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Board Speculation
Re: Can Bitcoin sustain a high price? Does my math check out? Is this valid logic?
by
figmentofmyass
on 21/06/2018, 21:44:08 UTC
the gold market is worth $7 trillion. the stock market is worth $30 trillion. what we're talking about is a drop in the bucket. the money doesn't need to be printed out of nowhere; it will come from other asset markets.

Sweet. This is what I was looking for. I don't think too much money would be divesting from the stock market to invest into Bitcoin though. Bitcoin is more like a commodity, apples to oranges, would you agree? With that being said though, even if a small percentage, say .1% of money from stocks move into Bitcoin that would be quite significant. As far as gold, I can definitely see a lot of money shifting from gold to Bitcoin.

it's simple diversification hedging strategy.

if you're storing value/hedging risk in stocks or commodities (or anything else at all), it's perfectly reasonable to re-allocate a small percentage into crypto as it becomes a traditionally accepted asset class.

the "apples to oranges" bit doesn't matter if the purpose of the investment is value storage. so much of the world's "value" is only held where it is because it has to go somewhere.