Topic: It's year 2050 and Bitcoin is the world currency... - page 4. (Read 5099 times)
I am not so sure that insurance plan is so great. Soon we will have copy of our own corrupt financial system only in virtual world. And I thought that bitcoin was meant as remedy for bloated financial market on our real world...
For hypothetical purposes, let's say there are 20million Bitcoins in circulation (it's less than that I know).
A company that has possession of 5 million coins has terrible private key management. Their building burns down, along with it, all of their private keys and backups (again, they were stupid).
A company that has possession of 5 million coins has terrible private key management. Their building burns down, along with it, all of their private keys and backups (again, they were stupid).
That would be crazy for anyone/company to have 5 million coins... just saying. Even now in this tiny market that would be a large amount.
A company with so much coins must be insured, people get the fiat value for their lost coins and everybody else bitcoins become more valuable...
That is a very good point, pedrog! There already is insurance for Bitcoin in 2015.
BitGo just launched with their insurance model. I'm sure in 2050, there will be a plethora of options to insure that much coin in the future.
One of the leading bitcoiners has been quoted as saying that you could run the entire bitcoin ecosystem off of 1 bitcoin, if necessary. Losses of bitcoins are not a big deal (except to the one who lost them!)
This is a good reason to seriously think through how you secure your BTC, by the way. Housefires and city-wide floods and so on are a reality, especially over your lifespan. So if all your backups are in one location or nearby, a catastrophe to your house or your region could result in their loss. Think that through and balance it with the risk of theft to achieve balanced security of your BTC.
This is a good reason to seriously think through how you secure your BTC, by the way. Housefires and city-wide floods and so on are a reality, especially over your lifespan. So if all your backups are in one location or nearby, a catastrophe to your house or your region could result in their loss. Think that through and balance it with the risk of theft to achieve balanced security of your BTC.
From the Bitcoin Wiki:
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
That should answer your question.
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
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But if no more coins are generated, what happens when Bitcoins are lost? Won't that be a problem?
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
That should answer your question.
What if coins are lost for some reason and we (general population) is not aware of the loss. Lets say it was an uber rich family and for some reason they lost 80% of their coins due to stupidity and they didn't tell anyone for fear of xyz.
Um, what's due time? well, if BTC ends up being a store of value type of thing, then stagnant coins don't really mean "lost" coin.
Rich people just park their money, they don't move it all the time. we can't just assume it's lost just because it hasn't moved.
Bitcoin are lost in time and space. That is the truth. If I die right now my bitcoin would be NEVER available for anyone else. I think there are many people like me.
A company with so much coins must be insured, people get the fiat value for their lost coins and everybody else bitcoins become more valuable...
From the Bitcoin Wiki:
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
That should answer your question.
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
Quote
But if no more coins are generated, what happens when Bitcoins are lost? Won't that be a problem?
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
That should answer your question.
What if coins are lost for some reason and we (general population) is not aware of the loss. Lets say it was an uber rich family and for some reason they lost 80% of their coins due to stupidity and they didn't tell anyone for fear of xyz.
Um, what's due time? well, if BTC ends up being a store of value type of thing, then stagnant coins don't really mean "lost" coin.
Rich people just park their money, they don't move it all the time. we can't just assume it's lost just because it hasn't moved.
For hypothetical purposes, let's say there are 20million Bitcoins in circulation (it's less than that I know).
A company that has possession of 5 million coins has terrible private key management. Their building burns down, along with it, all of their private keys and backups (again, they were stupid).
I know this scenario is a stretch - but what happens in the future if all of a sudden a serious percentage of Bitcoins are unspendable (and all at once)?
Will we as a society decide to "replace" these coins and put more back into circulation? Or ride the deflation wave? Everybody's coins become more valuable? Even if everybody depends on the value?
A company that has possession of 5 million coins has terrible private key management. Their building burns down, along with it, all of their private keys and backups (again, they were stupid).
I know this scenario is a stretch - but what happens in the future if all of a sudden a serious percentage of Bitcoins are unspendable (and all at once)?
Will we as a society decide to "replace" these coins and put more back into circulation? Or ride the deflation wave? Everybody's coins become more valuable? Even if everybody depends on the value?
This hypothetical entity in possession of 5 million coins will either be Coinbase or Fort Knox I recon. I worry about Fort Knox for some reason.
From the Bitcoin Wiki:
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
That should answer your question.
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
Quote
But if no more coins are generated, what happens when Bitcoins are lost? Won't that be a problem?
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
That should answer your question.
I get this and I'm TOTALLY in favor of it. However, a scenario where a large percentage is lost all at once - would that not disrupt the economy? All of a sudden product prices should move down because the Bitcoins are worth more.
I get over time the value will compensate - but what about all at once? What if we're stupid enough to trust a 3rd party to hold coins (for whatever reason) and then they vanish all at once. What happens to the economy in a situation like this?
Lost is lost, my brother. Whether lost due to operator error, negligence, incompetence, etc...if it's out of circulation and can't be retrieved, it'll be considered "lost".
If it's lost, see the answer again in blue above.
From the Bitcoin Wiki:
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
That should answer your question.
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
Quote
But if no more coins are generated, what happens when Bitcoins are lost? Won't that be a problem?
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
That should answer your question.
I get this and I'm TOTALLY in favor of it. However, a scenario where a large percentage is lost all at once - would that not disrupt the economy? All of a sudden product prices should move down because the Bitcoins are worth more.
