555 sats \ 4 replies \ @kr 11 Jun 2023 \ on: Unpopular Opinions - A Weekend Discussion bitcoin
The “∞/21 million” idea is probably off by an order of magnitude.
i think ∞/210 million is a more accurate estimate of bitcoin’s market value on a Bitcoin standard.
I don't understand, are you talking about fractional reserves?
reply
i’m thinking about the role money plays in an economy.
whether on a fiat standard or a gold standard, the value of all dollars or gold bars in the world has always been a tiny fraction of the world’s wealth, and i think that will continue on a bitcoin standard.
the 10% estimate isn’t a precise measure, it’s just meant to illustrate that i think anyone who tries dividing all the world’s wealth by 21 million to back into a future bitcoin price will be way, way off.
after all, if the price of bitcoin equaled all the world’s wealth divided by 21 million, assuming there are 21 million bitcoin, it would mean every single thing on planet earth (except bitcoin) was worth exactly nothing.
reply
Oh yes I totally agree.
I wonder if there are historical (maybe 1800s) stats for:
Market Cap of Gold / Market Cap of All Assets
I assume this ratio would be similar in a Bitcoin world
reply
Yes, I think I've seen you argue this recently on another post. If not you then someone else. The idea that all value will be stored in bitcoin is absurd.
reply