user6: What would the effects be on the world economy if several million people around the world would utilize the Bitcoin currency for their daily transactions? Would you expect the GDP to grow faster or slower and why?
I am interested in this, because the first thing I want to get straight is whether I would contribute something positive if I supported the project.

user390: Millions of dollars every day will be spent on keeping the bitcoin network up.  After all, it has to use 51% or more of all GPU power in existence - or else risk the entire economic system collapsing.

user1141: As one who has tackled the issue of transaction fees with the intent of lowering them I have to say that the way Bitcoin shifts all transaction costs to the buyers and sellers (separate currency, peer to peer, mining) is brilliant.
As some of the comments have pointed out the real system resource use and cost Bitcoin incurs
needs to be rightly quantified in relation to alternatives. Where Bitcoin fails the alternative would need to be adapted. 
In any case Bitcoin has certainly set the stage for the future of "money".

user9: Well, the GDP measured in bitcoins probably wouldn't grow at all, most likely it will shrink. However, that doesn't mean the economy shrinks, just that the bitcoins are increasing in worth.
In deflation adjusted bitcoins, I think that the GDP will grow, and if only because micro- and international transactions are vastly simplified. However, I expect that it would also lead to a collapse of the traditional banking system, since those are superficial now.
Next, note that a growing economy isn't necessarily positive. If you take into account that resources on earth are not infinite but limited, it becomes obvious that a stable, not growing economy (I think that's what you mean by GDP) is preferable.

user922: Bitcoin is made for transactions over the net and thus it is ideal for selling information and intellectual or informational services. How such an economy could look like is uncertain. My guess is that because bitcoin make decentral structures possible, it could support more equal power and opportunities.
I am quite confident it would give many many people which are smart, well educated and live in regions with low wages new opportunities - think of all the intellectuals in the Arab world. Bitcoin has the potential to create a worldwide information and service economy. As these are valuable things I think this could be very positive.
Bitcoin could make it also much easier to live from things like art and music.

user409: Given that economists cannot agree unanimously on the global effects of relatively small events like a change in interest rates or a stimulus package, I would say that a major event like mass adoption of Bitcoin is far beyond anybody's prediction horizon. The global economy is a complex dynamical system and we really don't understand such things as well as some would have you think. 

user516: Bitcoins are economical to buy from many different currencies (ie the conversion fees are low), so they have the potential to make many financial & retailing tools available to a much larger audience. This could include stocks, bonds, commodities as well as traditional retail.
Bitcoins also have the potential to change the way artists (in a very broad sense) earn their money. Imagine if the "Like" or "+1" button also donated 0.0001 bitcoins to the author of the content. 
Have a look at http://www.humblebundle.com/ (or get a summary of what it's about from wikipedia) to see the power of voluntary donations.
Regardless of the effect on GDP, surely this has got to be beneficial for humanity, which is essentially what economists use changes in GDP try to measure anyway.

user307: One thing often overlooked is that bitcoin is most useful in chaotic economies.  Bitcoin likely will not replace the Euro, Dollar, Yen, or Yuan for very long time (if ever).  However many economies suffer from poor economic planning and gross manipulation by central banks.
Take the Zimbabwe hyperinflation scenario.  If bitcoin existed and was easily used by 3rd world country as the Zimbabwe dollar collapsed due to rampant printing of money people would move to another store of value such as bitcoin.  While the Z dollar would still have collpased the material affect on the economy would be less significant.
Thus the first world (providing most of the hashing power) could provide a launch pad for more stable economies in developing nations and greatly increase the use and legitimacy of bitcoin. 

user389: If people are worried about deflation they really need to distinguish what kind of deflation they are referring to.
Asset deflation or monetary deflation.  
The real issue with our economy right now is the fact we have asset deflation coupled with monetary inflation which is the worst of both worlds.  I believe asset deflation along with monetary deflation would be less problematic than most people think. Maybe lemonginger was right, it is a very big concept.  We are not even talking about the further implications bitcoin will bring into contract-commercial law.  All of which I believe are a positive personally.  This is a huge subject.

user27: GDP would accelerate because of less transactional friction.

