Bitcoin Forum

I kinda like this guy and his Youtube content,but he is anti-bitcoin and he has some solid arguments.

https://www.youtube.com/watch?v=YChQ3KQ_1f4 (https://www.youtube.com/watch?v=YChQ3KQ_1f4)

https://www.youtube.com/watch?v=xNr1LWgIyiE (https://www.youtube.com/watch?v=xNr1LWgIyiE)

The first video is about the bitcoin bubble and the second video is explaining the petrodollar and the US/Saudi Arabia relationships.The petrodollar conspiracy theory sounds pretty good to me.

What do you think?

Anything can happen. I think that such theories pollute the head and do not allow to focus on something more important.

I do not know the area you are looking at this from. I just would not say yes that the US dollar is backed by oil but that the dollar is the measure of value in currency to the oil. And so, the dollar is a determining factor to how the oil will be priced.

Fair points given by the guy, and it has been bothering me too as to why the US is too keen on what's happening in the middle east and trying to assert dominance over the countries in there. Also, not once had Saudi Arabia been the first ones to introduce hostility to the middle-eastern governments, it was always the US going in on the front lines followed by Saudi next. Though I'd like to believe that in part, the US is backed by oil, it still is far-fetched, considering how fast banks print USD without any hesitations whatsoever on what they're doing.

I sounds good but still need to be proven. There is a lot of conspiracy going on with the US and Saudi Arabia regarding its petroleum import/export. To think that the Dollar is backed by oil I won't believe it.

The US dollar is backed by the US military.  This is where all their power stems from.  Very few countries if any want to challenge the United States for dominance because of their immense military presence.  This is why president's refuse to cut military spending.

His points are totally valid but I think it is more a conspiracy theory in my opinion.
USA strives for keeping oil amounts on their control but this doesn't mean that they are doing that because US dollar is backed to it. It would be foolish to do so with a commodity that you do not own.

It might be considered that currencies like  Saudi riyal are backed by oil (simply because Saudi Arabia is not producing anything) but not USD.
American dollar is backed by US Internal Revenue Service. They got a commitment to gather trillions of dollars annually by gathering taxes from US citizens and companies. This is how USD is backed by US economy. That's simple.

Until 1973 the US dollar  was on a gold standard, but Richard Nixon took the US off the standard in 1973. Actually abandoned the system in order to print inflated currency called “Greenbacks” without any commodity backing.

Agreed, USD is backed by gold. Even with the oil backed countries the currency validation is done through the value of gold. Even now I'm not sure, but gold seems to be the backing commodity for USD along with its internal revenue.

Well mate in my own, 90% of what we use every day is produced by oil as the main source of power. If you are a country with oil, it means that you have sources, powers, and money to generate and keep it producing sources, income, and revenues.

I liked what he told about the dollar, gold, and bitcoin and it is very relevant. The reason why the US dollar has a nice value globally it is because the people who invented and support it are great salesmen, end of story.

Maybe yes or maybe not, but possible no, because most say is backed by economy of US. In my country the USD grow a little this year and keep stay up. But as other users say i think is backed by gold and not by oil.

I somewhat agree to this view! Because of the enormous military prowess, US has the guts to intervene in any international problem. For the world, USD is actually backed up by  Debt and global trade! Nearly 65% of the global trade is transacted in USD. However, there are lot more. I found a very nice explanation of how USD is backed up in Quora and I encourage you to read this,

https://www.quora.com/If-the-U-S-dollar-isnt-backed-by-gold-anymore-what-is-it-backed-by-Where-is-the-true-value

Even this writer has emphasized about the military prowess of US. Not a mare coincidence I believe!

The entire oil industry (including Russia, China, Iran) is said to be somewhere around 1.7 trillion.
The US GDP is around 20 trillion and only its military budget is 1/3 of the value of the entire world oil production.
Apple sold products worth 250 billion in 2017, close to the value of the entire oil production of the US.

The whole petrodollar thing is so overestimated.

After the gold standard that claimed 1 ounce of gold equals to the 35$, the situation has changed in favour of the USA. Oil countries always trade with major currencies but they are not able to put the USD in offside. The petrodollar is not a case anymore and having the ability to beat inflation with more printing the US dollar will beat all the alternatives even without oil produce.

