Topic: What if US Dollar Crashes? (Read 57115 times)

There is no doubt that they are considered as one of the strongest country world wide. IRC, there's a time that the US experienced economic crisis and most of the tabloids throughout the world is all about US' economy to fall. It's why they are playing a very important role to the whole world economy including those new countries and small ones.

yeah dollar actually the mother of currency , so do bitcoin are the mother of cryptocurrency. now you can imagine what would happened to the other currency if then your mother currency crashed. first of all people might wouldn't choose gold after dollar. as it has few relation only when talking about gold and currency. people would looking for the second strong currency like pounds or euro, bitcoin are still week and not yet established.

If indeed Bitcoin has indirectly dependent on the US dollar then if one crashes one must be successful and so by that analogy then Bitcoin must rise and succeed if the dollar crashes.

Yes, world economy fluctuates for a little and the countries that depend much on US will face a major economic downfall. Asian countries use the situation and try to grow potentially. Even our bitcoin price collapse, because it has indirect dependence on dollar. Finally as the above mate said such situation never happens in reality.

I am also confident that if the dollar collapses, it will negatively affect the economy of many countries. But I do not see any reason for such an event

Well, dollar can not be crashed and if this ever happens in the future, people will know about it before it occors and they will know where to move their property. Everything always change and soon, dollar will be replaced by another currency which we have not known yet. Bitcoin can be a big competitor, but there is still a long way ahead for Bitcoin to become a new world currency

I agree with you, but if the dollar crashes then there are many countries that will suffer huge losses because many countries are saving the dollar as reserve currency.  I think when dollar crashes many countries will choose gold to saving.

but i think that it is not such an easy job to replace Dollar so soon or so easily. as dollar is one of the most popular currency of the world and most of the countries of the world are using it and depending on it so there will be very little chances that Dollar will crash. i think in current time it look like impossible.

Bitcoin is the dollar of Cryptocurrency. Even though bitcoin is denominated in dollars, they are not tied together. So a crash in dollar would not necessarily lead to crash in bitcoin

it's because a lot of countries in the world believe in the power of the United States country, so countries in the world to save usd as their reserve currency. it's normal because if there is a war and destroyed their country, then they will not be poor. it is caused usd still has value. for now, if usd crash then the countries that do not have a lot of gold deposits will be poor.

I agree with you - if it happens, will suffer a lot of countries on this planet. Now many countries have focused on the dollar.
But I am confident that the dollar's collapse will not happen and we're all safe

In my follow-up post I gave an example when a government had openly stolen the savings of people

My point basically comes down to asserting that there cannot be totally out of the blue, all of a sudden collapses or confiscations. There are always very telling signs which start to appear long before the actual event. In this manner, those folks who are not lazy and gullible to sweet words from the authorities have more than enough time to convert their savings into something more resilient. My point is that Bitcoin will certainly be considered such an asset, and the dollar going to collapse will evidently cause Bitcoin prices to surge dramatically, even if over 90% of population will be impoverished in the end

It makes more sense to look at the military for preventing anything, they have assets, training, knowledge and skills to actually do something.   The federal government is in at least 20 trillion of debt, they cannot help you if the world stops buying their promissory notes.
Its really the other way round, citizens contribute alot of money to government and Washington still doesnt balance the books.   If things go bad the government want even more of your help not vice versa.



Really the point is if the tide changes we dont get to choose which way things go.   Dollars are favoured right now so alot of presumptions rely on that status quo.    I would put your scenario another way, what if they banned Dollar cheques.   No business can write cheques any more, would it be disruptive sure but not impossible to trade.
What if we banned all credit cards from usage in dollar transactions, even more upsetting to business but work arounds are possible.   How about we banned every physical cash note from use in trade, no dollar notes can be passed across a counter only alternatives.   Terrible, some people would have to alter everything but we have alot of digital bank accounts and so its possible for people to learn a different way.

What if we switched off all dollars transactions of every type, bonds, notes, digital transactions, credit cards, cheques and government issued promises including cash.   Terrible, disrupting, loss of liquidity, asset destroying, bankruptcy inducing but not impossible to trade any goods at all as theres a hundred different currencies out there.  Every credit card can operate in foreign currency, can settle its accounts with you, every shop that takes credit cards can trade with anyone who has a card even when dollar is gone.   I imagine 90% of customers would lose alot of their wealth but it'd still work on the 10% left.   
   Dollar is king, dollar is the centre of the world but change is possible and its not always a choice for any of us.

We're talking about the dollar here, this isn't the 1930's. We now have several major agencies (SEC, FED, DOL, etc) managing the money system and economy in order to prevent the world's largest economy (and then the world's economy) from collapsing.

Well it won't necessarily effect the price of Bitcoin in general, just the price against the US dollar. So those of us in the US would have a much better time with the recession.

But about your speaking of the US dollar crashing, the FED wouldn't just sit idle and watch the dollar crash and burn. They would lower the discount rate and reserve requirement to encourage bank borrowing and loaning to the public, they would also buy more OMOs to get more money in circulation. If we got ourselves into a situation in which we experience stagflation (like the 1970s) we would have to switch to supply-side economics and rely on companies trickling down.

Currencies do collapse overnight, in fact that is very common, most of the time it will begin with economic turmoil and then a bank holiday will be declared , if one is declared in your country be prepared because a big devaluation is coming.

If US Dollar Crashes, the dollars resting in our account will buy a lot less foreign currency, since the value of them will have become so low. It will be very expensive for the US to engage in international trade, because other currencies will be a lot more expensive to buy with dollars. One good thing is, there will be a lot more demand for US goods and services, which might help to increase the dollar's value again.

The emphasized part seems to be most debatable in your post

I don't even say that Bitcoin right now cannot be scaled at all to even one tenth of the dollar turnover. I'm just curious what makes you think so, now when the transaction fees are skyrocketing and confirmations sometimes take hours (even if you paid a decent fee). Further, it is debatable as well why other currencies should necessarily go down. Which of these currencies do you refer to precisely? All major currencies like the Euro, British pound, Swiss frank are set to rise if the US dollar is going to crash (that's what happens today when dollar just loses some points). You don't have to be an economist to understand that. People will run into these currencies (as well as gold and likely Bitcoin) if dollar collapses

Dollar is very influential, but I think it's replaceable like anything else. Crash of the dollar can mean a better future for the world, not right away after the crash but definitely bitcoin can make global economy better, more transparent, and cheaper to maintain and use.
In case that dollar goes down it will pull other currencies down too, except that some companies and banks will be in the trap and we can expect their closing, many people will lost jobs. Like any economic crisis, if dollar crashes we can expect chaos in next days, but after that dark sun will come.

Russian (then Soviet) government outright confiscated their citizens' money actually within a couple of days (see here for more info). But Russia had a planned economy back then, so it didn't matter much for it since it had already been mostly ruined by the time when Soviet Union was about to collapse. Now compare that situation with the US economy and its huge private sector. Outright nullifying and invalidating the dollar would mean killing the US economy and likely pave a way to another Civil war. Provided there are such daredevils in the American government in the first place

There is simply no reason (outside purely suicidal) to do anything like that