| | | the whole arena is beyond westworld
Absolutely.
I tried to figure out the fair value for one bitcoin. Here's what I came up with.
I read somewhere there is $50 trillion cash in the entire world. That was one of the money supplies, I forget which one.
So lets assume Bitcoin displaces 1% of the world's money supply. Then all the bitcoin in the world should be worth $500 billion.
When they are all mined, there will be 21 million bitcoins.
So one bitcoin will be worth about $500 billion / 21 million = ~$24,000, when bitcoin displaces 1% of the world's money.
If that valuation process is at all accurate, the current bitcoin price is clearly WAAAAAY too high already. Bitcoin is nowhere near displacing 1% of real money in transaction volumes or amounts today. It's probably closer to 0.000000000001%, which would mean the price of one bitcoin should be around, I don't know, a dollar?
But it's designed to be a bubble, so I think it will inflate and inflate and inflate, until it stops.
It is a mystery, that's for sure.
I made 60% from Feb to last week, sold mine, and now I hope I have the sense to stay away...... |
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