I want to take it a step further. Why stop at USD in circulation? Bitcoin is global and we should be looking at ALL money in circulation. This article puts everything in perspective for me :
http://www.marketwatch.com/story/how-big-is-bitcoin-really-this-chart-puts-it-all-in-perspective-2017-06-21 < the fattest bubble is for all the money in the world — including bank deposits — which comes out to $83.6 trillion. > The Bitcoin bubble still have a long way to go, until it reach the point where it might burst. ^smile^
And then we add a few ZERO's 0.0000000000000001 BTC ^heh^
Bitcoin long term is definitely going to be a terat for everyone that is involved in bitcoin.
But consider this - short term wise is bitcoin really a good investment right now? Has there really been some sort of extremely good news apart from Australia, India and Japan(just 3 countries out of the around 200 nations around the world) legalizing bitcoin? Has the bitcoin network scaled yet? Are the problems that loom over the bticoin network solved? Are there even twice as much the amount of bitcoin accepting stores around the world compared to the start of this pump? Probably not.
Fiat inflation is going to drive the price of bitcoin up in teh long term, but short term wise, bitcoin is outpacing inflation wayy too fast. Even penny stocks don't rise this fast. I wouldn't be surprised if BTC went down to $2000 before bouncing up, although that low will be an opportunity for everyone to buy in cheap coinage.
This is the thing, even though 3 countries has just started to acknowledge Bitcoin, they are only in the first phase of mass adoption. You cannot expect fireworks within the first 2 to 3 months after a announcement has been made by these governments. Merchant adoption takes time and the same goes for word of mouth adoption. The timing was also poor, because Bitcoin has struggled with scaling during these times and slow confirmations might have discouraged new users, if they did not understand the real reasons for this
India doesn't seem to be as positive toward Bitcoin as many here think
Further, you don't take into account hype which hits the price even before the actual event happens. That seemed to be a primary driver behind the recent price rally which had started at around 1,200 dollars per coin (I refer here to the Japanese government legalizing Bitcoin). Right now this hype looks kinda exhausted, and Australia removing Bitcoin double taxation will likely come off as a non-event completely. Moreover, actual adoption may be expanding when Bitcoin is correcting, i.e. it could in fact happen when the hype which was caused by its expectations is already subsiding (with prices going south)
