Conversation

SBF
@SBF_FTX
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'.
15
138
SBF
@SBF_FTX
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.
2
33
SBF
@SBF_FTX
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.
2
25
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%)
6
70
SBF
@SBF_FTX
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!
6
53
Paul Mak 🖖
@Unbankt
Replying to
@SBF_FTX
and
@SBF_Alameda
Yea I understand referencing values of familiar vehicles. I was more referring the percentage ie why 2% gold is a good benchmark for all btc? etc. Loving FTX by the way. Derivatives was something I wanted to pursue but I think you’ve nailed it. 👍
1
1
SBF
@SBF_FTX
Replying to
@Unbankt
Thanks!!! FWIW I think gold is something that makes me feel marginally more bullish about BTC, I think it's basically objectively better than gold at what gold is mostly used for and 2% seems kinda low...
5