Bitcoin Marketcap
$1.70T
Gold Marketcap
$15.61T
BTC Settlement Volume (24hr)
$12.90B
BTC Inflation Rate (next 1yr)
1.17%
CASEBITCOIN making the case for bitcoin every day
Bitcoin Marketcap
$1.70T
Gold Marketcap
$15.61T
BTC Settlement Volume (24hr)
$12.90B
BTC Inflation Rate (next 1yr)
1.17%
CASEBITCOIN making the case for bitcoin every day
15 Nov 2017 | | Price when published: $6,940 (ROI since: +1,199%)
Topics include:
- Cryptocurrencies 101
- Bitcoin vs. Fiat Currencies vs. Precious Metals
- The Difficulty in Valuing Cryptocurrency
- Quantity Theory of Money
- National Currency Comparisons
- Pure Store of Value: Percent of Net Worth
- Stock to Flow
Over time, my views on those second two questions have become a bit more bullish in favor of Bitcoin, compared to my initial neutral opinion. Bitcoin now has over a decade of existence, and continues to have dominant market share of the cryptocurrency space (about 2/3rds of all cryptocurrency value is Bitcoin). Currencies tend to be βwinner take allβ systems, so instead of becoming diluted with thousands of nonsense coins, the crypto market has remained mostly centered around Bitcoin, which demonstrates the power of its network effect.
Bitcoin prices could go up by a lot, or they could fall to nothing, and it mostly comes down to how much and how fast Bitcoin or any of these cryptocurrencies can maintain and grow their network effect to be seen as either a permanent store of value or a medium of exchange. As a medium of exchange, they are failing to take off. As a store of value, Bitcoin alone seems to be succeeding. Purely as a store of value, bitcoins have considerable upside. If the Bitcoin network earns even a quarter or half as much market share as gold, the upside per bitcoin is tremendous.
What do you think of this piece?