Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
After the $1K mark today; I've been -literally- bombarded with questions about the "roof" the price will be "landed". I know that bitcoin is nothing like anything we know up until today; but still; we can estimate a projected value regarding something similar. Gold.
This is a rough estimation I did back in March (before the April crash). I think it remains pretty accurate to give you an idea. It's also posted at www.bitcoinvest.eu for Greek readers.
The money in circulation today ($USA) is 1,18 trillion dolars (data 20.03.2013, Federal Reserve). Gold minted during our presence here is now 171,300 metric tons. Therefore there's $6,888.5 per kilo of gold. The current (27.03.2013) gold value per kilo is $51,267 (http://goldprice.org/) which means this is overpriced about a factor of circa 7.5. That's because NOT ALL of gold is available for trading.
If the total lot of bitcoins reaches 21M (it comes @ 2140) and NO EXTRA DOLARS are being "cut" (unlikely, but say it is so), the projected theoretical value is 1,18 trillions of $ /21 Million Bitcoins= $56,190.47 per bitcoin.
If you now take in mind the overpriced hypothesis of gold; then you get the idea...
PS:
It's also posted here answering (guess) the same question...
http://np.reddit.com/r/Bitcoin/comments/1rloww/serious_question_do_we_have_any_reasonable_idea/
If you have any objections; please let me know.
This is a rough estimation I did back in March (before the April crash). I think it remains pretty accurate to give you an idea. It's also posted at www.bitcoinvest.eu for Greek readers.
The money in circulation today ($USA) is 1,18 trillion dolars (data 20.03.2013, Federal Reserve). Gold minted during our presence here is now 171,300 metric tons. Therefore there's $6,888.5 per kilo of gold. The current (27.03.2013) gold value per kilo is $51,267 (http://goldprice.org/) which means this is overpriced about a factor of circa 7.5. That's because NOT ALL of gold is available for trading.
If the total lot of bitcoins reaches 21M (it comes @ 2140) and NO EXTRA DOLARS are being "cut" (unlikely, but say it is so), the projected theoretical value is 1,18 trillions of $ /21 Million Bitcoins= $56,190.47 per bitcoin.
If you now take in mind the overpriced hypothesis of gold; then you get the idea...
PS:
It's also posted here answering (guess) the same question...
http://np.reddit.com/r/Bitcoin/comments/1rloww/serious_question_do_we_have_any_reasonable_idea/
If you have any objections; please let me know.
Gold is not being used for day to day transactions.
On the other hand, if bitcoin is used for day to day transactions the price would be even higher.
Whatsmore, bitcoin is also a very nice store of value, hence the price would be even higher than the statement above.