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Title: When a hard currency breaks? What then? Post by: ConceredCryptoUser on November 06, 2017, 05:32:18 AM As of now our crypto currencies are based off of the currencies we deal with depending on where we live.
If a given crypto currency is utilized in the market like grocery stores or everyday use such as buying a coffee every morning, how does the value of the item we purchase with crypto currency manifest? Right now the crypto currency cost of an item manifests by it's counter value in the currency of the land where you are buying the item. Example: coffee = $5.00; the crypto currency amount would depend on the current value of the crypto currency compared with the dollar. How will a crypto currency set the value of that coffee if there is no longer a local currency to compare to? What would set the crypto currency value of the coffee I purchase every morning? What happens when all 21,000,000 BitCoins are mined and there is no more cash flow towards the system? Will the BitCoin value freeze and it is no longer considered a fluctuating investment? I am not saying that this will not work. I am just trying to wrap my head around this thought of how it will work once it takes over the hard currencies, if it does. Title: Re: When a hard currency breaks? What then? Post by: Herbert2020 on November 06, 2017, 06:44:10 AM How will a crypto currency set the value of that coffee if there is no longer a local currency to compare to? who said anything about "local currency" not existing any more? the "local currency" or fiat will always exist and bitcoin is not here to take its place. Quote What would set the crypto currency value of the coffee I purchase every morning? it doesn't matter what you do with your cryptocurrency, conversely bitcoin, the supply and demand set the value of it not what you do.Quote What happens when all 21,000,000 BitCoins are mined and there is no more cash flow towards the system? this question have been asked a 100 times in the past month alone. try using the search on top right corner of the page to find out the answers.Will the BitCoin value freeze and it is no longer considered a fluctuating investment? Quote I am not saying that this will not work. I am just trying to wrap my head around this thought of how it will work once it takes over the hard currencies, if it does. that is just it, the big "IF". first you have to prove that bitcoin is going to replace the current form of currency then talk about what will happen after. right now i don't think that many people agree about any replacing taking place any time soon.Title: Re: When a hard currency breaks? What then? Post by: davis196 on November 06, 2017, 06:53:07 AM What do you mean by "hard currency"?Is there any "soft currency"?
OP,you should read more books about economics and finance and you will find the answers of your questions. Converting the price of some product or service from fiat to cryptocurrency is pretty easy.The annoying part is with all those zeros.What if a coffee costs 0.00000001 bitcoins?It isn`t very convenient for me and i prefer to pay fiat money for the coffee. Title: Re: When a hard currency breaks? What then? Post by: Wind_FURY on November 06, 2017, 06:53:51 AM As of now our crypto currencies are based off of the currencies we deal with depending on where we live. If a given crypto currency is utilized in the market like grocery stores or everyday use such as buying a coffee every morning, how does the value of the item we purchase with crypto currency manifest? Right now the crypto currency cost of an item manifests by it's counter value in the currency of the land where you are buying the item. Example: coffee = $5.00; the crypto currency amount would depend on the current value of the crypto currency compared with the dollar. I get your thoughts, I had the same question when I first started coming in here. To make it simple, all you need to understand that what gives Bitcoin its value is speculation. So the law of supply and demand plays hard in the market. Quote How will a crypto currency set the value of that coffee if there is no longer a local currency to compare to? What would set the crypto currency value of the coffee I purchase every morning? I believe it will still take the same amount even if there is no peg in fiat. Bitcoin is a deflationary currency. It becomes more valuable the more people holds and uses it. Quote What happens when all 21,000,000 BitCoins are mined and there is no more cash flow towards the system? Will the BitCoin value freeze and it is no longer considered a fluctuating investment? I am not saying that this will not work. I am just trying to wrap my head around this thought of how it will work once it takes over the hard currencies, if it does. You can read all kinds of theories around the forum. The real answer is "we will know when we get there". |