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Where Bitcoin Is Stored

In this article we discuss where Bitcoin is stored and where it exists. In addition, we share some bitcoin price information and why we think the price will go higher. We explain what Bitcoin is, why it is an important technology and why we anticipate a Bitcoin price in the range of $100,000 – $250,000.

There are a number of places where Bitcoin is stored. Examples of places where Bitcoin is stored include:

  • Hardware Wallets
  • Software Wallets
  • Paper Wallets
  • Cryptocurrency Exchanges
  • Blockchain
  • Your Mind

how to get 1 Bitcoin fastUltimately, the place where Bitcoin is stored is the blockchain. Each Bitcoin wallet has a public and private key. Both of these keys are needed for the owner to unlock the Bitcoin. However, how this information is represented or accessed varies (seen in the list above).

Before discussing where bitcoin is stored, it is important to understand what Bitcoin is. In addition, we’ll discuss the history of Bitcoin, why it was invented and what makes it valuable. This will help you better understand where bitcoin is stored.

What is Bitcoin?

The largest and oldest cryptocurrency, Bitcoin is a Peer-to-Peer Cryptocurrency Payment System

Bitcoin is an open-source, block chain-based technology that was designed as a peer-to-peer payment system. It is designed to be a decentralized electronic payment method that can be conducted semi-anonymously among individuals. It is intended to be a digital cash. The other intent of Bitcoin is to solve the double spend; trust problem that had been encountered in the past with electronic currencies.

Using block chain technology to maintain its functionality, Bitcoin miners contribute to the system. In order for users to send and receive bitcoin, the block chain depends on miners. Moreover, computers are used by miners to complete complex calculations which build blocks on the block chain. As a reward, the miners receive Bitcoin as payment when each block is completed.

Satoshi Nakamoto Issued the Bitcoin White Paper in 2009

who is SatoshiIn January 2009, Bitcoin was born. It is unknown who invented bitcoin; however, a developer named Satoshi Nakamoto (probably a pseudonym) released a 9-page white paper entitled, “Bitcoin: A Peer-to-Peer Electronic Cash System.” The Bitcoin white paper describes Bitcoin’s purpose and how it works.

Finally, Bitcoin was the first cryptocurrency to experience widespread use and adoption. However, its use case has evolved over the years from a peer-to-peer payment method to a store of value model. Many Bitcoin users hold bitcoin much like you would hold silver or gold in an investment portfolio.

Bitcoin Limited Supply

Only 21 Million Bitcoins Will Ever Be Mined, Making Bitcoin Inflation-proof

The real Bitcoin price news is that there is a limited supply of Bitcoin, which directly effects the Bitcoin price prediction. Only 21 million Bitcoins will ever be mined for circulation. Therefore, by definition, Bitcoin is a deflationary money. This is in stark contrast to how central banks around the world like the Federal Reserve Bank print more money, continuously creating inflation.

Currently there are approximately 18.5 million Bitcoins that have been mined for circulation. In theory, there are only 2.5 million Bitcoin left to mine. This means that 88% of all Bitcoins that will ever be produced are already circulating. When 21 million Bitcoins have been mined at some point in the future, no more coins will be produced and the mining of Bitcoin will cease.

Where Bitcoin Is Stored

Hardware Wallets: A physical device that is kind of like a USB flash drive where your Bitcoin can be stored. A hardware wallet interfaces with a computer and provides a superior level of privacy and security for long term storage of Bitcoin and other cryptocurrencies. Examples include Trezor and Ledger wallets, which usually cost less than $100.

Software Wallets: A program or application that you can download on either phone, tablet or desktop computer for storing cryptocurrency. Software wallets are easy to use and provide a moderate level of security.

Paper Wallets: A physical way to store your Bitcoin on paper and an alternative to using a hardware wallet for long term storage. Using paper wallets that are simply block chain generated keys printed on paper is another secure place where Bitcoin is stored for the long term.

Cryptocurrency Exchanges: An online website exchange acts as a custodian for storage of your cryptocurrency. Storage of cryptocurrency on exchanges in the short term is acceptable while trading or buying and selling; however, storing Bitcoin on an exchange like Coinbase, Kraken or Binance is not recommended for long term Bitcoin storage. Remember: not your keys, not your Bitcoin.

Blockchain: Ultimately, all Bitcoin and cryptocurrencies are stored on the blockchain. As long as you have your public and private keys, you can access your cryptocurrency.

Your Mind: Memorizing long strings of characters can be difficult, but this is another way to store your Bitcoin. Simply memorize your cryptocurrency wallet public and private keys, like a bank account. Your mind is the cold, long term storage of where Bitcoin is stored.

You Will Probably Never Own 1 Bitcoin

There are only 21 million Bitcoins available to the entire world. As a result, Bitcoin supply is limited. The world population is currently almost 8 billion people. In theory, this means that even if everyone wanted a Bitcoin, there are not enough Bitcoins to go around. As a result, most people will only be able to own a fraction of a Bitcoin. Specifically, economists interpret this situation as a low supply, and growing demand economy. Furthermore, this is the kind of economic situation that drives prices higher and makes owning Bitcoin more valuable and lucrative.

Bitcoin Adoption is Growing Rapidly

There are a couple of things to understand about Bitcoin growth. First, Bitcoin is growing in popularity and use worldwide. Users are adopting Bitcoin as a store of value like gold and using it as a payment method in places where banks don’t exist. Second, Bitcoin is growing in price.

When users began mining Bitcoin on laptops in 2009, it had little value. Yet, today one Bitcoin is equal to $30-40,000! In addition, in 2020, billions of Dollars of institutional money began to flow into Bitcoin investments.

Examples of Institutional Money Investments in Bitcoin:

There are many other known examples of institutional investors.

Will Bitcoin Reach $100,000? Bitcoin Price News Predictions

Anthony Pompliano: $100,000-$400,000

Anthony “Pomp” Pompliano of Morgan Creek Digital made the Bitcoin price prediction $100,000 in late 2021. Well, there’s not much time left for that to happen, but anything is possible. However, in August 2020 Pompliano doubled down on his Bitcoin price prediction. He’s now predicting $400,000 Bitcoin with an overall market capitalization of $8 Trillion. At this level, Bitcoin would be more valuable than the gold market.

Max Keiser: $100,000-$400,000

Much like Pomp, Max Keiser has also made a very bold Bitcoin price prediction. Max has been in the Bitcoin space for many years and has been bullish for years. He originally began predicting that Bitcoin would shoot up to $100,000. However, recently he has moved up his Bitcoin price news prediction to the $400,000 range like Pomp.

In February 2020, Max spoke with radio host Alex Jones about Bitcoin. He stated,

“I am officially raising my target for Bitcoin and I first made this prediction when it was $1. I said this could go to $100,000. I’m raising my official target for the first time in eight years. I’m raising it to $400,000.”-Max Keiser, February 2020

In other Bitcoin price news, Max Keiser correctly predicted that Bitcoin would rise to $20,000 by the end of 2020. Furthermore, in January 2021, he made another bold prediction while being interviewed by Daniela Cambone of Stansberry Research: $220,00 Bitcoin by the end of 2021!

Bitcoin Price News Prediction: 2025 and Beyond

Mike Novogratz: $350,000-$400,000

Former hedge fund manager, Mike Novogratz, has gone on the record making Bitcoin price news predicting bitcoin market capitalization. Furthermore, he believes Bitcoin will ultimately surpass the market capitalization of gold and reach approximately $7.5 Trillion. This equates to approximately $400,000 Bitcoin price prediction.

Chamath Palihapitiya: $1,000,000

The founder of Social Capital, Chamath Palihapitiya, has been trading bitcoin since 2012. He allegedly owned approximately 5% of the total volume of Bitcoin in existence at one time. Mr. Palihapitiya made a Bitcoin price news prediction of $100,000 in the next few years. He also believes Bitcoin will reach $1,000,000!

Future Bitcoin Price News Prediction

$50,000 – $250,000 Price Range for Bitcoin Based on Gold Market Capitalization

It seems clear that in 2021, Bitcoin will begin its next phase of expansion and adoption. As a result, Bitcoin’s price will likely go much, much higher. We at Piggy Bank Coins believe the future is bright for Bitcoin. We have made a clear case that Bitcoin is a strong store of value, a deflationary asset with limited supply, strong security and a growing network of users.

Historically, Bitcoin price has fluctuated, which hurt its reputation. However, Bitcoin price has stabilized over the past 2 years. As the world economy stumbles through a massive recession and the US Dollar struggles to maintain relevance in a changing world economy, Bitcoin may be the answer.

Future Bitcoin Market Capitalization $1 – $5 Trillion is Reasonable

According to the Visual Capitalist, the world gold market is valued at approximately $10.8 Trillion. Less than half of the value is in jewelry. Therefore, we can assume that gold, the world’s favorite “store of value,” is a $5 Trillion market. Bitcoin, a new “digital store of value” has a market cap value of only $200 Billion (4% of gold’s value). Imagine what Bitcoin will be valued at when it begins to realize its place as the world’s new store of value. A Bitcoin with a market capitalization of $1-$5 Trillion is not beyond reasonable calculation.

A Bitcoin market capitalization of $2-$5 Trillion equates to $100,000 – $250,000 Bitcoin, priced in US Dollars. Pricing Bitcoin in this range does not require much imagination. In addition, we have not factored in price impacts such as US Dollar devaluation/failure, other money supplies moving to Bitcoin (M1, M1, M3, etc.), institutional adoption, and so much more. Clearly, Bitcoin is a force to be reckoned with.

Wrap Up: Where Bitcoin is Stored

Hopefully this article has helped you understand where Bitcoin is stored. There are many options for where Bitcoin is stored: Hardware wallets, software wallets, paper wallets, exchanges and more. Each of these options for storing Bitcoin has risks and rewards, so carefully consider each option for storing your Bitcoin.

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Disclaimer

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.

 

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