Pages:
Author

Topic: How would a world with BTC as reserve currency look like? - page 2. (Read 3814 times)

legendary
Activity: 3514
Merit: 1280
English ⬄ Russian Translation Services
Quote from: Armstrong
The Majority Are Just Fools

In 2000, Bill and Hillary Clinton owed millions of dollars in legal debt. Since then, they’ve earned over $130 million. Where did the money come from? Most people assume that the Clintons amassed their wealth through lucrative book deals and high-six figure fees for speaking gigs. Now, Peter Schweizer shows who is really behind those enormous payments.

I was asked to review the documents when Hillary amazingly made hundreds of thousands of dollars trading futures at the same precise time she was in meetings. Her lawyer had an account at the same firm and a trade would be put on but left open until the end of the day. It would be a spread long and short the same commodity. At the end of the day, the losing trade went to her lawyer and the win into her account. Today, that is called money laundering.

This is why society must crash and burn. It is just too damn corrupt and the majority are simply sheep who believe whatever they say. The politicians know the people are stupid and the press is on their side. So how can we reform without being forced? Sorry, it is just impossible.

Why beat about the bush (no pun)? Did Hillary say something astonishingly new or truly insightful? Or is this society somehow more corrupt, and the majority of people are more sheep-like than they were through out the human history on average? If we see something today, does it mean that when we didn't see it, it didn't exist or happen?

These are actually rhetorical questions...
member
Activity: 98
Merit: 10
---------------------------- Original Message ----------------------------
Subject: Mar 17: the majority are ALWAYS wrong (Hillary Clinton)
Subject: Mar 17: the majority ALWAYS fights their own shadow (Hillary Clinton)
From:    iamback
Date:    Tue, March 17, 2015 10:36 am
To:      "Armstrong Economics" <[email protected]>
--------------------------------------------------------------------------


...there would be an uprising if people realized how much money our governments waste on a daily basis.

No the people love all that spending. They would clamor to get their slice of the spending too.

And then blame “the 1%” for the problem, i.e. the “99% versus the 1%” Hegelian Dialectic (ain’t it hilarious to see the masses blaming their shadow and not realizing it).  Roll Eyes

Politicians are also quite clever in hiding their sources of ill gotten wealth:

http://armstrongeconomics.com/2015/03/17/the-majority-are-just-fools/

Quote from: Armstrong
The Majority Are Just Fools

In 2000, Bill and Hillary Clinton owed millions of dollars in legal debt. Since then, they’ve earned over $130 million. Where did the money come from? Most people assume that the Clintons amassed their wealth through lucrative book deals and high-six figure fees for speaking gigs. Now, Peter Schweizer shows who is really behind those enormous payments.

I was asked to review the documents when Hillary amazingly made hundreds of thousands of dollars trading futures at the same precise time she was in meetings. Her lawyer had an account at the same firm and a trade would be put on but left open until the end of the day. It would be a spread long and short the same commodity. At the end of the day, the losing trade went to her lawyer and the win into her account. Today, that is called money laundering.

This is why society must crash and burn. It is just too damn corrupt and the majority are simply sheep who believe whatever they say. The politicians know the people are stupid and the press is on their side. So how can we reform without being forced? Sorry, it is just impossible.
legendary
Activity: 2002
Merit: 1016
Hey guys,

I was thinking about how the world would change if it used BTC as reserve currency in the future.

- What would need to change for this to happen?
- What would change once it actually is used for it?
- What would be the benefits of this?
- What would be the downside of this?

Lets hear some answers, then I will tell what I think will change. I don't want to bias this thread!




Being able to track and see what your bitcoin taxes are being spent on (by the government) would be interesting to say the least.

Browsing through the financial records of all politicians would surely be an eye-opener Smiley

They wouldn't allow for such transparency. They would probably use a mixer or something.


You're probably right, there would be an uprising if people realized how much money our governments waste on a daily basis.

full member
Activity: 168
Merit: 100
Imagine Greece without the €. Cost of borrowing would be huge.

The cost of borrowing of Greece is not low now, even with the Euro.
Even if there is no currency risk (because Greece borrows in Euros), investors factor in a premium for counterparty credit risk.

http://www.bankofgreece.gr/Pages/en/Statistics/rates_markets/titloieldimosiou/titloieldimosiou.aspx

According to the Bank of Greece site, the current yield on 3-year Greek bonds is ~13% and has crossed 20% in the last 2 months. This is not cheap at all.  Smiley

It is. Borrowing would much more expensive, and nearly impossible, if Greece leaves the €.

