A satoshi (not satochi) is 0.00000001 BTC, not 0.000000001 BTC.
Not sure where the $6,000/BTC comes from for $80b in annual transactions per 10m BTC, but consider velocity of money. A BTC can be spent multiple times in one year. Also consider that monetary base (raw currency) is not the same as a credit account, but you can spend either.
So in practice, you might only need 0.1 BTC per 1 BTC in annual transactions.
> A satoshi (not satochi) is 0.00000001 BTC, not 0.000000001 BTC.
I have no idea, visually, what the difference is between those two numbers, and I so suspect no one else reading does either, without manually counting the zeros one-by-one.[0]
Here's an idea: we sometimes use commas to the left of the decimal point to make the numbers easier to read, perhaps using apostrophes to the right would also make things easier to read? E.g.:
A satoshi (not satochi) is 0.000'000'01 BTC, not 0.000'000'001 BTC.
I can easily tell the difference now. (The idea behind using apostrophes and not commas is that you won't inadvertently confuse the right-hand side of the decimal point with the left.)
Anyway, carry on. :)
[0] There's also scientific notation, but that only works in cases like this with lots of zeros between the decimal point and the number in question. With a number like Pi, scientific notation is useless.
Good points about velocity and monetary base. "satochi" spelling and decimals corrected. Thanks. The $6000 is just an order of magnitude >>>(80/12)*1000. Too many unknowns for anything beyond guesstimates: What percentage of the currency is hoarded by then (1/2? 1/3? 3/4?). How many bitcoins are lost forever? As you point out velocity, or even limits on transaction speed from block-size ...
Even for a wild guess I think you're off by at least an order of magnitude if you don't take into account velocity (typical dollar is spent four times per year; edit: and bitcoin, as a digital currency, is likely to have higher velocity) and the different types of money (monetary base is maybe one fifth of total money supply).
Note also that your math involves 12m BTC but your page says 10m.
I may very well be off by a factor of 10. Agreed. But what is your estimate? and what exactly would M2,M3 and M4 be?
Let's assume 12m has been mined, 1m has been lost forever, 8m are hoarded, and a velocity of 10. You then have 30m bitcoins in transactions but 3m bitcoins circulating. In this case my estimate is off by a factor of 2 - 2.5 (but it could be 10, sure). But What if it doesn't take over half of paypal's transactions, but rather 4 times all of paypal's transactions? That's why I think any estimate is pretty hopeless. A good order of magnitude is ... if it reaches paypal scale it will be in the thousands.
Since there is no fractional reserve banking (yet, anyway) in the bitcoin economy, I don't see how the monetary base can be 1/5th of the money supply (but I might be missing something).
A satoshi (not satochi) is 0.00000001 BTC, not 0.000000001 BTC.
Not sure where the $6,000/BTC comes from for $80b in annual transactions per 10m BTC, but consider velocity of money. A BTC can be spent multiple times in one year. Also consider that monetary base (raw currency) is not the same as a credit account, but you can spend either.
So in practice, you might only need 0.1 BTC per 1 BTC in annual transactions.