Bitcoin Forum

"Throughout history there has always been a dominant currency. As each empire became the new financial capital of the world, their currency became the most prized and tended to circulate around the globe into even the fringe economies that they may have never heard of at that moment in time. Roman Coins made it China..."
http://armstrongeconomics.com/693-2/2013-2/can-the-world-really-abandon-the-dollar-as-a-reserve-currency/

Can the World Really Abandon the Dollar As A Reserve Currency?  also..
What will happen to the US economy, and is there a way to avoid a severe depression?

The more relevant question is to what lengths the US will go to ensure that the USD continues to be the Reserve Currency
It's a push not a pull issue

I don't think it matters much to central banks which currency is the dominant one as long as they have control on it. Every nation's economy is so entrenched with the rest of the world it's hard to say if there's any indipendence left and seeing how things are going in the financial world, it doesn't make sense to continue protecting actual currencies. Considering how ECB is trying to reach parity with the dollar, despite what they say, I guess someone has a vision to propose a global currency, I know it's a hot topic in places like "conspiracy forums" but you know what they say about broken clocks.

It didn't take too long, once the idea was started, for the US to get off the gold standard. Similar concept, but on a global scale. Switching to a different national currency (Yuan, Euro) would be more easily done than worldwide acceptance of Bitcoin, but either could eventually be done. With the fall of Rome, the denarius fell too; the same will happen if the US continues as it has. A change will have to be made, the only speculation is to what.

The US is willing to wage wars for oil...  ;D

Agreed, also the USA debt levels are way out of control. "What?" and "when?" are both unknown, but clearly huge changes are ahead.
The "Next Great Depression" has been avoided for a long time, how much longer to we have before it hits?  :o

The US is backed by OIL, ARMY and ROTHCHILD so there. I don't think we'll ever get rid of it, too many agendas depend on it.

If USD really suffers a major collapse, it will most likely be the International Monetary Fund (IMF) that will take over.  It is based in Washington DC anyways so it has it close ties to the US.  I have a feeling that it would not be too difficult for the US to just decide if things got too bad, that the IMF would use their "Special Drawing Rights" or "XDR" as the new currency at that point. (for more info on this just go to http://en.wikipedia.org/wiki/Special_drawing_rights )

Of course, with BTC, we have a hedge against the decline of the dollar.  I don't think BTC could ever be the world's reserve currency, but it could surprise us all. ;)  I do think it could become widely used in conjunction with other currencies for sure.  It already is!

The "Next Great Depression" will be a global one. Economies are interlinked to a great extent. Governments will work in tandem and try to avoid it.

The US economy actually consists primarily of services provided to others.

The US is a net importer of oil. The US military spends much more then it "earns" while it occupies other countries. I am not sure what "rothchild" means so I cannot respond

for the moment I think the dollar is still the belle of the world's currencies, as the American economic policy, the dollar is still very much needed by the majority of countries that have economic ties with America, currently the biggest rival the dollar is the euro, most of-state European countries use the euro as their currency trade, the euro was deliberately made ​​by them to compete with the American dollar, but it is in addition to European countries rarely use the euro as their currency trading ...  8)

It's possible  :D, but it's very difficult  :(

If there are stable currency & everyone use that currency
That will happen  :)

If yo udo the math, the dollar is set to collapse within the next decades, BUT the powers that be will not let this happen, they will come up with something and the public will swallow it. The dollar is immortal.

It is definitely possible.  However, the all seeing eye of the dollar will never die.  In a sense, you could say that the eye of the illuminati will immortalize the dollar.  In reality, the dollar with will just die with the US.

It is happening as we speak. As the American economy goes, so goes American money.

no way in hell is USD going anywhere at least not in the next while.
and that goes for Fiat in any country i think..

you can't have a main currency that requires the user to pay a lot of money to an ISP for internet access.
not just for the wallet etc but for various related services.

the entire world would need to transform in a colossal way before we even come close to this and by the time i doubt Bitcoin will be the currency we want to use.

i was watching a show on TV last night about a town in Italy that was plagued by fires
and to test they had to cut the power grid to the whole town for a looong time and evacuate all people
they never did figure out what was causing it either.
they did notice that computers and usb drives were wrecked and corrupted and magnetic spikes were recorded like something was attacking the town
some speculated it was a military weapon being tested considering the USA military notoriously did testing off the coast where the town was..
who knows maybe it was from outerspace ? gamma ray burst or something or hell even a Harp directed attack of sorts from Alaska ?

the results were obvious though.. everything was catching on fire and computers were useless and usb drives were getting wiped out !
so what is this crap about Bitcoin again ? LOL

one solar flare of a high enough X class from the sun and we could wipe out all PC's in North America with a few minutes warning *again.
Building a Financial infrastructure on digital reliance's is not just foolish but simply not doable and will fail.
and the USA gov etc knows this !
so why would they drop Fiat for a system that requires a giant grid of computers to run at all times and have every person on earth connected to an ISP (for a fee) ?
when you can just keep a piece of paper or a coin in your back pocket ?

and i hate to burst your bubble guys but the internet is not bullet proof and can be taken out easily and it will happen and prob soon.

the notion of some digital currency replacing Fiat is simply silly nonsense.
it will happen when we master Star Trek teleportation maybe lol

Hmm. All cryptos are global currencies... but you are correct, it's all about control and control means monopoly of money creation. Without monopoly there is no control.

