Comparing All The World's Money & Markets.
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Have you Ever Wondered About the Size of Different Money Markets Like Bitcoin, Gold, Silver and Derivatives?
Here you have it as only the team at Visual Capitalist can do.
Here you have it as only the team at Visual Capitalist can do.
Resteemed!
Awesome!
Realy nice visual metafore. Thanks for sharing that very inspiring.
So you are saying there is a chance for cryptocurrencies to go up?
A bit off topic, but the derivative market is incredible. That is a black swan if I ever saw one. Does anyone have any idea what is in that mess? Or where it even is? Wall Street certainly had a grand ole time creating that stuff. They will turn anything into a vehicle they can sell.
As the world goes more digital, I believe a digital store of value will end up eating into the physical one. That is why I believe there is plenty of room for BTC. There is $7.7T in gold...is it unreasonable to think $1T-$2T will end up in BTC? I do not think so.
Everything you can think of has a derivative. They even have derivatives of derivatives.
When do you think the derivative market will implode?
Never. there is nobody who knows any of the conditions well enough to decide if any of them should pay out.
It has already imploded, they are just pretending it hasn't, because if they don't its game over. It will take teams of lawyers decades to unscramble them.
Isn't that the truth. Organic, synthetic, and whatever else they can think of.
Then they insure the derivatives by creating more derivatives...and so on....well at least until the music stops.
Just ask Lehman...
Cryptocurrencies don't have a chance in hell of going up. For, cryptocurrenices to go up, the actual manufactured goods need to rise. Since we are already in overproduction mode, I doubt this will happen.
I only say this, because the truth is backwards. Almost all those squares above are debt based on debt. Their intrinsic value is zero.
So, the size that crypto-currencies will grow to is equal to the actual flow of goods and services.
But, you were probably asking about the value of dollars in bitcoin.
The dollar has a long way to fall. It should be equal to 1/500,000th of a bitcoin in less then two years.
The derivatives market doesn't exist.
Lets take off track betting as an example.
If you bet Galloping Ghost to win in the third, and the odds are 8:1, then you can pretty much look at the results of the race, and tell if you have won. (or lost)
But derivatives are now such that, if Galloping Ghost wins in the third, then the bet will be carried into the next race, but if it doesn't, then Sweet Biscuit will be run in the forth, and the odds will be retroactively changed to 1:8 and the better will have bet on Old Lady, which may or may not be running...
Or, in other words, if there was ever a derivatives blow up, the only thing that will happen is that teams of lawyers will be paid for decades to decide who gets what's left of the scraps.
The value of gold will go to zero. Imagine that Zoros was found out. Just how evil he is being is published to the world. So, Zoros starts paying his security army in gold, because they don't accept US$s. And so, the world just stops accepting gold, because no one will have anything to with anything that is Zoros. (it isn't going to be exactly like that, but yeah)
And cyrpto currencies will become the only game in town. Because, imagine how much easier it is to send bitcoins across the world instead of using a bank (or western onion) Now imagine bitcoin gets four times better then it is now.
my father in law just commented it’s too expensive to get into bitcoin now. It’s very hard to convince anyone to buy 0.1 BTC.
Don't try to convince people it only leads to frustration. Take care of yourself and your family everyone else will come around when the tv tells them to.
You are a pretty wise man!
but it will get even higher.
yes it may go much higher, so the question is what is something’s worth if you are priced out. It might be more coveted, or ignored due to its high price. We are looking for wider adoption. So maybe 0.1 will be accepted price. I don’t know what the significant means at this point. Something is definitely wrong with the world economy though, so there is much more upside to BTC.
if amazon is now worth a $1000 when it was a $1 ,do people not buy amazon stocks now? You have to buy a whole share but bitcoin you can buy 0.00001 btc :)
Interesting visual
That's a lot of derivatives
Thanks for this post @hilarski! If cryptocurrency is a bubble, it's a very small bubble then...
A classic!
Bitcoin a bubble, lol !!!
You always here how big the derivative market is, but once you see it visually you just think to yourself "We are screwed" lol