People often use Gold’s market cap as a benchmark for their Bitcoin price targets. How much of Gold’s market cap is from its use purely as a monetary asset?

It seems to me that the most common benchmark used in predicting Bitcoin’s future price is having it equal to Gold’s market cap, which currently sits at around [$12 trillion]( Bitcoin would equal this market cap at a price of $571,428 (assuming full dilution and that no coins are lost, which obviously isn’t the case but not important for now).

Gold isn’t solely a monetary asset though. It has value as an industrial metal, used in semiconductors, dentistry, etc, and as a decorative asset (jewelry, antiques, etc).

Are there any reputable studies or estimates out there that break down the market cap of gold as influenced by each of these three categories? My sense is that gold as a monetary asset would constitute the majority of its market cap value, if not the plurality of it, and would love to see some actual estimates. Hard to find anything reputable online…

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  1. > How much of Gold’s market cap is from its use purely as a monetary asset?

    Nearly all of it.

    Otherwise, gold’s price would be on par with aluminum and copper. Gold is durable, divisible, recognizable, fungible, portable, and **scarce** and that is why it was once used as money.

  2. All gold has monetary “value” whether its in jewelry or PC boards so I’m unclear what you mean by monetary asset. Perhaps you mean gold coins in circulation being used as money (which would be a small number). Then you would want to compare that number with bitcoin in circulation being used as money and not sitting in wallets on exchanges or cold storage.

  3. How do you price an asset when NOBODY actually knows how much is above ground and how much each person or country owns?

    When was the last time an Audit was done at Ft Knox?

    Why does the USA even need to hold gold now that we are not backing USD with it.

    If every gram of gold was traceable, verifiable, and attached to a wallet like BTC, I would not have sold my gold back in 2015 to by BTC.

  4. The gold market cap is an appetizer.

    The world isn’t currently on a gold standard so the market cap of gold is irrelevant.

    If you want long term price targets for Bitcoin look for the market cap of bonds/debt, and part of the market cap of real estate and equities.

    Anywhere from 2 to 20 millions cuckbucks (at the current purchasing power) is on the table.

What do you think?

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