I am more pessimistic than you. I wish I wasn't. However one of my main points is the very low entropy of assuming
Bitcoin will be more important than the internet, which is actually a very optimistic perspective.
The USA and the NSA will thus be in the driver's seat of the default of $150 trillion in debt.
They will not give up this power (thus they will not hyperinflate away their power). They plan to charge to all of us. This is massive deflation.
No major nation in the world has ever hyperinflated away their power. They always self-destruct by attacking their own citizens. Study Rome. Study Germany, etc....
You don't sniff this yet, but Armstrong and I do. Later when you do finally capitulate and realize, that is when the others have also figured it out and it will be mad rush into the dollar and away from all other economies. Then we move into the peak for the USA Sept. 2015, then the USA goes over the cliff and total chaos will ensue. It will be much worse than 2008 and the central banks will be powerless this time. In fact, the Fed has been warning the banks they will not be bailed out again. This is why all the G7 have official bail-in plans (seen on their government websites) to take the money from the depositors instead.
You also don't understand that $150 trillion global debt means every one has been doing the wrong activities and everything is uneconomic.
You don't understand that debt is not just a ledger item, it also reflects real waste of human years, wrong skills acquired, wrong decisions made, etc.. These real problems are not corrected just by changing a line on the financial ledger.
This frustration is why
riots and global unrest (and the war cycle) is increasing all over the world right now. There is no way to avoid the global deflation contagion.
This is Gold.
More so the dollar. Gold will go to roughly $5000 - $8000 only, so will only retire about $25 - 40 trillion of the $150 trillion in global debt.
The rest will come from deflating the net worth of western world much via confiscations. I think the G20 will manage to track down most of the offshore real estate purchases too given the NSA listening to everything, etc.. The dollar will become very strong internationally because these confiscations will keep the USA solvent, while the USA is becoming the #1 producer of oil and gas in the world, as well the technology leader with the Knowledge Age upon us and 47% of all existing jobs to be replaced by automation within 19 years (i.e. by 2033) according to Oxford University. The developing world is massively short the dollar by about $10 trillion and there will be a massive capital flight of institutional money from emerging markets in 2015.
Total hell is about to hits us in 2 years or less.
Just in time with the Bitcoin exponential increase hitting 1-10% of the general population. Cause or effect?
Effect. IMO, Bitcoin can not replace the dollar hegemony as I explained in the OP. We might get to roughly $1 - $10 trillion market cap at most, before NSA, G20, and tax authorities step in as I explained in footnote [2] in the OP to effectively take over Bitcoin.
Neither will the altcoin I proposed replace the dollar any time soon, because we don't have enough time to grow it. Rather it is hoped to be a way to protect from confiscation perhaps at most a few $trillion in private capital (hopefully including the smartest technologists who we critically need going forward to avoid a Dark Age and build out the Knowledge Age for maximum employment). Of course I have no qualms if very wealthy want to pile in too. If we can take it to $10s of trillion, that would probably help balance the rabid dollar hegemony that is staring us down into the abyss right now.