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April 28, 2014, 03:13:50 PM |
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Lost private keys aside, perhaps the context of the phenomenon of dormant bitcoins should be broadened to include the function of bitcoin having properties of a store of wealth by virtue of its 21 million cap. Centralized government-printed fiat currencies are borrowed into existence and have no limit. Whereas bitcoin, paradoxical as it may first appear, functions very well as both a store of wealth despite being high-risk and volatile, and as a counterpoint to traditional currencies.
Furthermore, all currencies have considerable dormant quantities. Consider the old system of numbered Swiss bank accounts. For decades, funds remained untouched. Consider physical storage of gold bullion. Some central banks and private vaults have bullion that hasn't changed its custodian or owner, or even been physically moved, after having lain 'dormant' decade after decade.
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