What if US Dollar Crashes?

[manyuta]

Depends what you men crash,price drop by 30% to what currency,not o long time ago dollar was 1.35 to euro,now 1.05,does euro crash,.If will be devaluation than newdollar will created imply zeros will be deletad
As long USA will exist dollar will exist.I hope euro will crash and no exist anymore

In my opinion the euro is very different from the dollar. The euro is the product of several countries, and the dollar is an international currency that holds the whole world.

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[Capradina]

I do not use dollars to transact, but I use fiat, and bitcoin. Well, maybe when the dollar crashes, bitcoin prices will rise, and it may be beneficial for some parties. but I am sure, it will give the effect that very much, because the dollar is the international currency.

the estimates are indeed something things that can make us happy or spirit, but the estimate does not mean giving the right thing. because it predicts something it had time or may not happen. Bitcoin indeed exceed the price of USD, but a layered defense that USD has compared bitcoin. so if USD crashes, then it only last a very short time. whereas if not necessarily crash bitcoin last only briefly or even could be a bitcoin uprooted or no more enthusiasts who use it

[DoublerHunter]

If the dollar crashes i believe that the bitcoin price will spike up because dollar will be cheap so the bitcoin price will be adjusted to be on the high peak price.

If we are going to be realistic, i think it is hard for us dollar to crash because they have good government that will sustain its economy and they are one of the top country that does well for long years.

[deisik]

I was thinking about this, what if the US Dollar crashes like speculated by many renowned economists around the world?
What will be it's affects on the beloved currency, BTC?

I think crashing down for the filler or USD is impossible because in the Fiat currency the king is one which is USD .
But if it would be then the people who are non USD user will get profit . Because if USD carsh then the value of Bitcoin in USD will increase and if we sell.our Bitcoin for Fiat then we will get for profit in our own Fiat currency .

You have got the conversion wrong there.
If you have a different currency other than USD, then the USD crashing won't get you much more fiat.
Value of Bitcoin in USD will increase, but those dollars will fetch you less fiat. In the end, the value of BTC in your fiat currency won't change

That is a tricky point

Basically, you refer to simply mechanistic relationship but in real life things are by far more intricate than that, and the true relationships (i.e.how thing will develop in reality) are often perverted and not very intuitive overall. In the case which we discuss here (i.e. what is going to happen if the  US dollar crashes), you implicitly assume that inhabitants of the part of the world known as the US will be sitting idly watching how their currency (i.e. the US dollar) collapses. Obviously, nothing can be farther from truth. And where do you think they will pour their collapsing dollars into? In some obscure local currency like Algerian dinar or Sierra Leonean leone? 

[Bitcoinsummoner]

If the dollar crashes i believe that the bitcoin price will spike up because dollar will be cheap so the bitcoin price will be adjusted to be on the high peak price.

If we are going to be realistic, i think it is hard for us dollar to crash because they have good government that will sustain its economy and they are one of the top country that does well for long years.

Its obvious since the price of bitcoin is just relaying something valuable not only in usd.. bitcoin can be exchange in any currency.. if the  usd crashes the fluctuate of bitcoin will not increase because only usd was crashes but the other currency are not..

[bravehearth0319]

I was thinking about this, what if the US Dollar crashes like speculated by many renowned economists around the world?
What will be it's affects on the beloved currency, BTC?

I think crashing down for the filler or USD is impossible because in the Fiat currency the king is one which is USD .
But if it would be then the people who are non USD user will get profit . Because if USD carsh then the value of Bitcoin in USD will increase and if we sell.our Bitcoin for Fiat then we will get for profit in our own Fiat currency .

You have got the conversion wrong there.
If you have a different currency other than USD, then the USD crashing won't get you much more fiat.
Value of Bitcoin in USD will increase, but those dollars will fetch you less fiat. In the end, the value of BTC in your fiat currency won't change.

I beg to disagreed with you, if the economy of each country face a big circumstances the number one things that will affect on it was their own money currency. and if that happen will bitcoin get affect on that things also?

