We keep referring to crypto markets in terms dollars and euros - "how much does a BTC cost in dollars or Euros. How much is a BTC worth (in dollars)?"
But think of this...
When the dollar crashes again, (because we learned nothing from 2008) - people will be upset and will say: "BUT bitcoin is worth 10,000 dollars! I lost all my money!"
This is the wrong way to think about it. ...
We keep seeing bitcoin as an alternative to dollars or euros, etc., but Cryptocurrencies will be the basis from which all other fiat currencies will be calculated. We will calculate the worth of a dollor or euro or yuan... in Bitcoin.
This won't happen very soon, it may take a while - but it will happen. It's inevitable.
You cannot inflate or deflate a virtual currency, which finds it's base value with the millions of users on the network - who have demonstrated proof of work. Proof of work is value.
This is the true value of calculation.
Wall Street will end... at least as we know it.
Say you have '$1000 dollars' worth of bitcoin and let's say it's equal to .25 BTC for simplicity.
When the dollar inflates so much that the value goes from $1000 to $5 dollars, you're still left with .25 BT
...Which is ultimately worth whatever it's worth in purchasing power, in any currency.
QUIZ:
1. Do you all think this will happen gradually or all at once?
2. When (not if) the dollar does crash, most people will make a run on the banks... but seems that right before hyper-inflation, would be good to load up on Bitcoin. How are you handling this with your money?
3. When do you expect this to happen (no messing around, want serious replies)
Topic: Bitcoin's Purchasing Power - Finally an Answer (Read 211 times)
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