AAPL at $50,825, would I buy it? ... I have 1,038 shares of INTC that I have accumulated since mid 1990's through Dollar Cost Averaging. 1,038 seem a lot but not really, I just realize it today.
INTC's market capitalization is $168,629,290,000 (Billion), it's at $35.81 and with an outstanding shares of 4,709,000,000 (Billion). 68.59% = 3,223,258,000 are institutional shares, while 1,485,742,000 are "float" shares.
Bitcoin's Market Cap $71,551,805,596 (Billion), at $4,300 each with circulating supply of 16,510,612(Million).
If INTC limits it's outstanding shares to 16,510,612(Million), each Intel stock would roughly be worth $10,206. Whoa!!!
4,709,000,000 ÷ 16,510,612 = 285
285 x 35.81 = $10,206
Really??? Will I spend $10,205.85 to get a share of Intel and worst the 1,038 shares that I have right now would only be 3.642 shares. This doesn't sound good.
1,038 ÷ 285 = 3.642
hence... if all stocks has an outstanding shares of 16,510,612 these stocks would cost...
AAPL - $50,286
AMZN - $28,367
MSFT - $34,468
GOOGL - $16,997
BABA - $10,718
V - $11,468
MA - $ 8,339
BAC - $14,441
JPM - $19,308
Only 21,000,000 bitcoin (Mastering bitcoin) will ever be mined. The companies above most often creates a stock split further diluting their shares making it seem more affordable. Price may increase even if the underlying value of the company hasn't changed.
Are you going to spend $19,308 together with other hundreds of share holders to sit with Jaime Dimon. Honestly I have trusted JPM to bank my business account and lifetime savings up until now, with limited interest, growth and benefits.
Many would argue that the above companies has underlying value and bitcoin doesn't. Bitcoin has evolved to a widely accepted asset and it sure has value.
It is scarce - it's supply is limited (16M in circulation and capped at 21M)
It has utility
- it is fast, border-less and decentralized.
- it is fungible (one bitcoin is similar to another)
- it is divisible (you can spend a fraction of bitcoin)
- it is easily verifiable (via Blockchain)
- built on open protocols - anyone can built on top of it and make the system better.
Below are some articles you can read.
Why does Bitcoin have value and how is the price determined?
What Is Bitcoin's Intrinsic Value?
Those Who Say Bitcoin Has No Intrinsic Value Need to Imbibe the Gospel of True Education
Bitcoin Security 101
To conclude as I can buy 1 share of Intel for $35.81, I can also buy
1M satoshi = $43 of Bitcoin monthly as a way I can accumulate bitcoin affordably making a few sacrifices.
1 Satoshi = 0.00000001 ฿
100,000 Satoshi = 0.00100000 ฿
1,000,000 Satoshi = 0.01000000 ฿
10,000,000 Satoshi = 0.10000000 ฿
100,000,000 Satoshi = 1.00000000 ฿
Thank You.