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Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
79b79aa8d5047da6d3XX
on 18/10/2014, 23:38:04 UTC
Your argument against bitcoin rising to become a global reserve currency is a bit silly. Bitcoin doesn't need to be more than a tradeable digital asset and it can still move up two orders of magnitude easily in market cap valuation.

"The primary purpose of evil people is to instill helplessness in the morally energetic." --Stefan Molyneux

The thought that Bitcoin "will not take over the world" is often repeated. See for example:

- Report of the recent IMF/WB meetings in Washington (p.5):
http://www.cbbanorte.com.mx/analisis/flashes/Economicos/IMF_WB_AnnualMeeting.pdf

- Minneapolis Fed director and author of the astounding 'Money is memory' paper:
http://www.reuters.com/article/2014/04/16/us-usa-fed-kocherlakota-bitcoin-idUSBREA3F03120140416

It is not an argument per se, it appears to be based on the (sensible enough) thought that Bitcoin becoming global reserve currency would entail a total revolution in the world order, and it is just too improbable for this to happen.

To my mind, the important thing is that the directors of the Fed and the IMF are taking Bitcoin extremely seriously. And, as inca said, we need not wait for the entirety or the majority the world's wealth to be denominated in Bitcoin.  On one recent estimate (you can look that one up), the world's wealth stands at 263 trillion USD. If merely one tenth of one percent of the world's wealth is denominated in Bitcoin, then the market capitalization of the coin would stand at 263 billion USD. Dividing that by, say, 18 million BTC (we'll be there in 2020), gives you ~USD$16,000/BTC.