by Mish

Google founder Larry Page’s net worth beats bitcoin’s entire market cap. Microsoft founder Bill Gates’s net worth is double Bitcoin.

Please consider The Bitcoin Economy, in Perspective.

Last year, Bitcoin became more stable than gold, and earlier this year, the price of a Bitcoin surpassed that of an ounce of gold for the first time. Currently, all the bitcoin in the world is worth $41 billion. If that amount is hard to grasp, just think of it as one Larry Page – because $41 billion also happens to be the net worth of the guy who co-founded Google with Sergey Brin.
Bill Gates, the richest man in the world is worth $86 billion, or the net worth of Larry Page and Bitcoin combined – with enough change to buy the L.A. Lakers, the Toronto Maple Leafs, the Chicago Cubs and the Solomon Islands (not a sports team, but an entire country).
Money, of course, is fiduciary, which means it only has as much value as the trust we place in it. The same goes for gold: it derives its value solely from its rarity, combined with its desirability. The current world supply of mined gold is around 171,300 metric tonnes, which could be molded into a cube with sides of about 68 feet (20.7m). Its total value? Currently around $8.2 trillion. Or about 200 times the total value of Bitcoin.
Does that sound overly dramatic? If the see-sawing rise of Bitcoin tells us anything, it is that people are losing their trust in money, and other traditional measures of wealth. Let’s talk again when the total value of all cryptocurrencies surpasses that of the world’s supply of gold.

Cramer Yet Again

Jim Cramer said the value of a Bitcoin could hit $1 million. The price is currently at $2629.

If it the price of a bitcoin did hit $1 million, its total market cap value would go up to about $15 trillion.

I spoofed Cramer’s analysis in Jim Cramer Goes Batty “Bitcoin May Hit $1,000,000”: Act Now Before It’s Too Late!

It’s far more likely that bitcoin crashes to $100 than rises to $1 million.

Mike “Mish” Shedlock

Bitcoin “Probably Worth Zero”

What’s Bitcoin worth? At this moment on September 27, 2015, it’s worth $3,786.50. Yet, Wall Street Journal writer James Mackintosh says Bitcoin’s Wild Ride Shows The Truth: It Is Probably Worth Zero.

Bitcoin Silliness, Myths, and Fatal Flaws

Over the past months or so I accumulated a number of articles regarding Bitcoin and ICO (initial Coin Offerings) myths and hype.

Bitcoin vs Gold: Peter Schiff vs Max Keiser – Who is Right? Bitcoins the New Beaver Pelts?

A major debate topic came up between Max Keiser and Peter Schiff at the Freedom Fest conference on July 19-22 in Las Vegas.: Bitcoin vs Gold.

Valuing Bitcoin: Millennials Fake Gold or "Something Else Entirely"?

Vitaliy Katsenelson emailed an article about the Bitcoin bubble. Let's compare to the "Something Else Entirely" belief.

Gold and Bitcoin Hype Hits Stratosphere (Part 1)

The hype and nonsense Bitcoin and gold has blasted through the troposphere into the stratosphere. I suppose hype could get higher. The next target is the mesosphere.

Mish Interview With “Bitcoin Jesus”

Of all the topics that readers have pleaded me to write about for months but I never did until now, “bitcoins” are at the top of the list.

Misunderstanding the Supply of Bitcoin and Gold Leads to Silly Projections

Here's a hoot: Bitcoin is allegedly on track to hit $100,000 by 2021.

Gold Knocks Six Times on the Ceiling

Gold put in a strong performance today with the St. Louis Fed president presenting a case for cutting rates.

Gold a Volatility Play? Where’s it Going? What Others are Saying

A pair of interesting articles came my way regarding gold. The first is from Incrementum AG. It’s part 11 of a series entitled In Gold we Trust.