Much of this post was taken from this tweet from MD₿TC@MDBitcoin. I felt this information was very helpful so I wanted to share and expand on it.
Original tweet below
The Inevitable Path of #BTC
I. Global wealth = between $400-$900T
II. Let’s say 10% of Bitcoins are lost.
III. Let’s do a conservative estimate that #BTC captures ONLY 1% of global wealth, the value of one #Bitcoin would be?
then imagine 5%?, 10%? 20%? 50%?
There is no other path, accumulate as if your life depended on it. 🟠
Complete Calculations:
Available Bitcoins:
Total Bitcoin Supply: 21,000,000
Lost Bitcoins: 10% of 21,000,000 = 2,100,000
Available Bitcoins: 21,000,000 – 2,100,000 = 18,900,000
1% of Global Wealth:
Lower Bound:
1% of $400T = $4T
Value of one Bitcoin = $4T / 18,900,000 ≈ $211,640.21
Upper Bound:
1% of $900T = $9T
Value of one Bitcoin = $9T / 18,900,000 ≈ $476,190.48
5% of Global Wealth:
Lower Bound:
5% of $400T = $20T
Value of one Bitcoin = $20T / 18,900,000 ≈ $1,058,201.06
Upper Bound:
5% of $900T = $45T
Value of one Bitcoin = $45T / 18,900,000 ≈ $2,380,952.38
10% of Global Wealth:
Lower Bound:
10% of $400T = $40T
Value of one Bitcoin = $40T / 18,900,000 ≈ $2,116,402.12
Upper Bound:
10% of $900T = $90T
Value of one Bitcoin = $90T / 18,900,000 ≈ $4,761,904.76
20% of Global Wealth:
Lower Bound:
20% of $400T = $80T
Value of one Bitcoin = $80T / 18,900,000 ≈ $4,232,804.23
Upper Bound:
20% of $900T = $180T
Value of one Bitcoin = $180T / 18,900,000 ≈ $9,523,809.52
50% of Global Wealth:
Lower Bound:
50% of $400T = $200T
Value of one Bitcoin = $200T / 18,900,000 ≈ $10,582,010.58
Upper Bound:
50% of $900T = $450T
Value of one Bitcoin = $450T / 18,900,000 ≈ $23,809,523.81
Buy the quantity that you can and put it in cold storage, wait a decade and watch the inevitable path.
-End original tweet.
There is a lot to unpack there.
Let’s start with the basics.
There is between $400T and $900T of wealth in the world.
For reference at bitcoin’s current price of $26,000 and total coin maximum number of bitcoin ever of 21 million coins, bitcoin’s current market capitalization is $546 billion. This is between 0.067% and 0.13% of all the value in the world. That’s pretty small currently!
Gold has a current market capitalization of $12 trillion.
That comes to between 1.3% -3% of all the value in the world.
As noted above, if bitcoin was to capture 1% of the world value it would be worth between $211k and $476k per coin. This doesn’t even get it to the same market capitalization as gold!
Lower Bound:
1% of $400T = $4T
Value of one Bitcoin = $4T / 18,900,000 ≈ $211,640.21
Upper Bound:
1% of $900T = $9T
Value of one Bitcoin = $9T / 18,900,000 ≈ $476,190.48
Since bitcoin has many features that make it more useful than gold it has a good chance of at least gaining the adoption of 1% of the store of world value. Bitcoin doesn’t have to be used for every daily transaction for it to be useful or valuable. Gold has value and it is not very useful at all for daily transactions.
Bitcoin has multiple benefits over gold, it can be sent around the world nearly instantly, it can be broken down into very small units (1 satoshi = 0.00000001 bitcoin which at $26k/bitcoin = $0.01 is equal to 37 satoshis) and various other benefits that bitcoin has).
These are just a few of the reasons that I think Bitcoin will likely continue to stay around as a store of value and continue to gain adoption and grow in price and value.
MyWheelLife.com 