Bitcoin potential value

[knight22]

Here a small calculation to estimate the maximum potential value of one single bitcoin if all the world economy turns to be in bitcoin.

Total world economy actually in USD ~= 32 120 264 000 000 $
Max bitcoin in circulation (considering that no bitcoins have been lost) = 21 000 000

32 120 264 000 000$ / 21 000 000 BTC = 1 529 536$ per bitcoin.  

That would be great  

--corrected--

[evoorhees]

Here a small calculation to estimate the maximum potential value of one single bitcoin if all the world economy turns to be in bitcoin.

Total world economy actually in USD ~= 32 120 264 000 000 000 $
Max bitcoin in circulation (considering that no bitcoins have been lost) = 21 000 000

32 120 264 000 000 000$ / 21 000 000 BTC = 1 529 536 380$ per bitcoin. 

That would be great   

World economy in USD is $32,120,264,000,000,000???

I think you added two or three zeroes by accident.

[knight22]

Nope. World economy is pretty huge!

[finway]

1/1000

[bg002h]

Nope. World economy is pretty huge!

Source?

[knight22]

Nope. World economy is pretty huge!

Source?

http://en.wikipedia.org/wiki/World_economy

[evoorhees]

Nope. World economy is pretty huge!

Source?

http://en.wikipedia.org/wiki/World_economy

It says the nominal world GDP is $61.96 trillion. So yeah you were off by about three zeroes.

[bg002h]

Nope. World economy is pretty huge!

Source?

http://en.wikipedia.org/wiki/World_economy

are you interpolating from the 2010 data and 2017 incremental GDP estimate? If so, your number should be about 30 trillion dollars (about 1000x less)

[knight22]

Nope. World economy is pretty huge!

Source?

http://en.wikipedia.org/wiki/World_economy

are you interpolating from the 2010 data and 2017 incremental GDP estimate? If so, your number should be about 30 trillion dollars (about 1000x less)

Sorry my source for trillions in english wasn't correct. French and English numbers aren't the same. I'll correct it.

[Clipse]

Now lets account for the extra $60 trillion reprinted out of thin air, suddenly the world economy is pretty small.

I really love money and more so my own money but this follow statistic the just so fucking sad:

People paid below US$2 per day   ~3.25 billion (~50%)

[knight22]

Now lets account for the extra $60 trillion reprinted out of thin air, suddenly the world economy is pretty small.

I really love money and more so my own money but this follow statistic the just so fucking sad:

People paid below US$2 per day   ~3.25 billion (~50%)

Unfortunately... That's why bitcoin rock!!

[Clipse]

Now lets account for the extra $60 trillion reprinted out of thin air, suddenly the world economy is pretty small.

I really love money and more so my own money but this follow statistic the just so fucking sad:

People paid below US$2 per day   ~3.25 billion (~50%)

Oh dear spaghetti monster, wtf did I just type in that sentence  Let me try again.

I really love money and more so my own money but the following statistic is just so fucking sad:

People paid below US$2 per day   ~3.25 billion (~50%)

[MemoryDealers]

These calculations are thanks to Arthur Britto:


Amazon
Amazon grosses $38 billion per year.  Assuming a 3% transaction fee, Amazon pays $1 billion a year in transactions fees.  Amazon nets $1 billion per year.  Amazon could double their profits by doing all transactions in Bitcoin.  If the market cap for bitcoin was $38 billion, each bitcoin would be worth $5,400.

Gambling
The online poker market is $4.8 billion a year industry. Online gambling will follow poker and is a $30 billion a year industry  If the market cap for bitcoin was $30 billion, each bitcoin would be worth $4,300.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1747646

Gas stations
Credit card companies charge gas stations a 2% transaction fee.  By eliminating credit card transaction fees, gas station owners could double their profits. The US consumes 65 billion gallons of gasoline per year.  At $3.60 per gallon, this could be a $234 billion dollars going through the bitcoin economy's per year. If the market cap for bitcoin was $234 billion, each bitcoin would be worth $34,400 dollars.


International Remittance
International remittance is the transfer of money by a foreign worker to their home country.  In 2007, remittance worldwide transferred $300 billion dollars.  Western Union fees for remittance can run from about 4 percent to 20 percent or more.  If the market cap for Bitcoin was $300 billion, each bitcoin would be worth $42,000.

[MaxSan]

These calculations are thanks to Arthur Britto:


Amazon
Amazon grosses $38 billion per year.  Assuming a 3% transaction fee, Amazon pays $1 billion a year in transactions fees.  Amazon nets $1 billion per year.  Amazon could double their profits by doing all transactions in Bitcoin.  If the market cap for bitcoin was $38 billion, each bitcoin would be worth $5,400.

Gambling
The online poker market is $4.8 billion a year industry. Online gambling will follow poker and is a $30 billion a year industry  If the market cap for bitcoin was $30 billion, each bitcoin would be worth $4,300.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1747646

Gas stations
Credit card companies charge gas stations a 2% transaction fee.  By eliminating credit card transaction fees, gas station owners could double their profits. The US consumes 65 billion gallons of gasoline per year.  At $3.60 per gallon, this could be a $234 billion dollars going through the bitcoin economy's per year. If the market cap for bitcoin was $234 billion, each bitcoin would be worth $34,400 dollars.


International Remittance
International remittance is the transfer of money by a foreign worker to their home country.  In 2007, remittance worldwide transferred $300 billion dollars.  Western Union fees for remittance can run from about 4 percent to 20 percent or more.  If the market cap for Bitcoin was $300 billion, each bitcoin would be worth $42,000.

Excellent post. will be quoted.

[mystery2048]

If bitcoin was used for every single trade made by every single person on the planet, the system would collapse in about 0.5 seconds... The internet would probably also collapse... We would probably need much more capacity, hard drives would be too small, processing power too slow, and we would need like a few hundred different crypto currencies...

[a63ntsm1th]

You are comparing apples and oranges by comparing GDP to total bitcoins.  GDP has very little to do directly with how much currency is in existence.

Also this question inspired the publishing of an article I had been working on for my blog:

http://abitcoinblog.com

[adamstgBit]

If bitcoin was used for every single trade made by every single person on the planet, the system would collapse in about 0.5 seconds... The internet would probably also collapse... We would probably need much more capacity, hard drives would be too small, processing power too slow, and we would need like a few hundred different crypto currencies...

Click Here

[mystery2048]

If bitcoin was used for every single trade made by every single person on the planet, the system would collapse in about 0.5 seconds... The internet would probably also collapse... We would probably need much more capacity, hard drives would be too small, processing power too slow, and we would need like a few hundred different crypto currencies...

Click Here

Also, what about those that have no access to a computer or internet (or easy access) ?

[FreeMoney]

If bitcoin was used for every single trade made by every single person on the planet, the system would collapse in about 0.5 seconds... The internet would probably also collapse... We would probably need much more capacity, hard drives would be too small, processing power too slow, and we would need like a few hundred different crypto currencies...

Click Here

Also, what about those that have no access to a computer or internet (or easy access) ?

We'll just have to wait for them to come out I guess.

[DannyHamilton]

. . .this could be a $234 billion dollars going through the bitcoin economy's per year. If the market cap for bitcoin was $234 billion, each bitcoin would be worth $34,400 dollars. . .

Transaction volume and Market Capitalization are not the same thing. As an example, the current Market Capitalization of bitcoin is $84,259,656 USD, but there were a total of 1,401,770.17 BTC sent during the past 24 hours.  If the past 24 hours are considered typical (or average), then the total transaction volume per year would be $511.6 million dollars. And yet the current value of bitcoin certainly isn't $53.92 USD per BTC.