20 calls a day from large asset managers looking to invest up to $100m.

[oakpacific]

20 x $5M (nice sounding average?) x 22 (working days in a month) = $2.2 BILLION looking to make its way into the BTC market per MONTH!

$2.2B x 12 = $26.4B

At $90 (ish), we're at a $1B market cap.

Prepare for 1 BTC = $2,376.00 within 12 months.  And this is just with current demand - as the price continues to rise, more and more asset managers with even larger balances will be calling and requesting to invest in BTC.  $2,376 is just the bottom end.  O.O

Talk to your kids about extrapolation, before someone else does.

Hey, I can dream, can't I?   

It appears that it is Exante that is dealing with the large loads:

"Exante, a Malta-based asset manager, set up a Bitcoin fund last year that was largely intended as a fun punt. Wealthy investors each put in $1,000 when Bitcoins were trading at $13 on the understanding they could lose the original investment. Exante predicted that public and media interest would take off when Bitcoins were trading at $100. Managing partner Gatis Eglitis claims they are now getting 20 calls a day from large asset managers looking to invest up to $100m."

If anyone here truly believes that a $100MM inflow into BTC is forthcoming, then you have clearly never been involved in the due diligence process that would precede that type of investment. The liquidity issue is a real problem as is the systematic risk. In theory there are probably several money managers that would consider BTC. But if one scratches the surface, most will quickly see that the logistics would be next to impossible. This market moves erratically at low volumes.....

Tradehill dark pools...

Not just Tradehill dark pool, there are many ways to buy offline, actually the "dark" market of bitcoin maybe larger than the "bright" one.

Good luck finding the millions of coins needed for institutional and large hedge fund investments without driving the price to absurd heights.

https://fastcash4bitcoins.com/

This little-known corporation alone has sold 250,000 bitcoins.

But yes, there is no reason the price would not be driven up many-fold. Why should they expect to get them cheap? There are only so many coins, and anyone holding a large percentage of them is a potential market manipulator.

[Manticore]

Facepalm  , Greedy people will KILL Bitcoin adoption rate. Everyone is investing in the currency and no one is investing in adopting the system  .

We needs shops and more development in the Tech..... sigh.....

Agreed. 100%. Everyone is so hell-bent on pumping the price (of course, this is the speculation area). The commodity aspect of BTC is a great investment (temporarily) but makes for a horrible currency.

[Manticore]

20 x $5M (nice sounding average?) x 22 (working days in a month) = $2.2 BILLION looking to make its way into the BTC market per MONTH!

$2.2B x 12 = $26.4B

At $90 (ish), we're at a $1B market cap.

Prepare for 1 BTC = $2,376.00 within 12 months.  And this is just with current demand - as the price continues to rise, more and more asset managers with even larger balances will be calling and requesting to invest in BTC.  $2,376 is just the bottom end.  O.O

Talk to your kids about extrapolation, before someone else does.

Hey, I can dream, can't I?   

It appears that it is Exante that is dealing with the large loads:

"Exante, a Malta-based asset manager, set up a Bitcoin fund last year that was largely intended as a fun punt. Wealthy investors each put in $1,000 when Bitcoins were trading at $13 on the understanding they could lose the original investment. Exante predicted that public and media interest would take off when Bitcoins were trading at $100. Managing partner Gatis Eglitis claims they are now getting 20 calls a day from large asset managers looking to invest up to $100m."

If anyone here truly believes that a $100MM inflow into BTC is forthcoming, then you have clearly never been involved in the due diligence process that would precede that type of investment. The liquidity issue is a real problem as is the systematic risk. In theory there are probably several money managers that would consider BTC. But if one scratches the surface, most will quickly see that the logistics would be next to impossible. This market moves erratically at low volumes.....

Tradehill dark pools...

Not just Tradehill dark pool, there are many ways to buy offline, actually the "dark" market of bitcoin maybe larger than the "bright" one.

Good luck finding the millions of coins needed for institutional and large hedge fund investments without driving the price to absurd heights.

https://fastcash4bitcoins.com/

This little-known corporation alone has sold 250,000 bitcoins.

But yes, there is no reason the price would not be driven up many-fold. Why should they expect to get them cheap? There are only so many coins, and anyone holding a large percentage of them is a potential market manipulator.

Hence why they would not invest in large numbers. Do you think hedge fund managers are stupid? They typically don't chase performance. They would never indiscriminately start buying Bitcoins into the stratosphere. They already think this is a bubble.....

[thezerg]

20 x $5M (nice sounding average?) x 22 (working days in a month) = $2.2 BILLION looking to make its way into the BTC market per MONTH!

$2.2B x 12 = $26.4B

At $90 (ish), we're at a $1B market cap.

Prepare for 1 BTC = $2,376.00 within 12 months.  And this is just with current demand - as the price continues to rise, more and more asset managers with even larger balances will be calling and requesting to invest in BTC.  $2,376 is just the bottom end.  O.O

Talk to your kids about extrapolation, before someone else does.

Hey, I can dream, can't I?   

It appears that it is Exante that is dealing with the large loads:

"Exante, a Malta-based asset manager, set up a Bitcoin fund last year that was largely intended as a fun punt. Wealthy investors each put in $1,000 when Bitcoins were trading at $13 on the understanding they could lose the original investment. Exante predicted that public and media interest would take off when Bitcoins were trading at $100. Managing partner Gatis Eglitis claims they are now getting 20 calls a day from large asset managers looking to invest up to $100m."

If anyone here truly believes that a $100MM inflow into BTC is forthcoming, then you have clearly never been involved in the due diligence process that would precede that type of investment. The liquidity issue is a real problem as is the systematic risk. In theory there are probably several money managers that would consider BTC. But if one scratches the surface, most will quickly see that the logistics would be next to impossible. This market moves erratically at low volumes.....

Tradehill dark pools...

Not just Tradehill dark pool, there are many ways to buy offline, actually the "dark" market of bitcoin maybe larger than the "bright" one.

Good luck finding the millions of coins needed for institutional and large hedge fund investments without driving the price to absurd heights.

https://fastcash4bitcoins.com/

This little-known corporation alone has sold 250,000 bitcoins.

But yes, there is no reason the price would not be driven up many-fold. Why should they expect to get them cheap? There are only so many coins, and anyone holding a large percentage of them is a potential market manipulator.

Hence why they would not invest in large numbers. Do you think hedge fund managers are stupid? They typically don't chase performance. They would never indiscriminately start buying Bitcoins into the stratosphere. They already think this is a bubble.....

Sure they may be doing the research now for purchases when a retracement occurs.

[oakpacific]

20 x $5M (nice sounding average?) x 22 (working days in a month) = $2.2 BILLION looking to make its way into the BTC market per MONTH!

$2.2B x 12 = $26.4B

At $90 (ish), we're at a $1B market cap.

Prepare for 1 BTC = $2,376.00 within 12 months.  And this is just with current demand - as the price continues to rise, more and more asset managers with even larger balances will be calling and requesting to invest in BTC.  $2,376 is just the bottom end.  O.O

Talk to your kids about extrapolation, before someone else does.

Hey, I can dream, can't I?   

It appears that it is Exante that is dealing with the large loads:

"Exante, a Malta-based asset manager, set up a Bitcoin fund last year that was largely intended as a fun punt. Wealthy investors each put in $1,000 when Bitcoins were trading at $13 on the understanding they could lose the original investment. Exante predicted that public and media interest would take off when Bitcoins were trading at $100. Managing partner Gatis Eglitis claims they are now getting 20 calls a day from large asset managers looking to invest up to $100m."

If anyone here truly believes that a $100MM inflow into BTC is forthcoming, then you have clearly never been involved in the due diligence process that would precede that type of investment. The liquidity issue is a real problem as is the systematic risk. In theory there are probably several money managers that would consider BTC. But if one scratches the surface, most will quickly see that the logistics would be next to impossible. This market moves erratically at low volumes.....

Tradehill dark pools...

Not just Tradehill dark pool, there are many ways to buy offline, actually the "dark" market of bitcoin maybe larger than the "bright" one.

Good luck finding the millions of coins needed for institutional and large hedge fund investments without driving the price to absurd heights.

https://fastcash4bitcoins.com/

This little-known corporation alone has sold 250,000 bitcoins.

But yes, there is no reason the price would not be driven up many-fold. Why should they expect to get them cheap? There are only so many coins, and anyone holding a large percentage of them is a potential market manipulator.

Hence why they would not invest in large numbers. Do you think hedge fund managers are stupid? They typically don't chase performance. They would never indiscriminately start buying Bitcoins into the stratosphere. They already think this is a bubble.....

Well, it's you who think they're stupid. Mind you, the total amount of fiats now invested into bitcoin is only about 1/10 of what some traders can lose in a single deal. It's only expensive to common folks like you and me.  If bitcoin is a bubble has to ultimately depend on its value, which is not just the total economic activities it's supporting, as many of the people here believe.

