What You Need to Know About the Value of a Bitcoin

Bitcoin Value

Bitcoin Value
Bitcoin Value

If you’re looking to find a specific number for the value of a Bitcoin, such as how much one Bitcoin is worth if converted to Dollars, simply go to our Bitcoin to USD page to get an up-to-the-minute price quote. If you’re more interested in the reasons why Bitcoin has value, as well as some thoughts on how high that value could go in the future, then read on.

At the very core, the value of any currency, Bitcoin included, is derived from acceptance. This is the foundation upon which the value of ANY currency rests. I’ve often heard it said that if businesses stopped accepting Bitcoins as payment it wouldn’t be worth anything because “it’s not backed by anything.”

This statement is true. However, the statement applies to all currencies, including the U.S. Dollar. If businesses stop accepting the Dollar as a form of payment, the Dollars you have will not be worth anything.

The same principle applies to Bitcoin.

Acceptance as a form of payment is the primary factor in the value of a currency.

Regarding the acceptance fo Bitcoin, obviously as of the date this is written, Bitcoin is nowhere near universal acceptance. It’s got a long, long way to go before Amazon, Walmart, and your local supermarket all accept Bitcoins as payment. By the time Bitcoin reaches that level of acceptance – if it ever does – the value of each Bitcoin would need to be high 6 figures or greater due to the absolute limit of 21 million Bitcoins that will ever be in existence.

While Bitcoin has not yet approached universal acceptance, nor is it isolated in total obscurity. Bitcoin is becoming mainstream. Bitcoin is gaining more and more acceptance as a currency and form of payment with each passing day. As Forbes has recently headlined, “Bitcoin is ready to go mainstream.”

Bitcoin’s time has arrived.

Because the supply of Bitcoin is limited, the more it is used, the more people who create wallets, hold, and spend Bitcoins, the more goods and services that are purchased using Bitcoin as a form or payment, the higher the value of Bitcoins will go.

It’s simple math.

Looking at the value of Bitcoin in another way, for the past couple of weeks the value of one Bitcoin in U.S. Dollar terms has been rising at about 40% per week. If Bitcoin continued to rise at that rate for the next 6 months, what would be the value of a Bitcoin then? Here’s the answer:

Start:   $103.00
Week 1:  $144.20
Week 2:  $201.88
Week 3:  $282.55
Week 4:  $395.57
Week 5:  $553.80
Week 6:  $775.32
Week 7:  $1,085.45
Week 8:  $1,519.63
Week 9:  $2,127.48
Week 10: $2,978.47
Week 11: $4,169.86
Week 12: $5,387.80
Week 13: $7,722.92
Week 14: $10,812.09
Week 15: $15,136.93
Week 16: $21,191.70
Week 17: $29,668.38
Week 18: $41,535.73
Week 19: $58,150.02
Week 20: $81,410.03
Week 21: $113,974.04
Week 22: $159,563.66
Week 23: $223,389.12
Week 24: $312,744.77
Week 25: $437,842.68
Week 26: $612,979.75

If one projects out the value of a single Bitcoin continuing to rise at the rate of the past couple of weeks, 6 months from now a single Bitcoin would be worth more than a half million dollars. At that time, the total value of all Bitcoins in existence would be: $612,979.75 x 11,000,000 Bitcoins = $6,742,777,250,000.

Is it conceivable that Bitcoin acceptance could reach that level? Yes.

Is it conceivable that Bitcoin could reach that level of acceptance in 6 months? Remotely possible, but not very likely.

But give it a couple more years, that’s a different story.