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Strategies & Market Trends : Blockchain and Cryptocurrencies -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (2452)

2/7/2021 3:23:00 PM

From: w0z

1 Recommendation

Recommended By
Glenn Petersen

Read Replies (1) | Respond to of 7648

does it probably mean pushing Bitcoin up to $162,000 price would take 10x the buying power of the 2017 run

Institutions (e.g. ETFs, hedge funds) and companies like Microstrategy are probably dwarfing individual investments in Bitcoin. BTC is now 711 Billion which is a drop in the bucket compared to other investment vehicles like stocks, real estate, debt and derivatives:

visualcapitalist.com

CategoryValue ($ Billions, USD)Source

Silver	$44	World Silver Survey 2019
Cryptocurrencies (edit-now $1,183)	$244	CoinMarketCap
Global Military Spending	$1,782	World Bank
U.S. Federal Deficit (FY 2020)	$3,800	U.S. CBO (Projected, as of April 2020)
Coins & Bank Notes	$6,662	BIS
Fed's Balance Sheet	$7,037	U.S. Federal Reserve
The World's Billionaires	$8,000	Forbes
Gold	$10,891	World Gold Council (2020)
The Fortune 500	$22,600	Fortune 500 (2019 list)
Stock Markets	$89,475	WFE (April 2020)
Narrow Money Supply	$35,183	CIA Factbook
Broad Money Supply	$95,698	CIA Factbook
Global Debt	$252,600	IIF Debt Monitor
Global Real Estate	$280,600	Savills Global Research (2018 est.)
Global Wealth	$360,603	Credit Suisse
Derivatives (Market Value)	$11,600	BIS (Dec 2019)
Derivatives (Notional Value)	$558,500	BIS (Dec 2019)
Derivatives (Notional Value - High end)	$1,000,000	Various sources (Unofficial)

To: Elroy who wrote (2452)	2/8/2021 12:49:08 AM
From: ItsAllCyclical	1 Recommendation Recommended By Claude Cormier Respond to of 7648

For any asset to appreciate tenfold does not imply a 10 fold increase in Money flows. It’s more about rate of change, sentiment, catalysts, and fundamental drivers. But you’re right bitcoin is tightly held compared to other assets. because it’s relatively unique within its as a class and the class itself is new I think it takes less new buying power then say it would for another asset of the same size to appreciate tenfold. 2017 was all about the individual. 2020 is all about the institutional Money flows and again if we merely get a 1% allocation we are going much higher so on a rate of change Basis you may be talking about institutions going from 0 to 1 but this doesn’t require a huge capital commitment on their part. It’s the same story with gold only because bitcoin is so new and so much smaller it takes far less in terms of new investors.