[Elwar]

Facepalm  , Greedy people will KILL Bitcoin adoption rate. Everyone is investing in the currency and no one is investing in adopting the system  .

We needs shops and more development in the Tech..... sigh.....

Actually, the faster the price rises the more businesses can use those earnings to hire people to develop things further.

I am working on my website myself right now but I am hoping that Bitcoin reaches the point where I can pay freelancers to take over some of the work to make things more robust and more professional.

The higher the price, the more development I can pay for (with the idea that I will get more return).

[solex]

Facepalm  , Greedy people will KILL Bitcoin adoption rate. Everyone is investing in the currency and no one is investing in adopting the system  .

We needs shops and more development in the Tech..... sigh.....

lophie, the businesses are signing up.  1300 with bitpay last month alone!

http://eon.businesswire.com/news/eon/20130402006123/en/bitcoin/BitPay

[Manticore]

20 x $5M (nice sounding average?) x 22 (working days in a month) = $2.2 BILLION looking to make its way into the BTC market per MONTH!

$2.2B x 12 = $26.4B

At $90 (ish), we're at a $1B market cap.

Prepare for 1 BTC = $2,376.00 within 12 months.  And this is just with current demand - as the price continues to rise, more and more asset managers with even larger balances will be calling and requesting to invest in BTC.  $2,376 is just the bottom end.  O.O

Talk to your kids about extrapolation, before someone else does.

Hey, I can dream, can't I?   

It appears that it is Exante that is dealing with the large loads:

"Exante, a Malta-based asset manager, set up a Bitcoin fund last year that was largely intended as a fun punt. Wealthy investors each put in $1,000 when Bitcoins were trading at $13 on the understanding they could lose the original investment. Exante predicted that public and media interest would take off when Bitcoins were trading at $100. Managing partner Gatis Eglitis claims they are now getting 20 calls a day from large asset managers looking to invest up to $100m."

If anyone here truly believes that a $100MM inflow into BTC is forthcoming, then you have clearly never been involved in the due diligence process that would precede that type of investment. The liquidity issue is a real problem as is the systematic risk. In theory there are probably several money managers that would consider BTC. But if one scratches the surface, most will quickly see that the logistics would be next to impossible. This market moves erratically at low volumes.....

Tradehill dark pools...

Not just Tradehill dark pool, there are many ways to buy offline, actually the "dark" market of bitcoin maybe larger than the "bright" one.

Good luck finding the millions of coins needed for institutional and large hedge fund investments without driving the price to absurd heights.

https://fastcash4bitcoins.com/

This little-known corporation alone has sold 250,000 bitcoins.

But yes, there is no reason the price would not be driven up many-fold. Why should they expect to get them cheap? There are only so many coins, and anyone holding a large percentage of them is a potential market manipulator.

Hence why they would not invest in large numbers. Do you think hedge fund managers are stupid? They typically don't chase performance. They would never indiscriminately start buying Bitcoins into the stratosphere. They already think this is a bubble.....

Well, it's you who think they're stupid. Mind you, the total amount of fiats now invested into bitcoin is only about 1/10 of what some traders can lose in a single deal. It's only expensive to common folks like you and me.  If bitcoin is a bubble has to ultimately depend on its value, which is not just the total economic activities it's supporting, as many of the people here believe.

FYI I came very close to starting a Bitcoin hedge fund. I put it on hold after the price shot up too fast. I was hoping for gradual returns over 2013 and was aiming it at HNWIs (because I realize that institutions would not invest for several reasons). This parabolic action made me step back.......it's a much different risk/reward ratio at these levels. If it holds here for awhile, I may rethink. It would need to retrace substantially.....

Yes, many many funds are larger than the entire market cap of BTC. That's the problem....I'm not saying it's expensive although this is a relative term. An overpriced piece of bubble gum can be 'expensive'. I'm saying there is not enough liquidity for any serious level of investment. You're acting as if funds would dive in at any price simply because they have the money to lose......No, it doesn't work that way. They must account to investors and have a compelling sales pitch. BTC is a very interesting story, so part of the pitch is there. But one has to think twice before buying into a parabolic move with enormous levels of systematic risk (Mt Gox, DDoS, etc), extremely low levels of liquidity, low transparency, et al.....

I'm bullish BTC; I love the concept. That doesn't mean I would buy hand over fist. Perhaps there are money managers who feel quite differently. I'm not sure BTC can last forever on speculation, but I certainly see the short-term potential for a beautiful bubble. I would rather it gain traction in the marketplace, though.

