Bitcoin Forum
November 29, 2022, 04:17:04 AM *
News: Reminder: do not keep your money in online accounts
 
   Home   Help Search Login Register More  
Pages: [1] 2 »  All
  Print  
Author Topic: 6 Bn ounces of gold and the value of bitcoin  (Read 2333 times)
Bitcopia (OP)
Hero Member
*****
Offline Offline

Activity: 715
Merit: 500



View Profile
August 21, 2013, 11:19:13 PM
Last edit: August 22, 2013, 05:46:13 AM by Bitcopia
 #1

According to Thomas Reuters GFMS, roughly 377 MM pounds of gold exist above ground which equates to about 6,000,000,000 ounces of gold. For simplicity, I'll use an undervaluation of gold at $1,000. This means the total value of gold above ground is roughly 6 trillion dollars.

If bitcoin is adopted on a global scale as a deflationary store of value that is coupled with other valuable functions, much in the same respect as gold, what does this mean for the potential price of one BTC? If BTC ever becomes as valuable as gold, we're looking at 6 trillion dollars divided by 21 MM instead of 6 Bn.

~ $285,000. Is that realistic? In my opinion, probably not. Is it a possiblity? Anything's possible.

EDIT: This would make one satoshi worth $0.00285.  Smiley
1669695424
Hero Member
*
Offline Offline

Posts: 1669695424

View Profile Personal Message (Offline)

Ignore
1669695424
Reply with quote  #2

1669695424
Report to moderator
1669695424
Hero Member
*
Offline Offline

Posts: 1669695424

View Profile Personal Message (Offline)

Ignore
1669695424
Reply with quote  #2

1669695424
Report to moderator
1669695424
Hero Member
*
Offline Offline

Posts: 1669695424

View Profile Personal Message (Offline)

Ignore
1669695424
Reply with quote  #2

1669695424
Report to moderator
Whoever mines the block which ends up containing your transaction will get its fee.
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
1669695424
Hero Member
*
Offline Offline

Posts: 1669695424

View Profile Personal Message (Offline)

Ignore
1669695424
Reply with quote  #2

1669695424
Report to moderator
1669695424
Hero Member
*
Offline Offline

Posts: 1669695424

View Profile Personal Message (Offline)

Ignore
1669695424
Reply with quote  #2

1669695424
Report to moderator
1669695424
Hero Member
*
Offline Offline

Posts: 1669695424

View Profile Personal Message (Offline)

Ignore
1669695424
Reply with quote  #2

1669695424
Report to moderator
balanghai
Sr. Member
****
Offline Offline

Activity: 364
Merit: 253


View Profile
August 21, 2013, 11:32:54 PM
 #2

Wow, I think there would be an issue of hoarding by then. Maybe trading would be done in mBtc or uBtc by then.
Bitcopia (OP)
Hero Member
*****
Offline Offline

Activity: 715
Merit: 500



View Profile
August 21, 2013, 11:38:50 PM
 #3

When I start to see these kinds of posts it tells me that the rate is primed for a downturn.

As stated, it is not my opinion bitcoin is ever going to be worth that much, and certainly not any time in the next decade, but is a 6 trillion dollar market capitalization ridiculous for a global currency? I don't think so.
ArticMine
Legendary
*
Offline Offline

Activity: 2282
Merit: 1047


Monero Core Team


View Profile
August 22, 2013, 04:47:45 AM
 #4

According to Thomas Reuters GFMS, roughly 377 MM pounds of gold exist above ground which equates to about 6,000,000,000 ounces of gold. For simplicity, I'll use an undervaluation of gold at $1,000. This means the total value of gold above ground is roughly 6 trillion dollars.

If bitcoin is adopted on a global scale as a deflationary store of value that is coupled with other valuable functions, much in the same respect as gold, what does this mean for the potential price of one BTC? If BTC ever becomes as valuable as gold, we're looking at 6 trillion dollars divided by 21 MM instead of 6 Bn.

~ $285,000. Is that realistic? In my opinion, probably not. Is it a possiblity? Anything's possible, but this would make one satoshi worth $0.28, and I think that a satoshi would serve better payment functions at a smaller value.

