Post
Topic
Board Speculation
Re: The Great Misconception
by
Odalv
on 05/06/2013, 14:59:10 UTC
...and BTC buys ~1700% more? Does not compute

It buys you 1700% more, but is it overvalued? Let's do a little math:

How much would BTC be worth if there were as many in existence as there are dollars?

Total USD around: 829000000000
Total BTC around: 11247000

829000000000 / 11247000 = 73709

BTC Price in USD: 120

Real BTC Price in USD: 120 / 73709 = 0.0016

Still overvalued? As long as that number is below 1, it's undervalued!

TL;DR: It's not a bubble, It's limited edition!

PS: How do you like my reality distortion field?
$908.6 billion in the M0 (only cache, there is 307,212,123 Americans alive. If you took all the cash and divided it up equally, each person should have about $3,000 in cash)

M1 represents all of the currency in the M0 money supply, plus all of the money held in checking accounts and other checkable accounts, as well as all of the money in travelers' checks. In July 2009, the M1 money supply for U.S. dollars equaled about $1,655.6 billion

All told, anyone looking for all of the U.S. dollars in the world in July 2009 could expect to find around $8.3 trillion in existence.

$8T / 21M = $380k/btc :-)