[Coinonat]

 If US Dollar crashes then Bitcoin price will go very high and people already holding it will make money.

[South Park]

In real life, if your country's currency is starting to go down, it will be much better to save your wealth in bitcoin form instead of hoping that your currency will revive.

This is something that is already happened, some users in the forum have used bitcoin to escape the great devaluation that the Venezuelans are suffering through the lost of purchase power of their currency, so if that happens in your country then you know how to protect yourself, but there is no need to wait for that to happen buy bitcoin now and obtain the benefits of a currency that is reevaluating itself constantly.

[MMA]

If the US dollar crashes then there will be tremendous economic uncertainty and people will look for ways to avoid losing their savings, gold, silver, real state, commodities, bitcoin and other cryptos will be on demand so not only bitcoin price will go up because the dollar is crashing demand will go through the roof and you will be able to ask for almost anything in return.

i do not think that it is so easy that USD can be crash, because USD is one of the most stable currency of the world. i think it can be possible if all the big countries who are using USD become destabilize and then their there are some possibilities that USD will crash. but still it is just look like impossible because most of world economy is mostly depending on USD.

[STT]

If US Dollar crashes then Bitcoin price will go very high and people already holding it will make money.

I have to disagree sorry.    Every decade or so a national currency crashes and its people are made poorer generally.   Money does serve a purpose, a utility and some work is saved by allowing that convenience and ability to save.
IF that system is destroyed, generally losses occur.  I agree prices will go up as the dollar worth goes down, its true but overall the effect makes people poorer as confidence falls and uncertainty means less trading.

Studies into the decline of the Mexican peso and its standard failure for note holders were made over years by Marc Faber who has traded internationally since the 1970's.   He has a long slideshow and talk on this, his conclusion was that share holders in mexico were roughly even after 10 years.   In a decade, they saw no growth occur and no losses to their original money.
We all know a country that has sucess can become richer and grow alot in ten years, so no growth is very poor.   Inflation, currency failure is a negative.

The only point to add for Bitcoin is that its new technology.  Some very clever innovative people want to make it better, if they improve utility its still possible you do gain in some way.  This gain would come from world commerce increasing and the decline of a Washington centred monetary biased system, maybe!

[Winter1986]

If US Dollar crashes then Bitcoin price will go very high and people already holding it will make money.

I have to disagree sorry.    Every decade or so a national currency crashes and its people are made poorer generally.   Money does serve a purpose, a utility and some work is saved by allowing that convenience and ability to save.
IF that system is destroyed, generally losses occur.  I agree prices will go up as the dollar worth goes down, its true but overall the effect makes people poorer as confidence falls and uncertainty means less trading.

Studies into the decline of the Mexican peso and its standard failure for note holders were made over years by Marc Faber who has traded internationally since the 1970's.   He has a long slideshow and talk on this, his conclusion was that share holders in mexico were roughly even after 10 years.   In a decade, they saw no growth occur and no losses to their original money.
We all know a country that has sucess can become richer and grow alot in ten years, so no growth is very poor.   Inflation, currency failure is a negative.

The only point to add for Bitcoin is that its new technology.  Some very clever innovative people want to make it better, if they improve utility its still possible you do gain in some way.  This gain would come from world commerce increasing and the decline of a Washington centred monetary biased system, maybe!

Today, to reach the level of the dollar, bitcoin has to pass a lot more, and not the fact that cryptocurrency be able to replace all currencies in the world. Of course, I also think that in the future all the money will be in digital format, but it can be the same dollar. The American national currency for the period of its existence has experienced a lot. But she is still the leader in the global market demand.

[gabmen]

If the US dollar crashes then there will be tremendous economic uncertainty and people will look for ways to avoid losing their savings, gold, silver, real state, commodities, bitcoin and other cryptos will be on demand so not only bitcoin price will go up because the dollar is crashing demand will go through the roof and you will be able to ask for almost anything in return.

i do not think that it is so easy that USD can be crash, because USD is one of the most stable currency of the world. i think it can be possible if all the big countries who are using USD become destabilize and then their there are some possibilities that USD will crash. but still it is just look like impossible because most of world economy is mostly depending on USD.

