No, the main idea that there is that much money and how high bitcoin could get (which by the way changes because there are more money printed all around the world all the time) is because bitcoin is something you need to buy, you can't have more bitcoins out of thin air, they have to be mined which has a cost and they have to be bought which is the price.
So, that means there needs to be some real dollars go into bitcoin world in order to get the price higher and higher or at least people would need to sell higher. That is why they are calculating how much money is in the world and how big can bitcoin get because without real money going into bitcoin there is really no way of calculating what the max cap of bitcoin could ever be. It might not be the best method but its the only method we know.
Topic: Why we predict bitcoin price based on Worlds total wealth ? (Read 135 times)
I found many people who say that the world has a total of $221 trillion wealth so if bitcoin is adopted as a main source of currency then the maximum market caps of Cryptocurrencies will be around $221 tn etc, which mean we still think as a man of stone age.
Its mean that we don't consider bitcoin a currency itself. A currency itself is not dependent upon the total wealth or anything people are holding just like assets, why because people don't through all of their assets in something, people just spend a little portion out of it, so when you consider something "money", then its mean a money which is dependent on it, not dependent on people's wealth. For example, the US dollar is not dependent on anything, it is not backed by anything, it is only dependent on itself alone, but we still consider it "the money". so if you think that all the world will adopt bitcoin as a basic currency, then the currency aka Bitcoin will be dependent on itself so you cannot predict the price of bitcoin in currency units like USD, Euro etc. Because like dogecoin bitcoin then will be independent currency which will only be dependent on itself.
And the NEXT part, if you don't realize, you must realize it. That if in the present time, the total wealth of the world is $221 trillion, then it does not mean that it will remain constant, instead it will grow, and the part which you don't consider that when a bitcoin or another altcoin is generated, it consumes the energy, which mean that Xnumber of energyspend = Xnumber of coins generated. So basically we pay the energy consumption cost+(PoW) miner's work cost (which is also a wealth itself) in the forum of enery+services provided by the miners, so every time when a miner mines something, it generates new wealth, so if bitcoin is adopted globally and widely and becomes a base currency, then it will alone be a currency unit itself and maybe you will measure the price of 1 sat in around thousands of dollars at a time, and that time, the fucking altcoins of which you consider "Worthless" could have a good price in dollars or euros, and maybe a new ecosystem created, (for example token creation on ethereum platform consume the gas) if you consider that the gas consumed on ethereum network took (0.07 ether) ath the time of creation, then you'll map the token marketcapitals in the following ways 0.07 ether/total supply of the token, so all the worthless tokens those are created on the blockchain will have some value, so consider if ether at that time being traded in 0.02 or more btc and 1 sat will cost you around 1000 dollars, then the price of ether will be around in million of dollars, and if we consider that the price of a single ether is around for example 1 million dollar, then a single cent of ether will be around 10K USD and those tokens will be worth of some cents or more, so there will be no need for those tokens to be traded in exchange to get some value, those tokens will alone be "money" and people will adopt those tokens as a currency because the amount of gas was consumed on those tokens, just like if in 1958 you purchased a property in 10K dollars (consider property as an Ether) and sold a portion of it or give it on rent after constructing a building on it, consider building as a token) so even if the building is not used, it will have the value, and the value could be the current price of property in that area+the cost of construction, so those tokens will have some value at that time. What do you think ? will it not be happen ? or if happens then you will just regret "O, Alas, I destroyed my tokens" and maybe you consider the cost of those tokens in thousand of dollars.
Its mean that we don't consider bitcoin a currency itself. A currency itself is not dependent upon the total wealth or anything people are holding just like assets, why because people don't through all of their assets in something, people just spend a little portion out of it, so when you consider something "money", then its mean a money which is dependent on it, not dependent on people's wealth. For example, the US dollar is not dependent on anything, it is not backed by anything, it is only dependent on itself alone, but we still consider it "the money". so if you think that all the world will adopt bitcoin as a basic currency, then the currency aka Bitcoin will be dependent on itself so you cannot predict the price of bitcoin in currency units like USD, Euro etc. Because like dogecoin bitcoin then will be independent currency which will only be dependent on itself.
And the NEXT part, if you don't realize, you must realize it. That if in the present time, the total wealth of the world is $221 trillion, then it does not mean that it will remain constant, instead it will grow, and the part which you don't consider that when a bitcoin or another altcoin is generated, it consumes the energy, which mean that Xnumber of energyspend = Xnumber of coins generated. So basically we pay the energy consumption cost+(PoW) miner's work cost (which is also a wealth itself) in the forum of enery+services provided by the miners, so every time when a miner mines something, it generates new wealth, so if bitcoin is adopted globally and widely and becomes a base currency, then it will alone be a currency unit itself and maybe you will measure the price of 1 sat in around thousands of dollars at a time, and that time, the fucking altcoins of which you consider "Worthless" could have a good price in dollars or euros, and maybe a new ecosystem created, (for example token creation on ethereum platform consume the gas) if you consider that the gas consumed on ethereum network took (0.07 ether) ath the time of creation, then you'll map the token marketcapitals in the following ways 0.07 ether/total supply of the token, so all the worthless tokens those are created on the blockchain will have some value, so consider if ether at that time being traded in 0.02 or more btc and 1 sat will cost you around 1000 dollars, then the price of ether will be around in million of dollars, and if we consider that the price of a single ether is around for example 1 million dollar, then a single cent of ether will be around 10K USD and those tokens will be worth of some cents or more, so there will be no need for those tokens to be traded in exchange to get some value, those tokens will alone be "money" and people will adopt those tokens as a currency because the amount of gas was consumed on those tokens, just like if in 1958 you purchased a property in 10K dollars (consider property as an Ether) and sold a portion of it or give it on rent after constructing a building on it, consider building as a token) so even if the building is not used, it will have the value, and the value could be the current price of property in that area+the cost of construction, so those tokens will have some value at that time. What do you think ? will it not be happen ? or if happens then you will just regret "O, Alas, I destroyed my tokens" and maybe you consider the cost of those tokens in thousand of dollars.
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