So I made some calculations today

[Blind Legs Parker]

So I made some calculations today.
The total world's wealth is estimated around $241,000,000,000,000 (source), the total value of all the gold in the world is $7,290,669,617,313 (source) and bitcoin's market cap as of now is $6,382,047,520 (source).

This basically means that gold represents 3% of the total world's wealth and that bitcoin is only worth 0.0026% of it. In other words, by comparing bitcoin directly to gold: the total value of all bitcoins is 0.087% (or 1/1142) of the total value of all the gold that there is. Looking at it from this point of view bitcoin can easily get to 4 digits. It then seems pretty down-to-earth to say that we will definitely get there before 2020 if nothing goes wrong. 6 digits though, would put us very close (or even above) gold's value, which is hard to imagine at the moment. The millions have already been made but there is still a lot of money to be made with bitcoin and we now have something that pioneers didn't have: stability. Stability is a great thing because it allows for a reliable store of value. I thinks we've actually reached a pretty good balance between prospects and safety of investment.
In other words: we're only waiting for metallurgists to find a way to melt tungsten and gold together. Ok we might have to wait for a while  .

(Also, Ethereum's market cap is already $1,061,551,795, roughly 17% of bitcoin's. Meanwhile everyone is still wondering what the heck it can be good for and no one seems quite sure that the price is high enough as is  .)

[1715272417]

1715272417

[ObscureBean]

For something like this to happen, you need mass adoption of Bitcoin worldwide, 4 years is too short. Gold is acknowledged by everyone to be valuable, it is something tangible that even people in their 80's or older can easily recognize. Bitcoin is a new generation thing and at the moment attracts only people that are technologically savvy. When we've reached a point where the oldest person on earth was born after Bitcoin was created, Bitcoin will have been universally assimilated. Of course we might not need to wait that long 

[Benchman]

+1

Bitcoin need at least 10-20 years to come into mainstream. Price should be +$20,000. But we'll see.

[nuevo]

So I made some calculations today.
The total world's wealth is estimated around $241,000,000,000,000 (source), the total value of all the gold in the world is $7,290,669,617,313 (source) and bitcoin's market cap as of now is $6,382,047,520 (source).

This basically means that gold represents 3% of the total world's wealth and that bitcoin is only worth 0.0026% of it. In other words, by comparing bitcoin directly to gold: the total value of all bitcoins is 0.087% (or 1/1142) of the total value of all the gold that there is. Looking at it from this point of view bitcoin can easily get to 4 digits. It then seems pretty down-to-earth to say that we will definitely get there before 2020 if nothing goes wrong. 6 digits though, would put us very close (or even above) gold's value, which is hard to imagine at the moment. The millions have already been made but there is still a lot of money to be made with bitcoin and we now have something that pioneers didn't have: stability. Stability is a great thing because it allows for a reliable store of value. I thinks we've actually reached a pretty good balance between prospects and safety of investment.
In other words: we're only waiting for metallurgists to find a way to melt tungsten and gold together. Ok we might have to wait for a while  .

(Also, Ethereum's market cap is already $1,061,551,795, roughly 17% of bitcoin's. Meanwhile everyone is still wondering what the heck it can be good for and no one seems quite sure that the price is high enough as is  .)

Ok, where do I sign up for a tesla and does anyone want to go halvsies on a private jet?

[aleandromagno]

+1

Bitcoin need at least 10-20 years to come into mainstream. Price should be +$20,000. But we'll see.

I think less - it can be 5 - 10 years. We already have signals that big companies are interested in Bitcoin (Sony, Burger King). Some big countries already make research to use Bitcoin as a currency. It can be faster than we think

[Amph]

in fact real bitcoin price should be in the range of 10k-100k if not above 100k, but people seems to be stabborn enough to believe that the actual price is high

when there will be the real boom, everyone will see cheap bitcoin even at 50k value, guaranteed...

[alyssa85]

(Also, Ethereum's market cap is already $1,061,551,795, roughly 17% of bitcoin's. Meanwhile everyone is still wondering what the heck it can be good for and no one seems quite sure that the price is high enough as is  .)

For the answer as to what ETH is good for, see the following:

http://www.ibtimes.co.uk/ethereum-powered-augur-brings-its-beta-microsoft-azures-blockchain-cloud-1549630

Lots of stuff is going to be built around ETH, and that's where it's value is coming from.

[NUFCrichard]

So I made some calculations today.
The total world's wealth is estimated around $241,000,000,000,000 (source), the total value of all the gold in the world is $7,290,669,617,313 (source) and bitcoin's market cap as of now is $6,382,047,520 (source).

