Bitcoin Shakes Its Mighty Fist Again

From this LinkedIn thinly-veiled advertisement:

“Bitcoin is digitized money… Bitcoin is eliminating or dematerializing the use of physical money (bills and coins), even credit cards.”

My reply:

US Annual GDP: $15.68 trillion
Actual physical cash in circulation (M0): $4.1 trillion
“Dematerialized” money that circulates every year: $11.6 trillion, or 74% of GDP

There already is a dematerialized, digitized currency, one in wide circulation, and nearly universally accepted by the market. It’s called the US Dollar.

I know, I know… You’re all in favor of the free market. Right up until the market disagrees with you.

Oh, BTW:
Total value of circulating Bitcoin: $6.2 billion.
Percentage of the value of M0 dollars in circulation: 0.2
Percentage of value of US GDP ($15.68T): 0.03
Percentage of value of global economic product (given that Bitcoin isn’t tied to any one state, and thus competes in a global market) ($71.83T): 0.008

To rephrase a newspaper headline of the 1970s: “Free market to Bitcoin: Drop dead.”