I agree. Im not seeing any reason that would be enough to make a currency as strong as the dollar collapse. It may face some challenges but i dpubt there would be a collapse scenario. That would be panic not only in the us but all thoughout the world market. And i don't think also that bitcoin will thrive if that happens because in a way bitcoin also depends on the dollar

[darthmaul]

I was thinking about this, what if the US Dollar crashes like speculated by many renowned economists around the world?
What will be it's affects on the beloved currency, BTC?

I think that it is hard to happen. As we know USD is centralised currency. Government is very intelligent about maintaining the money equation throughout the country. The currency USD is constantly produced by government as per the needs of nation meaning, if by any means say example of bank, when it sense that their hard cash is exhausting it will be refilled by regulatory body immediately thus maintaining balance of USD in the bank. What this taught us? Well due to 'maintenance equation' of government it will never run out USD and due more and more production of USD they are actually adding more value to harf currency indirectly.

On the other hand our beloved Bitcoin is limited in number for now. By today we have capped limit of 21 million bitcoins in the world. Yes it is getting expensive but will be limited to certain amount one day. So at that time USD will surpass its value.

However, for instance if we think that USD crashes then there is big question that 'Bitcoin is decentralised'. So how will you distribute it in the world. What if one nation holds more bitcoin (more power) and others don't? This will lead to consequences. (Just in case if our USD drops!)

:-)

[deisik]

If US Dollar crashes then Bitcoin price will go very high and people already holding it will make money.

I have to disagree sorry.    Every decade or so a national currency crashes and its people are made poorer generally.   Money does serve a purpose, a utility and some work is saved by allowing that convenience and ability to save.
IF that system is destroyed, generally losses occur.  I agree prices will go up as the dollar worth goes down, its true but overall the effect makes people poorer as confidence falls and uncertainty means less trading

I also have to disagree with your approach

If I got your point right, to begin with. Basically, you mean to say that people holding dollars will become poorer overall and they won't be able to buy bitcoins therefore Bitcoin won't shoot to the moon. Obviously, you fail to take into account at least two major things. First, whether the majority of people becomes poorer is irrelevant to the price of Bitcoin (however cynical it may look or sound) since Bitcoin is only used by a small percentage of people (and only these matter). Second, people may become poorer only because of the dollar losing its purchasing power. But if they don't have devaluing dollars (apart from what is required for everyday expenses) and keep their wealth in something else which will preserve its value, their impoverishment will be negligible. So we have two groups of people, the first is using Bitcoin, the second consists of wealthy individuals. In reality though, the second group includes the first (i.e. it is wealthy people who are using bitcoins). If the dollar starts to crash, they will be trying to get rid of their dollar stashes as soon as possible, but since the dollar can't collapse overnight, they will evidently front-run inflation. And where wealthy bitcoiners will pour their dollars into, in your opinion?

[BlackPanda]

one nightmare is the destruction of the USD. if this is true then the world economy will fall.
different sectors will experience significant disruption. because the USD is very influential.

[STT]

USD is the world reserve currency.  Previously within living memory almost, it was Sterling which dominated global commerce which makes sense as they had the largest trading empire thats ever existed.
Currency does not determine trade, its not more important.  Dollars going down will not impede bitcoin so far as I know.    The wealth of US nationals will not stop bitcoin from rising in price.   They might be poorer but prices are not determined by the wealth of just that country. 

Most bitcoin trade is done with connection with China not USA, they may want to buy dollars or be interested in the link to dollar but thats transient.   IF dollar were to disappear, people might just quote bitcoin in oil cost or some universal point of reference

since the dollar can't collapse overnight

Indian government just recently nullified 2 types of currency notes overnight.   I doubt USA would decide to, but its possible they can default on all obligations.    Bitcoin would not fall in dollar price, it would only make that price irrelevant

[asriloni]

one nightmare is the destruction of the USD. if this is true then the world economy will fall.
different sectors will experience significant disruption. because the USD is very influential.

