Conversation

OK time to rant about prices and market cap. 1) What is up with this 'only 21m people can own 1 BTC' meme? You could equally say '10^15 people can each own 1 SAT'.

138

SBF

@SBF_FTX

Aug 25, 2019

2) We could use BTC, 100 BTC, or 0.0001 BTC as units, and it doesn't change fundamentals. Stocks split all the time; everyone ends up with 2x as many shares each worth 1/2 as much. It has no real impact other than making it easier to type the price in a table with other stocks.

SBF

@SBF_FTX

Aug 25, 2019

3) It's true BTC isn't inflationary but USD inflation is only a few % and you get interest. So you can either hold BTC in a wallet or get paid a few % to buy USD govt bonds.

SBF

@SBF_FTX

4) It's market cap that matters, not price or supply on their own. The real question is what's worth more: a) All BTC b) 2% of all gold c) 10% of Canada's GDP d) Mastercard e) Jeff Bezos f) 20% of money US spent on food in 2019 All of those are valued at ~$150b (+-50%)

11:17 AM · Aug 25, 2019Twitter Web App

Replying to

5) FWIW using a-f to price BTC has been helpful for me. Makes it seem like $10k is a somewhat reasonable price, $100k if crypto really takes off in society, and $0 if it fizzles out. (Or anything in-between.) But current market cap is maybe in the right ballpark!

Replying to

and

They just out there trying to sell btc to normie

Replying to

and

Technically, MacKenzie Bezos owns half the value of all BTC. For getting married...

Replying to

and

No economy on Earth measures the market cap of their currency. It's a useless metric for currency - co-opted from capital and equity markets where it has meaning. Currency markets, or economies, are measured in GDP. Monetary quanta are meaningless to macro-economics.

Replying to

Yeah, true, to some extent it's not clear exactly what BTC is--is it a currency? A commodity? But I don't think that GDP refers to currencies--it refers to countries, which often line up with currencies. But BTC isn't tied to a country.

Show replies