Could BTC price increase linearly with M2?

Question

As suggested in this link:https://electroagenda.com/en/bitcoin-objective-value-caculation/I understand that you can hardly know how much gold there is in the world. In that sense, the price of gold is quite speculative.However the amount of BTC is deterministic. So beyond the discussion of the inherent price of BTC (that could be none) I think that property represents an advantage of BTC over gold.

jstx1 · Accepted Answer

So what if it is a deterministic amount? You still need to have enough market demand to support the price. There's plenty of limited / fixed-supply resources (some of them in the crypto space) that nobody cares enough to buy or hold.If the demand is driven by some common belief that it will keep going up which in turn drives the price up which supports that common belief which in turn... - I'm not an expert on market dynamics to predict when and how those things end; it could end very badly when the trend reverses and it can also make some people a lot of money in the meantime. But it's a speculative game in its nature, there isn't anything fundamental that says that Bitcoin needs to have any relation to money supply at all.

dathinab · Answer

For both gold and BTC the price is purely believe based.
The only way quantity in existence matter is if it makes people believe that it makes it less worth.
So if I hypothetical conjure a few tons of gold as long as no one believes it makes a difference it doesn't, but if a make people believe there is tons of more gold then they thought I could make the market crash without the amount changing.
Similar if I make people bribe Bitcoin gets outlawed by the whole world, Bitcoin can crash without the amount changing.
Or in other words, it doesn't really matter weather the quantity for good it's know as long as it's generally beloved that is "low enough".
Similar it doesn't matter that BTC had known limits as it does crash (or spike) due to external factors.

NicoJuicy · Answer

Gold is actually used, eg. In the phone you're typing on.If BTC is gone, outside of the lost money, there would be no real life impact.

unicornmama · Answer

Supply and demand. It&rsquo;s a mistake to look at only one side of the coin.The demand for Bitcoin is 100% speculative. There&rsquo;s still no economical application (if someone knows otherwise, I challenge you to prove me wrong). Put in another way: Bitcoin does not satisfy any sustainable need.

bluesign · Answer

This is not objective value, this is theoretical maximum value of bitcoin. ( (Considering it will be "the only" currency)
Imagine this:
Sand grains on earth: 7.5 x 10^18
1 bucket ( lets say liter ) sand: 2 x 10 ^ 7 grains
So sand on earth : 3.75 x 10 ^ 11 buckets
M2 ( according to article ): 95 x 10^12
One bucket of sand objective value: $253

almost · Answer

Sure why not you can believe that if you like. Obviously there&rsquo;s no reason to think it would but don&rsquo;t let that stop you. What on earth has gold got to do with it though?

Could BTC price increase linearly with M2?

Gold is actually used, eg. In the phone you're typing on.
If BTC is gone, outside of the lost money, there would be no real life impact.

Supply and demand. It’s a mistake to look at only one side of the coin.
The demand for Bitcoin is 100% speculative. There’s still no economical application (if someone knows otherwise, I challenge you to prove me wrong). Put in another way: Bitcoin does not satisfy any sustainable need.

Sure why not you can believe that if you like. Obviously there’s no reason to think it would but don’t let that stop you. What on earth has gold got to do with it though?