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His point is that if the worldwide money supply is estimated to 60 trillion USD, and if Bitcoin manages to capture, say, 10% of that then the 21 million bitcoin
by mrb 14y ago
His point is that if the worldwide money supply is estimated to 60 trillion USD, and if Bitcoin manages to capture, say, 10% of that then the 21 million bitcoins should be worth 6 trillion USD.
There is no need for the USD to be massively devalued for this scenario to be possible. Technically and economically speaking, all the currencies in the world need to be devalued by merely 10% for this scenario to be possible.
PS: you can back up your wallet.dat, which you cannot do with physical money.
- raverbashing 14y agoAbout the "only 10% of the world value", top-down estimates rarely work =) Working backwards (bottom-up) usually gives a more realistic estimate. Especially if you base this on existing data. Oh sure, you can back your wallet.dat. It also can be copied over the internet by a malicious sw, unlike physical money.
- mrb 14y agoIt also can be copied over the internet by a malicious sw, unlike physical money. There are multiple efforts from different groups/companies developing hardware wallets to precisely reduce this risk (think tamper-proof chips storing your coins). This format would still allow backups to exist (eg. saving coins in a 2nd identical chip, or saving the "seed" generating private addresses externally, for example on paper if you want to mimic the security feature of physical money).