I believe that each Bitcoin could someday be worth about 440,000 dollars. This may seem like an outlandish claim, but it is very possible. Imagine that tomorrow the whole world adopted Bitcoin as the currency used for pretty much every transaction.
Here is the reasoning. The world’s GDP is about $55,000,000,000,000, 55 trillion for those of you whose eyes can’t handle that many zeros. In 2012 the annual velocity of the average dollar was about 6. The average dollar changed hands about six times. I will admit that for the sake of ease of my calculation I have assumed the same velocity for all other nation’s currencies as well as the whole world using dollars (the values of the other currencies are taken into account). I take the 55 trillion number and divide it by six to get the number of dollars in the world economy. I get 9.61 trillion. Divide that by 21,000,000 (the final number of Bitcoins) and you get $436,500 per Bitcoin.
Admittedly a lot of things have to go right for Bitcoin and wrong for other currencies before this price is realized, but the potential is there. Even if you believe the chances of Bitcoin become a universal currency are low I would still contend that the potential for return way out ways the potential for loss. Besides as you buy Bitcoins now the price goes up and entrepreneurs look for ways to earn and exchange Bitcoin more readily. Feel free to suggest improvements for my reasoning in the comments section below.