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

[Slow death]

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

I very much doubt that will happen, it's hard for everyone in the world to buy bitcoin anytime soon, maybe 20 years from now, but we have to realize that bitcoin won't be the best forever, people currently buy bitcoin just because of big profits, but when it's about using bitcoin as a means of payments the rates are very high compared to some altcoins and in the future people will want currencies that have cheaper rates to use as a means of payment.

And then what will happen to the other currencies (ALTS) ?

probably altcoins started to be bitcoin independent

Will this be a positive thing for cryptocurrency!
Or is there risks and negative things that will happen in this market?

it will be something positive for the market

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[TimeTeller]

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.

Maybe, let us be grateful that for now, bitcoin and other alts can co-exist with the traditional fiat.
It may not replace the traditional fiat system but the adoption is growing each day.
I don't think that we will see it in our lifetime that crypto will be the major player in the financial system.
The decentralized nature of btc is one of the major reasons why it can't replace fiat.
The government wants their full control when it comes to financial aspect of their country.

[Spack17]

A 1 million dollar price is not a dream for Bitcoin in the future. It is a level that is easy to achieve I think. Because the demand for Bitcoin is continuing to rise very quickly every year. And not only the demand, but also Bitcoin adoption continues to rise. These factors are the number one criteria for Bitcoin to survive and even reach bigger levels. Maybe Bitcoin won't exist forever but before that I feel confident about the price to reach million-dollar levels.

[Lucius]

I don't understand why people ask questions like this when it should be clear to everyone that something like this will never be possible. If I say that maybe at best 10% of people living in the world know how to say two meaningful sentences about Bitcoin, and that maybe 2-3% know something more, and only maybe 1% have above-average knowledge - in which universe does someone think that all the money in the world goes to Bitcoin?

Let's be more realistic and think in the billions or maybe trillions that will no doubt be invested in Bitcoin in the future, but it will still be just a fraction of the money that exists in the world.

[odolvlobo]

I don't understand why people ask questions like this when it should be clear to everyone that something like this will never be possible.

It certainly is possible, but it is not likely. If people believe that Bitcoin is the best form of money then they will use it instead of fiat. If everyone switches to Bitcoin, then it will replace all other currencies.

[Lucius]

It certainly is possible, but it is not likely. If people believe that Bitcoin is the best form of money then they will use it instead of fiat. If everyone switches to Bitcoin, then it will replace all other currencies.

Maybe some people will realize that in xx years from today, but what about countries like China, India, or the US which will not allow something like that at any cost? I'm not pessimistic about BTC, quite the opposite - but we need to be realistic about what is possible, and what has less than a 0.1% chance of ever happening.

[DdmrDdmr]

Actually, possibly the first publicly know exercise of the kind was made by Hal Finney back in 2009. At the time. With bitcoin just recently out of the oven, Hal toyed with the idea of all the world wealth being fed into bitcoin (something logically unreal, since wealth is stored in many forms, and only some could actually liquidate to bitcoin purchases under a reasonable conceptual scenario). His numbers would take each BTC to 10M$ (2009 numbers):

High price per bitcoin was even speculated, or at least tossed around as a potential, back in 2009.
 
After Satoshi announced the release of Bitcoin v0.1, Hal Finney replied, citing amongst other things the following:

<…>
One immediate problem with any new currency is how to value it. Even
ignoring the practical problem that virtually no one will accept it
at first, there is still a difficulty in coming up with a reasonable
argument in favor of a particular non-zero value for the coins.

As an amusing thought experiment, imagine that Bitcoin is successful and
becomes the dominant payment system in use throughout the world.  Then the
total value of the currency should be equal to the total value of all
the wealth in the world. Current estimates of total worldwide household
wealth that I have found range from $100 trillion to $300 trillion. With
20 million coins, that gives each coin a value of about $10 million.

So the possibility of generating coins today with a few cents of compute
time may be quite a good bet, with a payoff of something like 100 million
to 1! Even if the odds of Bitcoin succeeding to this degree are slim,
are they really 100 million to one against? Something to think about...

Hal
 

https://www.metzdowd.com/pipermail/cryptography/2009-January/015004.html

Seems to have been on the mind of core people around the beginning, although through Hal’s words.

Note: Hal performed his exercise considering a 20M bitcoin supply. Whether that was a simplification, an oversight (strange, as 21M was mentioned by Satoshi on the post Hal answered to), or due to inner knowledge on 1M bitcoins never being movable (i.e. lost or thrown away keys) is a wonder …

First speculative arguments for HODL …

[Dhoe]

if it happened that all the money in the world went into the crypto market, in my personal opinion, this would be a problem for bitcoin, because there is no more freedom, what is certain is that if it did happen, it would definitely be controlled by the rich, and those who have power, so my movement as a middle class person will find it difficult to compete with people who have power, and have wealth, I think this is a bad idea..

[dimonstration]

It’s not definite yet as the market will be monitored by the government all throughout if all money will be moved in crypto. It’s not that the government will allow it to happen but if ever it happens the sense of being decentralized of the market will be gone. It will take a while before the market moves in pump or dump as the market will just seems to be a normal currency with stable value just like how Forex works it may moved when traded in other countries currency but in just a minimal movement unlike how crypto or bitcoin moves now.

[fiulpro]

If all the money into the world entered the cryptocurrencies I do think that would be extremely unstable. Since we would definately have people who would not be able to use cryptocurrencies, the people who have small business, poor people are well, would defiantly be excluded from the whole economy for the time being.