Greece will leave, then spain, then portugal, then italy...
legendary
Activity: 3066
Merit: 1047
Your country may be your worst enemy
Imagine Greece without the €. Cost of borrowing would be huge.

The cost of borrowing of Greece is not low now, even with the Euro.
Even if there is no currency risk (because Greece borrows in Euros), investors factor in a premium for counterparty credit risk.

http://www.bankofgreece.gr/Pages/en/Statistics/rates_markets/titloieldimosiou/titloieldimosiou.aspx

According to the Bank of Greece site, the current yield on 3-year Greek bonds is ~13% and has crossed 20% in the last 2 months. This is not cheap at all.  Smiley

It is. Borrowing would much more expensive, and nearly impossible, if Greece leaves the €.
member
Activity: 98
Merit: 10
By definition a reserve currency means offchain transactions are not performed in reserve currency.

If instead the currency is used for all transactions, then there are no more national central banks and thus no FX reserves.

Please make up your mind what this is thread is about. The thread title says "reserve".
legendary
Activity: 3514
Merit: 1280
English ⬄ Russian Translation Services
Hey guys,

I was thinking about how the world would change if it used BTC as reserve currency in the future.

- What would need to change for this to happen?
- What would change once it actually is used for it?
- What would be the benefits of this?
- What would be the downside of this?

Lets hear some answers, then I will tell what I think will change. I don't want to bias this thread!

Being able to track and see what your bitcoin taxes are being spent on (by the government) would be interesting to say the least.

Browsing through the financial records of all politicians would surely be an eye-opener Smiley

They wouldn't allow for such transparency. They would probably use a mixer or something.

Using a mixer should be considered as high treason with all ensuing consequences including confiscation of bitcoins. Splitting coins between several wallets should also entail a forfeit penalty without exceptions...
legendary
Activity: 1204
Merit: 1028
Hey guys,

I was thinking about how the world would change if it used BTC as reserve currency in the future.

- What would need to change for this to happen?
- What would change once it actually is used for it?
- What would be the benefits of this?
- What would be the downside of this?

Lets hear some answers, then I will tell what I think will change. I don't want to bias this thread!




Being able to track and see what your bitcoin taxes are being spent on (by the government) would be interesting to say the least.

Browsing through the financial records of all politicians would surely be an eye-opener Smiley

They wouldn't allow for such transparency. They would probably use a mixer or something.
legendary
Activity: 2002
Merit: 1016
Hey guys,

I was thinking about how the world would change if it used BTC as reserve currency in the future.

- What would need to change for this to happen?
- What would change once it actually is used for it?
- What would be the benefits of this?
- What would be the downside of this?

Lets hear some answers, then I will tell what I think will change. I don't want to bias this thread!




Being able to track and see what your bitcoin taxes are being spent on (by the government) would be interesting to say the least.

Browsing through the financial records of all politicians would surely be an eye-opener Smiley
member
Activity: 98
Merit: 10
Q7
sr. member
Activity: 448
Merit: 250
- What would need to change for this to happen?
I don't know if that is going to happen in the first place. If it were, maybe the biggest concern is on the security part and how cold storage will work out here. Also Bitcoin needs to have worldwide adoption. People's mindset and perception need to change and not to link bitcoin towards illegal activities.

- What would change once it actually is used for it?
Oh, certainly the price will go up. There will be huge demand.

- What would be the benefits of this?
Bitcoin will be an alternative to gold.

- What would be the downside of this?
Not that I can see.
legendary
Activity: 1918
Merit: 1012
★Nitrogensports.eu★
Imagine Greece without the €. Cost of borrowing would be huge.

The cost of borrowing of Greece is not low now, even with the Euro.
Even if there is no currency risk (because Greece borrows in Euros), investors factor in a premium for counterparty credit risk.

http://www.bankofgreece.gr/Pages/en/Statistics/rates_markets/titloieldimosiou/titloieldimosiou.aspx

According to the Bank of Greece site, the current yield on 3-year Greek bonds is ~13% and has crossed 20% in the last 2 months. This is not cheap at all.  Smiley
legendary
Activity: 3066
Merit: 1047
Your country may be your worst enemy
That would bring huge changes, with countries unable to run a deficit.

