Quote from: jaked on December 25, 2013, 09:39:10 PM

First of all, a probably more relevant comparison would be to the amount of money in circulation (M0), which is ~$10T.
This means, that at 1.3T per year, Bitcoin represents ~13% of the global wealth.

No, M0 is not equivalent to global wealth.

You do bring up a good point that the deadweight loss resulting from excessive government power is perhaps greater than 2% of gross world product, and therefore even if 2% of GWP was spent on the Bitcoin network it might be worth it if it weakens governments enough.

Quote from: DerKorb on December 26, 2013, 09:25:30 AM

The question is does the block reward shrink fast enough to counter the growth in value?

And the question in the future is: will the block reward eventually fall off too quickly to keep the network adequately secure? In general, the strength of the network is determined in a very crude manner, based on hardcoded rules, picked at a time when Satoshi could not know how fast Bitcoin would gain traction and what kind of security it would need at different points in its evolution. I think this is Bitcoin's biggest weakness.