Then we might have to think about *volatility*, more people means more money flowing in and out of the market, which does mean the stability might be overthrown.

The governments will for sure try and dominate the bitcoins as well, which would end up in a war perse since the countries would be fighting with each other to have the upper hand, ending up in making countries like US, UK dominant. This might end up bad.

[jossiel]

Although it's only an if situation because we know that it will never happen because there are other investment assets that will remain to be a high option for most investors.

if it happened that all the money in the world went into the crypto market, in my personal opinion, this would be a problem for bitcoin, because there is no more freedom, what is certain is that if it did happen, it would definitely be controlled by the rich, and those who have power, so my movement as a middle class person will find it difficult to compete with people who have power, and have wealth, I think this is a bad idea..

This is actually happening everywhere right now. We're actually living to be with the whales and whatever they do to the market, we'll just be followers.

[skarais]

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

It's possible, but maybe not, yes it's impossible but anything will be possible.

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

You don't have to think about everyone in the world but just imagine if there were 1000 people or 1000 big institutional investor like MicroStrategy who were willing to buy bitcoin in bulk wouldn't the price be fantastic? I'm sure you have the answer.

And then what will happen to the other currencies (ALTS) ?

Ignore most of the altcoin as you should know that they will generally not be a viable currency due to the lack of real functionality in terms of usage and adoption. Of course altcoin price will get influence due to bitcoin price movement and will increase market cap but when it comes to usability then bitcoin come first.

[odolvlobo]

After Satoshi announced the release of Bitcoin v0.1, Hal Finney replied, citing amongst other things the following:

<…>
As an amusing thought experiment, imagine that Bitcoin is successful and becomes the dominant payment system in use throughout the world.  Then the total value of the currency should be equal to the total value of all the wealth in the world.

Unfortunately, his thinking was flawed. The total value of the currency should be equal to the total value of all the money in the world. Money is only a small portion of wealth, as you noted.

[odolvlobo]

if it happened that all the money in the world went into the crypto market, in my personal opinion, this would be a problem for bitcoin, because there is no more freedom, what is certain is that if it did happen, it would definitely be controlled by the rich, and those who have power, so my movement as a middle class person will find it difficult to compete with people who have power, and have wealth, I think this is a bad idea..

When Bitcoin is widely adopted, then whales will have less control over the value because they will own a much smaller portion and nobody will have control over the payment system like they do now.

If all the money into the world entered the cryptocurrencies I do think that would be extremely unstable.

The value of a widely adopted bitcoin would be no less stable than any other currency.

Although it's only an if situation because we know that it will never happen because there are other investment assets that will remain to be a high option for most investors.

As Bitcoin is widely adopted, its price will stabilize, and it will be no more investable than any other currency.

[Oilacris]

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

Being optimistic isnt bad but be sure that you wouldnt really come into that point on where you do presume things which is impossible to happen.Fiat is limitless but doesnt mean that all of possible supply would focus on

a single market.Come to think that Forex/Stocks/Indices dose really exist and its impossible that all fiat would be poured on a decentralized market? I dont think os or couldnt really possibly to happen.

Lets just wait up and see on how demand and recognition will increase in the future but dont anticipate or really expect for these impossible things to happen.

[7788bitcoin]

We might see the price of Bitcoin rallying to new height once we see more adoption which means if the market is able to attract more investors and we would eventually cross new all time high valuation during the bull run, but how long we will follow the same pattern is hard to predict in the long term. If we have low transaction fees then we might see the market rallying to those valuations in the near future.

Bitcoin is already the foundation of a new economical system and you do not need to do anything logically to understand that aspetc.

[Rajamuda]

Which obviously is that this will have an impact on the trend of the crypto market, of course the price will stabilize on ATH, and there is no doubt that in fact... crypto is an asset/currency that has proven to be prominent until its role is increasingly recognized and will be more widespread all over the world.
Whatever will happen in the future is related to crypto and its future... here we can only predict and speculate that is not necessarily certain, which only hopes that crypto continues to show its best side.

[yhiaali3]

This is very likely to happen in the future, if the bitcoin price goes up to these fancy numbers then most of the altcoins will surely follow suit as always, yes i have thought about this before and decided to buy small amounts of several well rank altcoins in the market It can rise to fantastic numbers one day and I will leave it to the distant future and be like a fortune that I pass on to my children when they grow up.

[add1ct3dd]

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

Nah, that’s not going to be possible at all. But let us imagine that this is possible, and it happens tomorrow, then how is it going to be? Well to my own understanding, for all the money in the world to go into Bitcoin, then it will have to enter into a particular place. Let’s say that all the money will be given to cryptocurrency exchanges, and then cryptocurrency assets will be given out to people in the world. And that means that the value of Bitcoin is going to increase, and it is going to be more than the $1,000,000 that you have mentioned.

The Fiat will be held by the exchanges, and when people are ready to exchange it, then it will be given back to them. There is no way that Fiat will just disappear automatically. For one thing to have value, another thing of value will be exchanged for it.

[stadus]

This is very likely to happen in the future, if the bitcoin price goes up to these fancy numbers then most of the altcoins will surely follow suit as always, yes i have thought about this before and decided to buy small amounts of several well rank altcoins in the market It can rise to fantastic numbers one day and I will leave it to the distant future and be like a fortune that I pass on to my children when they grow up.

I don't think this is possible, first, cryptocurrency is just an alternative to fiat and no government would sacrifice their own currency just to invest in crypto. For me, it's not gonna happen, not even 50% of the world's population will use cryptocurrency in the future.