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I did some math and my idea was: If the max amount of Bitcoin is 21mio and we assume that a huge chunk of the economy will be payable with these Bitcoin. Then

by k__ 5y ago

I did some math and my idea was: If the max amount of Bitcoin is 21mio and we assume that a huge chunk of the economy will be payable with these Bitcoin. Then on Bitcoin has to be worth (at least) 1/21mio of that economy chunk.

wcoenen 5y ago
That is one way to estimate a maximum possible value. My point is that by assuming "Bitcoin cannot consume more than X % of all electricity or there will be trouble", you can calculate another maximum value which turns out to be much lower. In fact, if you assume Bitcoin can consume no more than 1% of all electricity (before regulatory trouble starts brewing) and electricity costs 0.05 USD/kWh, then you get a maximum price which is pretty close to the current price. https://www.wolframalpha.com/input/?i=0.05+USD%2FkWh+*+10+minutes+*+2100+gigawatt+*+0.01+%2F+6.25 https://www.wolframalpha.com/input/?i=0.05+USD%2FkWh+*+10+mi...