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1/7 The next time someone tells you 1 #Bitcoin 
is overvalued tell them its as rare & as scarce as $693,468 (373 ounces) of #Gold. That is the price where 1 $BTC meets its mathematical equivalent in Gold Scarcity. I call it the GS Parity ratio. Heres my explanation: @PeterSchiff
is overvalued tell them its as rare & as scarce as $693,468 (373 ounces) of #Gold. That is the price where 1 $BTC meets its mathematical equivalent in Gold Scarcity. I call it the GS Parity ratio. Heres my explanation: @PeterSchiff
2/7 According to USGS there has only been 244,000 metric tons of Gold ever discovered (187k mined,57k unmined.) Thats 86 $BTC for every 1 Metric ton of Gold. We get this by dividing #Bitcoin max supply (21 million) by Golds known worldwide tonnage (244k). https://www.usgs.gov/faqs/how-much-gold-has-been-found-world?qt-news_science_products=0#qt-news_science_products
max supply (21 million) by Golds known worldwide tonnage (244k). https://www.usgs.gov/faqs/how-much-gold-has-been-found-world?qt-news_science_products=0#qt-news_science_products
3/7 There are 32,150 Troy ounces in a metric ton. Divide by 86 BTC. Thats roughly 373 ounces per 1 BTC. Current price of gold $1855 GLD x 373= $693,468.00 Gold Scarcity $BTC parity price. The same calculation can be done w/ other hard capped truly decentralized cryptocurrency.
4/7 For #DigiByte which has a max supply of 21 Billion coins there are 86,000 $DGB for every 1 Metric ton of gold. Roughly 0.37 ounces of gold for every 1 $DGB. So $1855 x 0.37= $693.00 Gold Scarcity parity $DGB price. Massively undervalued scarcity. We are at .03.
5/7 For #Litecoin which has a max supply of 84 Million there are 344 $LTC for every 1 metric ton of Gold. Thats 93 ounces for every 1 $LTC. So $1855 x 93 = $173,367 $LTC Gold Scarcity parity price. Now we take these GS Parity prices & determine scarcity undervalued multipliers.
6/7 #Bitcoin GS Parity price: $693,468.00 / current price 33,702.00= 20.5x Under valued gold scarcity ratio. #DigiBte: $693/ 0.028= 24,759 under valued ratio. #Litecoin $173,367/$131.30= 1,320 undervalued ratio.
GS Parity price: $693,468.00 / current price 33,702.00= 20.5x Under valued gold scarcity ratio. #DigiBte: $693/ 0.028= 24,759 under valued ratio. #Litecoin $173,367/$131.30= 1,320 undervalued ratio.
7/7 So this means #bitcoin is 20.5x undervalued compared to its Gold Scarcity price parity. #Litecoin is 1,320x undervalued and #DigiByte is 24,759x undervalued when put on par with their true scarcity in the known world. Really insightful.
is 20.5x undervalued compared to its Gold Scarcity price parity. #Litecoin is 1,320x undervalued and #DigiByte is 24,759x undervalued when put on par with their true scarcity in the known world. Really insightful.
Im working on a secret new rankings project that incorporates numerous indexes and metrics like this to help demonstrate the true value of decentralized, hard capped #Blockchain cryptocurrency to the world. Stay tuned.
