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Gold's money supply is about $8T, and I think Dollars (not just physical bills) is much bigger-- at least $20T. I think your math is off. Bitcoin is approachi
by rothbardrand 9y ago
Gold's money supply is about $8T, and I think Dollars (not just physical bills) is much bigger-- at least $20T.
I think your math is off. Bitcoin is approaching a $100B market cap, and there are only 21 million bitcoins that will ever be in existence.
To match the dollars $20T total supply (a low end number depending on which money supply number you use it could be a multiple of that) then each bitcoin would be worth about $1M.
To match gold in market cap, would be $380,000 per bitcoin.
Truth is, though, when bitcoin comes into its own, the value of the dollar will drop (well, its true value will be realized) so prices would likely be much higher... assuming bitcoin succeeds and becomes a common world currency.
- sova 9y agoWow, dollars in the world is $20T or some multiple? That's a great figure! I did not know that. Yes, $1T was the figure in 1990 but for physical dolla dolla bills. I was attempting to link USD in circulation to BTC, not paying attention to BTC market price. With your updated figures $21T USD in circulation makes each Bitcoin $1M yes, your math checks out. ($1M x $1M is $1T ... were we to somehow make BTC our new Cryptographic "Gold standard") With each bitcoin worth $1M, that makes each Satoshi about ... a penny?
- rothbardrand 9y ago100 million satoshi to a penny. I don't really know what the ultimate value of bitcoin will be-- really determines on how well it resists attacks, and what level of services are built on top of it. It's still the very early days.
- sova 9y agoAbsolutely, it's not something transparent at this point, what the true realized value of a coin will be over the long-term. I appreciate your insights regardless, thanks for updating me on the amount of USD in circulus