Updated: Jan 26, 2022
Given present valuations in electron based coins, this brief post seeks to discuss the value of land in acre units relative to available supply.
The United States comprises 2.27 billion acres of land of which the federal government owns 640 million acres. This leaves approximately 1.63 billion acres of land for corporate or private ownership. While valuations vary greatly, the average price per acre of land is around $3,000. If we multiple the total number of acres available, which does not include large corporation ownership or individuals with large amounts of land, we might arrive at a valuation of $5.02 trillion dollars.
Global cryptocurrencies are now collectively valued at over $3.0 trillion dollars. It has been estimated that total global wealth is $418.0 trillion dollars. That an artificial store of value with limitless production (new coins) could achieve nearly 1% of total global wealth or 60% of all available (limited in quantity) land in the United States should be of concern.
The market cap of the meme coin Shiba Inu is double that of United Airlines at the time of this post. Bitcoin alone has a market cap of $1.2 trillion dollars. That is more than Berkshire Hathaway and Visa combined. The only other trillion dollar companies in existence are Apple, Microsoft, Saudi Aramco, Alphabet (Google), Amazon, and Tesla.