Bitcoin has long been referred to as “digital gold” or the “new store of value.” The total supply of 21 million BTC wasn’t randomly chosen by Satoshi, the mysterious creator. It’s an “educated guess” that connects to something larger—the total supply of gold on Earth.
According to the United States Geological Survey, there are about 244,000 metric tons of gold above and below ground.
So how does this relate to Bitcoin’s 21 million? The numbers and units seem vastly different. The key lies in the gold standard used by central banks for transactions and reserves. This is where we come to the 400-ounce “Good Delivery” gold bar, a professional-grade standard used worldwide.
Converting 244,000 metric tons of gold into these bars gives us an estimate of around 20,000,000 bars. Conveniently, this corresponds to 20,000,000 BTC.
Yet, how do we arrive at Bitcoin’s actual 21 million supply? It’s about making the number easy to remember and ensuring flexibility for future use, all while preserving mathematical beauty—often tied to the “golden ratio,” which governs proportions found in nature.
This leads us to the special number 21. It aligns with Satoshi’s vision and reflects a combination of aesthetics, utility, and underlying logic. So, we have 20 million BTC connected to the world’s gold, plus an extra 1 million added to round out the system.
However, much of that extra million is locked away in dormant wallets, likely belonging to Satoshi, meaning the circulating supply will be closer to 20 million BTC, mirroring the world’s 20 million gold bars.
Large funds and investors use a simple comparison to estimate Bitcoin’s future value:
1 BTC = 1 Good Delivery Gold Bar (400 oz)
Today, a single gold bar of this weight is worth approximately $1,070,297.55. That’s why we hear predictions of Bitcoin surpassing $1M in value.
Simply put, Bitcoin is not just “digital gold”—it’s professional-grade digital gold.
If you were to take all the gold in the world—those 244,000 metric tons—and compress it into a cube, it would measure about 23.6 meters per side.
This links back to the idea of Bitcoin’s “Cube 21”, a nod to the 21st century financial innovation that parallels the old gold standard. It’s no exaggeration to call Bitcoin the most sophisticated financial innovation of our time, poised to last for the next century.
The story of Bitcoin’s halving has deeper implications too, but I’ll save that for another time when I can dive into the details.
#btc #eth #sol