[lophie]

Facepalm  , Greedy people will KILL Bitcoin adoption rate. Everyone is investing in the currency and no one is investing in adopting the system  .

We needs shops and more development in the Tech..... sigh.....

lophie, the businesses are signing up.  1300 with bitpay last month alone!

http://eon.businesswire.com/news/eon/20130402006123/en/bitcoin/BitPay

Thank you.... I forgot that the reason I am not seeing this growth is the fact that I live in a slum Arab country. Guess it is on people like me to spread the coin love to Arabs after all!

That is covered. But still development is really slow. I mean when will we see major breakthoughs like trading across chains and build tools to create customs cryptos. such technologies will facilitate the development of decentralized exchanges and promotes the creation of many block-chain-tech-based software! Now this is how you guarantee Max Keiser estimations of 100k$-1m$ a coin! Don't you agree?

[thebaron]

https://fastcash4bitcoins.com/

This little-known corporation alone has sold 250,000 bitcoins.

And they've hinted to selling to really only two clients who are buying and holding.

[oakpacific]

20 x $5M (nice sounding average?) x 22 (working days in a month) = $2.2 BILLION looking to make its way into the BTC market per MONTH!

$2.2B x 12 = $26.4B

At $90 (ish), we're at a $1B market cap.

Prepare for 1 BTC = $2,376.00 within 12 months.  And this is just with current demand - as the price continues to rise, more and more asset managers with even larger balances will be calling and requesting to invest in BTC.  $2,376 is just the bottom end.  O.O

Talk to your kids about extrapolation, before someone else does.

Hey, I can dream, can't I?   

It appears that it is Exante that is dealing with the large loads:

"Exante, a Malta-based asset manager, set up a Bitcoin fund last year that was largely intended as a fun punt. Wealthy investors each put in $1,000 when Bitcoins were trading at $13 on the understanding they could lose the original investment. Exante predicted that public and media interest would take off when Bitcoins were trading at $100. Managing partner Gatis Eglitis claims they are now getting 20 calls a day from large asset managers looking to invest up to $100m."

If anyone here truly believes that a $100MM inflow into BTC is forthcoming, then you have clearly never been involved in the due diligence process that would precede that type of investment. The liquidity issue is a real problem as is the systematic risk. In theory there are probably several money managers that would consider BTC. But if one scratches the surface, most will quickly see that the logistics would be next to impossible. This market moves erratically at low volumes.....

Tradehill dark pools...

Not just Tradehill dark pool, there are many ways to buy offline, actually the "dark" market of bitcoin maybe larger than the "bright" one.

Good luck finding the millions of coins needed for institutional and large hedge fund investments without driving the price to absurd heights.

https://fastcash4bitcoins.com/

This little-known corporation alone has sold 250,000 bitcoins.

But yes, there is no reason the price would not be driven up many-fold. Why should they expect to get them cheap? There are only so many coins, and anyone holding a large percentage of them is a potential market manipulator.

Hence why they would not invest in large numbers. Do you think hedge fund managers are stupid? They typically don't chase performance. They would never indiscriminately start buying Bitcoins into the stratosphere. They already think this is a bubble.....

Well, it's you who think they're stupid. Mind you, the total amount of fiats now invested into bitcoin is only about 1/10 of what some traders can lose in a single deal. It's only expensive to common folks like you and me.  If bitcoin is a bubble has to ultimately depend on its value, which is not just the total economic activities it's supporting, as many of the people here believe.

FYI I came very close to starting a Bitcoin hedge fund. I put it on hold after the price shot up too fast. I was hoping for gradual returns over 2013 and was aiming it at HNWIs (because I realize that institutions would not invest for several reasons). This parabolic action made me step back.......it's a much different risk/reward ratio at these levels. If it holds here for awhile, I may rethink. It would need to retrace substantially.....

Yes, many many funds are larger than the entire market cap of BTC. That's the problem....I'm not saying it's expensive although this is a relative term. An overpriced piece of bubble gum can be 'expensive'. I'm saying there is not enough liquidity for any serious level of investment. You're acting as if funds would dive in at any price simply because they have the money to lose......No, it doesn't work that way. They must account to investors and have a compelling sales pitch. BTC is a very interesting story, so part of the pitch is there. But one has to think twice before buying into a parabolic move with enormous levels of systematic risk (Mt Gox, DDoS, etc), extremely low levels of liquidity, low transparency, et al.....

