1. Maximum Bitcoin supply: Approximately 21 million BTC (actually using 20.5 million BTC for calculations)
2. Current world M2 money supply: Approximately $100 trillion (estimate)
3. Required proportion to function as a reserve currency: At least 20% of global M2 (conservative estimate)
Calculation:
1. Required total value = $100 trillion × 20% = $20 trillion
2. Required value per BTC = $20 trillion ÷ 20.5 million BTC ≈ $975,610/BTC
This means that for Bitcoin to have sufficient liquidity as a reserve currency, it would need a value of about $1 million per BTC (more precisely $975,610).
According to data tracked by ETC Group and Glassnode, entities with no liquidity currently own 14.61 million BTC. Re-evaluating the situation based on this data:
1. Total Bitcoin supply: Approximately 20.5 million BTC
2. Owned by entities with no liquidity: 14.61 million BTC
3. Remaining liquid Bitcoin: 20.5 million - 14.61 million = 5.89 million BTC
Updating the previous calculation with this new information:
1. Required total value (same as before): $20 trillion
2. Liquid Bitcoin: 5.89 million BTC
3. Required value per BTC = $20 trillion ÷ 5.89 million BTC ≈ $3,395,585/BTC
This result reveals the following points:
1. Need for price increase: A value of about $3.4 million per BTC (more precisely $3,395,585) would be necessary. This is about 113 times the current price.
2. Extreme price surge: Compared to the previous calculation ($975,610/BTC), this requires more than a 3.5-fold increase.
3. Accelerated wealth concentration: Wealth would be further concentrated among holders of the 5.89 million liquid BTC.
4. Market vulnerability: The low liquidity could lead to increased market volatility.
5. Accessibility issues: Such high prices would make it even more difficult for average people to own Bitcoin.
6. Increased deflationary pressure: The effective reduction in supply would further intensify deflationary pressures.
yaaman
npub1n0…mr62v
2024-09-07 15:59:47
in reply to nevent1q…spfk
Author Public Key
npub1n0700587vxccg466w8h2a5ethmj2869n2ht0ucrv79rffz663cdqtmr62vPublished at
2024-09-07 15:59:47Event JSON
{
"id": "a09731f9aa98ddf2adb08b0897e51e03e7981ed53cd73107951b5062c6711ed7",
"pubkey": "9bfcf7d0fe61b184575a71eeaed32bbee4a3e8b355d6fe606cf146948b5a8e1a",
"created_at": 1725724787,
"kind": 1,
"tags": [
[
"e",
"b2eb5ee8cfa1e2c06fe27f06f74c77cff19ca04569a03e844f2cb5baa26aec7d",
"",
"root"
],
[
"e",
"80125a626d342813d3aa6ef50b0fe38281716d3eb726672848ae4de0da0b4240",
"",
"reply"
],
[
"p",
"9bfcf7d0fe61b184575a71eeaed32bbee4a3e8b355d6fe606cf146948b5a8e1a"
],
[
"p",
"637a2f1da5d2fc1976c14ec00f8eae4015afe99bb2554f1d537d0086a169dd8f"
]
],
"content": "1. Maximum Bitcoin supply: Approximately 21 million BTC (actually using 20.5 million BTC for calculations)\n2. Current world M2 money supply: Approximately $100 trillion (estimate)\n3. Required proportion to function as a reserve currency: At least 20% of global M2 (conservative estimate)\n\nCalculation:\n1. Required total value = $100 trillion × 20% = $20 trillion\n2. Required value per BTC = $20 trillion ÷ 20.5 million BTC ≈ $975,610/BTC\n\nThis means that for Bitcoin to have sufficient liquidity as a reserve currency, it would need a value of about $1 million per BTC (more precisely $975,610).\n\nAccording to data tracked by ETC Group and Glassnode, entities with no liquidity currently own 14.61 million BTC. Re-evaluating the situation based on this data:\n\n1. Total Bitcoin supply: Approximately 20.5 million BTC\n2. Owned by entities with no liquidity: 14.61 million BTC\n3. Remaining liquid Bitcoin: 20.5 million - 14.61 million = 5.89 million BTC\n\nUpdating the previous calculation with this new information:\n1. Required total value (same as before): $20 trillion\n2. Liquid Bitcoin: 5.89 million BTC\n3. Required value per BTC = $20 trillion ÷ 5.89 million BTC ≈ $3,395,585/BTC\n\nThis result reveals the following points:\n1. Need for price increase: A value of about $3.4 million per BTC (more precisely $3,395,585) would be necessary. This is about 113 times the current price.\n2. Extreme price surge: Compared to the previous calculation ($975,610/BTC), this requires more than a 3.5-fold increase.\n3. Accelerated wealth concentration: Wealth would be further concentrated among holders of the 5.89 million liquid BTC.\n4. Market vulnerability: The low liquidity could lead to increased market volatility.\n5. Accessibility issues: Such high prices would make it even more difficult for average people to own Bitcoin.\n6. Increased deflationary pressure: The effective reduction in supply would further intensify deflationary pressures.",
"sig": "8ba8dcc94b3a77d79f79174a3368b35b597cbc4c95f49d8fe2f9988649f2aae46d771e00c6b5d44a0827567f80a0813d723fe22330c4b1468ab78906d6e94cad"
}