A new research paper from a pseudonymous author puts the valuation of a single bitcoin at $5.8 million. The paper makes the case that bitcoin is the best form of money in existence today and should be valued as the dominant world currency.

Throughout the paper, points are made around bitcoin’s intrinsic value, the use cases of the digital asset, eventual levels of adoption, and a complete take over as the world’s most widely-used form of money.

The research paper is titled Bitcoin: A $5.8 Million Valuation and the author is listed as Mr. Game & Watch, which is the name of a playable character in the Super Smash Bros. video game series based on various generic characters from the Game & Watch series of games from Nintendo. When asked for more information about his identity, Mr. Game & Watch told CoinJournal:

“I prefer not to share my identity. The article advocates many serious crimes, and may offend many important people. Also, I would hope that the words speak for themselves. I will say that I am American and my background is in academia — that much would easily be guessed.”

Bitcoin’s Intrinsic Value

Before making the case for a $5.8 million bitcoin price, the pseudonymous author of the paper discusses the “intrinsic value” of a bitcoin.

“The [bitcoin] collectible is required to make use of the [Bitcoin] payment network — even for transactions denominated in USD (not BTC),” states the abstract of the paper. “The payment network is of enormous general utility, particularly to criminals and victims of political oppression worldwide.”

The abstract also notes that bitcoin can maintain its useful properties even when under heavy harassment from a wealthy or violent adversary (such as a government). The author does not view altcoins as a threat to bitcoin’s dominance, mainly due to the invention of sidechains, which allow bitcoins to effectively be transferred to alternative blockchains with unique features and value propositions.

Bitcoin Intrinsic ValueThe paper goes on to explain bitcoin’s intrinsic value in clearer terms:

“BTC’s intrinsic value is that it alone will allow the wielder to access the network’s blockspace. In turn, the intrinsic value of blockspace is that it, together with BTC, enables special USD transactions – we will call these ‘Peer-to-Peer Digital USD Payments’, or ‘PDUPs’.”

Bitcoin Use Cases and Adoption

After making the case for bitcoin’s intrinsic value, the author goes into further detail about the pros and cons of Bitcoin as a payment system and the types of people that have a need for PDUPs.

The requirement to learn a new technology and transaction process, interact with new intermediaries like wallet providers and exchanges, and bitcoin’s price volatility are mentioned as disadvantages of the Bitcoin payment system. In terms of advantages, potential anonymity (which can be improved upon) and the inability to censor or shut down the payment network are covered.

“These PDUPs cannot be made without BTC,” the paper reinforces.

In the author’s view, there are a variety of reasons as to why someone would speculate on the bitcoin price, but those who actually use bitcoin do so to take advantage of this so-called PDUP service.

Monetary Policy

The author then gets blunt about the types of use cases that are made possible with Bitcoin.

“Because PDUPs return financial sovereignty to the user, they are, for better or for worse, optimal for illegal transactions,” states the paper. “PDUPs are often the cheapest (or only) way to engage in gambling, capital flight, tax evasion, and payments for ransomware.”

The paper later adds, “As the enabler of the PDUP, Bitcoin is therefore intrinsically valuable. BTC helps its owner get paid, cheat on his taxes, shield his assets from a messy divorce, gamble, engage in underage drinking, defend his life and property, get stoned, and get laid.”

According to the author, this intrinsic value of bitcoin is said to be “quite sustainable” because it will persist wherever a local government is uncompetitive.

The $5.8 Million Bitcoin Price

The author of this research paper eventually asks the reader to consider bitcoin as the dominant world currency. If such a consideration is deemed acceptable, then the author believes that correctly valuing bitcoin is a simple exercise of estimating the total value of all the world’s money, which leads to the $5.8 million bitcoin price.

Estimates from the World Bank on the total amount of “broad money” in existence are used as an estimate of all the money in the world in the paper.

Broad Money

For some of the reasoning behind this claim of bitcoin as the world’s most dominant currency, Mr. Game and Watch turns to Nassim Taleb.

Taleb has observed that nearly all of the drinks sold in the United States are Kosher, even though less than 0.3% of Americans are Kosher. This asymmetry is explained by the fact that it is easier for stores to carry one type of drink and those who aren’t Kosher don’t much care if the drinks they consume are Kosher or not.

