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The Coming Crisis: Bitcoin vs. Dollar?

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posted on Jan, 6 2018 @ 01:17 AM
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So what makes money have value? A lot of people think its value is imaginary, but I see it as having cultural value. The dollar is worth something because people use it to buy and sell things. The more factories, individuals, talent, resources, etc. that are represented by the dollar are what determines its value.

As people sell the dollar to buy cryptocurrencies, eventually, we should see the value of the dollar drop as fewer and fewer factories, individuals, talent, and resources tie their value into the dollar and go with cryptocurrencies instead.

Think of it as the same way a religion gets power, from its followers.

Who owns cryptocurrencies? The internet? What advantages do they have? Well, if every person and thing eventually developed its own coin, exchanges could let you invest the money you usually let sit in banks directly into projects or people you want to see succeed, or you could let it sit in a safer, less volatile coin where it would still increase in value.

How come? There are more advantages to cryptocurrencies, for example, they can be set up to be secure, have nearly instant transaction times, and allow you to store your money elsewhere besides in banks.

What does this mean? First of all, money not being stored in banks means that bankers will go bankrupt because no one will store their money with them anymore. Normally, the bankers are the ones who invest your money in projects they want to see improved.

These benefits will work together to see that more and more people start switching to digital currencies. This will bring up a double-edged sword: people will soon figure out that this brings the added bonus of people who get involved first seeing huge percentage gains on their initial investments.

How long will it take the word to get out that the first ones in are going to be ridiculously rich? Once we reach this breaking point, there could be a mad rush for cryptocurrency as everyone else figures out that their cash is going to be worthless.

Basically, the internet would be in control of the wealth, not the bankers or the elite, or even holders of cash. So, America is not on the gold standard anymore? Well, that means that there would be nothing legitimate to back up the value of the paper dollar. Right now, although people think its value is a "magical attribute," it is, as I said, based on how many goods and services and how much talent is linked to the dollar.

At the moment, cryptocurrencies will continue to go up in value as long as there are more opportunities to buy and sell with them, for example, as more governments accept them, companies accept them, etc. It should naturally progress towards more entities accepting cryptocurrencies over time.

So, if the elite figure this out, are they going to try and regulate cryptocurrencies? I mean, it even seems to me like they should regulate them a bit, such as monitoring its use in criminal transactions and including gains in taxes.

I'm sure there are several solutions that could be implemented to ease the bumpy transition from fiat to crypto. One solution could be to have a Fed Coin. There could be others.

It seems to me like the feds could outlaw the use of coins that are not tied to a nation. After all, this is the transfer of wealth from sovereign nations to the internet, a nationless state.

I think that there is going to be a revolution if cryptocurrencies use decentralization to eliminate the need for a ruling class that eats up money through corruption. However, it could potentially generate a new breed of elite, early backers that would see their assets get multiplied by millions and become wealthier than anyone in recorded history.

It would also leave the elite out of a job, and out of money - the old-fashioned elite might even scoff at the idea of investing in cryptocurrencies and instead of investing in them, try to stop them with laws. If the laws did not work, then the dollar could become worthless overnight, it could potentially get to the point where the government doesn't have enough "value" in money to pay its military.

What's worse, people are FDIC insured for around $250,000 if something were to happen to their bank accounts. Okay, the money isn't worth anything anymore. Can I have my $250,000? Sorry, still not worth anything. And what is the government going to use to back up the value of its currency? Nothing, because there is no gold standard, and because the cultural value that had been stored in USD has migrated into cryptos. That destroys the government's legitimacy, which could mean civil unrest and even the possibility for invasion by a country wishing to take advantage of a weakened nation.

Just some thoughts.


edit on 06amSat, 06 Jan 2018 01:18:15 -0600kbamkAmerica/Chicago by darkbake because: (no reason given)




posted on Jan, 6 2018 @ 01:23 AM
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a reply to: darkbake

Bitcoin is a gateway to globalism.

Just imagine, controlling a nations entire wealth with the power grid.



posted on Jan, 6 2018 @ 01:45 AM
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The Coming Crisis: Bitcoin vs. Dollar?

No ,imagination vs fiat.




posted on Jan, 6 2018 @ 01:56 AM
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a reply to: darkbake
Crypto is a weapon devised by our enemies to allow us all to stab our own economy in the back. If you do not trust the FRN, then one should invest in the US Mint's gold and silver.

Nobody is rich with crypto until they withdraw it into something you can hold in your hands. Otherwise it is still a dream on a screen. If the FRN becomes worthless, than how is one basing their wealth as fortuitous when it is being measured in the worthless currency?

We are being lured into our own demise with the promise of easy wealth. Tell us, when has wealth ever been an easy acquisition in the history of man? When has the promise of it being easy been nothing more than a transparent lie?

Be careful what you wish for, a crypto millionaire is worth nothing if the unit of measure is also worth nothing. Keep that in mind.



posted on Jan, 6 2018 @ 02:02 AM
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a reply to: Gothmog

I would be fine with that being the case.



posted on Jan, 6 2018 @ 02:03 AM
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a reply to: darkbake

No. The dollar is world wide. Bitcoin is not. People around the world who do have access to trade in dollars do not have access to trade in Bitcoin. To say that Bitcoin is currently anywhere close to being a competitor to the dollar is ridiculous and displays a clear lack of understanding of the worldwide power that the dollar currently holds.

If anything, Bitcoin is the currency under attack as the US government (and others) take steps towards regulation of it and other crypto. Already this year, the IRS is looking to tax crypto gains. Coinbase will be turning over records to the government and the IRS will be after those who do not pay up on their gains.

