Topic: Backing Fiat with Bitcoin...A possibility? - page 2. (Read 219 times)
It will not be a good one because bitcoin just started to exist for 14yrs now, and nobody can tell what the future holds for bitcoin. However, bitcoin is risky to use as a reserve and back up to fiat, because of its high volatile nature. Gold has already been known to be a safe haven and we know that it has come to stay from generation to generation. Making it more known as a store of value by everyone. Maybe with time, when I mean with time, after a long period of time when bitcoin has survived, some countries can consider using it as a back up to fiat.
It's a gamble. Something can easily go wrong with $30billion worth of National bitcoins (that can't be reversed if stolen) hidden somewhere unlike $30billion worth of gold.
Better to backup with natural, tangible, physical & long-lasting resources that nations can control without the internet .
How about investing in both assets, I mean, gold and Bitcoin at the same time will create a much better combo of reserves. Diversifying backed up funds in multiple assets makes it very effective for me but yeah for some it is risky but atleast we still has gold on the other hand. Do we really think some countries like Russia, China, North Korea and others are not investing in Bitcoin for their reserves? What do you think? Better to backup with natural, tangible, physical & long-lasting resources that nations can control without the internet .
It's a gamble. Something can easily go wrong with $30billion worth of National bitcoins (that can't be reversed if stolen) hidden somewhere unlike $30billion worth of gold.
Better to backup with natural, tangible, physical & long-lasting resources that nations can control without the internet .
Better to backup with natural, tangible, physical & long-lasting resources that nations can control without the internet .
Do you think this is a possibility? If not, why? What will happen to the global economy if major Fiat currencies are tied to the value of Bitcoin? Will it prosper?
Did you see how tether did it? Just like 5% of USDT is backed by bitcoin. If the government also back just little amount of the reserve in bitcoin, it would be good. The long term outcome would be positive. If bitcoin stayed for many decades, the government of some countries will see it as a viable means to store part of their reserves. Countries like El Salvador that have bought bitcoin earlier will enjoy the benefit. 
What if someday central banks like the FED and the ECB decide to back their currencies with Bitcoin? If the FED used to back the USD with Gold, then what's stopping them from doing the same with BTC?
Do you think this is a possibility? If not, why? What will happen to the global economy if major Fiat currencies are tied to the value of Bitcoin? Will it prosper?
Your input would be greatly appreciated. Thank you.
Do you think this is a possibility? If not, why? What will happen to the global economy if major Fiat currencies are tied to the value of Bitcoin? Will it prosper?
Your input would be greatly appreciated. Thank you.
Jump to: