According to Blockworks, Bitcoin's value is often attributed to its transparency and accountability. The cryptocurrency's supply is well-documented, with precise knowledge of how many bitcoins have been mined and which addresses hold them. However, the number of bitcoins lost forever due to inaccessible private keys remains unknown. Estimates suggest that around 20% of all bitcoins, equivalent to 3.7 million BTC or $318 billion, may never move again. Despite this, the location of these coins on the blockchain is always traceable.
In contrast, the availability of gold and silver is less clear. The World Gold Council reports that 212,582 tonnes of gold have been mined throughout history, with 45% made into jewelry, 22% in bars and coins, 17% held by central banks, and the remainder scattered in various forms. The total value of mined gold is estimated at $18 trillion, but the amount readily available for market use is uncertain. Similarly, data on silver's total above-ground supply is vague. According to the 2019 CPM Group Silver Yearbook, 1.751 million metric tonnes of silver have been mined, with its market cap estimated at nearly $1.9 trillion.
The comparison between Bitcoin and these precious metals highlights the challenges in determining their true market sizes. A gold-focused blog in 2021 valued silver at only $108 billion, excluding industrial and jewelry uses, making it appear much smaller than Bitcoin's current market cap of $1.8 trillion. However, using broader definitions, silver still surpasses Bitcoin, albeit marginally. For Bitcoin to surpass both silver and gold in market cap, it would need to reach $96,000 to eclipse silver and $910,000 to surpass gold. This scenario suggests a significant increase in Bitcoin's value, requiring a tenfold rise to achieve these milestones.
