What if everybody wanted to move to BTC?

[PieStick]

Hypothetical question:

What if everybody wanted to move from USD to BTC? Wouldn't the dollar become completely worthless after a certain number of people switched over, making it impossible for everybody else to convert their money?

This is very different then government sponsored currency swaps where x amount of the old currency was converted to y amount of something new. Since BTC can't just be printed out as desired, how could a country completely switch to bitcoin without destroying their economy?

[mgio]

The dollar will never completely become worthless because you still have to pay your taxes in dollars.

[Zaih]

The same way people first got their hands on currency I guess.. Trading goods etc.

[Lethos]

I find it unlikely "local" currencies will ever be replaced. I just see BTC as a universal currency system, ideal for international trade.
Local currencies will always have their place, banks and governments will never give that up, they have too much control over it, while little to none over BTC.
The masses might adopt more use of BTC and that will be a good thing, but the monetary system for now will remain will always remain in one shape or another for the above reason, not everyone will change over.

[blazespinnaker]

Hypothetical question:

What if everybody wanted to move from USD to BTC? Wouldn't the dollar become completely worthless after a certain number of people switched over, making it impossible for everybody else to convert their money?

Not impossible, but harder.  You'd probably have to get around 90% or so, before it'd became 'impossible'.

However ......  when you said "hypothetical", you kinda nailed it there.

I mean, hypothetically, if water started turning into wine, wouldn't wine merchants have a hard time making money?

Or, hypothetically, if I won the lottery, would I still have to go to work?

[abigfish]

a small (narrow use low monetary base) currency is highly susceptible to speculative attacks and thus highly volatile and dangerous to both traders and capitalists (=those accumulating capital nor USA folk in general as Europe thinks:D) ...less to the individual consumer ....


for example if you wanted to shake the $ you could bend over backwards for Obama and it still wouldn't change shit ....USA GDP2011@current prices =15.09 TRILLION $
while crashing the national currency of Moldava (GDP2011 @current prices = 7 BILLION $...this goes for a shitload of small countries !!!) would be a child's play for ANY FORBES top 10 individuals or companies ....  

need me to elaborate ?

Point is ...BTC is still a small unstable market ...but if people would move to it massively ....well: value, GDP ,market cap they all rise corresponding to the growing demand ...ultimately stabilizing with each small growth ...   

[Wardrick]

It wouldn't last long without any form of paper currency that can be held at face value at any given time, which would essentially be the same as USD. I wouldn't want to be dealing with private keys, paper wallets, digital exchanges 24/7

Also, if everyone moved to BTC there would be such a shortage and price fluctuations it would probably crash the economy.

[kalinka]

If everybody wanted to move to BTC, the dollars to buy the bitcoin would be essentially worthless. Everyone who owned money would have their fortunes and savings become essentially worthless. As this started to happen, those many people who owned USD still would start to lose their appeal of bitcoin, and start to work with USD again. In essence, USD (or any paper currency) would never become worthless simply because so many people would be stuck with it.

[marcus_of_augustus]