Replying to Avatar Saifedean Ammous

No, you did not miss the bitcoin train.

We are just getting started.

Just because bitcoin went up a lot does not mean it cannot go up a lot more. On the contrary, the more it goes up, the more it demonstrates product-market fit, the more likely it is to go up.

Bitcoin is different from stocks, bonds, and commodities because it has a much, much larger addressable market. Let's compare:

Apple's total addressable market is 8 billion people who can own an iphone and laptop. A lot of them already do, and a lot of them are too poor, so there's just not much more room for growth. Maybe Apple can increase by 5x, or 10x, but it would need to introduce new products that are wildly popular to do so, which is very difficult. Ultimately, an Apple stock is a claim on cashflow, and it is priced based on expectations of Apple cashflow, and it is not easy to continue to increase cashflow once you're a trillion dollar company.

But bitcoin is money, and its total addressable market is all of the planet's cash balances, which currently include something in the range of $100 Trillion in physical government cash and checking and saving bank accounts, plus ~$120 Trillion in government bonds, ~$22 Trillion in gold, and arguably, a chunk of the world's real estate and stock markets, which people are holding to beat inflation, and not to take risk in search of return. All in all, bitcoin's Total Addressable Market is in the range of $200-300 Trillion, which is about 100 times larger than what it is now. All of these assets are trash compared to bitcoin, and there is no reason for anyone intelligent to hold a significant position in them. Everything held in these assets has lost ~90% of its value against bitcoin in the last 5 years, and will likely keep losing another 90% every few years. The only things maintaining significant demand for these assets at this point are their holders' old age, intelligence deficiency, and susceptibility to government propaganda. They can continue to hold these assets as they decline, making them poorer, or they can shift to bitcoin and start getting richer. Either way, and regardless of what they do, the world's wealth is going to end up in the hard money, and not in the obsolete moneys of the twentieth century.

Bitcoin has no cashflow to price it. Most nocoiners think this makes it a ponzi, but that is only because they have never experienced real money, and only have as a frame of reference the hot potato trash fiat money which everyone smart tries to exchange for hard assets as soon as they can. They are incapable of understanding people demanding to hold money for its own sake, for its ability to hold value, and not for cashflow. This is how gold became the money of the world without generating any cash flow, and this is why bitcoin, which is infinitely better money than gold, is going to continue to monetize and grow.

Nonetheless, bitcoin's demand is highly variable, and with leverage, it will likely continue to be significantly volatile for the foreseeable future, so always keep in mind that it could decline significantly, and manage your position accordingly.

$200T-$300T is super bearish. At the very least it’s half, $450T. If every transaction is half money, half not money. Add in all the glut and air pockets from leverage on debt, equities, and houses then you’re way over $450T.

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That 900T number is 2023 dollars I believe.

By the time we get to Bitcoin monetization total wealth measured in USD could be 9000T

The only measurement is everything divided by 21 million.

0.10 Bitcoin purchasing power will be about 5 million USD(2025).

I get this gotcha basically every time I make a post about this. It’s not as useful as you think it is. I am obviously am aware of the fiat error term like everyone else here.

Therefore, what matters is: what % of total global wealth will Bitcoin terminate at? Houses and equities will still have some value, just denominated in Bitcoin. 50% is rational answer. Also, at 50%, it’d also make sense to add a 2x multiplier to the Bitcoin *purchasing power* in today’s dollars because presumably, everything else will have dropped by about 50%.

PS Jeff Booth is wrong that it’ll eat all

$900T or, if you like, 100%.

Sorry I didn’t intend to post a “gotcha”

I don’t think Bitcoin will need to be “worth 450/900trillion $” at any point actually.

Either fiat dies and we start measuring in something else, or the tyrannical government imposed slavery continues.

Ok yes so fiat dies. Everything denominated in Bitcoin. Bitcoin eats monetary premiums of gold, houses, and equities…what % of those things does it eat?

Idk, the % would grow over time until the price of everything consumable is the marginal cost of production correct?

In the perfect world…