Wednesday, December 2, 2020

Calculating Btc utility value

 One needs a depreciation cycle in Btc, let me use travel, a two trillion business.

Assume Btc got half that business, that is a trillion per year.  But trips and vacation might have a three week cash cycle.  We get about one or two hundred billion or so might need be in use, working the chain, so to speak. The depends would be seasonal. 

If the Btc stayed in the FX market, as is currently, then it should be limited by central bank distortion, endogenous friction in banking. I always figured that to be close to 10 or 20 billion a month, and I get a similar value. But those two utilities collapse into one, resort communities and vacationers share the extra surplus. In other words, central bank shenanigans would ultimately correlate with vacation periods and international travel. Where are the tax havens? In resort cities.

Btc uses a peculiar block chain. It was and is and popular as to avoidance central bank distortions. It has no other value. But there is residual value in hedging those distortions. I can see Free Swift bankers keeping its value down to a hundred billion by filling these niches.

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