Topic: If the dollar/fiat was worthless! - page 3. (Read 604 times)

bro, you just dropped a banger of a question about bitcoin. What if the greenback went boom? It would be mayhem! But let's be honest, it's not gonna happen. Bitcoin is a free currency, man. No government or group controls it. It's for the people, by the people. The price of bitcoin is based on how much people want it. So, if the greenback lost all its value, other currencies would step up, and bitcoin could be the next big thing. As for the sack of potatoes, man, who knows how much it would cost in a world without the greenback? But it's gonna be pricey, that's for sure. Time to start stocking up on chickens, amirite?

Depends if people and governments would choose to move in digital currencies such as Bitcoin as an alternative but at this moment, such thing would seem to still be impossible. The decline with the value of fiat currencies are due to economic situation at this point in relation with inflation across different countries. Also, there are many crypros to choose from which has a more stable value, then how can we assure that they'd choose bitcoin over the others then? Its impact with this industry is for sure a spike on its value but won't be continuous. Also, for sure government of U.S. won't allow its currency, one with the biggest ones, to be worthless so they'd probably do something about it. Bitcoin is not ready yet to be a mode of payment to normal citizens, and this is because of instability with its value wwherein a problem may arise afterwards.

As you say, there is only one possibility that bitcoin will become the world currency recognized by all governments. That sounds unlikely because countries like the US or China they have very strong currencies, they would never let that happen. Even if USD goes to zero, there will be a new currency to replace and everything will be measured in it, bitcoin is no exception.

Bitcoin's decentralized nature and limited supply make it a unique and valuable asset class that can be used as a store of value and investment. While the value of the US dollar may decline over time, BTC's value is not directly tied to any specific currency or region. As such, BTC can continue to hold value even if the US dollar were to become worthless. So, BTC's fixed supply makes it a potential hedge against inflation, which is a concern with traditional fiat currencies. It is important to understand that Bitcoin is a complex asset with its own set of risks and benefits, but it is not simply a currency that is subject to the same market forces as fiat currencies.

Yeah it goes that way, right now fiat is getting less and less valuable and it has been for the past 3 years or so, and we just need to realize that bitcoin gained value thanks to that. Back in the day 20k was our highest price in 2017 December, and up until 2020 we haven't seen above that, and right now we are "crashed" at 28k, that alone should be a big example, we reached as high as 68k which is a proof that we have done as well as we could hope for.

That's more than enough for me and I think that dollar (and all other fiats) will lose value and we are going to end up with something much better for bitcoin price, the more these fiats lose value the more price bitcoin gains and we will break above the current ATH very soon, in a few years time.

If Bitcoin is a commodity which only traded in US territory, it's true when Dollar turn to be worthless, Bitcoin will become worthless too. But Bitcoin is a currency and it can be trade in anywhere, so when the Dollar turn to be worthless, it will not affect Bitcoin price because people it doesn't have any relation with Bitcoin. Dollar is already worthless, you can check the buy power of $1 in 1800 and $1 in 2023 is completely different. But many people still use it because the price is still same even though the buy power is already different.

Organizing the economy and making transitions in which there will be absolutely no damage is a super difficult thing because the thinking of every human being at this point is not always the same so that one cannot apply the same thinking to this matter. Because as long as there are one or two people who still want to create chaos in the economic sector for their own sake, of course there will always be damage to this sector and there is no smooth word in it.

Then Bitcoin or any other crypto currency by then would probably have too little to no value at all. People who still owns them would only probably see them as collectibles that hold historical value because having such a scenario happen would mean that the whole world is already on its worse state. Meaning, the only thing that would probably be used to get services, things or food would be trading for whatever each party needs, like basic necessities, services or whatever. And if ever, people would rather utilize gold, silver and any other valuable natural resources more rather than crypto.

Yes, what you said is correct, but I do not mean that the dollar can go to zero in reality, but this is just an assumption.

Yes, the dollar continues to decline due to more and more printing, so its purchasing value will continue to decline, while Bitcoin, on the contrary, has a limited quantity, so it either maintains the value or rises continuously with the decline of the dollar.

I mean, in the end, even if the dollar completely ceased to exist, this would not be a problem for Bitcoin, because Bitcoin has its value in it.

Treasures are generally considered as money while USD is a currency. People would use money to get anything they need, bitcoin is a currency authorized by a decentralized network and not to be seen as a means to solve the problem if USD goes to zero, as it's not generally accepted by everyone in the world. Hence, in a situation like this people can run back to treasures like silver, gold, oil etc as means of transaction. These natural resources are needed by everyone in everyday life, so people with the most treasures will be considered rich, I don't think everyone would run back to bitcoin if fiat goes to zero. Bitcoin can be affected too if that happens looking at how fragile bitcoin is and how it gets affected if the world economy is in trouble. Bitcoin is an alternative, yet I don't see a world where everyone will use bitcoin as the only means of transaction. Gold, and silver have been existing as money worldwide and it has never been recorded anywhere that everyone in the world accepted only gold. Anything can be money depending on the two persons involved in the transaction, between Julius Caesar exchanged his Daughter to Pompey for thousands of Legions as bride price. In a nutshell, don't feel disappointed, but the world can't run completely back to bitcoin as the only means of transaction, it's impossible. That's why you cant rap it around your head how it'll occur for everyone to own bitcoin and transact with bitcoin. I thought about it too.

Dollar cannot go to zero; instead, its value and purchasing power will keep depreciating. more dollars will be required to buy less bitcoin. For example, if $1000 was used to buy 0.02 BTC in 2021, in the future, as the demand, value, and price of bitcoin will continue to increase, even $5000 may not be able to buy 0.02 BTC. Well, it's just a mere speculation, but also something that could turn out to be true. Currently, 0.02 bitcoin is worth $558, but if the bull market creeps in and 1 bitcoin begins to trade for $80,000, someone will need $1600 to buy the same 0.02 bitcoin.

1BTC will always be worth 1BTC even if the dollar goes to 0.

This is my opinion and the opinion of many here who believe in Bitcoin. It is true that at the present time we are always forced to compare Bitcoin with the dollar or another fiat, but I am optimistic that in the near future we will not have to compare.

At that time, you could buy anything via Bitcoin directly without exchanging it for a dollar or any other fiat. This may seem difficult at the present time, but I am sure that this will happen in the future.

Perfect! So everyone that could not provide any services or sell any goods would not have the posibilites to buy bitcoin at that time. This would make the transition to the time where fiat is no more very complicated... while there are probably 1000 other things to be worried about at that time.

But lets say we would want the world's economy to be completely decentralized with no fiat, and no inflation politics. How could we create a smooth transition where there won't a complete havock?

Yeah, and that is a big problem. Lets say you had some sort of mechanism that would give that bag of cement a given value, and it will allways be that value. a bag of cement will allways cost a bag of cement. So if the Nigerian 1000 Note was like bitcoin, it would be more worth in the future because of its deflationary effect. That would mean that in time you could buy two bags of cement 1 for that 1000 Note.

We can look into that in theory, if all fiat currency goes 0 valuations, and only Bitcoin has worth, then as I stated, 1B=1B.  Depending on the Bitcoin market valuation, fiat currency now has no purchasing power since all of them goes 0 in value, then Bitcoin will be the global currency and can be used to purchase goods and services.   The worth of Bitcoin depends on the market valuation and how much to pay for 1 loaf of bread is dependent on that.  

Bitcoin can't be interpreted in any fiat currency since the situation, in theory, is stated that all went to shit, meaning fiat currencies are equivalent to 0 valuations.  We cannot give any conversion if one factor is equivalent to 0.

Great answer! What kind of system could we create for a smooth transition were everything would be valued by something other then fiat which would not be affected by inflation?

That's exactly the problem with fiat currency, the currency always looses value overtime and this always result to massive inflation in the economy where as bitcoin always reflect the opposite of inflation as more adopt it and that's what makes it very unique. Let me use the fiat currency in my country for example, before now like a decade ago the Nigerian 1000 note can actually get you a bag of cement and some buildings materials but due to the excessive printing of the currency it has lost it value totally as you cannot even get a good meal at the restaurant with your 1000 naira note.

What people did back in the day when there were no currency? They traded goods for goods. It's all about demand and necessity. If you need 2 potatoes, but the only option you have is to trade 3/4 onions. And that's the only option you have in this situation. So you will be willing to trade that for the 2 potatoes. Because you need it.
So if you compare that potatoes and onions with Bitcoin and goods, then you can easily value it without the help of USD. It's just easy to do it if you compare the value of BTC with USD. That's why people do it. We just need a new system and calculation for every item with BTC's value, and then you can get the actual value of BTC.

I may have explained in a complicated way. But it is what it is. Demand is the key for value.

  -   You said this accurately and correctly, because maybe others thought that when the value of the dollar goes to zero, a Bitcoin will also have a zero value.

They maybe think that bitcoin was only dependent on the value of the dollar, then there would be no exchange happening now between Bitcoin to Euro, Bitcoin to Yuan, and other fiat in different countries, meaning even if the dollar has zero value, we can still exchange bitcoin for another currency/fiat to become real money.

Bitcoin price isn't pegged to just dollar and I don't know what might happen to dollar accepted countries if Bitcoin drops to zero but I think it might increase the demand for Bitcoin which possibly might increase the price of Bitcoin as well..
Remember Bitcoin is a decentralized digital currency and as such has several other importance like serving as means of payment, investment and also as an asset for the future.
Just as others have stated that one of the major reason why most currencies loss it's value is the excessive printing of those currencies making it's supply much more than the demand and you should also know that Bitcoin has a limited supply and it's volatile which means it can easily fall or rise.