Lol that's not what I said. I'm saying if nations/corporations started pricing/purchasing barrels of crude in BTC. Not us regular users.
In other words, does bitcoin have the potential to become the world's reserve currency?
In other words, does bitcoin have the potential to become the world's reserve currency?
kind of..
a few years back me and a few others thought about making a website that instead of valuing bitcoin against FIAT, it was valued against a loaf of bread or a barrel of oil.
many conversations were had
EG
"do we use the 3600 coin production per day as like a minimum wage figure, divide it by numbers of unique miners to then get an average daily income amount. to then calculate bitcoin value vs real life daily spend"
in the end it came down to maths of such:
3600 coins, if there were 3600 miners then thats 1BTC a day.. minimum wage average for developed countries = £$Euro60 (average) and then pricing the food/oil in bitcoin accordingly via the FIAT prices of such commodities..
unless oil barons start taking bitcoin at a bartered price (not linked to a fiat valuation) and the same with farmers etc. the price of BTC will be linked to FIAT, so the whole treating BTC as a reserve currency wont work because bitcoin will still be linked to a fiat price.
it will take along time for BARTERING to really be a known concept and for people to no longer compare bitcoin towards a fiat value.
everyone would need to start thinking
well each day a loaf of bread is a 60th of my daily income, my electric is a 30th and my car fuel is a 6th .. if i earned 1BTC today then:
loaf of bread= 0.0166BTC
electric= 0.033BTC
car fuel=0.166BTC
and they would daily use those figures to barter for food household bills and car fuel.
meaning:
if oil barons priced oil in BTC based on MTGOX FIAT valution.. then no
if oil barons priced oil in BTC based on average bitcoin production VS oil production. then yes, bitcoin can become a reserve currency
Precisely. Basically how I would see it working out is the reverse of the current system: fiat would be valued AGAINST BTC because it would be the world's reserve currency. So instead of saying 1 BTC = $x, it would be $1 = xBTC. THAT would be the day BTC reached world reserve status. But that day has a long way before coming as dramatized so eloquently by @JackRabiit lol.
As long as there are countries, fiat can and should exist within that country.
The fundamental problem today is that the world's reserve currency is fiat, made even worse by the mind-boggling concept of interest. In other words the top bankers click a button and they create more of it which is owed back to them. Add interest to what is owed back and what happens is there is more money owed back to them than what exists in the system (money that only they can create). This is why the entire world to some extent is in a way enslaved by banks. This is explained nicely in the first two Zeitgeist movies.
