We covered cryptocurrency basics here – now we explore a few other things.
John McAfee (of the McAfee Antivirus fame) claims the price of a Bitcoin Will Reach $1 Million by 2020
That would mean all Bitcoins would be worth $21 trillion (assuming the maximum supply of 21 million is reached, the current supply is about 17 million). The current world money supply (M3) is $60 trillion. That would mean a digital “fiat” currency like any other digital “fiat” currency would alone be 25% of the total money supply in the world (assuming all other money supply remains the same and other cryptocurrencies don’t contribute to the money supply)
Cryptocurrencies are the new gold and silver as they can be mined
There are 118 elements in the periodic table. There are over 10,000 (About 1,400 tracked by coinmarketcap.com) cryptocurrencies and growing by around 10 a day. So, cryptocurrencies aren’t rare, are they?
From the periodic table, 31 elements can be mined in the real world. In the cryptocurrency world, mine what you like. So, are cryptocurrencies really the new gold and silver?
If Cryptocurrency mining contributed to GDP
New crypto currencies mined along with price discovery of mined currency would have contributed about $500 billion to the world GDP in 2017. As a standalone country that GDP that would have been the 23rd largest economy by GDP. And we haven’t added the contribution of trading to the calculated GDP.
If Cryptocurrencies contributed to the global money supply in 2017
They would double the new addition of global money supply (M3) on a constant currency ($) basis in 2017. On a constant currency (Bitcoin) basis the total global money supply would reduce less than to 1/10th by the end of the year from what it was at the start of the year.
Crypto currencies are like stocks
Ok, if so they contributed to about 8% of the total gains in the Equities markets in 2017.
The total market cap of crypto currencies tracked by coinmarketcap.com is currently $750bn. That makes them more valuable than McDonalds, Pfizer, Coca Cola and Goldman Sachs all combined.
Some questions though – What is the capital value of the stock? What about a dividend? And the glossy annual report? Do investors get a vote?
Cryptocurrency trading is a form of gambling
The casino always wins.
“It’s hard to walk away from a winning streak, even harder to leave the table when you’re on a losing one.” – Cara Bertoia, Cruise Quarters