal digits after the dot, that is 0.00000001 BTC.
How much Bitcoin is there?
Bitcoin has a current supply of ~19 million (Spring 2022), and a finite supply of ~21 million that will ever be mined, until the year 2140. The amount of new Bitcoins created through mining halves approximately every 4 years. Bitcoin has a hard-coded finite supply, in stark contrast to fiat currencies like the USD that keep printing money as if there’s no tomorrow.
Because people lost their keys to wallets holding Bitcoin, some of these coins have been lost forever. And this will keep happening, stay safe. It is estimated that no more than 15 million BTC will ever be accessible. This loss of coins makes Bitcoin effectively deflationary.
How many people are there?
The world has ~8 billion people, and our population is still growing. Even though Elon Musk and others see an imminent population collapse as the greatest threat to human kind. The world population may max out below ~11 billion.
Putting the numbers in relation
15 million BTC / 11 billion people = 0.001363 BTC per person
As of 2022-05-26 with a BTC price of 28.961 USD this has a value of USD 39,49. That’s approximately two pizzas in the developed world.
This calculation is ignoring institutions and governments who also have a healthy appetite to store value. And money is never distributed equally, most is within the hands of a few. If you manage to grab your share of this asset, you will be fine. Imagine how fine your children or grand-children will be if Bitcoin becomes the digital gold, or the new world reserve currency, and each of them inherits one full Bitcoin. One Bitcoin per child. See what we did there, with the name of this website. As of Spring 2022, this 1 BTC per child is still achievable for most people in developed countries.
The opinion of the authors of this website is that even if you do not believe in the future of Bitcoin or cryptocurrency, and you only consider the fact that maybe, maybe there is a chance for it going big, it would be wise to “buy the insurance” to not get left behind.
Planning to take profits?
If you plan to sell for profits as the price moves up, then take this into account when buying. One common strategy in the crypto world is to sell half when the price doubled from your initial price, known as “taking your initial (investment)”. Consider how much Bitcoin you would like to hold that you never, ever, ever sell.
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