Re:The Bitcoin Bubble and the Future of Currency
by notahacker on Wednesday April 03, 2013 @04:06PM
(#5488685)
Why make a "realistic estimate" without reference to actual figures?
US GDP ~$15 trillion
USD (notes and coins) >$1 trillion;
USD (M1 aggregate) >$2 trillion
i.e. a dollar gets "spent" on activities that contribute to GDP between 7 and 15 times a year, depending on what aggregate you count as a dollar
(of course the actual picture is complicated by a lot more non-productive transfers not counted in GDP)
Velocity of circulation (the ratio of national income to money supply) in real world economies is a surprisingly low number, and whilst Bitcoins are a little more efficient to transact with than electronic bank interchanges, they're also not designed to be inflationary to encourage turnover.
US GDP ~$15 trillion USD (notes and coins) >$1 trillion; USD (M1 aggregate) >$2 trillion
i.e. a dollar gets "spent" on activities that contribute to GDP between 7 and 15 times a year, depending on what aggregate you count as a dollar (of course the actual picture is complicated by a lot more non-productive transfers not counted in GDP)
Velocity of circulation (the ratio of national income to money supply) in real world economies is a surprisingly low number, and whilst Bitcoins are a little more efficient to transact with than electronic bank interchanges, they're also not designed to be inflationary to encourage turnover.