Global Debt to be Worth $12 Million per Bitcoin by Year End

th3nolo

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Quote from: nh0xxpr01 on December 15, 2019, 02:04:28 PM

What do you guys think about the relationship of bitcoin to worldwide debt?

The biggest problem is that central banks have no limit on the damage they do to people, it is well known that they are capable of creating bubbles simply to achieve political objectives, to change financial paradigms, even to create unfair advantages over other countries.

The only thing that worries me is not that Bitcoin is going to get the value that these central banks are trying to destroy with their infinite debt issuance, what worries me is that we are unwittingly creating a new elite of people.

altcointalk14

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Quote from: odolvlobo on December 29, 2019, 05:47:59 AM

He is mistaken. The total value of all the currencies in the world does not currently equal the total value of all of the wealth in the world, and there is no reason why Bitcoin would change that.

Bitcoin has a long way to go before we can claim anything like that about bitcoin. In economic corridors of the world there is no place for bitcoin, atleast for now. This is just like comparing apple with oranges.

odolvlobo

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Quote from: DaCryptoRaccoon on December 28, 2019, 08:56:04 PM

Quote from: odolvlobo on December 15, 2019, 06:01:38 PM

There is no relationship between Bitcoin and the value of the financial sector, economic output or worldwide debt. You can compare the value of Bitcoin to the value of anything, but that doesn't mean that they will some day be equal.

The most appropriate comparison is to something that Bitcoin can replace, such as base money, which is about $19 trillion. Only then can you get a realistic target.

Hmm. I would beg to differ on this thanks mostly in part to a very famous post by the late Mr Hal Finney,
From the quote below it seems that it may have been a possibility that things like debt, wealth and other factors were indeed looked at at some time.

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... Then the total value of the currency should be equal to the total value of all the wealth in the world. ...

He is mistaken. The total value of all the currencies in the world does not currently equal the total value of all of the wealth in the world, and there is no reason why Bitcoin would change that.

DaCryptoRaccoon

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Quote from: odolvlobo on December 15, 2019, 06:01:38 PM

There is no relationship between Bitcoin and the value of the financial sector, economic output or worldwide debt. You can compare the value of Bitcoin to the value of anything, but that doesn't mean that they will some day be equal.

The most appropriate comparison is to something that Bitcoin can replace, such as base money, which is about $19 trillion. Only then can you get a realistic target.

Hmm. I would beg to differ on this thanks mostly in part to a very famous post by the late Mr Hal Finney,
From the quote below it seems that it may have been a possibility that things like debt, wealth and other factors were indeed looked at at some time.

While the debt clock continues tick closer to the western financial disaster on the horizon it seems the captain of the ship's heading for the rocks are doing what they always do... Nothing.
No warning calls just debt based financial ruin lay's ahead.

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As an amusing thought experiment, imagine that Bitcoin is successful and
becomes the dominant payment system in use throughout the world. Then the
total value of the currency should be equal to the total value of all
the wealth in the world. Current estimates of total worldwide household
wealth that I have found range from $100 trillion to $300 trillion. With
20 million coins, that gives each coin a value of about $10 million.

So the possibility of generating coins today with a few cents of compute
time may be quite a good bet, with a payoff of something like 100 million
to 1! Even if the odds of Bitcoin succeeding to this degree are slim,
are they really 100 million to one against? Something to think about...

Hal

CryptoBry

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There is no stopping to the continuing growth of debt on the global basis. The global economy has an enormous and voracious appetite for money via loans and special monetary arrangements between governments and financial institutions. There is no question that we have a very liquid global economy but all are founded on debts, which I am sure one day will be coming to haunt us all. Right now, it is not USA-based monetary platforms that are lending money but so is China which is enticing many other countries to its circle of influence by pouring money to whoever is interested.

Right now, there is no possible connection between the overall global debt and the value or price of Bitcoin. However, by the time the global economy will be leaking due to the burden of debts maybe that can be the time when Bitcoin is going to be positively pushed to the top as the best alternative global currency and protector of wealth. Will that time be coming soon? I hope not soon but there is no question there will be that time of reckoning for all of us.

pakhitheboss

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Bitcoin was created to replace financial models of the world. The current depth cannot be removed with Bitcoin . A debt is a debt it can be only termed as a bad debt when it cannot be cleared.

There is no comparison of Bitcoin with the global debt. I disagree with what you are stating in the post.

kryptqnick

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Quote from: odolvlobo on December 15, 2019, 06:01:38 PM

There is no relationship between Bitcoin and the value of the financial sector, economic output or worldwide debt. You can compare the value of Bitcoin to the value of anything, but that doesn't mean that they will some day be equal.

The most appropriate comparison is to something that Bitcoin can replace, such as base money, which is about $19 trillion. Only then can you get a realistic target.

I tend to agree with this explanation. I don't believe that it makes sense to turn the debt into the value per Bitcoin, honestly, I can't see the logic behind this decision. However, I do believe that Bitcoin can be connected to the topic of global debt. Namely, I believe that global debt can trigger the collapse of fiat (it's so hard to resist the temptation to print a lot of money when you own it to someone, right?). In turn, this could lead to the biggest economic crisis so far. In that situation Bitcoin would look very attractive, however, since at least hyperinflation cannot occur with it like that, since it's impossible to "print" as much as one wishes, and it's not regulated by a single entity. It would still be a tough time for the world, but cryptos could help to overcome it, I suppose.

kotik085

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Quote from: metalglowd on December 16, 2019, 05:24:26 PM

If we hope that the increase, the value of bitcoin will be able to compete or at least equal to the value of world debt, this will be more difficult, unless they come out at the same time. Maybe those problems can be solved, but im still confused, to whom this kind of debt was paid ?

