Do you think that only cost of traditional currencies are the resources that banks spend? What about the cost of the government that guarantees that the currency is worth anything? What about law enforcement that prevents money from being printed? What about costs of people that move and guard physical cash? What about the cost of fending of attack on your currency? What are the costs of having multiple currencies and exchanging it? What are the costs of additional risk to the people forced to operate with multimple currencies while doing business? I'm sure there are some costs of having traditional money that you are missing.
I am sure that if you add all the costs you mentioned together, it is still less than the cost of running the Bitcoin network. You need half the computing resources on the planet to be devoted to Bitcoin for it to be secure. We do not devote anything close to that to maintaining or securing paper money, even if you include the entire government (which would not be any smaller in a world of Bitcoin rather than paper money).
You need half the computing resources on the planet to be devoted to Bitcoin for it to be secure.
Why do you say that? Bitcoin hardware is specialized and much faster at the task than general purpose computers. You need to spend just a small fraction of resources that all supercomputers cost to build and run to outpace them in calculating Bitcoin hashes.
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Do you think that only cost of traditional currencies are the resources that banks spend? What about the cost of the government that guarantees that the currency is worth anything? What about law enforcement that prevents money from being printed? What about costs of people that move and guard physical cash? What about the cost of fending of attack on your currency? What are the costs of having multiple currencies and exchanging it? What are the costs of additional risk to the people forced to operate with multimple currencies while doing business? I'm sure there are some costs of having traditional money that you are missing.
I am sure that if you add all the costs you mentioned together, it is still less than the cost of running the Bitcoin network. You need half the computing resources on the planet to be devoted to Bitcoin for it to be secure. We do not devote anything close to that to maintaining or securing paper money, even if you include the entire government (which would not be any smaller in a world of Bitcoin rather than paper money).
Why do you say that? Bitcoin hardware is specialized and much faster at the task than general purpose computers. You need to spend just a small fraction of resources that all supercomputers cost to build and run to outpace them in calculating Bitcoin hashes.