The USD is backed by a mass printing machine which keeps churning out more dollars everytime they fall behind with their debt repayments. Bitcoin is a free economy so lets sere who has full control in later weeks.

It doesn't matter what reserves or what powers a country has.

At the end of the day, the fiat currency that is issued by the US is backed by absolutely nothing. You could say that the value may derive from oil or whatnot, but at the end of the day, there is absolutely no legal promise that the bearers of these notes are able to redeem it for a form of commodity. China holds a lot of gold, but their currency's value certainly doesn't follow the price of gold, nor is it backed by gold.

Besides, if the central bank/government wanted, they could essentially dilute the value of existing currency by producing new ones/lowering the interest rate. That's not a commodity backed currency to me.

Part of the Nixon shock at the same time was the attempt to reach out to China to establish trade and that has been a massive part of the story.   China was literally starving itself to death despite being the size of an empire they were tied up in stupid communist practise.     Its probably more arguable that Dollar has become greatly supported by cheaper China production and labour then the oil aspect alone.

The big deal now going forward is that China has a falling working population, this equates to a rapidly rising cost of labour.   Thats ok, they start from a low base and can develop the economy however it does make it likely that competetion between USA and China occurs as they both must be the most efficient to justify trade.

The deal with Oil recently would be USA has greatly upped its production, however any figures you take must deduct USA consumption also and that is too great to call USA oil backed.  Its a global reserve currency

It's also backed by large industry that makes many expensive things that end up all around the world. The reactors that blew up in Fukushima were made by a US company GE. They weren't faulty I'm just using this as an example. You may not know but you could be getting power from a US made reactor or water turbine right now and using a phone a car or a computer designed in the US.

I don't think so, if US dollar is backed by Saudi Arabian oil then why it's current money value isn't the same as Saudi Real? U.S. dollars are backed by the “full faith and credit” of the U.S. Government, that is what I strongly believe for now.

I agree. the American government won't like that, they certainly don't want to be dependent on other countries, instead they have to be the opposite. especially at this time the American president from a businessman background

The oil is the most important think for a economic development so it definitely affect something while it's developed if it was being the US dollar you would not been amazing with this it will definitely be possible when the price increases for oil

It's not a conspiracy theory in my opinion since political science often uses it as a case study.
It's a fact that in order to buy crude oil, countries need to use the US dollar. Some oil producers tried to change it (the medium of exchange) but got punished by the US military.

Is US an oil producing state for their currency to be backed by oil? They don't even have oil to start with. The US dollar was (I repeat) was backed by gold but currently it isn't backed by any previous metal or resources it's just a bubble waiting to bust. The US dollars is backed by lies, printed just like any other fiat currency from thin air to pay debts they're owing mostly China and other. The US dollars is just a joke.

therefore even though the price of oil rises the US dollar will continue to rise because their government will certainly not depend on other countries so that the US dollar will experience an increase in itself rather than depending on the price of oil or the country of people

As far as I know, it is only natural if the dollar will be connected to the import / export of oil commodities because it is somehow needed as an equal perception of payments that is wiser to use the dollar. Is the US dollar backed by oil, I have not been able to ensure that it is true, it should be observed more closely.

Saudi only accepting oil undoubtedly started it, but even if they accepted other currencies now, I don't think it's going to matter too much. The US Dollar has already established itself as the reserve currency, and nearly every country has a huge stockpile of it. It's going to remain the most convenient option even without the petrdollar concept because it's going to remain globally accepted.

This doesn't mean that the USD can't collapse, but rather that it's a strong, liquid currency. Strictly speaking, it's still not backed by anything at the end of the day. Saying it's backed by oil is almost like saying Bitcoin is backed by whales IMO.

Thank you so very much, thank you davis196, for sharing this. My knowledge has been distorted. The analyst is right to all extent, come to think of it, Venezuela is currently at a very massive political crisis, and the USA is going to enter an agreement if they haven't with the opposition leader to start accepting only dollars for both crude oil transaction and international transactions. Put this like this: The USA is able to get oil to back their currency because of their military might and capability, and the USA is going to stay top of that, for how long? I really can't tell. Am blessed for watching how the USA dollars still managing to survive despite the massive debt and budget deficit.

Many conspiracy theorists believe Gadaffi was killed because he only wanted to accept gold for Libya's oil.  That would have completely undermined the United States dollar and exposed it as worthless numbers in a computer screen that can be created at will.