This basically means that gold represents 3% of the total world's wealth and that bitcoin is only worth 0.0026% of it. In other words, by comparing bitcoin directly to gold: the total value of all bitcoins is 0.087% (or 1/1142) of the total value of all the gold that there is. Looking at it from this point of view bitcoin can easily get to 4 digits. It then seems pretty down-to-earth to say that we will definitely get there before 2020 if nothing goes wrong. 6 digits though, would put us very close (or even above) gold's value, which is hard to imagine at the moment. The millions have already been made but there is still a lot of money to be made with bitcoin and we now have something that pioneers didn't have: stability. Stability is a great thing because it allows for a reliable store of value. I thinks we've actually reached a pretty good balance between prospects and safety of investment.
In other words: we're only waiting for metallurgists to find a way to melt tungsten and gold together. Ok we might have to wait for a while  .

(Also, Ethereum's market cap is already $1,061,551,795, roughly 17% of bitcoin's. Meanwhile everyone is still wondering what the heck it can be good for and no one seems quite sure that the price is high enough as is  .)

You started out well, with sources and information points,
Then it quickly went downhill when you started speculating on what price Bitcoin should be.  Of course it could be 4 digits, it could be 5 digits.  That is not to say that it will, or that it won't be 2 digits.

I look forward to Bitcoin actually being accepted for stuff, and solving the problems that it should be solving - i.e. fast low cost money transfers.  When that happens the price will rise, if it doesn't and I don't really know why it hasn't, then it won't go anywhere fast.

[bebeko]

in fact real bitcoin price should be in the range of 10k-100k if not above 100k, but people seems to be stabborn enough to believe that the actual price is high

when there will be the real boom, everyone will see cheap bitcoin even at 50k value, guaranteed...

you are right, I hope bitcoin will reach this price at any time from now. I believe and bitcoin and bitcoin will surely reach that we just need to give support for it.

[romero121]

Thats true the market cap of gold is very very high compared to the bitcoin. With the growth analysis of bitcoin it is clear that from its day of existence, bitcoin has grown enormously.

[BellaBitBit]

Thats true the market cap of gold is very very high compared to the bitcoin. With the growth analysis of bitcoin it is clear that from its day of existence, bitcoin has grown enormously.

Yes, the growth is excellent.  Also, consider that gold has been around for eons and bitcoin is not to far behind on market cap.  If it continues to grow as OP has calculated then this is going to get good! 

[LoyceV]

This basically means that gold represents 3% of the total world's wealth and that bitcoin is only worth 0.0026% of it. In other words, by comparing bitcoin directly to gold: the total value of all bitcoins is 0.087% (or 1/1142) of the total value of all the gold that there is. Looking at it from this point of view bitcoin can easily get to 4 digits.

You can't really make wedding rings out of bitcoin, so it has some limitations gold does not have...

It makes no sense comparing the value of x to the value of y. You can't just exchange them. The value of apples on earth for example is a lot less than the value of bitcoin. And yet, it has nothing to do with it. You can't say "let's replace all apples by bitcoin", just as you can't replace all gold by bitcoin.

Bitcoin need at least 10-20 years to come into mainstream. Price should be +$20,000. But we'll see.

I see a serious limitation from the blockchain there... As long as "the ones in power" don't make it possible to do - say - 1000 times more transactions, why should the value go up 50-fold? You can't have mass adoption if the blockchain is already pushed to its limits.

[pedrog]

This basically means that gold represents 3% of the total world's wealth and that bitcoin is only worth 0.0026% of it. In other words, by comparing bitcoin directly to gold: the total value of all bitcoins is 0.087% (or 1/1142) of the total value of all the gold that there is. Looking at it from this point of view bitcoin can easily get to 4 digits.

You can't really make wedding rings out of bitcoin, so it has some limitations gold does not have...

It makes no sense comparing the value of x to the value of y. You can't just exchange them. The value of apples on earth for example is a lot less than the value of bitcoin. And yet, it has nothing to do with it. You can't say "let's replace all apples by bitcoin", just as you can't replace all gold by bitcoin.

Bitcoin need at least 10-20 years to come into mainstream. Price should be +$20,000. But we'll see.

I see a serious limitation from the blockchain there... As long as "the ones in power" don't make it possible to do - say - 1000 times more transactions, why should the value go up 50-fold? You can't have mass adoption if the blockchain is already pushed to its limits.

You can't send gold immediately across the planet, so it has some limitations bitcoin does not have.

It makes no sense compare apples with bitcoin but it makes sense compare bitcoin with gold because they both can be used by the same people for same purpose, store of value, if those people move 1% of their gold investment to bitcoin, bitcoin's price will increase a lot.

[Olaf]

Thats true the market cap of gold is very very high compared to the bitcoin. With the growth analysis of bitcoin it is clear that from its day of existence, bitcoin has grown enormously.

so how long do we wait this out lol.

I dont mind waiting for another 4 years, but having to wait like someone mentioned 10 years minimum.

(Also, Ethereum's market cap is already $1,061,551,795, roughly 17% of bitcoin's. Meanwhile everyone is still wondering what the heck it can be good for and no one seems quite sure that the price is high enough as is  .)

For the answer as to what ETH is good for, see the following:

http://www.ibtimes.co.uk/ethereum-powered-augur-brings-its-beta-microsoft-azures-blockchain-cloud-1549630

Lots of stuff is going to be built around ETH, and that's where it's value is coming from.

I`ll prob invest in ETH if the day I see it on the googles webpages in the rankings to replace the word "bitcoin".

Until then it seems pointless is in my view.

[Blind Legs Parker]

You started out well, with sources and information points,
Then it quickly went downhill when you started speculating on what price Bitcoin should be.  Of course it could be 4 digits, it could be 5 digits.  That is not to say that it will, or that it won't be 2 digits.

I look forward to Bitcoin actually being accepted for stuff, and solving the problems that it should be solving - i.e. fast low cost money transfers.  When that happens the price will rise, if it doesn't and I don't really know why it hasn't, then it won't go anywhere fast.

You nailed it. Well you can chop my post in four bits if you want:
1) I'm comparing the total world's wealth with bitcoin and gold's market caps. This is cold, documented, mathematics.
2) I'm speculating on the future price of bitcoin.
3) I'm cracking a joke about bitcoin killing gold because gold will be easy to counterfeit in the future (yes, that was humour  )
4) I'm mocking the ridiculousness of the pump that Ethereum saw during these past two months. The future has already proven me right regarding that bit because the present is the future of my OP and Ethereum is coming down already. (To this I should add that I don't think that ethereum is the regular type of shitcoin, because I don't, quite the opposite actually, but yeah, the price last week was out of its boots).

Regarding part 2, which is only about speculation, of course, anything could happen, I'm not saying that bitcoin will have to find a bigger niche than it already has (and which is already pretty respectable). My, it might even lose it and be brought down to two digits. Thing is: I think it is unlikely. Now based on my calculations above, bitcoin's market cap is horribly far away from gold's, while I personally think that although being usable only as a currency and a store of value, bitcoin is just every bit as good as gold. It even does the currency part better than gold does because it's easy to transfer worldwide. Of course yes, that bit is not cold mathematical calculations: it's my prediction based on the mathematical calculations. It's not what the future has to be, only what it might be according to my own opinion. I don't think I properly went downhill when I gave away my opinion though. You should just not expect too much of it: it's only my opinion and I don't have the ability to foresee the future  . No need to bring it down any more  .

[Snorek]

-snip-
(Also, Ethereum's market cap is already $1,061,551,795, roughly 17% of bitcoin's. Meanwhile everyone is still wondering what the heck it can be good for and no one seems quite sure that the price is high enough as is  .)

What happened so Ethereum is so highly regarded now? It is easily the 2nd cryptocurrency now. And it is getting bigger as we speak. There are rumors that Microsoft will be accepting ETH in their shop.
And they already give up on accepting Bitcoin few days ago.

[Blind Legs Parker]

-snip-
(Also, Ethereum's market cap is already $1,061,551,795, roughly 17% of bitcoin's. Meanwhile everyone is still wondering what the heck it can be good for and no one seems quite sure that the price is high enough as is  .)

What happened so Ethereum is so highly regarded now? It is easily the 2nd cryptocurrency now. And it is getting bigger as we speak. There are rumors that Microsoft will be accepting ETH in their shop.
And they already give up on accepting Bitcoin few days ago.

Man if I had a time machine like you do I would definitely want to travel to the future like you did. But tell me, why only one week? I'd go for one or two centuries, for a starter, if I was given the occasion.
1) Ethereum is crashing
2) Microsoft has already denied its statement regarding bitcoin. They accept it again.

As for your question regarding what happened to Ethereum, well speculation happened. A snowball effect, no less.

[botany]

Apple accounts for 0.3% of the world's total wealth? That seems too high.
I guess some of that value has to be transferred to Bitcoin. 

[redsn0w]

Gold is backed by a long 'history' ... bitcoin not yet.

[Denker]

Thats true the market cap of gold is very very high compared to the bitcoin. With the growth analysis of bitcoin it is clear that from its day of existence, bitcoin has grown enormously.

I think the market cap of gold above the ground is around $7 trillion.
So just 1% of that streaming into Bitcoin would add another $70 billion to its' market cap.