What if US Dollar Crashes?

[Pab]

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?

It is possible, but through what process is the question

Currency's value comes from demand, when economy goes bad, people desperately want more currency, that's why currency will never crash during a recession, they strengthen instead. FED printed 5x more USD without crashing its value, just because exploded demand for USD after financial crisis

So the only possibility that a currency will crash is during hyper inflation. That is also not possible, since banks are holding most of those newly added money supply, they watch inflation carefully and strictly restrict how much money flow into the economy to avoid inflation

Another possibility is that people find some other alternative (for example bitcoin), thus give up using USD. That's also not very likely to happen since most of the people's income is received in the form of USD, unless USD is in a state of hyperinflation, they will keep using USD

Currently we have a huge bond bubble, if those bond can not be paid back and default, it will crash the bond price, cause large loss for investors, but again, that will trigger a shortage of USD, gives bank more reason to create more USD

In a disasters scenario, people will always chase USD, which is the most liquid format of asset, so it is not likely it will crash in any foreseeable future

Good post but  hyperinflation on dollar is possible,if will be high inflation on dollar than will be crash not in dollar but in emerging currencys,that moment btc price will goes up

Dollar may lost his dominance in time,if we talk about fiat money crash, Euro is first on my list and i hope it will happen finally

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[MrsHash]

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 suppose the price of Bitcoin will drop significantly in this case

[Light]

If the US dollar crashes, bitcoin will most likely crash. This is because most of the bitcoin users are from the US, and with them gone, bitcoin will basically be much, much cheaper, as the americans try to sell their coins to get some sort of cash. Or maybe BTC will go up, they will try to convert their money into bitcoin, and cause a huge price spike.

If the USD devalued - assuming everything else was constant Bitcoin's price compared to USD would actually increase (weakened USD alongside possible increased demand for alternate currencies such as Bitcoin). But in all honestly, for the USD itself to crash would require a combination of extremely improbable events - the USD is a lot less susceptible to rapid movement compared to the stock exchange.

[chiajw1]

Actually, governments are fundamentally incapable of maintaining the value of their currencies. Everything is in debt even the ""mighty"" United States. The currency is competing with other fiat currencies like Euro and Yen and commodities like gold.

If the US dollar crashes, the whole currency fiat will be in anarchy. Every fiat currency is dependent with each other especially US dollar. If it collapses, the first thing is price of commodities like gold will rise sharply. But it will not probaoly lead to the collapse of society, maybe just a huge shift of political power and monetary policy.

In another view, foreign investor and country will stop demanding US dollar, US dollar bond falls, or another meaning that the interest rate will rise. Inflation rate will rise and leading it to another great recession. The government will print as much money to cover it up but the price of daily goods will rise, money in CDs, life savings, literary everything monetary will turn obsolete.

On the other hand, commodities like gold and cryptocurrencies especially BTCitcoin price will increase. These things are not tangible to any government or inflation rate. These things only change with supply and demand. If the US dollar falls and you had some bitcoins on hand, maybe you will become the next millionaire...

It is just my personal opinions.

[chiajw1]

If the dollar will crash it will make a big impact on the whole world

A lot of currencies are depending on the dollar

The impact will be entirely positive.  NO currencies depend on the dollar.  How could a currency depend on the dollar??  That makes no sense at all.

Actually every currency is dependent with each other especially in exporting goods. Country like Japan actually borrows money to develop their country and so on..

[saraadams]

There is no reason why USD would crash now and if it would crash in the future, it will bounce back eventually

[Shinpako09]

In that case I don't know if bitcoin price will fall or rise. But if that's happen I guess EURO will step up since they are second most use currency next to dollar. .

[funkenstein]

If the dollar will crash it will make a big impact on the whole world

A lot of currencies are depending on the dollar

The impact will be entirely positive.  NO currencies depend on the dollar.  How could a currency depend on the dollar??  That makes no sense at all.

