Bitcoin Forum

If we take every dollar in existence and make the existing quantity of BTC equal that amount of value, what will a coin cost in the (now-defunct) dollar?

Just wondering what will happen if a large economy switch to Bitcoin

If the US dollar were still pegged to the country's gold and foreign exchange reserves, then this would make some difference. So, what's the difference for the bitcoin price how many paper dollars have been printed before this time? And the transition of the US government from its dollars to bitcoins cannot be implemented in principle. The US government will never make such a decision, otherwise it would be a disaster not only for the United States, but for the entire world financial system, which is based on a planned economy.

It will not happen. How are you wondering a centralized government will replace their Centralized native fiat with decentralized cryptocurrency Bitcoin? Centralized & Decentralized aren't friends with each other, it's always conflict. Rather than the USA could launch a native coin which would replace USD if in case of the world totally move to digitalization. How do you think the total supply of Bitcoin is enough to replace of the total circulation of USD?

It will never happen and unrealistic thought by the way.

Instead, this is just a supposition and it may not happen if the US itself cannot be separated from the Dollar. Then if Bitcoin is pegged based on the number of dollars in circulation, then the value contained in Bitcoin itself is no longer decentralized and is only considered a function of paper money. How much Bitcoin supply is currently unmined and that can't cover all the circulation of the Dollars they print.

it would move from 30,000 loaf of bread value.. to more loaves of bread value

There are many things that can happen, both positive and negative at the same time I do think some of the things that can impact the bitcoin environment are :

1. People switching to bitcoins means the Volatility have to go down, since they would be using it on a regular basis.

2. The government might try and centralize the whole economy, which would mean sooner or later there would be more impositions.

3. The value of Bitcoins might undergo price correction since now companies might switch to other cryptocurrencies which might provide them more benefits. Without volatility it might be hard keeping in the investors.

It will make a huge difference in the Bitcoin price, but it will also NEVER happen... because the power of the US Dollar as a global reserve currency will never be relinquished by the USA .. over other countries.  ;)  The US government know how to manipulate the price of the US Dollar (Printing it like toilet paper) ...and they cannot do that with Bitcoin.

There are also a strong sentimental link to the US Dollar and the politicians know this, so it will be political suicide to do this. We saw the outcry from a section of the El Salvador public, when their government accepted Bitcoin as legal tender.  ::)

It will never happen that the US dollar will disappear because the economy of most of the countries of the world depends on the economy of USA. But if we imagine that this could happen, it is certain that the demand and price of Bitcoin will increase a lot. Because 9 out of 10 people in the USA have an idea about Bitcoin. If the announcement comes, everyone will be desperate to buy Bitcoin. At the same time, other countries of the world will also take initiative to adopt Bitcoin. One day, the value of Bitcoin will surpass the value of Gold, which too was beyond imagination. So there is nothing wrong with imagining that Bitcoin will replace fiat money.

There are trillions of USD in circulation, even US govt has no idea how many USD are there in circulation as they keep on printing notes every now and then (since US dollar is backed only by the US government). Today USA is super power so we see USD as global currency, may be tomorrow China takes over as super power we will see Chinese Yuan in circulation.  I do agree that the centralized governments will never accept the decentralized crypto.

Too unrealistic scenario. While it's okay to dream and desire, unfortunately, there's no answer for such question (unrealistic).
Asking such broad questions will only get speculations. Especially to a question related to government untraceable currency's total circulation and cryptocurrency as their alternative official currency.

This will answer your question: https://cryptovoices.com/basemoney/

In summary, if the $6.4 trillion USD base money were replaced by 19 million BTC, then each BTC would be worth $337k.

However, keep in mind that inflation is already eroding the value of a dollar, and I would discount that by 1/2 to $170k in pre-inflation dollars

Even though such a replacement is unlikely to happen anytime soon, it is a useful calculation because it puts a ceiling on the value of a bitcoin. It shows that the value of 1 BTC cannot reach $1 million (in today's dollars) as some people believe.

In the scenario the OP describes the dollar would be effectively worthless and therefore 1 BTC will be worth … 1 BTC.

It's hard to believe that we will see that someday.

Every country is centralized and they don't want to shift to a decentralized economy for which is what bitcoin is portraying and hinting at.

But going with that, the first thing that comes to my mind is the actual value of bitcoin would be multiplied.

Even on my dreams this wont actually happen and imagine on how would be a mess on the market if USD would be totally out of the scale or picture?

This doesnt only talk about its important but consider on what  are the things do attached with this fiat? Im not really that positive with fiat

but i cant imagine on how the economic will be greatly affected if this what IF condition would happen.

Bitcoin's current value is 17% of that theoretical value at 100% replacement (337k), but current adoption is nowhere near close to 17%. This is because Bitcoin's value does not depend on its adoption as a currency, so it can easily reach $1 million just by being "digital gold". Kinda like the real gold's marketcap is higher than base money, despite nobody using gold as a currency.

As a national decision, it needs approval from Congress members so it won't happen suddenly and we can see signals of such big decision.

