The Future of Bitcoin as Money? Is There Any?
BTC goes over $1,000.00 and everyone and their grannies goes agog. Truth to be told, bubble to be popped: one BTC over $1K is, for the world’s economy, as significant as the mouse’s fart is for the greenhouse effect.
$544,052,000,000,000 was the world’s total Global OTC derivatives market “value,” according to the BIS.
To put these numbers in a perspective: Bitcoin, at its near-peak of $1,006.39 per a coin has a market-cap that is 2.34% of that of one single U.S. company, the Apple Corps Ltd. As the money, BTC’s circulating value is at 1.08% of the U.S. dollars in circulation. Bitcoin’s $16B and change market-cap also represents about 0.09% of the U.S. GDP, 0.02% of the World’s GDP and a glorious 0.0029% of the world’s total Global OTC derivatives market.
We would need a lot of mice farting in the woods to be really noticed.
None of these numbers above, “good” or “bad” do not reflect the most painful comparison to the fiat world a Bitcoin doubtful could make. As of today, February 11, 2017, the bitcoin blockchain can process no more than 7 transactions per second (tps). Visa network is scaled to about 56,000 tps max and that, again, makes bitcoin a cute little dwarf — or a quietly farting mouse — in comparison, a comical entity able to perform 0.0125% of all the transaction the competitor (it plans to “crush”) is currently able to perform.
Imagine if your Visa CC would have to register ALL other Visa transactions that are being made in order for your own transaction to work and you’ll see where the Bitcoin stands today.
So, yes, it must bear repeating that we, the Bitcoin believers, are these rare farting mice, currently having an influence over the world events as much as the Grupo Desportivo de Bragança, a soccer team currently in the Terceira Divisão Série A which is the fourth tier of Portuguese football, fans have over the Communist Party of China. None. Zero. Zilch. Nada. Ничего. Меньше, чем ноль as the winner of the U.S. presidential election, per Hillary Clinton and so-called “democratic” party, Г-н Владимир Владимирович Путин (Putin) would gleefully say.
In order to Bitcoin to have a fighting chance in the world’s economy, the scalability issue must be resolved! Everything else is nonsense, and meaningless statistics.
Will this thing scale and defeat the “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money” (Goldman Sachs and the whole Financial Crime Cartel) or will it die with a whimper?