Here, the big role is not played by the value of bitcoin, but rather the capitalization of bitcoin. The price cannot rise if there is no growth in capitalization, which implies the totality and consumption of bitcoin.

metalglowd

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If we hope that the increase, the value of bitcoin will be able to compete or at least equal to the value of world debt, this will be more difficult, unless they come out at the same time. Maybe those problems can be solved, but im still confused, to whom this kind of debt was paid ?

jhontwis

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has been a funny sharing. Satoshi did not anticipate that world debt would be converted into Bitcoin. Maybe he did. Anyway. Bitcoin supply limited money. Today, the value can be reached with a lot of conclusions. Perhaps tomorrow, with a much smaller number of bitcoins, these debts are closed: d

Harlot

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This dude literally just multiplied 21,000,000 Bitcoin (supply of Bitcoin) to 12 million US dollar just to come up with the estimated 255 trillion dollars debt which I think is totally irrelevant. Since like what others have previously said debt doesn't translate to anything about valuing Bitcoin let alone determine any kind of increase in demand. I really get disappointed a lot seeing authors of articles like this creating non sense topics just to relate it to Bitcoin or anything in the crypto industry since it misinforms the public and the rest of their readers about something they really don't know, chances are some of their readers already will believe that 12 million USD will be the next price target for Bitcoin.

avikz

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Quote from: nh0xxpr01 on December 15, 2019, 02:04:28 PM

What do you guys think about the relationship of bitcoin to worldwide debt?

There's literally none at all! Instead, bitcoin is a currency system that is immune from such debts and the hazards of traditional financial markets! If anyone wants to take celibacy from the world of finance, they would come to crypto for resort!

No one would stop you if you want to calculate world debt along with the number of bitcoins mined till date, but it will be wiser if you choose not to find a correlation!

Gyfts

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Seems rather strange to compare the debt to the price of Bitcoin as if somehow all financial institutions and assets are going to disappear and be substituted by crypto? Not all financial value exists in liquid cash. They're backed up my physical resources or physical commodities and the debt for countries that are backed by good economies (ie the US) are inflated anyways. That's not saying the debt needs to be reduced but the idea of 20 trillion in debt doesn't mean the U.S. economy is doomed.

teosanru

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Quote from: nh0xxpr01 on December 15, 2019, 02:04:28 PM

The IIF report said that that global debt will achieve $255 trillion by 2020. The growth of this debt comes from governments, non-financial and governments companies. This year the USA's government debt has increased on $30 trillion, besides, companies added $25 trillion, households $9 trillion and banks $2 trillion.

"Instead of entering a decade of stagnation, central banks poured in liquidity to boost all sectors, leading to significant asset valuation growth. In spite of that, the financial sector carries debt which is 240% of the world’s gross domestic product. Bitcoin Still Valued Low in Comparison to Size of Financial Sector", an article on Bitcoinist said.

If bitcoin’s value was matched to real economic output, it would be about 60% lower, at around $4 million per BTC. One bitcoin will have to be worth over $12 million to describe the size of the worldwide debt.

What do you guys think about the relationship of bitcoin to worldwide debt?

I don't think there is any plausible relationship between both of them as both are two separate things. I think what you mean is that the maximum price of Bitcoin could possibly reach to $12 million but this isn't really true because there is absolutely no static measure of the World Debt it's increasing at an ever changing rate and even then while I am writing this post. The thing is that Bitcoin might not exactly be a debt based solution for currency but it suffers a great limitation which is limited supply and how can a currency with a limited supply persist in dynamic economic environment.

bitcampaign

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if the amount of bitcoin adoption growth worldwide increases then that will also make the price and value of bitcoin continue to increase, if the price of bitcoin reaches $ 12 million to meet world debt payments, all governments will go in favor of bitcoin and take over to pay debts, but unfortunately they haven't doing this step, lots of things and advantages for each country adopting bitcoin and cryptocurrency, if only they didn't ban it in their country and discarding their hypocrisy in adopting bitcoin or other crypto currencies, but if bitcoin is worth $ 1 million I would like to see would what will be the attitude of the government in this world to bitcoin and cryptocurrency?

odolvlobo

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There is no relationship between Bitcoin and the value of the financial sector, economic output or worldwide debt. You can compare the value of Bitcoin to the value of anything, but that doesn't mean that they will some day be equal.

The most appropriate comparison is to something that Bitcoin can replace, such as base money, which is about $19 trillion. Only then can you get a realistic target.

nh0xxpr01

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The IIF report said that that global debt will achieve $255 trillion by 2020. The growth of this debt comes from governments, non-financial and governments companies. This year the USA's government debt has increased on $30 trillion, besides, companies added $25 trillion, households $9 trillion and banks $2 trillion.

"Instead of entering a decade of stagnation, central banks poured in liquidity to boost all sectors, leading to significant asset valuation growth. In spite of that, the financial sector carries debt which is 240% of the world’s gross domestic product. Bitcoin Still Valued Low in Comparison to Size of Financial Sector", an article on Bitcoinist said.

If bitcoin’s value was matched to real economic output, it would be about 60% lower, at around $4 million per BTC. One bitcoin will have to be worth over $12 million to describe the size of the worldwide debt.

What do you guys think about the relationship of bitcoin to worldwide debt?

Topic: Global Debt to be Worth $12 Million per Bitcoin by Year End (Read 283 times)