Post
Topic
Board Bitcoin Discussion
Re: How 1BTC can eventually be worth $11M
by
odolvlobo
on 15/12/2015, 16:21:52 UTC
So, the nett worth of all "wealth" or assets / resources in the world, is currently $241 000 000 000 000.

Lets presume BTC was the global currency/commodity used by intelligent computers to manage the world's resources, in today's value - and that everything was backed by/priced in BTC. $241 trillion / 21 million = $11 476 190 (In today's terms.)
...

The flaw in your thinking is that assets are never "backed" by currency. I bought my car with dollars, but that doesn't mean there are dollars sitting around somewhere representing the value of my car.

It is better compare Bitcoins to other currencies. The USD M0 is about $4 trillion. If Bitcoin completely replaced the U.S. dollar today, then each bitcoin would be worth about $280,000. That is incredibly unlikely to happen in our lifetimes. On the other hand, if Bitcoin replaced even 1% of the USD, that would be quite an accomplishment, and in that case the value a bitcoin would be worth about $2800.

So, go ahead and fantasize about your future mega millions, but please just remember that it is just a fantasy.

Please note: My numbers assume that fractional reserve banking of bitcoins will exist and that the velocity of money will be the same. I believe that FRB is likely and the velocity will likely be much higher, and if true it means that the value of a bitcoin will turn out to be lower than the numbers above.