Post
Topic
Board Economics
Re: Medium of Exchange vs Store of Value - and effect on BTC worth
by
deisik
on 07/12/2013, 12:23:07 UTC
If it does become a significant store of value what might it be worth? Obviously we still cannot say with any certainty, but to determine the upper limit assume Bitcoin somehow fully replaced gold. Then the price of 1 BTC would roughly equal $330,000 (5.6 billion ounces*1250/21,000,000). Of course that is the upper limit and not very realistic.

Gold is no longer a means of exchange and has not been so for many decades already, so it is not correct to make such assumptions because Bitcoin is also used to some extent as a means of exchange (unlike gold). If we take that such reasoning has some value in it, that would in fact give us the lower limit for Bitcoin price...