This is part of a series of videos aimed at audiences on social, quickly answering tough crypto questions. Follow me on Tik Tok to get the videos first!
This question comes in from the Ask Doctor Bitcoin chatroom: “Is a Bitcoin value of $150,000 supported by logic? Forget the moon, what’s the math supporting this?”
Andrew Lowe, a long time business partner of mine (and fantastic crypto technical analyst) answered it thusly:
“It all comes down tot he fundamentals of supply and demand.”
The international money supplies are valued at quadrillions of dollars, and it’s a value we can use to indicate what our total addressable market could be for Bitcoin. Should bitcoin become the successor to any national currency, the market cap of bitcoin would rise to the value of that nation’s oney supply.
Publilius Syrus famously wrote in 100 BC that “Everything is worth what its purchaser will pay for it”
Considering the value of the global money supply, if we reengineer stocks, derivatives, and commodities to be represented by cryptocurrencies, then bitcoin could be worth orders of magnitude more than $150k
You can always ask Andy or I questions in the ADB chatroom and read more in the blog post for this video (links are in my profile!).