Well that is his own personal view about bitcoin he thinks bitcoin is a bubble but to us bitcoin is a currency that is accepted globally. And on the petrodollars theory is still subject to verification because the us dollars should be backed by the us external reserve where the values of all currency is determine on the exchange market.

This is a myth with all dictators.
It is said that both Saddam and Ceausescu wanted this, and the later was killed because he wanted to open an alternative to the FMI. This while he had not a cent and his country was starving, probably the one in the worst shape from all of the former Warsaw Pact.

All failed regime need to have an enemy, someone who is destroying them and not letting them be a galaxy superpower.
Why has Venezuela gone bust and not Norway?

As for the gold for oil, there is one tiny flaw in it.
You can ask for gold, but it's up to the buyer to agree with this.
That's the major problem, and with oil supply and production going to the roof you have little chance of forcing the buyer to accept your terms.


Read the news!
United States is the world's largest producer of crude oil
 (https://money.cnn.com/2018/09/12/investing/us-oil-production-russia-saudi-arabia/index.html)

But still, need proof if it is valid and besides if there is someone who can give a valid reason I think they were probably gonna be hiding somewhere. I guess they should have to shut their mouth up if they know something about the truth or else the government will.

US Dollar used in international transaction not only oil but most commodities using dollar currency for transaction. US Dollar not backed by oil, its backup by people trust only on US government. Once ago, Dollar backed by gold but after bretton wood, US Dollar printed from thin air

America always interesting in Oil. America use military power to take control on oil. We can see this at middle east, how america want to control the politics and taking benefits from oil. Saudi Arabi is america alliance and thats why their relation very close if its about oil

the dollar is not supported by one trade product, but the dollar is used to buy and sell all products around the world, that makes the dollar very strong. if world trade does not use dollars but uses crypto, the dollar will certainly be destroyed and the value will not be high anymore.

At a glance, I have read about the dollar as well as the oil that indeed existed since the first agreement and caused the price of the dollar to be higher, because everyone who wants oil requires US dollars to buy it.

I do not think that US dollar is backed by oil. It should be backed by the Gold which is also not the case. I am sure dollar will soon face the crisis in the next economic crisis  whereby  people will have no option but to invest in digital currencies. At that moment i feel that bitcoin price will sky rocket and there will be no stopping to it.

The oil part is true but why it is not Saudi real and why it is "trust in us government" is because USA basically owns Saudi Arabia that is why. Saudi Arabia could "try" to not give their oil to USA and try to blackmail USA and just sell their oil to Russia for cheap and that is exactly when USA will decide "bringing democracy to Saudi Arabia" is a good decision. It would be a bloody war again but you will see a USA flag everywhere in Saudi Arabia for sure.

Hence, Saudi Arabia just sells their oil to USA and lives freely with that money and do whatever they want. So, just because Dollar is backed by Oil doesn't really mean its also not trust to government, its basically hand in hand, you literally trust the government to find oil at all times no matter where and how.

Yeah, nice conspiracy theory and plan of action but it has a problem, called reality.

First, the US is getting only 12% of its oil from the Middle East.
China, India, and Japan are bigger oil importers from Saudi Arabia than the United States.
Rusia can't buy oil from Saudi Arabia as Russia is a net exporter, they have no use for oil.
Blackmailing the US won't work as they can easily find other sources while selling their oil cheaper will destroy their oil income dependent economy.

Do your homework better next time.


Except for the fact that China and Russia are extracting more oil from Iraq and Lybia than US companies.


How do you back a 20 trillion per year economy with gold when all the gold ever mined in the world is barely worth 1/3 of it?

USA has an alliance with Saudi Arabia, theres only one superpower in the world right now and USA are a useful part of security to many nations including Saudi Arabia and  so that connection between the two countries is unlikely to alter so long as it benefits both parties.   I'm not sure anyone said the obvious but USA is large enough in production of oil to join OPEC if it wanted


It can be done, the price would be about 10,000 per ounce.   The same negative is/was levelled at Bitcoin, the point being the price rises to the utility it provides and also monetary velocity, etc.
Thats not my estimate, read this guys book/explanations on why this is a likely outcome :

https://twitter.com/JamesGRickards/status/1109131952068706304

Yeah, but gold is a finite number and the US economy will not stay on this level forever nor will the world economy.
And two things will happen:

- being so expensive it will lose some of its application and people will turn to other precious metals rising that metal value
- if gold prices reach a too high level we might see Alchemy becoming real in the form of nuclear transmutation.

