In the long term it would probably damage the dollar but in the short term demand for dollars would still exist (to pay private debts, make payroll, etc) while the supply would have been drastically reduced.
In a debt default scenario dollars to become priceless before they become worthless.
Topic: US Default = Rise in BTC price or fall in BTC price? - page 2. (Read 3220 times)
Debt default is deflationary.
If all the US federal government debt all of a sudden became worthless then all those bonds would no longer be good collateral for loans so you'd see a severe credit contraction and the price of the dollar would go up.
If all the US federal government debt all of a sudden became worthless then all those bonds would no longer be good collateral for loans so you'd see a severe credit contraction and the price of the dollar would go up.
Don't forget the lapse in trust that would occur if the US thought it was okay to screw over bondholders. The faith in the dollar itself would be damaged to the extreme.
Debt default is deflationary.
If all the US federal government debt all of a sudden became worthless then all those bonds would no longer be good collateral for loans so you'd see a severe credit contraction and the price of the dollar would go up.
If all the US federal government debt all of a sudden became worthless then all those bonds would no longer be good collateral for loans so you'd see a severe credit contraction and the price of the dollar would go up.
physical gold and bitcoin will rule than, silver, tuna and led too, probably
If the US defaulted on their debt, the dollar would be useless. I doubt people would then seek refuge in fancy green toilet paper. In this extreme scenario, I would favor bitcoin.
What happens to the BTC if the US Defaults on it's national debt? It appears that this has the possibility of actually happening. If/when the US default happened trillions of foreign holdings would evaporate overnight. It would result in a worldwide depression and almost certainly lead to WW3. This might be something that the US ruling elite wants as the US empire is rapidly in decline and former countries previously under the Empire's thumb are seeking to ally themselves with China, Russia, the EU or a combination thereof. Rather than let the Empire die and have us turn to something resembling a Republic I believe they are seriously considering a default (much like 'default' of British gold payments in 1931, which at the time was a world reserve currency) which plunged the world from a long term 'Recession' into the abyss of total collapse.
My question, if this happened would Bitcoin be a haven of one's value? Would people flee the dollar into Bitcoin?
Or, would there be a panic sell-off so people could pull money out? Perhaps as a true panic or something prompted by domestic USD deflation where people would have to pull out of BTC to make ends meet?
Thoughts?
My question, if this happened would Bitcoin be a haven of one's value? Would people flee the dollar into Bitcoin?
Or, would there be a panic sell-off so people could pull money out? Perhaps as a true panic or something prompted by domestic USD deflation where people would have to pull out of BTC to make ends meet?
Thoughts?
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