So I was thinking.
According to Google, the 2013 estimates of total m2 money supply in US was 10.5 trillion. So if I owned 1 usd today that would be a so a very small percentage of the total number, yes?
But I can own 1 bitcoin today and that means I can own 0.0000048% of total btc supply..
If you think about it, 0.0000048% of total US m2 money would be 504,000 usd.. half a million
So can we say that 1 Btc = $500,000?
Lets discuss..
hey mate and nice to meet,
when you say this : Yes but the supply here is limited, much more limited than any natural resource. In the diamonds industry what they did was create an artificial short supply of diamonds.
i get it and you are right 100% but the are diamonds that can be created in lab which i didnt talk about, i talk on very few ** rare diamonds real which was founded on this planet and tried to explain what happen to price in different situation. but you right 100% there is inifinty of diamonds that created in lab.
and yes bitcoin is limited like real diamonds and gold BUT ... there is equation that can show that relative to gold and diamond the supply of bitcoin is far away rare and low, ask math teacher.
it cannot be balance its only will go up it cannot go the other way bro just cannot Smiley
diamond and gold have value because x amount of people agree on this and this have limited supply BUT...
bitcoin:
1. have much less supply then gold/diamond and limited supply
2. its store of value and cash
3. peer to peer -->> here is the real value of bitcoin we can send money to each other wihtout middle man its put all the banks and paypal and other shit out of the game.
fucking unbelivable yehhhhhh
then you say: Here since everything is automatic and is decentralized then something like this would be really hard to be accomplished, that without mentioning the moral aspects of the decision.
Everything here will eventually balance, and the supply will be a lot less than the demand eventually.
this answer to much general and not specific and dont have direction to what lead this statement,,,,,,lets look why: by this we train each other have more sharp logic...
we go in parts from your last statement:
you say: Here since everything is automatic and is decentralized then something like this would be really hard to be accomplished,
my answer: yes its automatic and decentralized and why it will be hard to accomplish??? look on peer to peer file sharing its the oldest tech out there and while other techs was die and new come and other things changed peer to peer file sharing only was growing like monster....i will hint the future is peer to peer in almost in anything....so i dont understand why it will be hard to accomplish and how its connected to the diamond example.
otherwise history will show different results , when centerlized tech info was everything was download from few main servers , not think how much powerful this servers need to be to hold 1b computers download software and mp3 and movies and other shit, not talking about security aspect which is very critical in ceneterlized tech....compare to decentralized tech where everything is spread...the most close answer after trying to understand you in this.
then you say: Everything here will eventually balance, and the supply will be a lot less than the demand eventually.
something very wrong with this statement because balance cannot be in this equation lets look why??
supply for sure is very low of bitcoin compare to gold/diamonds(relative) and it its not only store of value its also cahs which surge the price only from this factors and make it less balance until it will get to the pick which is huge astronomical number,
when you say: supply will be a lot less than the demand eventually.
the supply already lower much more then demand because there is only 21 million coins mate, so i dont get the direction of this statement.
i will sum it bro remember we learn from each other Smiley
bitcoin its not only store of value like gold/diamonds which mean selling rate fro gold and diamonds always will grow with the time because you cannot buy cars,clothes,houses and other shit with gold/diamonds and this is why the value over time will have down curve time ask any expert economist,
compare to bitcoin which is store of value and CASH system which mean very** soon startups like zeex and another one which come from japan will lower the selling rate of crypto overall and will surge the prices up compare to gold and diamonds which always need to be sold in order get value that accepted everywhere(cash called), and the rate of selling daimonds and gold will always grow up and all the gold and diamonds(to much) never can be sold which mean alot of people stuck with them which also hurt the price per gold/diamonds,,,,
so this kind startups going to kill the selling rate of crypto which hurt this industry, and this effect going to surge the prices up very high(only low supply coins)
when this effect happen when the selling rate go to zero level and surge the prices of low supply coins its give the illusion that demand grew but demand didnt grew its because the selling rate was fall drastically because people dont convert it to paper money like gold and diamonds, they buy with it directly
and this effect surge the prices up because you dont sell them you exchange sound very close but very different, and why it give the illusion that demand grew and in reality demand didnt grew its because price almost always grow when there is huge demand.
so this one effect which affect on the price of crypto selling rate which will go to zero very fast,
then in the same time demand is going to bombard i mean to explode why??? i dont tell i leave to other play with this factors and their logic and train the mind because its between the lines why demand going to surge also...
i will give hint 8-9% inside this game of crypto so crypto is very samll kid compare to age humen like 9 months kid ...but why demand going to explode i will not answer but the answer is between the lines
all this effect work on small supply coin only not satble coins and huge supply project with billions of coins
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