That would call for an entire new class of politicians, as those who are in power now have no idea of what a balanced budget is.


You could still borrow BTC. Or work with a token that could be redeemed for  BTC.

Govt will always be running some kind of fractional reserve. Don't you think?

Imagine Greece without the €. Cost of borrowing would be huge.
hero member
Activity: 900
Merit: 1014
advocate of a cryptographic attack on the globe
Old money won't let this happen, since this will necessarily bring forth redistribution of real wealth, and the wealthy elites won't be happy up to the point of physically eradicating the new competition. So, for this to happen (that is for a world with BTC as a reserve currency to come about), you first need to strip the global elite of their power. In the past this happened through natural disasters (like epidemics, famine,  catastrophes, etc) or warfare...

No, why can't they just invest in bitcoin too? They are capitalists aren't they, they should adjust themselves to the market situations.

Sure now they have total control over the monetary system, but if they buy enough bitcoins they can control the bitcoin network too. They own the capital, they can control, simple as that.

They won't lose their power only if they are utterly stupid to wait until it completely takes over. If they are smart they invest in it now, which they probably do, hidden of course.

If they already have total control over the monetary system, why would they need anything else? Until they see a threat to their position, they won't do anything. The question is why you think bitcoin somehow threatens them. The bitcoin market is minuscule at best and it doesn't grow, so why should they care?

They don't need it, but we do. And eventually bitcoin will take over, so they will have no choice but to adapt or perish. So if they are smart, and they are, they will just probably invest in it, and then take over bitcoin by owning a big market share.

This is called wishful thinking. You say that eventually bitcoin will take over, but how come that it had fallen from over 1,100$ per coin to around $250 (and sits there for now)? This is surely not what you would expect from a deflationary coin that is going to take over the world... Was it a false start?

It's currently in an inflationary era of around 10% this year. Let's revisit the price around the time of the next halving. But yes, we are all guilty of wishful thinking (I know I am).
legendary
Activity: 3514
Merit: 1280
English ⬄ Russian Translation Services
Old money won't let this happen, since this will necessarily bring forth redistribution of real wealth, and the wealthy elites won't be happy up to the point of physically eradicating the new competition. So, for this to happen (that is for a world with BTC as a reserve currency to come about), you first need to strip the global elite of their power. In the past this happened through natural disasters (like epidemics, famine,  catastrophes, etc) or warfare...

No, why can't they just invest in bitcoin too? They are capitalists aren't they, they should adjust themselves to the market situations.

Sure now they have total control over the monetary system, but if they buy enough bitcoins they can control the bitcoin network too. They own the capital, they can control, simple as that.

They won't lose their power only if they are utterly stupid to wait until it completely takes over. If they are smart they invest in it now, which they probably do, hidden of course.

If they already have total control over the monetary system, why would they need anything else? Until they see a threat to their position, they won't do anything. The question is why you think bitcoin somehow threatens them. The bitcoin market is minuscule at best and it doesn't grow, so why should they care?

They don't need it, but we do. And eventually bitcoin will take over, so they will have no choice but to adapt or perish. So if they are smart, and they are, they will just probably invest in it, and then take over bitcoin by owning a big market share.

This is called wishful thinking. You say that eventually bitcoin will take over, but how come that it had fallen from over 1,100$ per coin to around $250 (and sits there for now)? This is surely not what you would expect from a deflationary coin that is going to take over the world... Was it a false start?
sr. member
Activity: 1148
Merit: 252
Undeads.com - P2E Runner Game
Old money won't let this happen, since this will necessarily bring forth redistribution of real wealth, and the wealthy elites won't be happy up to the point of physically eradicating the new competition. So, for this to happen (that is for a world with BTC as a reserve currency to come about), you first need to strip the global elite of their power. In the past this happened through natural disasters (like epidemics, famine,  catastrophes, etc) or warfare...

No, why can't they just invest in bitcoin too? They are capitalists aren't they, they should adjust themselves to the market situations.

Sure now they have total control over the monetary system, but if they buy enough bitcoins they can control the bitcoin network too. They own the capital, they can control, simple as that.

They won't lose their power only if they are utterly stupid to wait until it completely takes over. If they are smart they invest in it now, which they probably do, hidden of course.

