muyuu,

Thank you very much for the reply. It was actually a discussion thread about a floating blockchain size that brought me here.

https://bitcointalk.org/index.php?topic=144895.0

There are problems with stability of the bitcoin if the money supply is not allowed to grow, Right now we are in a stable position because the entropy gradient is positive. However the number of coins in supply will slowly go down, due to loss. This is not a problem now, however it will become a problem of limiting future growth due to systemic stability issues.

As for the stock exchange. What an individual can do is to create uniquely certificates that are functionally exactly like bitcoin. These certificates have a unique key from the person who made them. Because they are uniquely distinguishable from other certificates, unlike bitcoin. They have a distinct relative value associated with them due to their unique identification. The block chain acts as an overall encryption of all stock certificates.

This idea is not a stock exchange per say although anyone can create an exchange. This idea is a time stamped cryptological stock certificate.  Each certificate would have a unique bitcoin address tied to it allowing dividend payment and a few other features I am working out.

The exchange portion, where people trade these can be done on a P2P basis or can be done on something like Mt Gox. Governments cannot get rid of trade, they can however make it more difficult, just like with bitcoin. Ownership is private and certificates can be traded offline, just like paper stock certificates of yore.