Hello Steemians,
Bitcoin is currently experiencing a massive bull run and at the time of writing the post it currently stands at $3441.57 per bitcoin but how high do you think this price can go ? Million dollar question I can hear someone say lol but I am going to try to answer that million dollar question by comparing Bitcoin to Gold.
Why compare bitcoin to Gold?
Bitcoin is very similar to Gold as they can both be used as a store of value (I can hear a cautious Investor scream "hell no! bitcoin is just a bubble and would be worth nothing in no time" but bitcoin continues to wax stronger and stronger and even wall street is beginning to take notice). So it does make sense to do this comparison to try and find out what bitcoin could be worth
One Bitcoin vs One ounce of Gold
With Gold trading at 1,261 dollars per ounce, One bitcoin is currently worth more than double the price of one ounce of Gold
Supply
According to this source , there are currently about 140,000 tonnes(4,938,355,000 ounces) of gold circulating , of course the supply is infinite, you could be sitting on a huge dump of gold if you live in Australia hehe.
Bitcoin on the other hand has a finite supply of 21,000,000 out of which there are 16,494,162 circulating , out of these coins circulating there is quite a substantial amount of bitcoin lost forever( you know like the mystery of the satoshi coins). See Visualization below:
The Ultimate analysis using current marketcap of both
As bitcoin gets more and more popular and gains more adoption, it would begin to rival Gold in terms of being the ultimate store of value and and also the "go to" investment for hedging. It is only logical( I believe) that the market cap of bitcoin would begin to rival that of Gold. According to this source, the current market cap of gold stands at $7,610,262,924,917 (Hmm that reads 7 trillion, 610 billion,262 million,924 thousand,917 hundred dollars. Phew!) According to coinmarket cap, the market cap of Bitcoin currently stands at $55,182,909,401.
You can see from the chart above, bitcoin market cap is just a tiny fraction of the market cap of Gold. For Bitcoin market cap to match that of gold, it has to grow 13791% , Impossible I hear someone say, maybe but I am going to be modest and assume bitcoin would only grow up to 50% of what the current gold market cap is , that is bitcoin marketcap would have to grow 6895.49% to $3,805,131,462,458.50 ( 3 trillion,805 billion,131 million,462 thousand,458 hundred and 50 cents).
If this ever happens that would put the price of bitcoin at a staggering $181,196.74 per bitcoin assuming all 21 million coins are circulating.
This is majorly an opinion piece but I have tried to pass across a message using easily verifiable data. The opinion comes in the comparisons. Let me know if I am crazy to compare this hehe though a renowned expert has even higher expectations of the price of bitcoin
Source
And he is so sure about this, he is willing to put himself on the line :
Source
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