Bitcoin’s meteoric rise has some claiming it will replace gold as the new store of value.
But detractors claim that bitcoin has no intrinsic value — after all, its just bits and bytes floating around the ether of the interwebs.
But I beg to differ — here I will show that, pound for pound, Bitcoin is one of the most valuable substances on earth.
Hear me out.
I recently overheard someone declare “Bitcoin is now worth more than gold!”
At greater than $7000 USD, the price of one bitcoin is certainly higher than the price of an ounce of gold — but the comparison is obviously meaningless.
After all, an ounce of gold is just an arbitrary unit — why not compare to a kilogram? At $41,000 a kilo gold is downright expensive compared to Bitcoin.
So can we even answer the question — how much does an ounce of bitcoin cost?
Yes we can.
You see, Einstein showed that matter and energy are equivalent. His famous equation E = mc² allows us to calculate the amount of mass it would take to produce a certain amount of energy.
And, it takes an enormous amount of energy to run all those mining computers — about 24.7 TerraWatt-hours per year in fact.
So lets run the math: 24.7 TerraWatt hours is equivalent to 8.9×10¹⁶ Joules.
Dividing by the speed of light squared gives a total mass equivalent of 0.99 kg, or about 34 ounces.
Assuming one block mined on average every 10 minutes, we have 52,560 bitcoin blocks per year, with a block reward of 25 Bitcoins, that’s 1.31 million bitcoins mined per year. At the current price of $7300 per bitcoin, total value = $9.6 billion dollars. Divide by 34 oz and we get: $277,055,041 dollars per ounce.
Take that gold.
At this point, you probably realize this article is in jest. What’s not a joke is my free crypto traders facebook group — join here for weekly trading lessons and a chance to win you own trading robot.