No if 1 BTC is worth USD 285,000,  1 satoshi is worth USD 0.00285

Concerned that blockchain bloat will lead to centralization? Storing less than 4 GB of data once required the budget of a superpower and a warehouse full of punched cards. https://upload.wikimedia.org/wikipedia/commons/8/87/IBM_card_storage.NARA.jpg https://en.wikipedia.org/wiki/Punched_card
Bitcopia (OP)
Hero Member
*****
Offline Offline

Activity: 715
Merit: 500



View Profile
August 22, 2013, 05:46:50 AM
 #5

According to Thomas Reuters GFMS, roughly 377 MM pounds of gold exist above ground which equates to about 6,000,000,000 ounces of gold. For simplicity, I'll use an undervaluation of gold at $1,000. This means the total value of gold above ground is roughly 6 trillion dollars.

If bitcoin is adopted on a global scale as a deflationary store of value that is coupled with other valuable functions, much in the same respect as gold, what does this mean for the potential price of one BTC? If BTC ever becomes as valuable as gold, we're looking at 6 trillion dollars divided by 21 MM instead of 6 Bn.

~ $285,000. Is that realistic? In my opinion, probably not. Is it a possiblity? Anything's possible, but this would make one satoshi worth $0.28, and I think that a satoshi would serve better payment functions at a smaller value.

No if 1 BTC is worth USD 285,000,  1 satoshi is worth USD 0.00285

Yep, nice correction.
dnaleor
Legendary
*
Offline Offline

Activity: 1470
Merit: 1000


Want privacy? Use Monero!


View Profile
August 22, 2013, 08:28:24 AM
 #6

I think 1 BTC = 1000 USD or even 10000 USD is fairly possible, if mass adoption occurs.
but >100000 is just too much Tongue
(unless Bernanke has a drunk night and doubles the monetary base over night)

Searching for a trusted escrow service? Check my trust. I use a Trezor device for my escrow services, so your coins are safe. Fee: 0.5% or 0.05 BTC, whichever is lower
I support the largest public transparent p2p ledger Bitcoin (16TwXyEmpz7xKHbyVufZECXGFmUH9wHUyW) and the best private fungible digital cash Monero (dnaleor.weuse.cash)
Cetere mi opinias ke Dasho estas detruenda.     |     1Credit - Fair emission, better than BTC > CLCqECaYpCahgKRsXJiVBzgsiz57ZHfr4u
Pruden
Hero Member
*****
Offline Offline

Activity: 496
Merit: 500

Spanish Bitcoin trader


View Profile
August 22, 2013, 10:15:21 AM
 #7

rpietila already reached the conclusion that, should bitcoin take the place of gold, it would be worth 300 000 $/BTC. It looks like you did very similar napkin calculations.  Smiley
jamesc760
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250



View Profile
August 22, 2013, 02:20:31 PM
 #8

will never happen.
zoinky
Hero Member
*****
Offline Offline

Activity: 812
Merit: 1000


Web Developer


View Profile
August 22, 2013, 06:05:39 PM
 #9

When I start to see these kinds of posts it tells me that the rate is primed for a downturn.

But there's always posts like this.
AU
Member
**
Offline Offline

Activity: 98
Merit: 10


View Profile
August 22, 2013, 07:31:08 PM
 #10

not until we can cash out coins to personal debit cards... (without middle men)

then lets talk price rise

Razer Blade 14" for sale
BTC: 1E1QQDq8keR9uVykmxSzo7CUYrWtQ6J9M8
bitcoin carpenter
Legendary
*
Offline Offline

Activity: 1582
Merit: 1001


View Profile
August 22, 2013, 10:29:43 PM
 #11

Or if evert btc owner accepted btc in their workplace tomorrow.....
At a 20% discount .. wed all be rich by christmas

If your not actively using the technology behind your crypto investment,

IT IS A SCAM!!!!
Bitcopia (OP)
Hero Member
*****
Offline Offline

Activity: 715
Merit: 500



View Profile
August 22, 2013, 10:36:49 PM
 #12

Or if evert btc owner accepted btc in their workplace tomorrow.....
At a 20% discount .. wed all be rich by christmas

Yep, we can dream  Wink. But realistically, a similar scenario is very likely to happen in the coming decades with either bitcoin, another digital currency, or an amalgam of various digital currencies.
xxjs
Sr. Member
****
Offline Offline

Activity: 280
Merit: 250


View Profile
August 24, 2013, 07:48:57 PM
 #13

rpietila already reached the conclusion that, should bitcoin take the place of gold, it would be worth 300 000 $/BTC. It looks like you did very similar napkin calculations.  Smiley

Historically, new and better money has always displaced older, less perferct money. Thus, if bitcoin is better than gold, it could completely displace gold as money, leaving gold only with the intrinsic value.

Personally, I think gold has some properties that bitcoin does not have, including a 5000 year trust. Let's reconsider bitcoin versus gold in the year 7013, bitcoin may have the trust that gold enjoy now.

Fiat on the other hand ... it's going down.
zoinky
Hero Member
*****
Offline Offline

Activity: 812
Merit: 1000


Web Developer


View Profile
August 25, 2013, 10:02:42 PM
 #14

rpietila already reached the conclusion that, should bitcoin take the place of gold, it would be worth 300 000 $/BTC. It looks like you did very similar napkin calculations.  Smiley

Historically, new and better money has always displaced older, less perferct money. Thus, if bitcoin is better than gold, it could completely displace gold as money, leaving gold only with the intrinsic value.

Personally, I think gold has some properties that bitcoin does not have, including a 5000 year trust. Let's reconsider bitcoin versus gold in the year 7013, bitcoin may have the trust that gold enjoy now.

Fiat on the other hand ... it's going down.

The first 5000 years were slow, we got the Internet these days.
ruletheworld
Legendary
*
Offline Offline

Activity: 1358
Merit: 1045


View Profile WWW
August 25, 2013, 10:08:07 PM
 #15

rpietila already reached the conclusion that, should bitcoin take the place of gold, it would be worth 300 000 $/BTC. It looks like you did very similar napkin calculations.  Smiley

Historically, new and better money has always displaced older, less perferct money. Thus, if bitcoin is better than gold, it could completely displace gold as money, leaving gold only with the intrinsic value.

Personally, I think gold has some properties that bitcoin does not have, including a 5000 year trust. Let's reconsider bitcoin versus gold in the year 7013, bitcoin may have the trust that gold enjoy now.

Fiat on the other hand ... it's going down.

The first 5000 years were slow, we got the Internet these days.

True. However, I don't think you can make a Bitcoin wire like you can make a gold wire. Perhaps finally, finally, gold will some REAL use if it's price is down and no one bothers! It has some nice desirable physical properties
crumbs
Full Member
***
Offline Offline

Activity: 210
Merit: 100



View Profile
August 25, 2013, 10:17:00 PM
 #16

...
Historically, new and better money has always displaced older, less perferct money.

FTFY.  Newer, different, but not necessarily better.  Most goldbugs/fiat haters here will agree.

Quote
Thus, if bitcoin is better than gold, it could completely displace gold as money, leaving gold only with the intrinsic value.

Bitcoin may be better than gold, though it may or may not be better than fiat -- which is today's money.  Most Keynesians would vote nay.

Quote
Personally, I think gold has some properties that bitcoin does not have, including a 5000 year trust. Let's reconsider bitcoin versus gold in the year 7013, bitcoin may have the trust that gold enjoy now.

By that time technology will not mean just quantum computers, but quantum computers using quantum computers for quanta Cheesy  Bitcoin will be as useful as dinosaur repellent.

Quote
Fiat on the other hand ... it's going down.

Then why all the hubbub about exchanges & exchange rates?  Trade in bitcoins & return to Caesar what's Caesar's Cheesy
xxjs
Sr. Member
****
Offline Offline

Activity: 280
Merit: 250


View Profile
August 25, 2013, 11:52:05 PM
 #17

There is no hubbub. Money trades against everything on the market, that follows from the very definition of money, therefore money also trades against any other money type on the market.
crumbs
Full Member
***
Offline Offline

Activity: 210
Merit: 100



View Profile
August 26, 2013, 12:14:19 PM
 #18

There is no hubbub. Money trades against everything on the market, that follows from the very definition of money, therefore money also trades against any other money type on the market.

You agree with the rest of my points?
Zaih
Hero Member
*****
Offline Offline

Activity: 504
Merit: 500


View Profile
August 26, 2013, 12:32:17 PM
 #19

Obviously possible..

No need for hate fella's.
xxjs
Sr. Member
****
Offline Offline

Activity: 280
Merit: 250


View Profile
August 26, 2013, 12:49:47 PM
 #20

There is no hubbub. Money trades against everything on the market, that follows from the very definition of money, therefore money also trades against any other money type on the market.

You agree with the rest of my points?

Yes, except for the quantum computer hubbub  Smiley
Pages: [1] 2 »  All
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!