[ExI] "Law of the Crypto Coin" proven by new data point?

[Kelly Anderson]

On Tue, Dec 17, 2013 at 3:35 AM, Brent Allsop <brent.allsop at canonizer.com>wrote:

>     Predicted Crypto Currency End Game
>
> https://docs.google.com/document/d/1G2NaqU2ut1yZOd-
> AT9an6OPlGZJMVGvr214JWtJ373k/edit?usp=sharing
>
>
I agree that Bitcoin is highly likely to increase in value exponentially at
something close to the current rate until the market cap of Bitcoin
approaches somewhere between 1 and 10 trillion dollars. The upper limit in
my mind is set by the fact that you don't need more money than that to do
the kinds of online transactions that Bitcoin is good for.

Quoting from HowStuffWorks
"All told, anyone looking for all of the U.S. dollars in the world in July
2013 could expect to find approximately $10.5 trillion in existence, using
the M2 money supply definition. If you just want to count actual notes and
coins, there are about U.S. $1.2 trillion floating around the globe."

So if we suppose that Bitcoin replaces the US dollar ENTIRELY, we won't
need much more than 10 trillion (current value) dollars worth in order to
transact business.

So I predict as Bitcoin market cap exceeds 1 trillion dollars it will have
grown into its usefulness, and the need for exponential growth in value
will stop because you'll be able to buy EVERYTHING that exists with the
then extant Bitcoin. There is absolutely NO POINT to having more money than
stuff to buy.

So I agree up to a point, but I don't think the economy of the world will
support a market cap of 100 trillion dollars. I'd love to hear your
argument against this Brent, assuming you have one.

-Kelly
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