As of early 2018, there are close to 16.8 million bitcoins in circulation with a total market capitalization of over $140 billion. So, how much is each individual bitcoin worth? And how did we get to this point?
In order to value a single bitcoin, we need to look at both the supply and demand side of the equation. On the supply side, there is a finite number of bitcoins that will ever be mined: 21 million. This number is algorithmically driven and it cannot be changed.
As more and more bitcoins are mined, the difficulty of mining new bitcoins increases, and it becomes more expensive to do so. This ensures that the total supply of bitcoins grows at a slow and steady pace.
On the demand side, we need to look at how people are using bitcoin and what they are willing to pay for it. Bitcoin can be used as a store of value, a medium of exchange, or a unit of account.
People are willing to pay for bitcoin because they believe that it will hold its value better than fiat currencies (like USD or EUR) or other assets (like gold or silver). They also believe that it will continue to be used more and more as a medium of exchange and unit of account.
So, how do we arrive at a price for bitcoin? It’s simply the result of supply and demand. When there is more demand for bitcoin than there is available supply, the price goes up.
Investing in Bitcoin can be a risky proposition and is not suitable for everyone. Before investing in Bitcoin, it is important to understand the risks associated with it. There are many factors that can affect the price of Bitcoin, including market trends, speculation and regulatory changes. Additionally, there is no guarantee that you will make a profit from investing in Bitcoin and you may lose some or all of your investment. As always, please do your own research before investing in any type of asset.
When there is more supply than there is demand, the price goes down.
Right now, there is more demand for bitcoin than there is available supply. This is because people believe that the price of bitcoin will continue to go up as more and more people start using it.
The result is that each individual bitcoin is currently worth around $8,000.
Of course, this price could go up or down in the future depending on what happens with the demand side of the equation. If more people start using bitcoin, then the price will go up.
If fewer people use it, then the price will go down.
So how much is MSTR worth? It all depends on how much people are willing to pay for it based on their own personal valuation.