I get over time the value will compensate - but what about all at once? What if we're stupid enough to trust a 3rd party to hold coins (for whatever reason) and then they vanish all at once. What happens to the economy in a situation like this?
Statistically at some point all the bitcoins/bits will be lost. 
So there will be a time in history that not one bit will be lost? Sure it will take many many years but it will happen at some point.
So you're saying there will be a time in history when not one person will backup their private keys?
You're looking at some bitcoins being lost over time, which you think will eventually add up to all bitcoins. But that would require 100% of all Bitcoin users to lose 100% of their coins.
I know this scenario is a stretch - but what happens in the future if all of a sudden a serious percentage of Bitcoins are unspendable (and all at once)?
The remaining coins gain value proportionately as they have suddenly become more scarce. By 2020 the companies established around bitcoin will be both wealthy and secure. 
From the Bitcoin Wiki:
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
That should answer your question.
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
Quote
But if no more coins are generated, what happens when Bitcoins are lost? Won't that be a problem?
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
That should answer your question.
What if coins are lost for some reason and we (general population) is not aware of the loss. Lets say it was an uber rich family and for some reason they lost 80% of their coins due to stupidity and they didn't tell anyone for fear of xyz.
It's not about fear , We can always see the blockchain address and people are desperate , if someone have that many bitcoin in single address or multiple and they won't move for a month or over , people will start noticing eventually and the price will keep rising.
Though if we think of it ! that will be 25% of the coins that will be destroyed , so price can go much much higher.
Will we as a society decide to "replace" these coins and put more back into circulation?
That's not possible to replace these coins , you cannot just put more in the blockchain , that will be a fake blockchain and no one will mine on it , so they just become less available and price increases
From the Bitcoin Wiki:
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
That should answer your question.
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
Quote
But if no more coins are generated, what happens when Bitcoins are lost? Won't that be a problem?
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
That should answer your question.
What if coins are lost for some reason and we (general population) is not aware of the loss. Lets say it was an uber rich family and for some reason they lost 80% of their coins due to stupidity and they didn't tell anyone for fear of xyz.
From the Bitcoin Wiki:
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
That should answer your question.
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F
Quote
But if no more coins are generated, what happens when Bitcoins are lost? Won't that be a problem?
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model. As the average transaction size reduces, transactions will probably be denominated in sub-units of a bitcoin such as millibitcoins ("Millies") or microbitcoins ("Mikes").
The Bitcoin protocol uses a base unit of one hundred-millionth of a Bitcoin ("a Satoshi"), but unused bits are available in the protocol fields that could be used to denote even smaller subdivisions.
That should answer your question.
What if coins are lost for some reason and we (general population) is not aware of the loss. Lets say it was an uber rich family and for some reason they lost 80% of their coins due to stupidity and they didn't tell anyone for fear of xyz.
Statistically at some point all the bitcoins/bits will be lost.
So there will be a time in history that not one bit will be lost? Sure it will take many many years but it will happen at some point.
For hypothetical purposes, let's say there are 20million Bitcoins in circulation (it's less than that I know).
A company that has possession of 5 million coins has terrible private key management. Their building burns down, along with it, all of their private keys and backups (again, they were stupid).
I know this scenario is a stretch - but what happens in the future if all of a sudden a serious percentage of Bitcoins are unspendable (and all at once)?
Will we as a society decide to "replace" these coins and put more back into circulation? Or ride the deflation wave? Everybody's coins become more valuable? Even if everybody depends on the value?
A company that has possession of 5 million coins has terrible private key management. Their building burns down, along with it, all of their private keys and backups (again, they were stupid).
I know this scenario is a stretch - but what happens in the future if all of a sudden a serious percentage of Bitcoins are unspendable (and all at once)?
Will we as a society decide to "replace" these coins and put more back into circulation? Or ride the deflation wave? Everybody's coins become more valuable? Even if everybody depends on the value?
Its an interesting question, but i personaly think that the coins would be replaced if the coins were to be proven indees as unrecoverable.
But ure right when you say that the scenario as a stretch, because theres no way on earth that someone would have 25% world's coins and risk loosing them in such a stupid way.
Even tho bitcoin now has no instrument of handling these scenarios, i believe that there will be some sort of oversight that would react in cases of such events.
cheers
This is an interesting question, would the coins actually be replaced if so how would they do that on such a massive scale assuming of course that it was possible to have that many coins in the first place?
Does this mean they can be replaced to the average joe who loses them?
Damn if they lost them like that they deserve to never get a single coin back, i back up my back ups and i do not have anywhere near that amount hehe.
Thanks
Statistically at some point all the bitcoins/bits will be lost.
So there will be a time in history that not one bit will be lost? Sure it will take many many years but it will happen at some point.
Statistically at some point all the bitcoins/bits will be lost.
I personally believe all economies should really be deflationary. I mean the effort or cost to make a car should be decreasing generally over time as companies become more an more efficient/better at making the 'same' product. Sadly we have been feed the lie for the last hundred years that inflation is the norm. Bitcoin returns us to a defaltionary cycle. The only products that's should increase in price should be scarce resources or products using scarce resources.
Ps. Don't believe the bullshit that we are feed that deflation leads to people putting off purchases, with gas being a bit cheaper for most of us in the last 6 months did anyone buy less gas for their cars? In fact I personally probably bought more.
Ps. Don't believe the bullshit that we are feed that deflation leads to people putting off purchases, with gas being a bit cheaper for most of us in the last 6 months did anyone buy less gas for their cars? In fact I personally probably bought more.
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