I’m guessing it does not have a long term value because that would require very long periods of time.
But if you could figure out how much of a gain a coin could earn every year, it really would make more sense.
If it’s worth $1 a year (a billion dollar coin in value), then it would be worth $1 a year (about $15.3 trillion) in today’s money.
And then it would be worth $1.3 trillion (about $25 trillion) in two thousand years time (a trillion dollar coin).
Again, a coin of that size would have to earn very high interest. The coin would definitely get more than enough interest to buy back the tokens in case they go through a huge boom and bust or if their value goes to zero.
But then again, a billion dollar coin in 2016 would also be worth $1 trillion…
It would be very hard to find any type of economic model that will explain how much of the value of a coin could be earned with interest, or how much of a coin would be worth in a year if the interest rate were to be 0% for all coins.
But even if you can’t figure out all the numbers, there are some numbers that do make sense.
Bitcoin’s average daily transaction fee is 1.13 cents. (source: Bitcoin.org)
I believe this is a very reasonable price for the coin. A one cent transaction fee at that level of value would cost a penny. If bitcoin price rises to $1000 each, that would actually cost a hundred cents. And when the average transaction fee rises up to $5, every penny could be worth hundreds of dollars a year.
I am not saying a penny is a great price to buy a coin with, just that you are actually getting to participate in economic value and benefit from it!
And that’s a nice bonus compared with the thousands of dollars of losses from mining bitcoin coins each year!
Now you are probably thinking, “Wait a minute, $1 a year is just too much to make a financial impact.”
Well, yes, but this is the best that can be done at the moment.
How can I invest in one of these?
One way to get a piece of the pie is if you are looking to buy one of these. These are not easy investments. They will likely never have great returns.
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