The author believes this same phenomenon exists with bitcoin.

“The generalization also applies to Bitcoin, as both factors are strongly present,” states the paper.

“First, sellers of goods (or of labor) far prefer to use a single currency, over two. Second, there exists a selective intolerance of the USD – some USD-users are willing to become BTC-users, but many BTC-users are unable to become USD users.”

Other reasons for the further adoption of bitcoin included in the paper are eventual network capacity, cultural norms, and self-fulfilling prophecies.


  1. Bitcoin exhibits a complete lack of fungibility, blacklisted coins and green addresses will become the norm. Bitcoin is an Orwellian Nightmare.

    • blacklisted coins don’t exist yet and bitcoin is very close to become as anonymous as zcash or moneero. with confidential transactions and/or zero knowledge prove side chain transactions bitcoin will become better than anything Orwell could have ever dreamed of.

      • Blacklists do exist and the core chain of Bitcoin can never become fungible, it goes against its architecture to be so. It is a public ledger, the core chain can’t become an un-public ledger. Side chains may improve the situation slightly for off-chain coins, but the core chain will still lack fungibility.

        • blacklists for bitcoin “adresses” do exist but they mean almost nothing as nobody is bound by any law to not accept bitcoins coming from them. its not enforcable anyway. anybody could very safely launder any coin he likes by using bisq (a completely decentralized exchange) and swap them to for example moneero and then back to fresh new untouched bitcoins. the guy who receives them cant be blamed as there is no option to decide if he likes the origin adress or not.
          there are a couple of other ways to do the almost same.

          with confidential transactions and sidechains the principle of creating blacklisted “adresses” would make even less sense from a technical perspective. Its pretty much like a door in front of a park that has no fence. its not much different with cocaine spoiled money.
          any time in the future everyone will have some small spoils of these blacklisted coins on his stash.

          every off chain coin would still be just a promise for on chain coins like with your banking account btw. technically you will not be able to decide which on chain coin you get when your promised gets full filled.

          so even if the ledger of bitcoin is public it doesn’t mean that bitcoins are not fungible. do you realized banknotes can also be identified as “stolen ones” by their serial number? many dumb thiefs got caught because of it. yet, cash is still considered very fungible.

          • The analogy is flawed, cash registers to do not scan serial numbers in real time.

            Freshly mined coins sell at premium prices for a reason. The reason being, Bitcoin is not fungible. WannaCry coins have significantly lower value. In the future as tracking and blacklisting becomes more advanced they will have even less value.

          • i didn’t say that cash registers scan the numbers.

            nevertheless, criminals got traced because banks do check serial numbers and in case of a ransom they especially ask for used not sequenced banknotes because of that. There are known cases where criminals sold sequenced banknotes for a huge discount. yet, cash is still considered fungible. lol. bitcoin is easily as fungible. very likely its still more fungible if you know how to use it properly.

            I never saw an option to avoid spoiled coins or buy fresh coins on any of the 5 exchanges i have an account. Anyway i mostly use bisq and it 100% doesn’t care about the origin of the coins by design.

            the wannacry coins will have the exact same value like freshly mined coins using bisq and nobody can change that by technical design.

            BTW: a part of the bitcoins which have been blackmailed by the wannacry ransom already have been moved and according to the circumstantial evidences they have been exchanged for moneero with no discount to the normal market price. so at the moment they can do whatever they want with their stolen money and nobody can stop them. very likely they sold them for fiat or exchanged them back to bitcoin but that’s technically impossible to prove by current state of technology.


            …so they even used a centralized exchange to launder their money. Of course shapeshift.io agreed to work together with law enforcement but its very unlikely that the IP or anything on their servers will lead to the extortionist.

            bitcoin will very likely and very soon have even better anonymity than the already untraceable moneero with confidential transactions and sidechains with zero knowledge proves. pretty unlikely these tracking companies will catch up because zero knowledge proves which already do work for practical use on zcash are considered mathematically proven untracable.

      • True, because we know that people around the world will also continue to accept bitcoin as payment even if it did drop to one USD.

        As for the paper, I’d say bitcoin has greater divisibility than the USD. I’m reminded every time I pump gas into my car.


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