Bitcoin Needs a % Increase to Surpass Gold

By crossing the $71,000 threshold, Bitcoin now has a greater market value than all the silver ever mined.

Bitcoin Puts Silver in Its Rearview Mirror

After surpassing the value of the Swiss Franc last week, the 19,651,000 BTC in circulation are now worth more than silver. Bitcoin’s market capitalization stands at $1.4 trillion dollars, versus the $1.38 trillion dollars for the precious metal.

Here’s the additional appreciation Bitcoin needs to surpass the assets still ahead of it:

• Google: +20%
• Amazon: +30%
• Saudi Aramco: +48% (A single BTC will then be worth more than $100,000)
• NVIDIA: +56%
• Apple: +88%
• Microsoft: +115%
• Gold: +949%

#Bitcoin isn't here to take part. It's here to take over. pic.twitter.com/8hq2EIITv6

— Stack Hodler (@stackhodler) March 11, 2024

In other words, the value of a single bitcoin will multiply by 10 when it surpasses gold’s market capitalization. On that day, a single bitcoin will be worth approximately $700,000.

However, it’s possible that some of the wealth currently in gold will flow into bitcoin during the process. Bitcoin could then exceed the “barbarous relic” before reaching $700,000.

Why is it doomed to be worth more than gold? The first argument is that there will never be more than 21 million of them. 93.50% of BTC has already been mined.

Conversely, gold production increases as its price goes up. 3,300 tonnes of gold were produced in 2020. This is compared with 2,560 tonnes in 2010 and 1,224 tonnes in 1980.

For financiers, note that the S2F (Stock to Flow) ratio will go from 60 to 120 after the halving, while gold’s will remain at 60. Our article on the subject: Adam Back anticipates $700,000 for this halving.

The second very important thing is that Bitcoin is a currency as well as a payment network. Two-in-one. You can send the equivalent of billions of dollars with a few clicks for just a few cents in transaction fees.

Surpassing gold is just the first step. Soon, 8 billion humans will save in Bitcoin. Knowing that the fiat money supply represents the equivalent of two billion bitcoins at the current rate.

Replacing savings accounts with Bitcoin could multiply its value by 100. That’s seven million dollars for one BTC.

Here are the results of a monthly investment in Bitcoin (DCA) over 1, 2, 3, 4, and 5 years.