≡ Menu

Enter your e-mail to join other freedom seekers who choose to see the world as it really is... and get a free report that explains explains how to live on your own terms.

We respect your privacy,plain and simple. You will also start receiving our free weekly ezine.

Is Bitcoin “Bigger than General Electric”?


I’ve seen a lot of headlines like these lately, and so I’ll take a moment to point out how wrong-minded they are. To compare Bitcoin (or any cryptocurrency) to a company is just wrong.

As I keep saying, Bitcoin is not an investment. That is,

  • It’s not a share of ownership in a corporation, like a stock.
  • It’s not a promise of debt repayment, like a bond.

Bitcoin is a currency.

And so, if we want to compare it to something, we must compare it to other currencies, not to stocks, bond, real estate, or whatever else.


So, let’s compare Bitcoin to dollars.

In 2013, there were said to be 10.5 trillion US dollars in existence. That was the figure for “M2” (M3, the broader figure, is no longer published.)

There are currently some 16.7 million bitcoins in circulation.

At its current valuation ($11,000), Bitcoin is worth about 183 billion dollars, or just 1.7% of the US dollar’s value.

That doesn’t make it sound quite so big, does it?

So, what if Bitcoin captured just 5% of the dollar’s value? In that case (and presuming that the relationships remained the same), one Bitcoin would be worth more than $31,000.

And if it captured 1/10 of the dollar’s action, Bitcoin would be some $63,000 each.

And bear in mind that we’re using a figure for US dollars that we know is too low.

But There’s More

Consider this please:

Bitcoin isn’t a replacement for just dollars, it’s a replacement for all government currencies.

Money supply figures are purposely difficult to find, but we can say that the value of dollars, euros, pounds, yuan, and yen – that is, just the biggest currencies, ignoring more than a hundred others – comes to at least 18 trillion dollars, and probably quite a bit more.

Presuming that those hundred-some smaller currencies equal the five big ones, that comes to a world money supply of 36 trillion dollars, minimum.

And if so, Bitcoin accounts for just 0.51% of world money supply.

If, then, Bitcoin captured 5% of world money supply, a single coin would sell for $108,000. At 10% it would be $216,000 each. At 25% it would be $540,000 each.

Granted, these are very rough numbers and the correlations are uncertain. This is definitely “back of the envelope” figuring. But after all the dramatic numbers, the point is this:

If we’re going to compare Bitcoin to something, it needs to be compared to currencies, not to investment vehicles… and Bitcoin is simply better currency.

* * * * *

A book that generates comments like these, from actual readers, might be worth your time:

  • I just finished reading The Breaking Dawn and found it to be one of the most thought-provoking, amazing books I have ever read… It will be hard to read another book now that I’ve read this book… I want everyone to read it.
  • Such a tour de force, so many ideas. And I am amazed at the courage to write such a book, that challenges so many people’s conceptions.
  • There were so many points where it was hard to read, I was so choked up.
  • Holy moly! I was familiar with most of the themes presented in A Lodging of Wayfaring Men, but I am still trying to wrap my head around the concepts you presented at the end of this one.

Get it at Amazon ($18.95) or on Kindle: ($5.99)


* * * * *

Paul Rosenberg

{ 8 comments… add one }

Leave a Comment

Read more:
Does “The Land of the Free” Have Any Rational Meaning?

I once knew a man who was a deacon in the Catholic Church. During certain ceremonies, his job was to...