I was punching some numbers yesterday. I was thinking that realistically the market cap of Bitcoin would potentially equal that of the biggest corporations in the world (I know Bitcoin is not a corporation but just go along with me here.) Let's say that it does equal Apple and has about a 500 billion market cap. With all 20 million Bitcoin in circulation that would mean 1
BTC would be worth $25,000. That is still a long way from a million. I don't think it is realistic to think it could get to a million but someone please give me reasons why I am wrong in this.
I guess if it becomes the world's reserve currency perhaps? Is that a bit of a stretch? I guess time will tell but I do think that $25,000 should be attainable at some point.
I think it's the store of value qualities that could potentially allow for extremely high (inflation-adjusted, say 2008 $) valuations. The bitcoin price is set at the margins and "market cap" (really total monetary base) is just symbolic. Imagine taking 1% or possibly even less of all the money squirrelled "offshore" for tax avoidance/evasion purposes, combined with all the other potential store of value uses for bitcoin, then add that to the "bid" side of the exchange ledger. Excited now?
Note: I'm not saying bitcoin has to or will have seven-figure prices in 2008 USD. Not at all. But if it's used as a serious store of value and/or major reserve currency then
maybe $1 million plus per bitcoin is achievable.
Maybe.
