If bitcoin becomes world's reserve currency? - page 4.

bangalore

full member

Activity: 143

Merit: 100

Quote from: cuddaloreappu on May 29, 2014, 02:42:42 AM

What if bitcoin (XBT) becomes the world's reserve currency and replaces the US dollar both as foreign exchange reserves and petro dollar..

Each and every country will fighting to buy bitcoins..

What will be the value of bitcoin then?

i think it can reach easily 10000$ then

Pente

hero member

Activity: 528

Merit: 527

Quote from: Aswan on May 29, 2014, 03:03:34 AM

If the bitcoin (BTC!) becomes the world reserve currency, then banks will long have adopted it. They will have scared people because of security issues when holding BTC by themselves and they will have made people deposit and transact via the banks, which in turn allows the banks to work with IOUs instead of actual BTC.
This will result in the ability to massively inflate said IOUs by just issuing more of them as debt which will have to be repaid (plus a little extra). For this to not get out of hand an institution will be appointed bitcoin reserve bank and it will be able to control the creation of said IOUs on a pace they like.
As a result, the rich will get richer and the poor will suffer.

The value of a bitcoin by then? A lot less than now because it has been massively inflated with trillions of bitcoin IOUs everyone is forced to accept as settlement of debt.

In that case, a bitcoin IOU won't be worth nearly as much as a real bitcoin. Do you remember gold backed US currency? It use to be a gold IOU.

Aswan

legendary

Activity: 1734

Merit: 1015

If the bitcoin (BTC!) becomes the world reserve currency, then banks will long have adopted it. They will have scared people because of security issues when holding BTC by themselves and they will have made people deposit and transact via the banks, which in turn allows the banks to work with IOUs instead of actual BTC.
This will result in the ability to massively inflate said IOUs by just issuing more of them as debt which will have to be repaid (plus a little extra). For this to not get out of hand an institution will be appointed bitcoin reserve bank and it will be able to control the creation of said IOUs on a pace they like.
As a result, the rich will get richer and the poor will suffer.

The value of a bitcoin by then? A lot less than now because it has been massively inflated with trillions of bitcoin IOUs everyone is forced to accept as settlement of debt.

cuddaloreappu

hero member

Activity: 756

Merit: 502

What if bitcoin (XBT) becomes the world's reserve currency and replaces the US dollar both as foreign exchange reserves and petro dollar..

Each and every country will fighting to buy bitcoins..

What will be the value of bitcoin then?

Topic: If bitcoin becomes world's reserve currency? - page 4. (Read 3171 times)