ericsenator

bitcoin_beginners

The amount of physically available Gold weight on earth, as compared to the physically available weight Silver on earth, provides the traditional Gold to Silver Ratio, in which there is approximately 1 unit of Gold for every 10 units of Silver, which provides that Gold is worth about 10x the worth of Silver, (with Gold having an additional premium because of Gold's additional functionalities).
    M2 US Dollar supply of $21 Trillion, compared to 21Million BTC, provides for a $1M per BTC price, according to physically available supplies of each.
Another perspective:
US Federal Deficit spending of $2Trillion usd/year, is equivalent to $5.4B usd/day, which is equivalent to   +$260 usd/day/BTC.
"Dividend" of each BTC is therefore a minimum of $260 usd/day, or $95,000 usd/year per 1 BTC.

Gold to Silver ratio :  Bitcoin to US Dollar ratio

bitcoin

Bitcoin as a savings option, especially when in the wallets of government officials, makes it easier for those same government officials to stop defending the local currency, such as the Zimbabwean dollar.

All fiat currencies reach the dumping point, dumping by users and by governments.

Zimbabwe government abandons defense of Zimbabwean dollar

Gresham's Law poses a decision between 2 alternatives:  1) Silver coin with 100% Silver, and, 2) 'Silver' coin with 80% silver.   Only 1 factor is involved in this decision, the % Silver content, so the choice is easy:  choose the 100% Silver coin.

Bitcoin vs Fiat:   Decision problem involves ~10,000 factors, both known and unknown, so people are hesitant about making a decision with so may factors involved.


Most people are "Dollar invested" through job earnings, Social Security, 401k, etc.
Hedging with Bitcoin makes sense, in case the default, heavy "Dollar investments" lose value.