Price of bitcoin be if everyone on earth used bitcoin. no selling of btc to fiat

CtrlAltBernanke420

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Quote from: Ardenyham on September 10, 2014, 05:14:57 PM

Quote from: CtrlAltBernanke420 on September 09, 2014, 10:06:11 AM

What would... or rather how would the price/purchasing power of a bitcoin be determined if there were no one selling or buying bitcoin.

Quote from: giveBTCpls on September 10, 2014, 04:11:03 PM

How would one define the purchasing power of 1 BTC then, if no other references exist to compare it with it?

The same way today prices are determined, by free market determining price. Does it really matter if the price for breed in your local store is in USD, EUR or Bitcoin? No, the price is found the same way.

No, the Eur derives its value largely off the dollar, the dollar is aka The petrodollar, once you have secured your dollar amount per barrel, this commodity trading, largely driven by speculation, will then determine the price of everything else.

It was something 1-3 years ago during the time the US was really pressing hard on iran with sanctions and basically cut off their access to the rothchild banking system, boom, petrolgold was reignited causing the US sanctions to back peddle to keep them on the dollar system.

Iran was trading its oil for gold. The powers that be did not like this.

However gold still derives its value from the dollar, for the most part.

Ardenyham

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Quote from: CtrlAltBernanke420 on September 09, 2014, 10:06:11 AM

What would... or rather how would the price/purchasing power of a bitcoin be determined if there were no one selling or buying bitcoin.

Quote from: giveBTCpls on September 10, 2014, 04:11:03 PM

How would one define the purchasing power of 1 BTC then, if no other references exist to compare it with it?

The same way today prices are determined, by free market determining price. Does it really matter if the price for breed in your local store is in USD, EUR or Bitcoin? No, the price is found the same way.

bigasic

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Or better yet, 1btc is equal to 1 oz of gold.. Id rather have btc hooked on to gold or silver rather than fiat. So, if fiat ever goes away (fat chance) we would be able to guage how much a bitcoin or mbtc is worth..

odolvlobo

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Quote from: LeMiner on September 10, 2014, 04:38:30 PM

Current total amount of money in the entire world converted to dollars is 75 trillion us$.

Source?

LeMiner

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Current total amount of money in the entire world converted to dollars is 75 trillion us$.

Currently there are 13,200,000 bitcoins in circulation.

75,000,000,000,000 / 13,200,000 = 5,681,818$

One bitcoin would be worth the equivalent of 5,681,818$ today.

If that would ever happen Satoshi would be worth 8,5 trillion dollars, or easily the worlds first trillionaire.

franky1

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Quote from: CtrlAltBernanke420 on September 10, 2014, 04:22:41 PM

It does seem that the most powerful military in the world is really how your loafs of bread are secured. To take it a step further, there is no reason to think the govt could not all of sudden issue a new fiat currency that is better than the dollar but still not ideal.

Gov'ts seem to be the only people that can issue a currency that goes forward to account for all the commodity trading in the world.

you mean like the future currency 'amero' (research: north american union)

CtrlAltBernanke420

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It does seem that the most powerful military in the world is really how your loafs of bread are secured. To take it a step further, there is no reason to think the govt could not all of sudden issue a new fiat currency that is better than the dollar but still not ideal.

Gov'ts seem to be the only people that can issue a currency that goes forward to account for all the commodity trading in the world.

giveBTCpls

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Quote from: cyberpinoy on September 09, 2014, 10:22:57 AM

Quote from: BitCoinNutJob on September 09, 2014, 10:07:31 AM

1 BTC would = 1 BTC if nobody ever sold it for fiat

+1

Remove the tradable market from bitcoin makes it value irrelevant to fiat so its value would be 1 BTC and it would be an even stronger foundation for the other crypto currencies. Bitcoin would be to Crypto as Gold is to Fiat.

How would one define the purchasing power of 1 BTC then, if no other references exist to compare it with it?
Would 1 BTC buy a McDonalds menu or a Veyron? how does one set this?

franky1

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due to the fact that FIAT would be obsolete, lets convert FIAT into something else easily understandable and measurable

so if we say today a loaf of bread is £1.50 / $2.00

then it has been worked out that the average life savings of everyone(working age) on the planet is about 22,500 loaves of bread ($45k)

so with 14mill coins and 5billion working age human beings.. lets do the maths
=0.0028 bitcoin per person represents the average life savings of 22,500 loaves of bread.

meaning that strangely enough.. 1 loaf of bread is close to 10 satoshi

.. enjoy

of course that means the average minimum wage world wide is just 40sat and that 99% would only have (equivelent to 500 loaves of bread) 0.0005btc life savings while many hoarders will have multiple bitcoins worth billions of loaves of bread.

but thats why i said on average

Bitcoinpro

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alot

CtrlAltBernanke420

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Quote from: BitCoinNutJob on September 09, 2014, 10:07:31 AM

1 BTC would = 1 BTC if nobody ever sold it for fiat

How does this translate when you have massive purchasing power volatility. Will a Bitcoin have more value today and then tomorrow, if so how will prices be determined.

And considering beyond that there is no other currency to compare it to. Will there need to be a dollar like instrument to place value to a bitcoin, or can bitcoin stand by itself with no others. Perhaps gold.

How can demand for things like a currency be it bitcoin, dollars, or homes be measured.

Having periods of relative calm markets, when that trend changes, people do things like spend their bitcoin near the highs, and the vendor might perhaps get crushed a day or week later. Or when the price is sky rocketing, people are holding tight, and these animal spirits if you will, create a viscous economic cycle of major booms and crashes in demand/supply of stuff in the world.

How do things like 3D printing play into the decentralization of manufacturing along side a dying dollar system, and the bitcoin.

CoinDiver

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This is impossible to answer. Bitcoin makes it possible to securely store large amounts of value without a bank. If people "hold" in a bank that practices fractional reserve (do some research before arguing that it's not possible), then that money is not entirely out of circulation. There is an estimated $35 trillion just in "offshore" bank accounts. How much of that is in circulation through fractional reserve? How much will be in the future?

odolvlobo

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Assuming a scenario in which all currencies were swapped for bitcoins and that fractional reserve banking is unchanged, and ignoring that all the bitcoins haven't been mined yet, then a $8 trillion of monetary base would be swapped for 21 million BTC, making 1 BTC worth about $400,000.

In contrast, central banks [claim to] hold about 1 billion ounces of gold. If the world switched to a gold standard, each ounce would be worth about $8000.

cyberpinoy

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Quote from: BitCoinNutJob on September 09, 2014, 10:07:31 AM

1 BTC would = 1 BTC if nobody ever sold it for fiat

+1

Remove the tradable market from bitcoin makes it value irrelevant to fiat so its value would be 1 BTC and it would be an even stronger foundation for the other crypto currencies. Bitcoin would be to Crypto as Gold is to Fiat.

minerpumpkin

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Well then Bitcoin would have to reflect the buying power of all the regular money in the world. There are some models that try to describe such a situation, but I think it is difficult to give a definite number. It surely would be a couple billion or trillion USD...

BitCoinNutJob

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1 BTC would = 1 BTC if nobody ever sold it for fiat

CtrlAltBernanke420

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What would... or rather how would the price/purchasing power of a bitcoin be determined if there were no one selling or buying bitcoin.

Everyone is in it. No longer a need to buy or sell bitcoin for fiat? Also, oil and few other major commodities will also be obsolete due to technological advances..

Feel free to plug and chug variables and scenarios. There is obviously no concrete way to describe such a thing, but we can do mental gymnastics. Huh

Topic: Price of bitcoin be if everyone on earth used bitcoin. no selling of btc to fiat (Read 1590 times)