About US$500 billion is transmitted annually through the remittances market. Assuming that bitcoin serviced that entire market, then to figure out the value of one bitcoin, one would need to assume its velocity. Say bitcoin’s velocity is 5, similar to that of the U.S. dollar. Then dividing that $500 billion by a velocity of 5 would yield a total value of bitcoin of $100 billion. If, at this point, we are at the maximum of 21 million bitcoin, and this is the only use for bitcoin, then that $100 billion divided by 21 million units would yield a value per bitcoin of $4,762.
