Please take some time to understand what market capitalization represents. There has been nothing like a billion in fiat invested in bitcoin to date. A billion Zimbabwe dollars perhaps, but that's another discussion. The average cost of entry (per dollar) for bitcoin investors is nothing like the current spot price. To assume that you have to believe that all the original holders have cashed out in the last month; the blockchain says it just ain't so. Even that ignores the many miners that got in basically for free.
I doubt teaching him what market cap is will have any lasting effect on this one... It's far better to simply mention that bitcoin was very steadily worth less than $10 for a looooooooooooooooong time while it was used on SR that whole time, so it's pretty obvious that the other $120 worth of a bitcoin right now probably isn't all demand for SR products.