What is Nostr?
StackSats / Brad Myers
npub17n0…4sd4
2023-05-07 13:24:00

StackSats on Nostr: I think about Bitcoin in the context of traditional commodity businesses. It’s not ...

I think about Bitcoin in the context of traditional commodity businesses. It’s not groundbreaking but here are things I consider…

Daily global gold production is 9.5 tons and valued at $596M per day. Meanwhile, daily US oil production is valued at ~$415M per day. More simply, to own a day’s worth of global gold or US oil production it would cost you $596M and $415M, respectively.

In 10 years (2032), 75 Bitcoin will be mined per day, a total price of ~$2.8M today. In 30 years (2052), 2.34 Bitcoin will be mined per day, a total price of ~$89K today. In 40 years (2062), 0.58 Bitcoin will be mined per day, a total price of ~$22K today.

Questions…

1. Would a gold producer lock in a day’s worth of global gold production 0 years from now for $2.8M?

2. Would a US oil company would want to purchase a day’s worth of oil production 30 years from now for $89K?

For perspective, global daily gold production in 2012 was valued at $484M and US oil / gas production was $147M in 1992.

In short, any business leader would be misguided not locking in future productivity of the network

Author Public Key
npub17n08tjsjsu0lmg7f035zl5s4e0nmh4luc6je63m0k58d47sxntxq3n4sd4