Like any other asset, bitcoin’s value continually fluctuates in the worldwide market of people buying and selling bitcoin. When it was invented in 2009, a bitcoin was worth nothing. At the time of this writing, one is worth about $9,000.
How valuable can a bitcoin become? Nobody knows. But here are some estimates.
- A lot of people hold gold as a “safe haven” asset. If 1/3 of the $8 trillion market for gold flowed into Bitcoin, a single bitcoin would be worth $125,000.
- A pricing model called “Stock-to-flow” that’s used to value commodities like gold and diamonds predicts a future bitcoin value of more than $1 million.
- Former PayPal director Wences Casares gives bitcoin a 50% chance of being worth $1 million within a decade. Since it’s still only a decade old—compared to say, 5,000 years for gold—he also gives it a 20% chance of failing, and being worth $zero.
With that in mind, should you own some bitcoin? →