Bitcoin's Market Cap has Surpassed Silver's Market Cap! Up Next Gold?
Of those people, actually into crypto, and bitcoin specifically, it is not a question of if, it is a question of when.
When will bitcoin surpass gold's market cap?
Bitcoin just touched 1.4T
Gold is at about 14.0T
So, bitcoin just has to 10x (while gold stands still)
which is not out of the realm of possibility during this bull run.
Max Keiser says $230k is still in play, that's getting close
Peter Schiff, i am sure would disagree. Saying that gold is going to go way up too. Probably $10,000 an ounce.
What does a "market cap" mean?
The problem with market cap as a number, is that it truly is meaningless.
M3 (a measure of all The US dollars) is about 23T (estimated).
Gold and bitcoin could both easily surpass this number. But, how could something be worth more than all the money in the world?
Well, that is the magic of "market cap". Market cap is not a real number. It is the current price the commodity is trading for multiplied by assumed amount of that commodity.
In reality, if anyone tried to sell a large portion of the available commodity, the price would drop.
Such as, if the rots-children wanted to, they could sell gold at $20 an ounce (barring central banks) and keep the price there because they have so much gold, it would take decades for people to make jewellery out of it all.
So, the "market cap" is the market price X the quantity. An ephemeral number, that is basically just the last sale of that commodity, and multiplied by a guess of how much we think we have of it. A truly meaningless number.
But we like it for comparing markets
It sounds good to say, "Bitcoin's market cap is 1.4 trillion dollars" Much big numbers. Very large.
Predictions on assumptions
The price of gold is suppressed.
However, the price of bitcoin seems to be being manipulated too.
… and The US dollar too…
So, what happens when the manipulation ends?
And, what if the manipulators want you to think the manipulation is ending, by manipulating things to look that way?
Well, we probably don't have big enough brains to work through that, so we can only attack this problem by making many assumptions.
We can assume that the price of gold is much higher than the COMEX price. We can see this through the many, hinted at, statements that big gold buyers pay a lot more per bar than the spot price. We can also see that in that the COMEX would never be able to fill all the contracts flowing through that market. So, we will assume that the real gold price right now is about $4,000 - $5,000.
And, following bitcoin and the buying for the ETFs, bitcoin price should be much higher with those buy walls. But, how much higher? Are we looking at $100k bitcoin, or $1 million bitcoin?
Either way, the market cap of bitcoin and gold will exceed all the money in the world.
Now imagine a rush into PMs and cryptos because of some scare.
The market caps of these items will be through the roof.
70T-100T at least
What will actually happen??
One thing i have a very hard time computing is the point where no one will trade gold or bitcoin for dollars.
Gold could be $10,000 an ounce, and you go to the coin store, and they have nothing to sell you.
We could learn that Kraken has sold all their bitcoin to Blackrock. Meaning, they sold everyone who was holding bitcoin on their exchange's bitcoin. Or, stole everyone's bitcoin. What happens when one of the biggest exchanges loses credibility?
We will probably see brokerages who swap gold / bitcoin for other commodities like houses / yachts / cars / oil.
We will probably see lighting nodes trading in milli-satoshis to buy things like food.
We will probably see assayers in grocery stores measuring PMs and issuing chits for food purchase.
So, will we see bitcoin's market cap surpass gold's market cap?
Probably not. Because we won't have any measure to measure them against.
I guess we will have a gold/bitcoin exchange rate.
At some point, bitcoin will win out, because block chain is the future of money, and gold will lose its luster as a monetary metal.
I agree. Bitcoin will win out when it comes to that and eventually the old guard that has pitched Gold all this time will realize that Bitcoin is superior.
the next generation will think of gold as quaint.
That we held onto it for so long will seem weird.
Some people have started to thug out with their Ledger wallets around their neck but I think gold chains still have some life. Hahha. But yeah the hayday seems to be over for gold as a hedge against inflation or any of that.