I suppose you exaggerate a bit about infinite demand. There are ways to quantify final demand, for example here:
http://cs702.wordpress.com/2011/05/29/on-the-potential-adoption-and-price-appreciation-of-bitcoin-in-the-long-run/
http://cs702.wordpress.com/2011/05/29/on-the-potential-adoption-and-price-appreciation-of-bitcoin-in-the-long-run/
Yep, ultimately nothing is infinite, but hyperbole just sounds so much more exciting
. The angle I was going for is that since BTC carry no holding costs, adding one more BTC to one's wallet will always be a welcome event with no conceivable drawbacks (unlike gold, which requires storage or fees). Hence the greed dynamic with BTC, although not infinite, is potentially even stronger than with gold, so I think the optimistic case for Bitcoin as a store of value results in a higher number than the one referenced in the (quite good) blog post you link to. My opinion is that bitcoin as an asset is closer in its characteristics to gold rather than UST paper. As such, it does not really need price pumping or artificial backstops to appreciate as its adoption grows.
Agree completely. I started buying Bitcoin heavily once it finally sunk into my brain that it was basically digital gold. The bull market in BTC will continue for as long as governments wage war against freedom and privacy, i.e. for as far as the eye can see. There will be big volatility, corrections, and scary moments along the way, but I consider BTC more of an insurance than a speculative vehicle, so I won't be selling a single Satoshi unless the macro political outlook reverses 180 degrees.
Interesting, thanks for this post. I too see it as insurance. I worry little about the eminent collapse of the U.S. dollar. While such an event would have major global economic implications, with bitcoin I need not be afraid for my own financial security.