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Title: Bitcoin price increase devaluates other currencies? Post by: rme on April 09, 2013, 08:38:20 PM I mean, now bitcoin is worth > 2.000.000.000 USD, this is new currency in the market (like when goverments print money out of the air).
Euros (or USD or GBP) are worth less now than before bitcoin? If someone prints money without intrinsic value (USD, bitcoins, Eur...) the currency gets devalued. Title: Re: Bitcoin price increase devaluates other currencies? Post by: tutkarz on April 09, 2013, 08:48:07 PM it only means $ will be less used not less worth. you can still buy the same amount of cars for $$$ (if you assume they are not printing more money for a while)
Or you can assume there is new country with new currency. It does not affect others Title: Re: Bitcoin price increase devaluates other currencies? Post by: rme on April 09, 2013, 09:35:25 PM it only means $ will be less used not less worth. you can still buy the same amount of cars for $$$ (if you assume they are not printing more money for a while) Or you can assume there is new country with new currency. It does not affect others Because bitcoin is 0.000001% of trades. Title: Re: Bitcoin price increase devaluates other currencies? Post by: pretendo on April 09, 2013, 11:44:14 PM devalued compared to btc, sure. It's no different than other currency competition. It won't actually devalue anything because you can instantly convert any currency to another
Title: Re: Bitcoin price increase devaluates other currencies? Post by: Elwar on April 10, 2013, 01:55:01 AM Fiat currencies are worth less.
Title: Re: Bitcoin price increase devaluates other currencies? Post by: myrkul on April 10, 2013, 04:05:26 AM I think it's more the other way around. Bitcoin's "absolute value" does increase as more people offer goods and services in it, driving demand and increasing the conversion rate versus, say, gold. But governments are also printing money at phenomenal rates, which does the most devaluation of the various currencies, and further drives the conversion rate up.
Title: Re: Bitcoin price increase devaluates other currencies? Post by: nebulus on April 10, 2013, 04:35:54 AM I think it's more the other way around. Bitcoin's "absolute value" does increase as more people offer goods and services in it, driving demand and increasing the conversion rate versus, say, gold. But governments are also printing money at phenomenal rates, which does the most devaluation of the various currencies, and further drives the conversion rate up. +1 Title: Re: Bitcoin price increase devaluates other currencies? Post by: benjamindees on April 10, 2013, 06:24:50 AM Mark my words. There will be attempts made to blame the next financial crisis on Bitcoin. Billions of dollars of money printing every month, along with trillions in unbalanced derivatives, will be ignored. But the $2 billion Bitcoin economy... that will be the scapegoat.
Title: Re: Bitcoin price increase devaluates other currencies? Post by: myrkul on April 10, 2013, 07:08:37 AM Mark my words. There will be attempts made to blame the next financial crisis on Bitcoin. Billions of dollars of money printing every month, along with trillions in unbalanced derivatives, will be ignored. But the $2 billion Bitcoin economy... that will be the scapegoat. I find this entirely too plausible for comfort. Title: Re: Bitcoin price increase devaluates other currencies? Post by: Prattler on April 10, 2013, 07:46:54 AM As goods and services start being sold for bitcoin, the same (ever increasing) amount of dollars will be chasing the decreasing amount of goods. That will drive prices in USD upwards.
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