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72 sats \ 6 replies \ @Undisciplined 14h \ parent \ on: Is Bitcoin Undervalued? bitcoin
It's basically a combination of ultimate price and how long full adoption takes.
My first estimate for final valuation was just taking the global money supply and dividing by 21M. That got me something like $10M btc. If that's still several decades out, you get a present discounted value of $1M.
My second estimate is discussed in this post: #474759. Assuming bitcoin absorbs the monetary premia of other assets, again over the next several decades, it would have a discounted present value of about $1M.
That's also the point of sat-cent parity, which isn't really important, but is neat. That's why I basically treat sats as though their worth one cent.
I’ve already seen estimates of $10 trillion, considering the total amount of assets in circulation worldwide. It’s good to see that more people have done this calculation. I don’t feel as bad for thinking it’s undervalued. I’ll read your article.
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It is steeply discounted. Think how few wealthy people have converted significant shares of their portfolios into Bitcoin. At some point, that capital will come rushing in, because btc is a better store of value than real estate, gold, bonds, stocks, etc.
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Real world constraints are a pain in the ass.
I hope everything works out well for her.