the only problem is that in the event of a global economic collapse, I'm not sure the internet would be working for very long.
Kinda difficult to trade/verify bitcoins if the internet isnt there, or is fragmented so badly you cant connect outside your country.
Topic: Holding Bitcoins during the Dollar or Euro Collapse, a hedge against inflation? (Read 1342 times)
June 13, 2011, 08:03:32 AM
June 13, 2011, 06:04:08 AM
I find it funny how people talk about Bitcoins as if they are unstable just because the value fluctuates on a single exchange.
WHEN the dollar collapses, or the Euro drops through the floor, holding bitcoins, because they are international and UNSTABLE will allow them to be traded at any price that someone needs, instead of the price that the country's backers decide the value of that local money is worth.
Is this not correct?
If I hold $10,000 dollars in paper or electronic digits in my bank account, and the dollar devalues to 50% of it's worth.....
and at the same time I hold 1000 bitcoins I bought for $10 each, the value of those bitcoins would only go up in relation to the declining dollar, at the time of it's collapse, right? Simply because people in other countries who are NOT tied to the dollar, will be willing to buy them at their countries currently high valued rate, in relation to our dollar, correct?
If I am mistaken, can someone set me straight?
Thanks!
WHEN the dollar collapses, or the Euro drops through the floor, holding bitcoins, because they are international and UNSTABLE will allow them to be traded at any price that someone needs, instead of the price that the country's backers decide the value of that local money is worth.
Is this not correct?
If I hold $10,000 dollars in paper or electronic digits in my bank account, and the dollar devalues to 50% of it's worth.....
and at the same time I hold 1000 bitcoins I bought for $10 each, the value of those bitcoins would only go up in relation to the declining dollar, at the time of it's collapse, right? Simply because people in other countries who are NOT tied to the dollar, will be willing to buy them at their countries currently high valued rate, in relation to our dollar, correct?
If I am mistaken, can someone set me straight?
Thanks!
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