BTC to 5000$ soon

[katafrag]

We have seen the surge in the gold's market cap lately. This is just the beginning, the first cracks in the current financial paradigm. The problem with gold is that it is physical and thus poses a psychological problem to mainstream investors when it becomes scarce due to extreme demand. The investors will see that they could physically only acquire a miserable and pathetic looking amount of gold (as it has become "too expensive") so they will run into silver. But silver too, has the same intrinsic problem.

So far, bitcoin's deception has lied in the fact that we are presented the idea that one bitcoin is divisible up to 8 decimal places which gives the false image of a bitcoin being a floating point number. In reality block rewards are represented by unsigned integers. Thus instead of 1 bitcoin one has 100 000 000 satoshis. To break the psychological barrier of 1 bitcoin costing too much we should just switch to satoshis. The latter will be plausible when BTC rises in value.

The market cap of gold is $7,252,708,420,909.
The market cap of bitcoin is $ 6,549,170,380 (0.082% of gold's).

I can say that gold is already psychologically too expensive for an average Joe on the street. Imagine when it grows 5x as it has done previously during financial collapses. Owning a gram of gold doesn't make you feel good about it, it feels sad as it is just a tiny speck. So, naturally, other stores of value will gain popularity. If bitcoin was only 1% of gold's market cap, it would already cost more than 5000$ per BTC. If 1 bitcoin costed 5k, then 1 satoshi would be 0.00005$. The world's least valuable currency Iranian Rial trades at 0.00004$ . So after 5k $ bitcoins it would be nothing new to this world to have satoshis for the main units to represent the value of your bitcoins. The world has already seen such a situation in Iran.

Daily recommended minimum amount of money for food per person is 10.72 $. With 5000$ BTC, a daily meal would then cost 214400 satoshis. Let's be honest, 200 000 is not that big of a number any more to be uncomfortable to use in daily basis. This is also the reason why poor countries could adopt bitcoin more easily. They are already used to making transactions of such order of magnitude in their currency units.

bump,

this is the product of a mastermind

[1714892804]

1714892804

[vtr99]

We have seen the surge in the gold's market cap lately. This is just the beginning, the first cracks in the current financial paradigm. The problem with gold is that it is physical and thus poses a psychological problem to mainstream investors when it becomes scarce due to extreme demand. The investors will see that they could physically only acquire a miserable and pathetic looking amount of gold (as it has become "too expensive") so they will run into silver. But silver too, has the same intrinsic problem.

So far, bitcoin's deception has lied in the fact that we are presented the idea that one bitcoin is divisible up to 8 decimal places which gives the false image of a bitcoin being a floating point number. In reality block rewards are represented by unsigned integers. Thus instead of 1 bitcoin one has 100 000 000 satoshis. To break the psychological barrier of 1 bitcoin costing too much we should just switch to satoshis. The latter will be plausible when BTC rises in value.

The market cap of gold is $7,252,708,420,909.
The market cap of bitcoin is $ 6,549,170,380 (0.082% of gold's).

I can say that gold is already psychologically too expensive for an average Joe on the street. Imagine when it grows 5x as it has done previously during financial collapses. Owning a gram of gold doesn't make you feel good about it, it feels sad as it is just a tiny speck. So, naturally, other stores of value will gain popularity. If bitcoin was only 1% of gold's market cap, it would already cost more than 5000$ per BTC. If 1 bitcoin costed 5k, then 1 satoshi would be 0.00005$. The world's least valuable currency Iranian Rial trades at 0.00004$ . So after 5k $ bitcoins it would be nothing new to this world to have satoshis for the main units to represent the value of your bitcoins. The world has already seen such a situation in Iran.

Daily recommended minimum amount of money for food per person is 10.72 $. With 5000$ BTC, a daily meal would then cost 214400 satoshis. Let's be honest, 200 000 is not that big of a number any more to be uncomfortable to use in daily basis. This is also the reason why poor countries could adopt bitcoin more easily. They are already used to making transactions of such order of magnitude in their currency units.

bump,

this is the product of a mastermind

I think it is likely we will see some smaller country peg their fiat currency to Bitcoin in the near future. I can also see things changing rapidly as 1 Bitcoin eclipses the price of an ounce of gold with stability. There will be a tipping point where it will be more risky not to own some Bitcoin, and the price will rise exponentially.

[Biodom]

The discussions about price do not consider one important caveat, which was amply demonstrated by 'another' coin:

Say, bitcoin split into "Core" and "Classic", which is quite possible. Because of much more difference of opinion, this split could be 70:30 or even 60:40 in relative value. In such case(s), rarely anyone would trade "old" coins that existed before the split because if you don't trade them, you get coins on both chains, similar to a stock split. Rational individual would expect many more such splits to occur in the future, therefore keeping such "old" coins will increase your future wealth.

As a result, people will trade "new" post-split coins furiously, but keep "old" bitcoin for a long time, decreasing liquidity.
Therefore, total value of all bitcoins might be increasing to, say, $5000, but each individual split "bitcoin chain" would have much lesser value and it would be difficult for each participant to know on which chain to purchase coins.

Before the "other" coin split i thought that "there will be only one" scenario as more likely, but now i see that multiple clones or chains can exist simultaneously. I don't particularly like this as it makes economic decisions much more difficult.

[vtr99]

The discussions about price do not consider one important caveat, which was amply demonstrated by 'another' coin:

Say, bitcoin split into "Core" and "Classic", which is quite possible. Because of much more difference of opinion, this split could be 70:30 or even 60:40 in relative value. In such case(s), rarely anyone would trade "old" coins that existed before the split because if you don't trade them, you get coins on both chains, similar to a stock split. Rational individual would expect many more such splits to occur in the future, therefore keeping such "old" coins will increase your future wealth.

As a result, people will trade "new" post-split coins furiously, but keep "old" bitcoin for a long time, decreasing liquidity.
Therefore, total value of all bitcoins might be increasing to, say, $5000, but each individual split "bitcoin chain" would have much lesser value and it would be difficult for each participant to know on which chain to purchase coins.

Before the "other" coin split i thought that "there will be only one" scenario as more likely, but now i see that multiple clones or chains can exist simultaneously. I don't particularly like this as it makes economic decisions much more difficult.

This is a good point, but I expect this problem will be avoided with Bitcoin. I think there would already have been a fork if they hadn't considered this possibility. Since the Chinese control 80% of the market, I would suggest the rest of the world will follow. In any case, a Bitcoin Classic would be a much smaller fraction and most likely supported by us stubborn Westerners.

This has happened before with other coins, and eventually they hold outs gave up. Not saying this will happen with Etherium Classic, but I could see the price rising higher and falling very flat, very suddenly.