What if all the money in the world entered the cryptocurrency market?

[Sebastian Michaelis]

This question has been on my mind at this times ..
Will we see the price of Bitcoin at fantastic prices? i'm talking about +1.000.000$ For 1 BTC
And then what will happen to the other currencies (ALTS) ?
Will this be a positive thing for cryptocurrency!
Or is there risks and negative things that will happen in this market?
Because eventually there is a chance that this will happen
I mean If Crypto-currencies win and become one of the foundations of the new economic system.
Not Today , Not Tomorrow ,But this will happen .
Think about it ! It will be a good opportunity if we invest a small amount and leave it to our grandchildren in the future

[Kakmakr]

You are building sand castles in the clouds..... this will never happen. The different countries in the world are very protective of their Fiat currencies and they will never relinquish their hold on their own fiat currencies. Something that might happen... will be that these countries might digitize their Fiat currencies and you will see a DollarCoin or a YenCoin ..or even a EuroCoin. (We call these "GovCoins")

There is approximately US$ 40 trillion in circulation: this includes all the physical money and the money deposited in savings and checking accounts. Money in the form of investments, derivatives, and cryptocurrencies exceeds $1.3 quadrillion. Source : https://www.rankred.com/how-much-money-is-there-in-the-world/

[odolvlobo]

If all of the base money in the world ($29 trillion) is replaced by Bitcoin, then a bitcoin will be worth about $1.4 million in today's dollars.

However, we haven't seen the full inflationary effects of the recent massive increase in global base money, so I think the value is probably closer to $400k.

There are good reasons for only comparing base money, rather than M1, M2, M3, etc., primarily that fractional reserve banking with Bitcoin is a reality.

This is a good analysis: https://cryptovoices.com/basemoney/

[Upgrade00]

Will we see the price of Bitcoin at fantastic prices? i'm talking about +1.000.000$ For 1 BTC

Definitely. If all other currencies and assets owned were all up for an exchange with cryptocurrencies, that would result in an outrageous demand making prices unpredictably high.

Will this be a positive thing for cryptocurrency!

Higher demand would definitely be a positive thing.

Or is there risks and negative things that will happen in this market?

I can not think of any, except that s scenario where all the money in the world wants to enter cryptocurrency is most improbable. For one, a sale is an exchange and there has to be someone on the other end willing to exchange their bitcoins for fiat or some asset class...

Because eventually there is a chance that this will happen
I mean If Crypto-currencies win and become one of the foundations of the new economic system.

Cryptocurrencies is not trying to win, Bitcoin simply wants to give people an option to bypass the need for a third party and most other C
Cryptocurrencies were launched to lace the pockets of the devs.

[Kong Hey Pakboy]

If all of the base money in the world ($29 trillion) is replaced by Bitcoin, then a bitcoin will be worth about $1.4 million in today's dollars.

Is this for real? That's all the money that the world has right now? Is this the final number with the lost paper money and coins and the decommissioned currency? Also, how did you come up with the price that bitcoin has when all the money is invested in it?

[joniboini]

Also, how did you come up with the price that bitcoin has when all the money is invested in it?

One of the easiest way is to divide the amount of money with bitcoin supply (or circulating supply, whatever you like). It's not gonna be precise, and I don't think you should expect a precise calculation for something like this. Even the number of money in the world might change when you're posting this right now.

[mk4]

Obviously bitcoin's prices would be far higher if that was the case. But bitcoin doesn't need to be literally 100% fully adopted by the world to reach $1,000,000 at all. It just needs to be bought and held by a good amount of institutions and investors in general with deep pockets, and $1,000,000 is easy.

[cabron]

If all of the base money in the world ($29 trillion) is replaced by Bitcoin, then a bitcoin will be worth about $1.4 million in today's dollars.

However, we haven't seen the full inflationary effects of the recent massive increase in global base money, so I think the value is probably closer to $400k.

There are good reasons for only comparing base money, rather than M1, M2, M3, etc., primarily that fractional reserve banking with Bitcoin is a reality.

