Maybe it should be simply proportional to the number of users. I have no way of measuring how many people are actively using gold as a store of value.
Let's assume, at least 700 mil (400-500 mil adult women in India plus everybody else a little).
There are probably less than 10 mil bitcoin users, judging by the number of active wallets.
Therefore, 10/700X7tril=$100bil fair market cap value, resulting in "fair" current price of btc=$5882.
As we can see, price is quite different from fair, which is reflecting much less history in being a store of value (7 years vs thousands).
Check it out...It took less than 10 mo to get to my 'fair price'.
Use the outlined formula to get to the fair value.
there are at least 20 mil bitcoin users now (since coinbase has 12 mil users and there are 18.5 mil blockchain.info wallets)
Plugging the numbers in my formula: (20/700)X7.7=220bil or
$13333, which should be set within a year, but probably sooner.
I am curious if this would work. As far as gold %, it would be (20/700)x100=2.85% lower bound (assuming that bitcoins utility attraction and gold's value through history cancels each other for now, but not forever).
