That’s not my prediction, that’s Peter Schiff’s prediction. Peter is one of those doom and gloom guys and think the sky is going to fall…all the time. Although he was spot on in his 2007 book, Crash Proof, where he predicted the coming housing bubble and has been talking about the US dollar collapse and economic crash for years.
And rightfully so, he is also the CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut. Euro Pacific Capital provides investors the opportunity to shelter their money from a collapse of the global economy. In essences, Peter is a Gold Bug. So it was so odd that he twitted Bitcoin will never hit $50k.
This tells me he is out for self and his company because even if Bitcoin isn’t digital gold, I would think anyone in charge of other peoples’ money would know about capital diversification. Because he is completely wrong, lets run with the idea that Bitcoin is digital gold.
The best estimates currently available suggest that around 190,040 tons of gold has been mined throughout history, of which around two-thirds has been mined since 1950. And since gold is virtually indestructible, this means that almost all of this metal is still around in one form or another. If every single ounce of this gold were placed next to each other, the resulting cube of pure gold would only measure around 21 meters on each side.
To put it in layman’s terms, the volume of 21 cu meters is equivalent to a little over 3 Olympic size swimming pools.
As far as the amount of gold that remains in the earth, the U.S. Geological Survey estimates that there are about 57,000 tons left to be mined. But lets just work with the number of tons above ground.
At say $1540/oz for gold, based on 190,040 tons, the total value of all above ground gold would be worth a little over $11 trillion. If Bitcoin can capture just 1% of that value, based on a 21 MM Bitcoin cap supply, we are talking about each Bitcoin potential being worth $52,000.
As we have seen over the last three months, Bitcoin has been an inversely correlated to Equity Markets. I only anticipate this correlation to solidify as time goes on. Thus, like in the past, Peter Schiff will be proven wrong once again because at a minimum, Bitcoin will be worth at least $50,000 in the future.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.