Quote from: Carlton Banks on December 14, 2013, 04:19:24 PM

Quote from: usscfounder on December 14, 2013, 04:03:50 PM

Then one has to look at derivatives whice are a form of money used by the worldwide banking systems.

According to wikipedia there is about 70 trillion in M1, M2, and M3 including derivatives.

If one were also to include world debt that figure raises to about 700 trillion worldwide. World debt is comonly known to exceed 700 trillion dollars.

If Bitcoin were to have a valuation of just a fraction of the above amount, each bitcoin would have a value of over $ 1 million USD. If It were to get a moderate piece of the world monetary market each coin would have a valuation of up to $20 million USD each!

Derivatives are not money they are assets, and their valuation is suspect. They base their value on what are in effect a bet on conditions in various parts of the world economy, and some of the conditions cannot now be satisfied, hence the stake in the bet is worthless.

You're saying that valuing bitcoin as a currency that everyone uses is calculated by counting up all the debt as well as all the assets? That's just doesn't make sense.

The banks use derivatives as a form of credit and are used in place of cash when not available. They are used to send payments from one bank to another. Derivatives are form of debt not assets.