None can happen with BTC

And don't forget that there is still the possibility that an asteroid like the one in Jules Verne's story might crash down to earth.  ;D

Nope, unfortunately for gold bugs, a gold-backed economy will never happen again.

More liked it is back by the US military - which also happen to be keeping the oil producing regimes in the Middle East secure. It sure helps though that they managed to force those monarchs to only sell oil in dollars. Anyone trying to do otherwise is dealt with (for example Gaddafi).

It's just another blogger who has an opinion that's all. For someone bitcoin bubble, and someone earned a fortune on it and became a millionaire.
About the dollar in General it is unclear why he believes that it is supported by oil. All my life, a stable course was supported by its own gold and foreign exchange reserves and the economy, and now is that something has changed?

Yes, oil is the most important economic think for every country in this world without this nothing will move on so it definitely affect some changes if the price increases or decreases in every country in this world so nothing onchange is not a fact.

Fiat currncy is backed by both gold and oil deposits, so it is not impossible that petrodollar exists. This is what I think about why USA has attacked Osama Binladin because he doesn't want to share their oil deposits to them. And because of that he has faulted by US government about terrorism.

Fiat is not backed by oil or gold, it backed up by bonds, another form of paper. Don`t live in illusions, educate yourself. US gold standard ended in 1971. Oil is priced in dollars, its like that cause several big oil producers have currencies pegged to US dollars. You can read more about it on internet, you have many public informations about that, so educate yourself.
In near future we will see some changes on that field, as I`m reading China and Russia along with some other countries are working to break that down, we will see what will happen, it`s to early to say anything about what will happen on global stage.

They are opinions of different ways of seeing the economy, although I think it is not backed by oil or some precious metal, because the simple fact of having gone through a world-wide crash, is a sign that is not supported, although its recovery was rapid, But in the stock market, when such low movements occur, they do not let the economy fall.

Gold represents a lot of strength and support in any economy, in fact most economists always recommend buying gold shares, the economist Jose Toro Hardi in his book of economics, recommends diversifying money into shares gold, real estate,cash only to protect themselves of possible falls of the currency, since it can be generated printing of cash, which, would generate some percentage of inflation.

Well a gold based world money standard already happened.    To some extent this is still there but only as a small reserve do central banks keep gold.    China used to have no gold but are raising it every year for over a decade now and Russia also has opted to keep a gold standard


Asteroid -- gold melts at a low temperate relatively.    Any gold incoming would be dispersed widely, most of the world is water and its already true that the oceans contain giant reserves of gold however its very hard to get at and collect.

Nuclear - sure its possible, I wont discount genius but today its not a reasonable way

Alternate metals - totally will happen, silver copper and many precious metals are there.   Every capitalist system has competition for pricing and utility.   However I trust that time and elemental reasons continue to make gold the most likely successor to the debt situation we have now.

I'm not a gold bug, gold has no yield and good business will always be worth more, grow more and be more profitable but the world needs to have a way to store value.   Ironically gold is useful for not being used in industry as much as oil or alternate standards to back a nations money

the chances of the price of US dollars will definitely effect when the price of oil will increase or decrease so it can be definitely considered economic situation for oil prices.

to be able to maintain the stability of the price of the American dollar always using their military. by destroying anyone who dares to oppose the dollar. Cryptocurrency is here to be able to become an alternative currency to replace the dollar because some countries do not want to be pressured by America. so try to use alternative currencies.

We can see if the oil price rises then the dollar can also rise, this is also influenced by the value of other currencies. This is the case and I think the oil country always has a strategy to be able to influence markets in the world, and the possibility of crypto will be an easy way to pay on global markets.
But this conspiracy made many elements begin to seek better profits.

Can, but it doesn't follow that pattern too often:

https://i.imgur.com/zMkGzif.png

https://i.imgur.com/bltS5x8.png


You can see that during the period with oil prices over 100$ the $ was actually weaker compared to the euro by 20%.


I wouldn't call a thousand degrees Celsius a low temperature, it's well above other metals like lead copper zinc or aluminum.
Besides gold is heavy, an insane density that would make fragmentation and spreading across huge distances not likely.


