As Bitcoin approaches parity with Gold the crypto-coin world holds its breath in eager anticipation of this much heralded event. That's when Bitcoin might stop rising in value.
I would like to point out that 100% of the above paragraph , plus the title of this post, is complete and utter baloney. At least for the time being. Bitcoin and Gold are
far from parity. Here's why.
Gold is worth about $1250US per ounce at this time. (Get ready for
some big numbers in words and figures). Since the beginning of
civilization 383,824,798 lbs (three hundred eighty-three million
eight hundred twenty-four thousand seven hundred ninety-eight) have
been mined. In ounces that's 6,141,196,768 (six billion one hundred
forty-one million one hundred ninety-six thousand seven hundred
At today's approximate price of $1250US per ounce the total value
of all the gold ever mined comes to $7,676,495,960,000.00 (seven
trillion six hundred seventy-six billion four hundred ninety-five
million nine hundred sixty thousand dollars).
At this time there are just over 12,000,000 (Twelve Million, what
a piddling little number!) Bitcoins currently in existence. For
Bitcoin to reach some sort of real parity with an ounce of gold each Bitcoin would be worth the total of the world's value
of gold divided by the number of currently issued Bitcoin: $639,708.00US (six hundred and thirty nine thousand
seven hundred and eight dollars) per bitcoin. That's what Bitcoin
needs to be worth in order to gain parity with Gold.
Which brings us to the other main falsehood in the first paragraph: "That's when Bitcoin might stop rising in value." A Bitcoin value of just over 600K might seem far fetched but then one year ago a
Bitcoin value of $1,200.00 was also seen to be completely off the
wall nuts. Some people are predicting a Bitcoin value of 1 million per coin in the foreseeable future.
If Bitcoin only does 1/10th as well each year for the
next 5 years as it has done over the last 12 months it will reach
$600,000US per coin with months to spare and that's even compensating for the Bitcoins which will be mined over that period..
For those of you who would (rightly) point out that quite a bit of mined gold has
probably been lost or destroyed over time, it's worth mentioning that
quite a few Bitcoins have also been lost. This primarily happened in the early days
of Bitcoin when they had little or no value and people just plain
lost their wallet credentials. The latest headline is the hard drive holding Bitcoin worth $9m buried in a UK garbage dump. There are lots of unfortunate stories like this, that's for sure. I believe that
lost Bitcoins probably compensates for lost gold.
There must be a few hundreds or even thousands of people out there who have lost Bitcoins forever and are silently kicking themselves. If you're one of them and are reading this article you should be aware that Bitcoin is still very young indeed. Buy some more and don't lose them.