This is a good analysis: https://cryptovoices.com/basemoney/

US printed trillions just this year but really the entire economy only have 29T?

The dollar store today is already $2 store so if it continues, who knows what could happen in the future because of inflation. Of course not all money will go to crypto, it's a pipe dream for shitcoin holders whose tokens they hold are priced with just 1sat but you can never expect that $1 to have a purchasing value of what is it today.

[Ararbermas]

Well for sure crypto market will be under control by those big people around the world, and probably there will be a slow progress if that time happens in my personal opinion like what's happening in the real fiats.lol
and of course there's no freedom, because it's impossible that all country will make not make another law to control all the crypto market especially the enthusiast just to prevent bad habits of some people that using digital currency in other ways.  I think it's possible. .  

[Tytanowy Janusz]

US printed trillions just this year but really the entire economy only have 29T?

That's why everyone is talking about how massive this pump was. They printed 20% of all existing dollars ... in one year. Currency that exist from 1785... Basically US printed in last year more money that was printed from 1785 to 2001. 226 years vs 1 year.

If all of the base money in the world ($29 trillion) is replaced by Bitcoin, then a bitcoin will be worth about $1.4 million in today's dollars.

Thats what we get from comparing market caps but I'm not sure if its good way of doing that. Mostly because of lost bitcoins, bitcoins in lifetime holders etc. So the amount of bitcoins that can be purchased using those 29 trillions is way lesser than 21 millions, so the price will be much higher. Am I wrong here with my logic?

[coupable]

If all of the base money in the world ($29 trillion) is replaced by Bitcoin, then a bitcoin will be worth about $1.4 million in today's dollars.

Thats what we get from comparing market caps but I'm not sure if its good way of doing that. Mostly because of lost bitcoins, bitcoins in lifetime holders etc. So the amount of bitcoins that can be purchased using those 29 trillions is way lesser than 21 millions, so the price will be much higher. Am I wrong here with my logic?

I totally agree with your logic. But note that this is an imaginary situation as we are not talking about bitcoin replacing all the money on earth but to still co-exist with classic Fiat money. Till that point, bitcoin will continue winning more trust over all other currencies including gov currencies (if any) .
Lately, we saw some countries about to build their own CBDB. I can consider this just another form of digitalisation of money so the cryptocurrencies won't take all the advantages. I (with many other veterans) always believe that any form of a stable coin is not a cryptocurrency even those developped in top of the Blockchain. Use them with extreme caution or avoid them .

[BITCOIN4X]

Remember the law of the market that if demand increases then scarcity will cause price to fly to the moon. This is what would happen to the price of bitcoin if everyone in the world wanted to buy it, trade it, and use it as a mean of payment. I don't want to dream too high because until now bitcoin still has haters and people who don't care about it. It's a huge wall that will never fall, so just enjoy it for what it is.

[The Cryptovator]

Do not expect too much that you need to regret it later on. Anyone can't predict exactly about the cryptocurrency market what is going to you in the future. As we can see a lot of positive news come together and we become too much interested in Bitcoin, as a result, investors are jumping on it. But do not expect this trend will be continuous. It would not happen all the money will enter in Bitcoin market, it is not possible at all. But of course, we might see a $100K BTC price near future, this year or next year. It depends on the demand of investors.

At the same time, we might see other altcoins in the same trend as Bitcoin. Because as far as we can see most of the time all altcoins just follow the trend of Bitcoin although it does not happen always. But if the price pump significantly then of course the alt market will be the same as well. I am not sure what you mention about investment, I think you are talking about Bitcoin investment, although you can multiply your portfolio by investing in altcoin but just keep in mind investing in altcoin is quite risky always.

[romero121]

Having a positive mind is good, but the same needs to be realistic. The marketcap of the cryptocurrency network altogether is very small compared to the marketcap of the traditional fiat around the globe. So, thinking about the entire money of the world into cryptocurrency is simply senseless. Once there were discussion that world's richest people will acquire the entire cryptocurrency holdings and will make the network centralized. Some believed in it, whereas the people who knew well about the functioning of the cryptocurrency network will never believe it.