Your argument about FDIC insurance being somehow worthless versus Bitcoin is based in fantasy. Thousands or tens of thousands of Bitcoins have already been lost or stolen through a holder's ignorance or hackers. There is no protection for those Bitcoin holders who lost their money through a hack like with Mt Gox or Bitfinex.



posted on Jan, 6 2018 @ 02:05 AM
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originally posted by: worldstarcountry
a reply to: darkbake
Be careful what you wish for, a crypto millionaire is worth nothing if the unit of measure is also worth nothing. Keep that in mind.


A dollar millionaire is worth nothing if the unit of measure is also worth nothing.

Both the value of cryptocurrency and the dollar depend somewhat on how many people or institutions accept it as a form of payment. If more and more people and organizations accept cryptos as payment, then cryptos will be worth more and more, attracting more people to store their money there.
edit on 06amSat, 06 Jan 2018 02:06:03 -0600kbamkAmerica/Chicago by darkbake because: (no reason given)

edit on 06amSat, 06 Jan 2018 02:06:22 -0600kbamkAmerica/Chicago by darkbake because: (no reason given)



posted on Jan, 6 2018 @ 02:07 AM
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Cashless society....



posted on Jan, 6 2018 @ 02:11 AM
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a reply to: Ameilia

There are certain countries that have banned bitcoin, like China. That is because China takes the risk seriously. However, they are thinking of issuing their own cryptocurrency, which would have the benefits of the enhanced money trading technology while still being a national currency.

I think this will become a hot topic later this year.
edit on 06amSat, 06 Jan 2018 02:12:28 -0600kbamkAmerica/Chicago by darkbake because: (no reason given)



posted on Jan, 6 2018 @ 02:20 AM
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I wouldn't rule out some sort of currency switch over. Shorting is basically borrowing and then paying back at a lesser buy in. A $19.8 trillion short would be epic.



posted on Jan, 6 2018 @ 02:40 AM
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a reply to: whatibecame

I think there will be a currency switch over within 10 years to something, either a fed coin or other cryptos.



posted on Jan, 6 2018 @ 02:43 AM
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a reply to: DBCowboy

I don't want your carrots though, so I will keep my bacon.

Unless the fridges go down with the grid.



posted on Jan, 6 2018 @ 02:52 AM
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I'll trade two chickens for a six-pack.
A goat for a jar of moonshine.



posted on Jan, 6 2018 @ 03:52 AM
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Bitcoin is valued by being able to convert standard currencies. The US govt could declare tomorrow that Bitcoin supports N Korea and ban it's use in the US. The US could go further and declare bitcoin as a supporting N Korean currency and get it voted into UN sanctions against its use globally. The bubble could literally burst with one fat boy rocket malfunctioning and falling near Japan.



posted on Jan, 6 2018 @ 03:53 AM
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originally posted by: darkbake
a reply to: Ameilia

There are certain countries that have banned bitcoin, like China. That is because China takes the risk seriously. However, they are thinking of issuing their own cryptocurrency, which would have the benefits of the enhanced money trading technology while still being a national currency.

I think this will become a hot topic later this year.


Yet China is mining bitcoin with Tibetan Hydro electric facilities on a massive scale.



posted on Jan, 6 2018 @ 03:53 AM
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Just FYI, there are almost 1400 cryptocurrencies now in circulation. Each having thousands to billions of individual coins.



posted on Jan, 6 2018 @ 03:59 AM
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Would a world wide EMP screw bitcoin ?



posted on Jan, 6 2018 @ 04:43 AM
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People may sell bitcoins to buy dollars, but those dollars don't disappear into nothing. The bitcoin currency exchanges in Russia and China now own those dollars. They can use them to buy back bitcoins and put those dollars back into circulation or they can exchange them for Rubles and Yen, or hand them over to the government.



posted on Jan, 6 2018 @ 05:00 AM
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Cryptocurrencies are just a way to make a few people rich. They are valueless and backed by no guarantees except what a speculator is prepared to pay for them.

Thy are over hyped. Who makes all the money with cryptocurrencies, and who does all the hyping?

Had I have a few thousand to gamble couple of years ago I would have had a flutter with Bitcoin. If I lost the speculation then no harm to anyone but me. Had I won and sold out when Bitcoin was nearly £20K then I would have bought a yacht and called myself "e-financial speculator", or "e-banker". Yep, money makes money.

I see no difference in the greedy speculation over the price of oil, or scrap metal, to the avarice surrounding cryptocurrencies, except the latter starts with no base value whatsoever.
edit on 6/1/2018 by paraphi because: (no reason given)



posted on Jan, 6 2018 @ 05:55 AM
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originally posted by: worldstarcountry
a reply to: darkbake
Crypto is a weapon devised by our enemies to allow us all to stab our own economy in the back. If you do not trust the FRN, then one should invest in the US Mint's gold and silver.

Nobody is rich with crypto until they withdraw it into something you can hold in your hands. Otherwise it is still a dream on a screen. If the FRN becomes worthless, than how is one basing their wealth as fortuitous when it is being measured in the worthless currency?

We are being lured into our own demise with the promise of easy wealth. Tell us, when has wealth ever been an easy acquisition in the history of man? When has the promise of it being easy been nothing more than a transparent lie?

Be careful what you wish for, a crypto millionaire is worth nothing if the unit of measure is also worth nothing. Keep that in mind.


So when i cash out my cryptos into dollars it is still a dream on a screen?

Or when i pay for something in cryptos and it arrives at my door it never happened?

This is growing wildly and is anything but a dream on a screen...clearly you have none and do not understand.







 
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