[EM] A secure distributed election scheme based on Bitcoin's Proof-of-Work protocol

[Mike Frank]

I meant, the supply of bitcoins is limited to 21M BTC (not $21M).

On Sat, Jun 18, 2011 at 12:19 PM, Mike Frank <
michael.patrick.frank at gmail.com> wrote:

> On Sat, Jun 18, 2011 at 11:30 AM, Jameson Quinn <jameson.quinn at gmail.com>wrote:
>
>> I agree, though again, I don't believe bitcoin are a worth what they go
>> for today. I would happily nakedly short bitcoin up to 10% of my net worth
>> today, on a 2 year option period, if I could do so conveniently and without
>> risk of getting called prematurely. I understand that by capping my downside
>> at 10x that's not technically a fair bet, but since my utility for
>> bankruptcy is more than 10x worse my utility for losing 10%, I think it is
>> fair in utility terms.
>>
>
> Well, I disagree with your assessment of its value.  Supposing that
> Bitcoins may eventually take over the world economy (whose totoal money
> supply today in all national currencies is approx. $100 trillion), given
> that the total supply of BTC is limited to at most $21M, this means the
> equilibrium price of 1 BTC after the market stabilizes will be the
> equivalent of ~US$5M today (assuming the world economy doesn't shrink
> drastically in the meantime).
>
> Even if you assess that there is only a 1% chance of that particular
> scenario coming to pass, that still means the expected eventual-equilibrium
> value of a Bitcoin is at least ~$50,000 in today's dollars.  So, at the
> current price of $15, Bitcoins are under-valued by a factor of over 3,000,
> at least.  That's the way I see it...  I expect it to increase by several
> more orders of magnitude before it maxes out.
>
> -Mike
>
> --
> Full name:       Michael Patrick Frank
> Email addr.:     michael.patrick.frank at gmail.com (pers. email)
> Snail mail:      820 Hillcrest Ave., Quincy, FL,  32351-1618
> Phone/voicemail: (413) 842-6670 (main number, uses Google Voice)
> Webpage URL:     http://www.facebook.com/M.P.Frank (pers. profile)
>
>


-- 
Full name:       Michael Patrick Frank
Email addr.:     michael.patrick.frank at gmail.com (pers. email)
Snail mail:      820 Hillcrest Ave., Quincy, FL,  32351-1618
Phone/voicemail: (413) 842-6670 (main number, uses Google Voice)
Webpage URL:     http://www.facebook.com/M.P.Frank (pers. profile)
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