It's not happening because of the costs, drive the price x20 times and you will see it's closer to reality than thought.


That's because you can use gold in different things and you can recycle them and get back the gold.
From jewelry to computers parts, you can reclaim the gold, with oil...once you burn it ..it's gone  ;D

The $$ is backed by big guns.

Or you know, it could also be because he was a brutal, divisive dictator. That conspiracy theory is grounded on the assumption that the concept of petrodollar is still significant to the strength of the USD, and I simply don't believe that it still is.

Worthless numbers in a computer screen that can be created at will could also be used to describe just about every other fiat currency there is, so why stop at USD? Why isn't other fiat being exposed when they don't have oil or anything backing them?

Although I believed that US dollar isnt backed with any commodity, not even the precious metals on earth or oil beneath us, but this comment really is the real thing if its true that US is backed with something like oil lol, I mean without these US military based in all portions of the middle east, oil might be distributed anywhere else, not the US as their priority. Not an expert in this field but this is just my two cents

Probably Zimbabwe cents  ;D

People, stop with the conspiracy theories and look at facts!!!

The US is not the main importer of oil from the Middle East, even a few years ago so not considering the continuous increase in shale oil, China, Japan and India imported more oil from the middle east than the US.

https://www.rigzone.com/news/oil_gas/a/146765/crude_oil_export_trends_in_the_middle_east//?all=HG2
https://www.quora.com/Which-countries-import-the-most-oil-from-Middle-Eastern-countries

Neither the US nor the EU are dependent on oil and gas from the middle east.
Secondary, Rosfnet and CNPC are exploring more oil than US companies in the area.

So, just stop with this oil nonsense.
The dollar is backed not by the 1.7 trillion global oil economy but by the 20 trillion economy of the US.

To make things clear, the value of all the oil produced in a year is around 1.7 trillion, the US imports stuff worth 3.1 trillion, nearly double. This is why the $ is so valued because everyone wants a share of that huge market, and the only way you're going to be paid is $.

I am agree if US Dollar backed by USA military not by oil or gold. When Iraq trying using gold as currency for every oil trade, US make fake announcement about mass weapon and its happen to Libya too. US company right now holding most oil contract in Iraq and Libya

USA does not produce the oil.  They have collected a lot of oil through their polices. US dollar is surely not backed by oil, i think no currency is backed by the oil. US Dollar should be backed by the Gold but i have some doubt that if it is 100% backed by gold or not.

I think the oil trading problem between the United States and Saudi Arabia is normal and that conspiracy theory really doesn't convince me. The value of dollars has been formed for a long time because the US country is a very developed country and they have talented people to control the inflation at the best level.

Oil is a big currency in this economic warfare period we are in. Of course, there are still wars going on all around the world with regular guns and what not but the biggest weapon in countries hands are the economical advantage over some resources, if USA doesn't have access to enough Oil their dollar will lose a lot of value. How can they get more oil ?

Military action and when they do that they need a lot of power behind them to go all the way to the other side of the world and take peoples oil from them and than bring it back to country, you can't do that with a small military you need worlds biggest for that. In order to keep making your military biggest of all military you need to keep spending money on it and in order to keep spending on it you need more money from oil to balance it out, so its an endless circle for them.

the most important thing is that the dollar is used as an international currency, and is used by all countries so that more and more countries are using it, the stronger the value is. The support is supported by all world trade.

right, even though America is not the biggest oil-producing country, they are capable of influencing that business. right what you say, by mastering the market certainly makes economic stability good, and the dollar is maintained

Lol yeah probably Zimbabwe cents lol 😂
Told you wasnt an expert regarding this matter ( this isnt my field of interest anyway), but thanks for providing links and facts on the issue.
The reason why I dont believe US is backed by any of the common commodities thats being brought everytime theres a discussion like this, its because I already heard that conspiracy theories before. What I said up there, was just to connect how related the situation to each other "IF" that theory was true.

P.s Quora is my favorite source of information anyway, thanks for bringing it up.

maybe this is a conspiracy between US / Saudi Arabia or this part of a black campaign to undermine dollar domination and oil sales in the Middle East. because US dollar and the world oil market have mastered the world commodities needs. so hence many countries that want to be independent to develop transactions use their own currency and to create energy that is not petroleum-based so that there is no business monopoly.