I agree that the world economy will be affected on this incident. We all know that many sectors all over the world and countries are depending on the economy of US. So if US will be the first one to fall then for sure the next ones are its subordinates. Because most of them are making US as their top priority when it comes to economy.

The dollar has a lot of the influence for the another fiat currency, that's why it will give the big impact for all of the fiat currency around the world. Some of the countries such as kuba will not get any affect for the dollars. I think it's very reasonable. because there is not central bank on the kuba.

[deisik]

USD is the world reserve currency.  Previously within living memory almost, it was Sterling which dominated global commerce which makes sense as they had the largest trading empire thats ever existed.
Currency does not determine trade, its not more important.  Dollars going down will not impede bitcoin so far as I know.    The wealth of US nationals will not stop bitcoin from rising in price.   They might be poorer but prices are not determined by the wealth of just that country. 

Most bitcoin trade is done with connection with China not USA, they may want to buy dollars or be interested in the link to dollar but thats transient.   IF dollar were to disappear, people might just quote bitcoin in oil cost or some universal point of reference

since the dollar can't collapse overnight

Indian government just recently nullified 2 types of currency notes overnight.   I doubt USA would decide to, but its possible they can default on all obligations.    Bitcoin would not fall in dollar price, it would only make that price irrelevant

Russian (then Soviet) government outright confiscated their citizens' money actually within a couple of days (see here for more info). But Russia had a planned economy back then, so it didn't matter much for it since it had already been mostly ruined by the time when Soviet Union was about to collapse. Now compare that situation with the US economy and its huge private sector. Outright nullifying and invalidating the dollar would mean killing the US economy and likely pave a way to another Civil war. Provided there are such daredevils in the American government in the first place

There is simply no reason (outside purely suicidal) to do anything like that

[Barbut]

one nightmare is the destruction of the USD. if this is true then the world economy will fall.
different sectors will experience significant disruption. because the USD is very influential.

I agree that the world economy will be affected on this incident. We all know that many sectors all over the world and countries are depending on the economy of US. So if US will be the first one to fall then for sure the next ones are its subordinates. Because most of them are making US as their top priority when it comes to economy.

Dollar is very influential, but I think it's replaceable like anything else. Crash of the dollar can mean a better future for the world, not right away after the crash but definitely bitcoin can make global economy better, more transparent, and cheaper to maintain and use.
In case that dollar goes down it will pull other currencies down too, except that some companies and banks will be in the trap and we can expect their closing, many people will lost jobs. Like any economic crisis, if dollar crashes we can expect chaos in next days, but after that dark sun will come.

[deisik]

one nightmare is the destruction of the USD. if this is true then the world economy will fall.
different sectors will experience significant disruption. because the USD is very influential.

I agree that the world economy will be affected on this incident. We all know that many sectors all over the world and countries are depending on the economy of US. So if US will be the first one to fall then for sure the next ones are its subordinates. Because most of them are making US as their top priority when it comes to economy.

Dollar is very influential, but I think it's replaceable like anything else. Crash of the dollar can mean a better future for the world, not right away after the crash but definitely bitcoin can make global economy better, more transparent, and cheaper to maintain and use.
In case that dollar goes down it will pull other currencies down too, except that some companies and banks will be in the trap and we can expect their closing, many people will lost jobs. Like any economic crisis, if dollar crashes we can expect chaos in next days, but after that dark sun will come

The emphasized part seems to be most debatable in your post

I don't even say that Bitcoin right now cannot be scaled at all to even one tenth of the dollar turnover. I'm just curious what makes you think so, now when the transaction fees are skyrocketing and confirmations sometimes take hours (even if you paid a decent fee). Further, it is debatable as well why other currencies should necessarily go down. Which of these currencies do you refer to precisely? All major currencies like the Euro, British pound, Swiss frank are set to rise if the US dollar is going to crash (that's what happens today when dollar just loses some points). You don't have to be an economist to understand that. People will run into these currencies (as well as gold and likely Bitcoin) if dollar collapses