6: <p>What would the effects be on the world economy if several million people around the world would utilize the Bitcoin currency for their daily transactions? Would you expect the GDP to grow faster or slower and why?</p>

<p>I am interested in this, because the first thing I want to get straight is whether I would contribute something positive if I supported the project.</p>
 390: <p>Millions of dollars every day will be spent on keeping the bitcoin network up.  After all, it has to use 51% or more of all GPU power in existence - or else risk the entire economic system collapsing.</p>
 1141: <p>As one who has tackled the issue of transaction fees with the intent of lowering them I have to say that the way Bitcoin shifts all transaction costs to the buyers and sellers (separate currency, peer to peer, mining) is brilliant.</p>

<p>As some of the comments have pointed out the real system resource use and cost Bitcoin incurs
needs to be rightly quantified in relation to alternatives. Where Bitcoin fails the alternative would need to be adapted. </p>

<p>In any case Bitcoin has certainly set the stage for the future of "money".</p>
 9: <p>Well, the GDP measured in bitcoins probably wouldn't grow at all, most likely it will shrink. However, that doesn't mean the economy shrinks, just that the bitcoins are increasing in worth.</p>

<p>In deflation adjusted bitcoins, I think that the GDP will grow, and if only because micro- and international transactions are vastly simplified. However, I expect that it would also lead to a collapse of the traditional banking system, since those are superficial now.</p>

<p>Next, note that a growing economy isn't necessarily positive. If you take into account that resources on earth are not infinite but limited, it becomes obvious that a stable, not growing economy (I think that's what you mean by GDP) is preferable.</p>
 922: <p>Bitcoin is made for transactions over the net and thus it is ideal for selling information and intellectual or informational services. How such an economy could look like is uncertain. My guess is that because bitcoin make decentral structures possible, it could support more equal power and opportunities.</p>

<p>I am quite confident it would give many many people which are smart, well educated and live in regions with low wages new opportunities - think of all the intellectuals in the Arab world. Bitcoin has the potential to create a worldwide information and service economy. As these are valuable things I think this could be very positive.</p>

<p>Bitcoin could make it also much easier to live from things like art and music.</p>
 409: <p>Given that economists cannot agree unanimously on the global effects of relatively small events like a change in interest rates or a stimulus package, I would say that a major event like mass adoption of Bitcoin is far beyond anybody's prediction horizon. The global economy is a complex dynamical system and we really don't understand such things as well as some would have you think. </p>
 516: <p>Bitcoins are economical to buy from many different currencies (ie the conversion fees are low), so they have the potential to make many financial &amp; retailing tools available to a much larger audience. This could include stocks, bonds, commodities as well as traditional retail.</p>

<p>Bitcoins also have the potential to change the way artists (in a very broad sense) earn their money. Imagine if the "Like" or "+1" button also donated 0.0001 bitcoins to the author of the content. </p>

<p>Have a look at <a href="http://www.humblebundle.com/" rel="nofollow">http://www.humblebundle.com/</a> (or get <a href="http://en.wikipedia.org/wiki/Humble_bundle" rel="nofollow">a summary of what it's about from wikipedia</a>) to see the power of voluntary donations.</p>

<p>Regardless of the effect on GDP, surely this has got to be beneficial for humanity, which is essentially what economists use changes in GDP try to measure anyway.</p>
 307: <p>One thing often overlooked is that bitcoin is most useful in chaotic economies.  Bitcoin likely will not replace the Euro, Dollar, Yen, or Yuan for very long time (if ever).  However many economies suffer from poor economic planning and gross manipulation by central banks.</p>

<p>Take the Zimbabwe hyperinflation scenario.  If bitcoin existed and was easily used by 3rd world country as the Zimbabwe dollar collapsed due to rampant printing of money people would move to another store of value such as bitcoin.  While the Z dollar would still have collpased the material affect on the economy would be less significant.</p>

<p>Thus the first world (providing most of the hashing power) could provide a launch pad for more stable economies in developing nations and greatly increase the use and legitimacy of bitcoin. </p>
 389: <p>If people are worried about deflation they really need to distinguish what kind of deflation they are referring to.</p>

<p>Asset deflation or monetary deflation.  </p>

<p>The real issue with our economy right now is the fact we have asset deflation coupled with monetary inflation which is the worst of both worlds.  I believe asset deflation along with monetary deflation would be less problematic than most people think. Maybe lemonginger was right, it is a very big concept.  We are not even talking about the further implications bitcoin will bring into contract-commercial law.  All of which I believe are a positive personally.  This is a huge subject.</p>
 27: <p>GDP would accelerate because of less transactional friction.</p>
