Is There Even Enough Money in the World to Support a $200,000 Bitcoin Price
So glad to have found this community. No surprise that the post below was removed from r/Bitcoin, but I think it's a genuinely interesting topic, and would like to hear the views of others.
I've been seeing some exciting, but seemingly wild price predictions for Bitcoin. General consensus seems to suggest the price will get to 100,000 (and we're not too far from it). Some people even suggest 200,000.
Some of these predictions don't seem to adequately factor in the size of Bitcoin's Market Cap, or perhaps don't realize the significance of it.
Market Cap is basically the current price multiplied by the amount of coins available (19.65M). In a way it can also be understood as the amount of money that has so far been invested in Bitcoin - bit more complicated than that, but that's the gist of it. In order for bitcoin to get to 100,000, the market cap would need to get to almost 2 trillion dollars. That's over 10 times the net worth of Jeff Bezos (194B).
Essentially at 100,000 per bitcoin, even if Jeff Bezos threw his entire net worth into it, it would only increase the price by about 10%?
To further drive this point home, consider that as of 2020, the US money supply (M1) was sitting at about 18 trillion. Realistically, all 18 trillion won't make it's way into bitcoin. If it did, the price would rise to about 916,000 per bitcoin. I've seen some 1 million dollar predictions and even a 5 million dollar prediction.
Which begs the question, is there even enough money in the world to support a bitcoin price of up to 200,000?
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