I'm bullish BTC; I love the concept. That doesn't mean I would buy hand over fist. Perhaps there are money managers who feel quite differently. I'm not sure BTC can last forever on speculation, but I certainly see the short-term potential for a beautiful bubble. I would rather it gain traction in the marketplace, though.

Bitcoin is very useful as a store of value, not just as currency. A store of value which has no central point of failure is very attractive, since if the holding is decentralized enough, no single group can cause a market crash, unlike many other financial instruments. And anyone who has properly done their homework will find it much easier and cheaper to secure, compared with, e.g., gold.

I don't know about hedge-fund managers, but I think bitcoin's bargaining chip value can not be underestimated, most of those in the real world don't want to do away with the government, but can not tolerate it to have its own way with the fiats, with BTC it's just like you have an opposition party to the fiat money, it may never get elected, but is enough of a deterrence that the governments will be forced to think twice before they act, I would be surprised if no one out there is backing bitcoin for this purpose.

And no, I would panic if a single fund suddenly invest 1 billion dollars into bitcoin, but several million dollars here and there, coming from a variety of sources is good, for the fund themselves even if all the money is lost the loss is still tiny, but if it's the opposite the return is significant.

[sunnankar]

Facepalm  , Greedy people will KILL Bitcoin adoption rate. Everyone is investing in the currency and no one is investing in adopting the system  .

We needs shops and more development in the Tech..... sigh.....

lophie, the businesses are signing up.  1300 with bitpay last month alone!

http://eon.businesswire.com/news/eon/20130402006123/en/bitcoin/BitPay

The first step is investing in bitcoins. The second step is investing bitcoin businesses that will make the bitcoins worth more. Bitpay is a great example of this happening.

I have met with plenty of hedge fund managers and other asset managers about bitcoins over the years. A few of my favorites I go out of my way to rub their nose in it by reminding them of how much their investment would be worth if they had put $25k when I first offered them the opportunity. Currently, that figure is around $65m. And I keep giving updates on the state of the network, mining technology, Bitcoin economy, etc.

There is huge money coming into this space of financial innovation. Everyone around the valley knows financial innovation is extremely ripe for making a ton of money. Why do you think Square recently raised another $200m?

There are a ton of Silicon Valley VCs who have bought a ton of bitcoins. With the FinCEN guidance they are now investing or looking to invest in a lot of bitcoin startups and mostly in a very quiet way. I know of at least 5 startups that have received $500k+ funding within the past two months.

[malevolent]

what did you expect?

I kind of expected this, because I know that even skeptics will come to appreciate how brilliant Bitcoin is when they bother to learn in detail about it.

personally I'm starting to doubt bitcoin abit because it requires someone to pay for Energy forever and in increasing amounts to keep it alive

Is there another currency that doesn't?

http://en.wikipedia.org/wiki/Rai_stones

Well you need energy to manufacture and transport / carry it.

[sunnankar]

I don't know about hedge-fund managers, but I think bitcoin's bargaining chip value can not be underestimated, most of those in the real world don't want to do away with the government, but can not tolerate it to have its own way with the fiats, with BTC it's just like you have an opposition party to the fiat money, it may never get elected, but is enough of a deterrence that the governments will be forced to think twice before they act, I would be surprised if no one out there is backing bitcoin for this purpose.

And no, I would panic if a single fund suddenly invest 1 billion dollars into bitcoin, but several million dollars here and there, coming from a variety of sources is good, for the fund themselves even if all the money is lost the loss is still tiny, but if it's the opposite the return is significant.

Precisely. Anyone who knows anything in finance knows the current system is FUBAR. The main issue is there are not enough spaces on the lifeboats so it is like a Mexican standoff. QE was tolerable because one could take advantage of asset bubbles. But now the politicians have completely tipped their hand with the bail-ins like Cyprus.

If just 1% of cash balances currently in offshore tax havens were in bitcoins you are looking at about $28,000 per bitcoin. Gold and bitcoin are both insurance; things you do not need until they are the only thing you need. And keeping 2-4% of one's net worth in insurance is pretty tolerable. And if that is split 3.5% gold and .5% bitcoin .... well, you start to get the picture.

Bitcoin massively changes the rules of the games for all the other assets and what politicians can force on holders of capital. It is the ultimate vote of no-confidence.

[solex]

..I have met with plenty of hedge fund managers and other asset managers about bitcoins over the years. A few of my favorites I go out of my way to rub their nose in it by reminding them of how much their investment would be worth if they had put $25k when I first offered them the opportunity. Currently, that figure is around $65m. And I keep giving updates on the state of the network, mining technology, Bitcoin economy, etc.