If they already have total control over the monetary system, why would they need anything else? Until they see a threat to their position, they won't do anything. The question is why you think bitcoin somehow threatens them. The bitcoin market is minuscule at best and it doesn't grow, so why should they care?

They don't need it, but we do. And eventually bitcoin will take over, so they will have no choice but to adapt or perish. So if they are smart, and they are, they will just probably invest in it, and then take over bitcoin by owning a big market share.

Which i am fine with, because it will be atleast transparent and they cant do the QE anymore...

They will build all their derivative empire back, but this time it will be a legit foundation, and bitcoin will probably be a reserve currency, de facto, because they won't admit it, but de-facto it will be.

Yes some of them will feel threatened, and they will fight back, but eventually they will switch to bitcoin because it's just way more convenient, and people will become more productive this way...
legendary
Activity: 3514
Merit: 1280
English ⬄ Russian Translation Services
Old money won't let this happen, since this will necessarily bring forth redistribution of real wealth, and the wealthy elites won't be happy up to the point of physically eradicating the new competition. So, for this to happen (that is for a world with BTC as a reserve currency to come about), you first need to strip the global elite of their power. In the past this happened through natural disasters (like epidemics, famine,  catastrophes, etc) or warfare...

No, why can't they just invest in bitcoin too? They are capitalists aren't they, they should adjust themselves to the market situations.

Sure now they have total control over the monetary system, but if they buy enough bitcoins they can control the bitcoin network too. They own the capital, they can control, simple as that.

They won't lose their power only if they are utterly stupid to wait until it completely takes over. If they are smart they invest in it now, which they probably do, hidden of course.

If they already have total control over the monetary system, why would they need anything else? Until they see a threat to their position, they won't do anything. The question is why you think bitcoin somehow threatens them. The bitcoin market is minuscule at best and it doesn't grow, so why should they care?

Also, how can bitcoin possibly take over, if these elites control both money flows and the sources that give birth to these flows?
sr. member
Activity: 1148
Merit: 252
Undeads.com - P2E Runner Game
Old money won't let this happen, since this will necessarily bring forth redistribution of real wealth, and the wealthy elites won't be happy up to the point of physically eradicating the new competition. So, for this to happen (that is for a world with BTC as a reserve currency to come about), you first need to strip the global elite of their power. In the past this happened through natural disasters (like epidemics, famine,  catastrophes, etc) or warfare...

No, why can't they just invest in bitcoin too? They are capitalists aren't they, they should adjust themselves to the market situations.

Sure now they have total control over the monetary system, but if they buy enough bitcoins they can control the bitcoin network too. They own the capital, they can control, simple as that.

They won't lose their power only if they are utterly stupid to wait until it completely takes over. If they are smart they invest in it now, which they probably do, hidden of course.


The only thing bitcoin will do it create transparancy. Yes the CB thieves can't rob us anymore trough inflation, but the legitimate investors can still hold a good market share on it, so capitalists wont be hurt.

See bitcoin is pro capitalism, not anti, so all true capitalist can jump on the ship with us aswell. As for the looting thieves in the banking cartel, they have no choice but to find a more legit profession. The market no longer needs their looting service  Wink
legendary
Activity: 3514
Merit: 1280
English ⬄ Russian Translation Services
Old money won't let this happen, since this will necessarily bring forth redistribution of real wealth, and the wealthy elites won't be happy up to the point of physically eradicating the new competition. So, for this to happen (that is for a world with BTC as a reserve currency to come about), you first need to strip the global elite of their power. In the past this happened through natural disasters (like epidemics, famine,  catastrophes, etc) or warfare...
legendary
Activity: 1918
Merit: 1012
★Nitrogensports.eu★
Hey guys,

I was thinking about how the world would change if it used BTC as reserve currency in the future.

- What would need to change for this to happen?
- What would change once it actually is used for it?
- What would be the benefits of this?
- What would be the downside of this?

Lets hear some answers, then I will tell what I think will change. I don't want to bias this thread!

Downside to this - loss of monetary flexibility.
There was a period of time when essentially the reserves of central banks was held in the form of gold. The Bretton Woods system tied the exchange rate of every currency to a known weight of gold. The effect of using Bitcoin as reserve currency would essentially be something similar. We know that all countries decided to drop the peg of their currencies to gold eventually.
Pages:
Jump to: