if the worlds richest 1% of people decided to keep 1% of their net worth in BTC.

[jasonjm]

Guess what the value per BTC would be?

$92964 per coin

yeah that's right

about the numbers I used

Number of people in world = 7 046 000 000
Number of bitcoins in circulation   11 925 000
richest 1% number of people =    70 460 000
Total world wealth   $241 000 000 000 000
Richest 1% of world hold 46% of worlds wealth

[Queezy]

Ummmm.....
So you think.....
But that's not how....
Oh nevermind....
let's just hope you aren't being serious

[BitChick]

What if the middle class buy as much BTC as possible then the worlds 1% richest will no longer be the worlds richest?   

[jasonjm]

What if the middle class buy as much BTC as possible then the worlds 1% richest will no longer be the worlds richest?   

not really..... unless transactions are completed in BTC only with zero fiat in any part of the transaction :-)

because once you convert the BTC back to fiat, they can still only be worth the same % of fiat that went into them. And unless the 1% give you all their fiat, you have not changed anything.....

[jasonjm]

Ummmm.....
So you think.....
But that's not how....
Oh nevermind....
let's just hope you aren't being serious

not saying it would happen.

All I am saying is if it did happen, that is what the number would be.

I own gold and silver to diversify, and this year decided to allocate a full 3% of my net worth to BTC as an insurance because I like the concept of the mobility and non confiscation.

I am sure there are others who think the same way I do, so in a way, yes I am being serious.  It's very unlikely, but if it were to happen, that is the number, since I have always wondered what would happen if bitcoin really become a store of value like that.


you can take my numbers a step further: assume only 10% of the worlds top 1% decided to keep 1% of their net worth in BTC. The number is still $9 269 per coin.

[Peter R]

Ummmm.....
So you think.....
But that's not how....
Oh nevermind....
let's just hope you aren't being serious

not saying it would happen.

All I am saying is if it did happen, that is what the number would be.

I own gold and silver to diversify, and this year decided to allocate a full 3% of my net worth to BTC as an insurance because I like the concept of the mobility and non confiscation.

I am sure there are others who think the same way I do, so in a way, yes I am being serious.  It's very unlikely, but if it were to happen, that is the number, since I have always wondered what would happen if bitcoin really become a store of value like that.


you can take my numbers a step further: assume only 10% of the worlds top 1% decided to keep 1% of their net worth in BTC. The number is still $9 269 per coin.

jasonjm, I think what Queezy is getting at is that your logic wasn't exactly right.  

What you are trying to say, I think, is that if the "market cap" of bitcoin was equal to 1% of the net worth of the top 1%, then each bitcoin would be worth approximately $92,964.

If the top 1% did as you say and actually moved 1% of their wealth into bitcoin, the price of the last bitcoin bought with all that money would probably be vastly greater than $92,964.  Think about what would happen if trillions of dollars were dumped onto BitStamp!!  So your estimate was conservative  

[jasonjm]

yeah all at once, it would be chaos, but over years assuming people also spend coins, not just hoard them, I don't see how the math is wrong?

off topic but while I was typing this listentobitcoin made a noise I have not heard before

screenshot

[TheDragonSlayer]

Then Bitcoin would worth $10,000 each... but it is unlikely

[aminorex]

I beg to differ.  It may be challenging to accept, but unlikely?  More like inevitable.

[Noruka]

Guess what the value per BTC would be?

$92964 per coin

yeah that's right

about the numbers I used

Number of people in world = 7 046 000 000
Number of bitcoins in circulation   11 925 000
richest 1% number of people =    70 460 000
Total world wealth   $241 000 000 000 000
Richest 1% of world hold 46% of worlds wealth

people have been using the same argument for years about if the rich decided to back their 401ks in gold it would skyrocket. Numbers are pretty looking indeed....

[jasonjm]

problem with gold and silver is that they are difficult to transport, and a pain to hide and keep safe.

gold and silver are not "mobile money", more like a hedge against fiat errors / inflation.

so to my mind, bitcoin is more attractive than gold or silver (and yes more risky too as it has no history compared to gold or silver).

ah well, like I said, I don't believe this will happen, but since no one else has done this "what if"  bitcoin scenario that I could find, I figured I would run some numbers just to see.

[aminorex]

put another way, gold is an insurance policy (SHTF).  bitcoin is a freaking swiss army knife:  supremely liquid, deflationary currency, high-growth investment, & mathematically secure store of value.

keep enough gold, like you keep enough ammunition, for when the power is out, and you need to defend and hunt.  frankly that's a low probability scenario, but worth insuring against in an over-extended and increasingly fragile society.

the high probability scenario is that you will want to save in btc and spend in debased fiat.