Bitcoin Paradox

[dj6230]

I just posted my theroy on this Norwegian forum:http://freak.no/forum/showthread.php?t=261360
, but I belive this is actullay quite important, so I will translate it.


Bitcoin 's supposed to be safe and non-regulated, therefore no fail- safe .
There's one thing " Satoshi Nakamoto " have not thought of, if my theory is correct.
I know that 21 million coins is a lot, but considering how many people there are, it's not much, unless people start thinking mBTC .

I read an article again where someone lost their wallet containing 25,000 BTC, this is just one of countless events .

As the popularity of BTC as increases, I started thinking...

Now that many new users with lack of caution buys BTC and commit the same mistake, there will not be the 21 millions BTC available in the end, even if it is a long time from now, this will be the case.

Not only will the limited maximum amount of total BTC increase the value, but the total amount will also decrease, if I'm right.

I imagine that people will jump to LTC that have greater total amount, but the same will also happen with LTC. And we will continue in the same manner, until we end up with a currency that is regulated by an large company like Apple or Microsoft with their own currency that they can afford to make commercial about to claim more customers than the current cryptocurrency can, and we will be back to the state where ultimately the government will regulate the currency. This is of course many centuries from now, but you see what I'm thinking?

If you found my theory interesting, I'm happy to receive an thank you :-)
18Y9qvwzrYskWBckFyYte3NtokV9uvprWz

[PenAndPaper]

From the Bitcoin.org FAQ

Won't the finite amount of bitcoins be a limitation?

Bitcoin is unique in that only 21 million bitcoins will ever be created. However, this will never be a limitation because bitcoins can be divided up to 8 decimal places ( 0.000 000 01 BTC ) and potentially even smaller units if that is ever required in the future. As the average transaction size decreases, transactions can be denominated in sub-units of a bitcoin, such as millibitcoins ( 1 mBTC or 0.001 BTC ).

http://bitcoin.org/en/faq

[SaberCoin]

Maybe in the future multiple different crypto coins will be used parallel, so the amount of btc won't have as much effect as we might think.

[BitCountess]

We've seen similar things happen before with other currencies, only in the opposite direction.

For example, both the US and the UK used to mint half-penny coins that have since been taken out of circulation. For quite a while people were used to paying with half pennies, but once merchants stopped offering goods in denominations of half pennies (most likely due to inflation) people gradually got use to it.

I predict that if the price of bitcoin goes sky high and/or once the supply of new bitcoin dwindles, vendors will start quoting their prices in mBTC or satoshi, and customers will gradually get used to it.

[bimblebob]

maybe other curencies will take btc place, that is an option too.

[LiteCoinGuy]

if there are 21 mio BTC or 16 mio BTC, that doesnt matter. you can add several decimals to btc.

so maybe in the end 0.0000001 BTC is one million dollar...or ten.  just numbers...

[naphto]

Yes, this was discussed a lot of times.
Even with 1 remaining btc, it can work out.

[Sam-Os]

Yeah remember that even in the number 1 you can have 0.920472391752736523875 ..lots of wiggle room there.

[boardercrest]

the us is decimal phobic for the most part. I for one hopes it catches on.

[manoamano]

the us is decimal phobic for the most part. I for one hopes it catches on.

You can speak about mBTC, or even change most of the balance from BTC to mBTC

[MAbtc]

the us is decimal phobic for the most part. I for one hopes it catches on.

You can speak about mBTC, or even change most of the balance from BTC to mBTC

Yes, I think eventually the unit commonly used may be mBTC, and eventually perhaps even a satoshi.    Who knows, though.

[WA]

And don't forget the 'last' transactions still need confirmation / adding to the end of the block chain.

[deepceleron]

https://en.bitcoin.it/wiki/Myths#21_million_coins_isn.27t_enough.3B_doesn.27t_scale

[metaverse22]

There are still some cloudy issues that need to be addressed before any govt or everyone support BTC. The problem with BTC is if only handful of people or organization control majority of BTCs and manipulate its circulation that it drives the BTC price higher.

[samsam]

There are still some cloudy issues that need to be addressed before any govt or everyone support BTC. The problem with BTC is if only handful of people or organization control majority of BTCs and manipulate its circulation that it drives the BTC price higher.

This is a good point. It is actually very hard right now to even buy bitcoins in the USA (see the TONS of complaints about places like Coinbase that cater to the USA).

I personally think bitcoin will be used more for transferring money than for everyday transactions. The currency is too deflationary to be used in daily transactions since everyone tries to horde it or buy low and sell high.

[geofflosophy]

the us is decimal phobic for the most part. I for one hopes it catches on.

You can speak about mBTC, or even change most of the balance from BTC to mBTC

Yes, I think eventually the unit commonly used may be mBTC, and eventually perhaps even a satoshi.    Who knows, though.

1000:1 split by the end of 2014. No one wants to deal in 0.00X BTC for day to day transactions.

[raspcoin]

the us is decimal phobic for the most part. I for one hopes it catches on.

You can speak about mBTC, or even change most of the balance from BTC to mBTC

Yes, I think eventually the unit commonly used may be mBTC, and eventually perhaps even a satoshi.    Who knows, though.

1000:1 split by the end of 2014. No one wants to deal in 0.00X BTC for day to day transactions.

Is this confirmed? That would indeed be good news for new adopters.

[geofflosophy]

the us is decimal phobic for the most part. I for one hopes it catches on.

You can speak about mBTC, or even change most of the balance from BTC to mBTC

Yes, I think eventually the unit commonly used may be mBTC, and eventually perhaps even a satoshi.    Who knows, though.

1000:1 split by the end of 2014. No one wants to deal in 0.00X BTC for day to day transactions.

Is this confirmed? That would indeed be good news for new adopters.

No, it's a prediction. It's got to happen though, especially once BTC breaks well into the quadruple digits.