I don't think countries will abandon The dollar as a reserve currency. The US is still a huge economy and countries trading with the US will always need to hold the dollar to stablise their own currency. But it's role as the main reserve currency will weaken against RMB and EUR.

Its certainly possible ... I don't see how the US dollar can stand if the US government keeps getting more debt and the FED keeps creating billions of dollars in EFT's a day.

Technology has enable the world at faster pace.

In the old day, replacing a reserve currency might take 1-2 decades.

If China and Russia decided to screw US, it might only take 5-10 years.

The reserve currency status of dollar is not formal at the moment. It was, at the time of Bretton Woods conference.

Reserve currency can mean the preferred currency for reserves in other national currency banks. They use the reserves to regulate the value of the national currency. National banks now try to diversify. It also means that it is the currency preferred in international trade. Due to history, this has been USD from the second world war.

In international trade, sometimes dollar is used even if both traders reside in non-dollar countries, meaning that both parties have to convert. This sounds irrational, but for instance the Venezuelan bolivar/ icelandic crown pair is thinly traded, and it is easier for each merchant to relate to the dollar.

The reason we have the system of150 national currencies anyway, is that each government wants to steal from their constituents through inflation.

Anyway, the take home point is that traders decide what is the currency used for international trade. It will not be easy for china or someone else to change the current situation. It is about convenience and trust in the continued value, and trust that the the money can be used freely.

What china have to to, to make the yuan the preferred money for trade, is to stop all currency import export restrictions, let money exchangers, small and large exist without bullying, and let a bank system disconnected from the existing usa dominated banks grow up. They will also have to show som discretion in the money printing. I can not see any of those things happen.

Trying to keep the money within a countrys border is absurd, but kings have tried to do that in thousands of years. They don't understand that money is not goods, services and capital, the things that make a country rich. Misses de Kirchner in Argentina is doing it right now (with dollars), taking the country down with her.

When money flows out of a country, the people in that country will try to replenish their cash balances by exporting more, thus correcting the situation and make everybody richer. That's why there should be no currency restrictions.

The Chinese Yuan will have to become freely convertible, before people start looking at it as a reserve currency. Right now, even if you have CNY, there aren't many assets that a non-Chinese can buy.

GE coin for the win! ;D

No, of course not

Just because all other empires have fallen. And all fiat currencies have inflated into being worth less than toilet paper, that doesn't mean it also happens with America.

Because America is just that special, it will last forever, and so will the dollar.

The american empire will likely not last forever just as other empires have not lasted forever. (I somewhat think that Obama is trying to get the American empire to fall). Until the American empire falls the US dollar will likely remain to be a reserve currency as it is able to exert enough influence (both economic and political) to get other countries to accept the dollar for their reserves

Of course pres. Obama is attempting to fell his empire. How else would GE enter the public consciousness? ::)

of course this is impossible to happen, because the American dollar is still the belle of the currency trading world, there are still many countries and European Americans use the dollar as a trading currency they use, although there are also some competitors such as the euro and the pound of English ...  ::)

You forgot GE coin (https://bitcointalk.org/index.php?topic=776426.msg8751393#msg8751393). ::)

This is true, however it will not necessarily always be like this. It is very well possible that the US economy could falter because of our massive social programs and the dollar end up like the british pound

Well it has been ages since people started the whole "we are all doomed, usa is going to hell, the dollar is over" perpetuated by the likes of Alex Jones and what not, yet here we are, 2014, in the middle of an epic economic crisis, and things just keep going and going. Nothing ever changes.

You forgot GE coin (https://bitcointalk.org/index.php?topic=776426.msg8751393#msg8751393). ::)

It is really interesting to see how much influence Bitcoin will have on this. Altho days of USD as world reserve currency are already counted down, Bitcoin can decrease them drastically. It can all happen just in a decade.

I would wait to see at least 1 country officially accept Bitcoin. That would mean a real new threat to USD.

What do you understand as accept BTC. To totally ditch their own currency? and just depend on BTC?  Or just not make any fuss of it and accept Bitcoin as any other foreghin currency?

I think there are many countries that already did or will soon treat Bitcoin as was my second option.

I think it will take lots of time until this happen. I think every country will still push forward their own currency as much as they can.


You see on this forum in altcoin sections. Everyone pushes their own altcoin, no matter how good it is. But all of them accept other altcoins.

Accept them for the payment of taxes. ::)

Or maybe add it to their foreign currency holdings. :)

You mean "their [commodity] holdings." :P

No it can't.. The world will not survive without universal currency.

But does USD have to be that universal currency?

Yes, it's the best-est‼ ;D

You need to understand that individual countries do not "accept" any currency, except for their own tax payments (they only accept their official currency for this). Countries will have their own national currency (or will adopt the currency of their economic zone, as in the EU, or of another country, as is often the case with the Dollar) however the country does not mandate that all trade be done in that currency. People of any country are freely able to engage in barter transactions in which they exchange some other form of payment in exchange for goods/services

I would say bitcoin is better.  :)

Bitcoin is primarily propagated for interests known personal gain and, therefore, should prove of greater detriment than benefit to those that would receive it.