Topic: Will Bitcoin hasten the collapse of the US dollar? - page 2. (Read 2925 times)

Fixed that for you

Every nuclear fallout cloud has a glowing silver lining.

The Dollar will collapse just fine on its own.

But, that will increase, or has increased the value of bitcoin.  We owe some gratitude to the policies of Central Bankers around the globe and lots of thanks should go out to the EU and the Governments of Europe (Thanks Germany.  Thanks for screwing Cyprus to bail out Greece!)

Bitcoin:  How I Stopped Worrying and Learned to Love The Fed.

This is ridiculous.
By the way borrowing to buy bitcoin, hide them and then default is a fraudulent bankruptcy and would get you jail time in many countries.

I doubt the dollar is involved in any sort of tipping point w/ bitcoin. More likely the Euro or Yen between what's happened in Cyprus and the BOJ's insisting on a 2% inflation target for the yen "at all costs"

That's a billion dollar question you've got on your hands

Bitcoins are a definite must in the future.

The future seems like a place where I will need my bitcoins.

Hopefully my bank doesn't read that

...

10. People begin using loans/credit to purchase untraceable Bitcoins, and then declare bankruptcy

...

GENIUS!

Chop chop!

We are working on it 

Will Bitcoin hasten the collapse of the US dollar?

Here are some facts about the USA economy to consider
1. More money is owed in debt than exists
2. The only way to liquidate debt is through bankruptcy
3. If the government defaults(Bankruptcy) on it's debt, it will basically destroy the currency value
4. To avoid defaulting on the debt they perpetually borrow money to keep paying down debt. At the same time interest on newly borrowed money causes even greater debt.
5. Each day the Federal Reserve prints approximately 4 billion dollars further devaluing the currency anyway.
6. There is no limit to the amount of money that can exist
7. It is a debt based monetary system.
8. Private Banks Control money supply
9. Money gets created every time you borrow money, not only when federal reserve prints it.

Basically the USA is in a situation where they are screwed either way.


Here are some facts about Bitcoin
1. A negative balance, or debt cannot exist in a bitcoin wallet
2. It has a finite amount of coins that can exist
3. No authority controls bitcoin



So those are the facts, now here is my heavily exaggerated but still possible future scenario. Starting with Bitcoins inception.

1. Decentralized currency experiment is started by some anonymous hacker
2. War on drugs forces traders to find more anonymous methods of transactions(Bitcoin). Further increasing its adoption.
3. As more investors flock to bitcoin, it reduces number of transactions in USD
4. Fewer transactions in USD reduce liquidity, causing deflation.
5. Governments will likely compensate with a printing run as usually, causing inflation
6. Increased money supply continues to devalue currency
7. All the while the value gap between Bitcoin/USD continues to grow farther apart.
8. Investor confidence continues to grow in Bitcoin, confidence in USD continues to drop
9. Initially bank runs ensue, people try to get their money out.
10. People begin using loans/credit to purchase untraceable Bitcoins, and then declare bankruptcy
11. Banks begin to collapse because Bitcoins are untraceable assets. Meaning no assets can be reclaimed from bankruptcy.
12. Trading Volume between BTC/USD is at all time low
13. At some point the banking elite begins to mass purchase bitcoins to hedge their losses. Some may be too late, some may not be too late.
14. Any bankers that get into bitcoin early to hedge their losses in effect will have contributed to its success
15. The War On Drugs now indirectly caused the collapse of Fractional Reserve Banking.




I'm writing this post mostly for amusement so I can get into the other forums. I need those 5 posts... Anyway I am still interested in discussing this though. I am a Libertarian if you couldn't tell.