[shield132]

This question has been on my mind at this times ..
Will we see the price of Bitcoin at fantastic prices? i'm talking about +1.000.000$ For 1 BTC
And then what will happen to the other currencies (ALTS) ?
Will this be a positive thing for cryptocurrency!
Or is there risks and negative things that will happen in this market?
Because eventually there is a chance that this will happen
I mean If Crypto-currencies win and become one of the foundations of the new economic system.
Not Today , Not Tomorrow ,But this will happen .
Think about it ! It will be a good opportunity if we invest a small amount and leave it to our grandchildren in the future

How can all the money in this world enter into the cryptocurrencies? At first we need full/total adoption of informational technologies and securities on highest levels. Then, the money can't exist in decentralized way in a centralized world/government/society, otherwise it will be total anarchy and humans are kind of creatures that need leader, someone to control them.
Also, along with USD, there is Euro, GBP and other currencies. In overall, we can calculate the price of 1 bitcoin if all the money is put in it but if money is put in altcoins too along with bitcoin, we need to know ratio at first. But really, it's just impossible to predict because this task is very, very complex.

[verita1]

I don't think money around the world is going to the crypto market. But I am sure that I am investing in bitcoin and cryptocurrencies for the future of my smallest relatives.
That has been my motivation to invest in the long term because cryptocurrencies are here to stay.
I think we are at the beginning of great changes in the world where bitcoin and the crypto market are playing an important role.

[Coyster]

I think we are at the beginning of great changes in the world where bitcoin and the crypto market are playing an important role.

I second that, the opportunity to be your own bank which the Bitcoin network affords its users is somewhat underrated, I mean, it's the real definition of freedom and control of assets, and on top of that the network is a hedge against inflation/devaluation, in my opinion every individual should enjoy such pros, thus this would continue to allure more and more individuals to the network, as well as institutions that will most prolly take the price to great heights, it could even be over $1,000,000 like the OP suggests, there are no boundaries/limits for the Bitcoin network.

[Dread Pirate Roberts]

This question has been on my mind at this times ..
Will we see the price of Bitcoin at fantastic prices? i'm talking about +1.000.000$ For 1 BTC
And then what will happen to the other currencies (ALTS) ?

like you said. anything can happen in crypto. But just imagining 1m/btc first that crossed my mind, what is the total fee for each transaction? $1k?  because the fee on the exchange is currently around $50. what is certain is that if bitcoin goes up, the average altcoin will follow which is a good thing.

[hatshepsut93]

Major governments simply won't allot such thing to happen, they will fight tooth and nail to stop Bitcoin from replacing fiat money, and they can do it very effectively. How can Bitcoin replace fiat if governments won't allow any legal business to accept it as a currency? Either all business will have to switch to black market, which is absurd, or people will need to rise against such government, but why would people do that if almost no one cares about Bitcoin? China banned Bitcoin recently, and there has been no protests from the people.

[South Park]

This question has been on my mind at this times ..
Will we see the price of Bitcoin at fantastic prices? i'm talking about +1.000.000$ For 1 BTC
And then what will happen to the other currencies (ALTS) ?
Will this be a positive thing for cryptocurrency!
Or is there risks and negative things that will happen in this market?
Because eventually there is a chance that this will happen
I mean If Crypto-currencies win and become one of the foundations of the new economic system.
Not Today , Not Tomorrow ,But this will happen .
Think about it ! It will be a good opportunity if we invest a small amount and leave it to our grandchildren in the future

The question you are asking is wrong from the very beginning, you are asking what would happen if all the money of the world came to this market and this is not possible as there are many other markets that need money as well and as such investors will also invest in those markets, maybe what you meant is what if all the wealth of the world was denominated in bitcoin? Basically this will be an scenario in which all fiat currencies disappeared and bitcoin reigns supreme, and even that scenario is unlikely as governments will do everything to protect their fiat currencies from that fate.