Kuwait finance firm suggests trading oil in bitcoins - page 2.

Marlo Stanfield

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Quote from: IIOII on July 01, 2014, 01:34:47 PM

Quote from: DannyElfman on July 01, 2014, 01:10:53 PM

I would doubt this would ever happen. The reason oil is traded in dollars is because the dollar is so widely traded and the dollar market is so liquid.

There is more oil traded in a day (in terms of market price) then the market cap of bitcoin is. This would result in constant huge swings in price of bitcoin as people try to move in and out of oil.

These factors will change. The dollar will loose liquidity and bitcoin will gain liquidity (massively). Of course this will not happen overnight. Step by step "apostate" countries will leave the dollar sphere, thereby decreasing the importance of USD as reserve currency.

You're reversing cause and effect in your argument: The USD is widely traded and liquid, because oil is traded in dollars. Not the other way around.

Yeah, things would be quite a bit different if oil was traded in a currency other than USD. That is definitely one of the major things that support the USD's spot as the world reserve currency.

IIOII

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Quote from: DannyElfman on July 01, 2014, 01:10:53 PM

I would doubt this would ever happen. The reason oil is traded in dollars is because the dollar is so widely traded and the dollar market is so liquid.

There is more oil traded in a day (in terms of market price) then the market cap of bitcoin is. This would result in constant huge swings in price of bitcoin as people try to move in and out of oil.

These factors will change. The dollar will loose liquidity and bitcoin will gain liquidity (massively). Of course this will not happen overnight. Step by step "apostate" countries will leave the dollar sphere, thereby decreasing the importance of USD as reserve currency.

You're reversing cause and effect in your argument: The USD is widely traded and liquid, because oil is traded in dollars. Not the other way around.

DannyElfman

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I would doubt this would ever happen. The reason oil is traded in dollars is because the dollar is so widely traded and the dollar market is so liquid.

There is more oil traded in a day (in terms of market price) then the market cap of bitcoin is. This would result in constant huge swings in price of bitcoin as people try to move in and out of oil.

IIOII

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That is really encouraging news!

Quote from: waldox on July 01, 2014, 11:37:25 AM

watch the usa invade kuwait for not selling their oil with usd fiat
on trumped up terrorist actions

Unfortunately this really could happen if kuwait has no powerful allies. But I think they will form a coalition with other countries before taking any steps to replace the USD as trade currency.

jbrnt

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Imagine crude and brent oil are quoted in bitcoin! The day that happens, gold quotes in bitcoin is not far away. That will be a heavy blow to the dollar. Oil traders would have to buy our bitcoin to buy crude oil! I know quote in bitcoin doesn't mean settlement in bitcoin, but then just the thought of that is mind blowing. Shocked

ArticMine

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Monero Core Team

Quote from: ?? on ??

Quote from: Carlton Banks on July 01, 2014, 10:19:10 AM

One way or another, the US establishment will suggest not to. I hope they do it though.

Would Make sense for US to do this as they are sitting on 144k of DPRs coins that cant be sold to public until case is over. Image if the 29k coins just sold where traded for oil instead of at public auction.

The scenario is that after being tied up in the courts for years the 144K BTC from DPR finally become the property of the US Government. In the meantime the price of bitcoin goes to say 2,000,000 USD in 2014 USD and the 144K BTC now owned by the US treasury are worth more than all the gold the US treasury "supposedly" owns.

waldox

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watch the usa invade kuwait for not selling their oil with usd fiat
on trumped up terrorist actions

Marlo Stanfield

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That will be the day. Good idea but the chances of this happening any time soon are close to zero I think.

It would be interesting to see what would happen though.

Justine

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US might invade Kuwait for abandoning dollar for bitcoin.

Carlton Banks

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One way or another, the US establishment will suggest not to. I hope they do it though.

protokol

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Quote

Before any barrel will ever be paid for in bitcoins, it will be the Chinese yuan that has taken on the role as the dollar’s challenger. China already pays Russia’s and Iran’s oil in yuan and is busy setting up yuan clearing houses in major financial centres all over the world to facilitate the global money flow of its currency. This is, for now, probably a much better solution until the world knows what will rally happen to bitcoin.

Freudian slip?? Grin

Dogtanian

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Now that would be a great success for bitcoins if oil companies started trading in them. Makes me excited to see what other industries could take advantage or deal in btc.

cryptocurrencylive

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Kuwait finance firm suggests trading oil in bitcoins

http://www.gulf-times.com/eco.-bus.%20news/256/details/398622/kuwait-finance-firm-suggests-trading-oil-in-bitcoins

Topic: Kuwait finance firm suggests trading oil in bitcoins - page 2. (Read 2371 times)