Big nations won't do this step because it is like slap at their faces and their financial system. They know what are weakness of their system but they will never officially admit it. They can add Bitcoin to their reserves but I am sure Bitcoin won't be the only asset in their national reserve.

When it happens, with such big news and achievement Bitcoin will have big increase shortly. That can be 30%, 50% but I can not say about price. It's just percent because I don't know when it will happen and what price Bitcoin before such achievement.

There's no accurate price prediction to be reach for this and its hard to give a figure on something we know impossible that's its little bit not realistic to see how some government will dispose their physical cash for just a high volatility crypto. This one will give them a huge problem if they push this since we know how unpredictable and how the market goes on certain circumstances.

Also for sure their law maker will not allow any implementation that takes their physical cash on their rotation.

I know how much we love bitcoin, but saying that the US would abandon their US dollar for Bitcoin, seriously what even makes you reason such a thing? The United States are never going to abandon their USD currency just to adopt bitcoin. Look at the economy of the world and how everything is set out, do you ever think that such would ever happen? The only thing they would do is just declare it a legal and a legal method of transaction for people to be free to make use of it for daily transactions and also be able to invest, and own it as assets.

It’s all hypothetical & clearly not going to happen any time soon but if the Us were to switch to bitcoin obviously the price would go to the roof. You’re talking about the whole world reserve currency funds being bitcoin.

What you are saying is very unrealistic and will never gonna happen today and in the future. Such centralized government would never allow a decentralized currency to replace a centralized currency because it will only be a threat for the transparency of the US government. If this is the case, US government will eventually create their own centralized digital currency because at least they can still control it than just resorting into bitcoin wherein most of the people who are secretly keeping bitcoin will eventually come out in their places and create a rally.

It would be worth jack shit because it just wouldn't be the same thing most of us signed up for. Centralisation would bring about a different concept of what BTC is about and how it operates, and, in no time, it would end up just like today's FIAT. Obviously, I strongly believe that BTC will not overthrow the dollar, but if it did, not much good would come of it. It was not meant to be governed over by the state.

There's no such way, Bitcoin is decentralized and the dollar is centralized, I don't think that the well-developed country will do such a thing, they even have heavy regulations.  Bitcoin needs also fiat to have a real value and I don't think it can overtake Bitcoin besides no one government replacing their fiat.

I don't know even if this what IF will happen and what is the result to the economy, we know that the world's market influenced on the dollar value as of now.

Yes, dollar being centralized can't be replaced by the decentralised bitcoin. Also, at any cost this isn't gonna happen. The low populated country El Salvador itself had opposition for considering bitcoin as legal tender. So, surely USA people will also have opposition. Bitcoin needs fiat to value it, which might change when direct acceptance increase.
The chances are no more considering the economic infrastructure and bitcoin. Maybe as an alternate to the USD we can see bitcoin getting used in the future as the generations are completely getting tied to technology.

$10,000,000 per Bitcoin.  Likely even higher as much of the Bitcoin supply is ghost supply that will never again be accessed, plus fomo.

However, as others have stated, this will never happen.  There is so much debt and liability out there, not to mention greed, that the government will be able to keep those printing presses running long after any sensible person would have gone onto a new plan.  Nothing short of a war will change the dollar I fear.  Not even a president wanting to make the change can have any effect (see: JFK & Executive Order 11110).

It is not something as you so easily pose it, there is no context, even the simplest conjecture requires defining the parameters correctly, so as not to start shooting arrows...

On the other hand, it is not necessary that it be a great economy, any economy that arises with that idea enters an unexplored path and in a certain way enters a coin toss, in which the result is indeterminate, it does not matter what results from that launch, it is the reality even if the most learned of the traditional economic world come to say that it does not work and on the contrary the great experts of the bitcoin to say "we will be successful".

It is simply not known, but fortunately for everyone, there is a case in development, it only remains to wait for it to arrive, but regardless of the result for or against, you have to keep trying but not with mental examples but with the execution of those premises.

Oh, that would catapult Bitcoin's price to the heavens! Narrow money alone is already estimated to be around $40 trillion. If all of that is to be converted into Bitcoin, Bitcoin's price might reach hundreds of thousands of dollars. But if all the US dollars in the world, as in from M0 to M3, will all be converted into Bitcoin, the price might exceed a million.

But then, again, as tertius993 pointed out, Bitcoin's USD valuation will be worthless at that point in time and 1BTC will only be equal to 1BTC.

Even though it is impossible, they can do that but it will cost them a lot and there is no reason to do that. They can just adopt it or implement it to make use of it if they want but that as well is impossible because we are talking about the USA here where what they do with their economy will matter to the world. The price of bitcoin right now will rise to some new ATH if they will announce implementing it in the future, what more if they will make it come true?

the country got messed up LOL. but that's impossible because the government can't control it because decentralized is not centralized and prices are unstable. and also the possibility of bitcoin becoming worthless is very large. we still need FIAT besides cryptocurrency

Though definitely not going to happen for the USA to abandon US dollar and witch to BTC, but let's say it just happened for just a day, the price of 1btc will skyrocket in a matter of hours before going for correction.