Country like Japan actually borrows money to develop their country and so on..

Is there some logic hidden here?  I don't see it.  Some guys in Japan hats borrow something (bitcoin, rice, dollars, yen, whatever you had in mind) and pay for construction or something.  How does this relate to the totally wrong statement that "The yen depends on the dollar"?  Maybe I need one or the other, they function entirely independently.  Burn one, you'll see: the other...  still exists! 

[funkenstein]

There is no reason why USD would crash now and if it would crash in the future, it will bounce back eventually

Attack of the newbies!  We will win at Waterloo. 

[rossoalb]

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?

Then there will be exchange a bitcoin  - gold   

[Pierre 2]

If it crashes I would mind a lot, I don't like to hold dollars at all.
It is not enough risky to make me nervous.

[markj113]

If the dollar will crash it will make a big impact on the whole world

A lot of currencies are depending on the dollar

The impact will be entirely positive.  NO currencies depend on the dollar.  How could a currency depend on the dollar??  That makes no sense at all.

Country like Japan actually borrows money to develop their country and so on..

Is there some logic hidden here?  I don't see it.  Some guys in Japan hats borrow something (bitcoin, rice, dollars, yen, whatever you had in mind) and pay for construction or something.  How does this relate to the totally wrong statement that "The yen depends on the dollar"?  Maybe I need one or the other, they function entirely independently.  Burn one, you'll see: the other...  still exists! 

The Yen currency is pegged to the dollar.

Also the Yen has now officially become a reserve currency

http://www.zerohedge.com/news/2015-11-15/imf-greenlights-addition-chinese-yuan-sdr-basket-wall-street-responds

[StudyEconomics]

USD is posed to continue its gain.

[neurotypical]

USD is posed to continue its gain.

What gains? gaining debt?

www.usdebtclock.com

Because it's the only thing that's going up, debt. The value of dollar going up due scammy intervention by the state which is all artificial means absolutely nothing in the long term to correct the devastating trend.

[LowlandGorilla.]

Every US dollar is owed to someone.
The USD itself is debt.

[Xeelee]

If the Dollar crashes we have the change for a Bitcoin-Revolution. In addition I expect the precious metals will rise as well as Gold, Silber and Platinum. I also expect the other paper money currencies will collapse at one point in time. So Euro or Yen is not better.

[LowlandGorilla.]

If the Dollar crashes we have the change for a Bitcoin-Revolution. In addition I expect the precious metals will rise as well as Gold, Silber and Platinum. I also expect the other paper money currencies will collapse at one point in time. So Euro or Yen is not better.

That is impossible because if the USD collapses, the ISPs will loose a lot of money, and that will cause them to shut down their services in the US. If the dollar collapse, triggers other currencies to collapse as well, that would cause huge internet blackouts.

[USB-S]

If the Dollar crashes we have the change for a Bitcoin-Revolution. In addition I expect the precious metals will rise as well as Gold, Silber and Platinum. I also expect the other paper money currencies will collapse at one point in time. So Euro or Yen is not better.

That is impossible because if the USD collapses, the ISPs will loose a lot of money, and that will cause them to shut down their services in the US. If the dollar collapse, triggers other currencies to collapse as well, that would cause huge internet blackouts.

What do the ISPs have to do with dollar collapsing? Bitcoin has way too many nodes up, a couple of hundred dropping away wont do much.
However if USD crashes all commodity's which are tied to USD that means absolutely everything will lose value, that includes bitcoin and gold.

[newcoins1978]

There would be chaos. sure it is a chance for Bitcoin, but how many companies, major companies use it as their trade currency..

[Linuld]

There would be chaos. sure it is a chance for Bitcoin, but how many companies, major companies use it as their trade currency..

I don't think all companies will rush to bitcoins for short term USD crashing because bitcoin is not so much established currency and no one can predict the price of bitcoin based on any fundamentals but the prices are moving up and down based on demand and supply. So USD crash may not impact much on btc prices.