This is not a joke

The worlds financial system is on life support.   Just the US government with 17 trillion in debt is now addicted to money printing.  They will keep printing money, even though they *say* they may stop, to fund government activities, because when they stop they have bigger problems.  Meanwhile they will understate inflation to allow them to keep doing it.  This is happening with governments all over the world.

At some point in the near future, this world wide house of cards will come falling down.

Dont believe me?  Ask some US states. http://money.cnn.com/2012/02/03/pf/states_currencies/index.htm

Bitcoin is not a joke.   Bitcoin will do one of two things

-Compete with the US dollar.   We know that as soon as people have options, the currencies will compete for users storage of work.   A US dollar competitor will *maybe* keep the Federal Reserve more accountable to their actions.
-Lead to hyperinflation of the US dollar, and hyper-monetization of Bitcoin.

What is hypermonetization?  It sounds like a bad disease.    Hypermonetization would be similar to hyperinflation, but opposite.  It could be defined as the value increasing 10% or more per month for more than 6 months.   The reason is this

   Congress is going to have to have to raise the debt limit in a couple of months.   What if they dont?   They default on the US backed dollar.    So a typical US Citizen has dollar based stocks, which are companies that own dollar based assets, and have dollar based bank accounts.   That same citizen has dollar based bank accounts.

So what would a typical citizen do to save their money, but not spend it?   Go buy gold and silver of course.   The problem is that there are 350,000,000 average US citizens and probably about 50,000 gold stores.  Each store may have 100 ounces of gold.  If you thought waiting in line for the next iPhone is bad, wait for the default of the US government.  Gold and Silver will not be available in the event of a US default.

Enter bitcoin to save the day!   Since bitcoins are secure digital assets, you dont have to wait in line for them.  You just go to coinbase.com(or any bitcoin retailer) and buy your bitcoin.   Here is where hypermonetization comes in.

There are only 12,000,000 Bitcoin available right now, with a total supply of 21,000,000 in the year 2040.   What happens when 12,000,001 people want to buy an entire bitcoin?   It can't happen, so the buyer who is willing to pay the most wins.

Lets estimate the population of first and second world countries to be 3.5 billion people.   We could also say that 2.5 billion people have access to the internet.     Lets average this out to 3 billion people.

*What if* countries default on fiat currencies, which I think i have proved is more likely to happen than not, and just 10% of the worlds internet users decide to try and buy a bitcoin as a storage of value.

You then have 300,000,000 competing for 12,000,000 bitcoins.  In reality, there are much less than 12,000,000 that would be for sale, but thats a conversation for another day.

Each buyer would have to be happy with .04 bitcoins.   What would be the value of .04 bitcoins?   The free market would decide, but I'm one to believe it would be in the tens of thousands of  US dollars.

I would not be crazy to say that some day in the future one entire bitcoin could be worth 1 million dollars.

Another way to look at it.  The market capitalization of bitcoin right now is about 1.2 billion.  Thats 12,000,000 bitcoin with a value of $100 each.

What if Apple decides they want to diversify some of their assets, and keep them safe from government default?   They take 1 billion of their 120 billion and buy bitcoin?    The price would easily double, to a market cap of 2.2 billion.  

If JUST APPLE spends less than one percent of their assets on bitcoin the price doubles.   Bitcoin is a world wide currency available to anybody in any country.   Think of the possibilities.

This is not a joke.  This is bitcoin.  This is free market economics.