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If you consider PayPal or a bank transfer as valid payment (and I suspect you do), then M0 is not an accurate representation of money supply. M2 or M3 would be
by runeks 14y ago
If you consider PayPal or a bank transfer as valid payment (and I suspect you do), then M0 is not an accurate representation of money supply. M2 or M3 would be more accurate, as most payments and deposits are electronic these days.
- DennisP 14y agoI agree but I'm thinking more in terms of what share Satoshi (or whoever) would end up with. If Bitcoin were to reach the dollar's market value, it seems to me there's a good chance that we'd still have fractional-reserve banking, so the extra $9 trillion would be made from bitcoin-denominated loans instead of being actual bitcoins. In that case Satoshi would still have $50 billion. But maybe we'll go down a different path. Maybe an economy based on equity instead of debt, backed by colored coins. Then Satoshi becomes the richest human in history, if he hasn't diversified before then. (Or maybe another cryptocurrency takes over and Bitcoin goes back to ten cents a coin, who knows.)