Bare with me for a moment during this thought experiment. Currently, there is about $1.18 trillion US dollars in circulation at the moment. With that said, my one dollar bill currently represents about 1.18 trillionth of the US economy.
It is estimated that the last block to generate coins will be generated in the year 2140. At that time, there will be about 21 million bitcoins in circulation. And thereby, my one bitcoin would represent about one 21-millionth of the bitcoin economy.
Now let's say the following were true today:
- Bitcoins have been completely generated
- There is about 21 million bitcoins in circulation
- There is about $1.18 trillion US dollars in circulation
- Bitcoin is as widely accepted as a form of currency as the US dollar
- The strength of the US dollar is on par with Bitcoin
Due to the large amount of circulated dollars compared to the amount of circulated bitcoin, can we assume that 1 BTC would be similarly valued at one 21-millionth of the $1.18 trillion circulated US dollars? This would equate to around $56,000. I know a lot is being assumed here, but does anyone see any major flaws in this logic?