Bitcoin is often referred as "digital gold," and like physical gold, I believe bitcoin will be a main store of wealth as we move into the future. Like you, I hear all sorts of predictions of bitcoin's future price from $0.00 to $1,000,000+ per coin. While the answer must surely lie somewhere in between, if we use some basic arithmetic, perhaps we can get a handle on it (somewhat).
Let's first start with physical gold. The total amount of actual gold mined throughout human history is around 191,900 US tons, or 5.6 billion Troy ounces, with about 2,500 tons of gold is mined and added to the world supply every year. Based on the current gold spot price of $1,492.56, the total of value of all the gold in the world is worth $7,704,170,382,206.88.
Bitcoin has a controlled supply, with the finite number of coins that can ever be created limited to just 21 million. Not considering bitcoins that are lost forever in some garbage dump in New Jersey because some nerd threw away the wrong hard drive, I would like to logically correlate the value of the 21 million BTC in direct relation the them being "digital gold".
Let's do the math:
💰 $ 7,704,170,382,206.88 / ₿ 21,000,000 = $ 366,865.26
If we'd like to consider the estimated lost BTC at around 25% percent of all Bitcoin (4 million Bitcoins), we get the following:
💰 $ 7,704,170,382,206.88 / ₿ 17,000,000 = $ 453,186.49
You can come to your own conclusions through your due diligence and research, but if you believe in BTC as "gold", there is no denying that as bitcoin catches on in the world that it's a great time to buy and HODL.
-JR
"I am sorry to see you here, but if you had fought like a man, you needn't be hanged like a dog."
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