Conversation

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.

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.

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%)

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

Considering they’re all seemingly arbitrary comparisons, how have they helped you in valuing bitcoin? Just a general/personal comfort?

Replying to

Fundamental analysis of an emerging asset class is generally really hard and vague, but at least I have *some* intuition about the relative importance of BTC, Gold, and one year of Canada.

Replying to

and

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. 👍