While some feel that this is the inevitable end game for bitcoin, it is still left to know what impact this will have on the value of the digital asset if this were to be the case.
In a recently published report, Van Eck lays out a framework that analyzes where the value of bitcoin would end up if it were to be adopted as the world’s reserve currency.
For gold, the framework puts the implied value of the physical asset at around $21,000 to $31,000 per ounce depending on their gold holdings using the M0.
Moving on to bitcoin, the framework presented even more interesting findings.
Using the aggregate M0 as was used for gold, it came out to $1.3 million as the implied value for the digital asset.
Although the report notes that gold still remains the more straightforward initial response by central banks.