There is huge money coming into this space of financial innovation. Everyone around the valley knows financial innovation is extremely ripe for making a ton of money. Why do you think Square recently raised another $200m?

There are a ton of Silicon Valley VCs who have bought a ton of bitcoins. With the FinCEN guidance they are now investing or looking to invest in a lot of bitcoin startups and mostly in a very quiet way. I know of at least 5 startups that have received $500k+ funding within the past two months.

Wow. Fascinating insight!

..But still development is really slow. I mean when will we see major breakthoughs like trading across chains and build tools to create customs cryptos. such technologies will facilitate the development of decentralized exchanges and promotes the creation of many block-chain-tech-based software! Now this is how you guarantee Max Keiser estimations of 100k$-1m$ a coin! Don't you agree?

I am sure that $100 was a trigger for a lot of firms to get more involved. Software development by many teams will be underway for all sorts of 3rd-party services (examples above). $100k coins is 10 or even 20 years away, but a vast amount of software will support Bitcoin by then.

[Manticore]

Facepalm  , Greedy people will KILL Bitcoin adoption rate. Everyone is investing in the currency and no one is investing in adopting the system  .

We needs shops and more development in the Tech..... sigh.....

lophie, the businesses are signing up.  1300 with bitpay last month alone!

http://eon.businesswire.com/news/eon/20130402006123/en/bitcoin/BitPay

The first step is investing in bitcoins. The second step is investing bitcoin businesses that will make the bitcoins worth more. Bitpay is a great example of this happening.

I have met with plenty of hedge fund managers and other asset managers about bitcoins over the years. A few of my favorites I go out of my way to rub their nose in it by reminding them of how much their investment would be worth if they had put $25k when I first offered them the opportunity. Currently, that figure is around $65m. And I keep giving updates on the state of the network, mining technology, Bitcoin economy, etc.

There is huge money coming into this space of financial innovation. Everyone around the valley knows financial innovation is extremely ripe for making a ton of money. Why do you think Square recently raised another $200m?

There are a ton of Silicon Valley VCs who have bought a ton of bitcoins. With the FinCEN guidance they are now investing or looking to invest in a lot of bitcoin startups and mostly in a very quiet way. I know of at least 5 startups that have received $500k+ funding within the past two months.

Investing in BTC startups and directly into BTC are two very different things. I would love to hear more about VCs investing directly into Bitcoin. That doesn't fit their model (although perhaps they invested a little just to check it out.)

I think it is other way around entirely....VC funds will start by investing in startups well before investing anything substantial directly into Bitcoin.

I do believe the situation is ripe for VC into BTC, albeit still on a very small scale. As far as I know, no institutional money has invested in BTC startups as of yet (but correct if I'm wrong). Only angels, primarily. And nobody is denying that money is flowing into financial innovation overall.

[meebs]

Online USD banking doesn't have an Energy sink like Bitcoin does (neither does as any other form of centralized online currency based on whatever)

please do not underestimate just how VAST of datacenters and server farms exist within the banking and financial industries within America and the rest of the world. HUGE sums of money are paid to have top level access to downtown manhatten space for the lowest latency stock trading available.

[SgtSpike]

Online USD banking doesn't have an Energy sink like Bitcoin does (neither does as any other form of centralized online currency based on whatever)

please do not underestimate just how VAST of datacenters and server farms exist within the banking and financial industries within America and the rest of the world. HUGE sums of money are paid to have top level access to downtown manhatten space for the lowest latency stock trading available.

This is true.  Having your trade execute 0.5 ms before a competitor's trade makes all the difference in the world.

[mestar]

ASICs are comming, when most mining will be acheived by ASICs and most GPU shutdown, the ammount of energy consumed will be much lower, and as the total mining power will grow, more advanced ASICs will become the norm, so on the long run, I dont think energy is an issue ! 

With a better technology comes higher hashrate.  Energy consumption stays the same.  You must think on the level of the network as a whole, not from a perspective of a single miner.

[johnyj]

You must cost energy to generate coin, that is the vital point of honest money: It must be generated by using energy/labor/value, so that each coin can be generated debt free, the value of each coin has already been paid when the coin is made

And this perfectly match a function telling that the daily coin value tends to be the cap for daily energy cost, if daily energy cost is higher than daily coin value, many miners will stop mining

Fiat money does not require energy to generate, that is the reason it contains no value in principle, it must be backed by a debt to be able to trade other goods/services