Advantages of Dollar as the first currency for U.S

[Q7]

No matter how strong or how reliable a fiat currency is, it is still a fiat currency. Centralized, open for manipulation, uncontrolled supply with no cap amount, and a total opposite of what bitcoin stands for. The reason why it is still here today is because people are still misinformed or completely misguided. I hope that will change someday.

[AtheistAKASaneBrain]

Hello everyone, I want to know if there is any advantage in having dollar as the first international currency? Can US do print money and use it as a tool for paying its international debt,..?

The main advantage of dollar is it's network effect. Just like Bitcoin is the undisputed king of cryptos, the dollar is the undisputed king of fiat. No one is going to reject dollars out there. Therefore, they can get away with printing and printing, and people will keep accepting it regardless. But make no mistake, it's destined to collapse sooner or later, is just physics.

Hmmm, yes I think this will happen soon or late but I think it is a big advantage for us now and if it was not maybe us was a much weaker country.

Yeah, if you are already here and specially if you already own 1 BTC at least, you are lightyears ahead of the common and not so common folk (big gold holders, big fiat holders).
It's all a matter of who will be shaken in the long way up and who will resist the following boom burst BTC price cycles.

[expert4knowledge]

Hello everyone, I want to know if there is any advantage in having dollar as the first international currency? Can US do print money and use it as a tool for paying its international debt,..?

The main advantage of dollar is it's network effect. Just like Bitcoin is the undisputed king of cryptos, the dollar is the undisputed king of fiat. No one is going to reject dollars out there. Therefore, they can get away with printing and printing, and people will keep accepting it regardless. But make no mistake, it's destined to collapse sooner or later, is just physics.

Hmmm, yes I think this will happen soon or late but I think it is a big advantage for us now and if it was not maybe us was a much weaker country.

Yeah, if you are already here and specially if you already own 1 BTC at least, you are lightyears ahead of the common and not so common folk (big gold holders, big fiat holders).
It's all a matter of who will be shaken in the long way up and who will resist the following boom burst BTC price cycles.

Yes, they will have improvements but not sure how it can affect on US dollar value?

[galbros]

To go back to your original question - yes - there are advantages.  Someone has already mentioned the network effects, this helps everyone.  The US is helped because since others need to hold dollars for reserve and transaction purposes, the dollar is stronger than it otherwise would be.  However, the US also has a disadvantage, it has to run chronic current account deficits so that the rest of the world can have a supply of dollars to work with, this counter intuitive effect is called the Triffin Dilemma you can read about it HERE.

The main thing is for countries to not borrow in currencies they do not control, this is essentially Greece's problem.  The US and UK can never have a problem like Greece as long as their debts are in USD or GBP, they can have high inflation but not the credit crisis of Greece since as others have noted and you suggest, they can simply print the money to make good their debts.

I hope this helps you, good luck!

[expert4knowledge]

To go back to your original question - yes - there are advantages.  Someone has already mentioned the network effects, this helps everyone.  The US is helped because since others need to hold dollars for reserve and transaction purposes, the dollar is stronger than it otherwise would be.  However, the US also has a disadvantage, it has to run chronic current account deficits so that the rest of the world can have a supply of dollars to work with, this counter intuitive effect is called the Triffin Dilemma you can read about it HERE.

The main thing is for countries to not borrow in currencies they do not control, this is essentially Greece's problem.  The US and UK can never have a problem like Greece as long as their debts are in USD or GBP, they can have high inflation but not the credit crisis of Greece since as others have noted and you suggest, they can simply print the money to make good their debts.

I hope this helps you, good luck!

Hmm,thanks, I think the nuance of your response pertains to Triffin dilemma, but generally speaking I think if a country's people want to choose that their currency be like dollar or not they would select to have a widespread currency like dollar.

[thejaytiesto]

No matter how strong or how reliable a fiat currency is, it is still a fiat currency. Centralized, open for manipulation, uncontrolled supply with no cap amount, and a total opposite of what bitcoin stands for. The reason why it is still here today is because people are still misinformed or completely misguided. I hope that will change someday.

True, if they were aware, the usage of Bitcoin would skyrocket in detriment of fiat, but like some mentioned, people don't seem to care as long as they can keep buying what they want, even if the fundamentals of the system are extremely flawed and irreparable. Theoretically it's a matter of time until a collapse, but practically who knows if they can keep getting away with this shit forever.

[mrhelpful]

Just remember that global reserve currency can be replaced, if everyones willing to accept it.

If everyone accepts yuan or yen, then we lost it all and lose x100 times harder, which is what china wants to do.

[techgeek]

No matter how strong or how reliable a fiat currency is, it is still a fiat currency. Centralized, open for manipulation, uncontrolled supply with no cap amount, and a total opposite of what bitcoin stands for. The reason why it is still here today is because people are still misinformed or completely misguided. I hope that will change someday.

True, if they were aware, the usage of Bitcoin would skyrocket in detriment of fiat, but like some mentioned, people don't seem to care as long as they can keep buying what they want, even if the fundamentals of the system are extremely flawed and irreparable. Theoretically it's a matter of time until a collapse, but practically who knows if they can keep getting away with this shit forever.

well heres the thing, my friend pointed something a harsh reality to me.

He said whats the point on adopting and buying the coin, when i can just use my credit card and get the same item for probably less hassle.

[expert4knowledge]

Just remember that global reserve currency can be replaced, if everyones willing to accept it.

If everyone accepts yuan or yen, then we lost it all and lose x100 times harder, which is what china wants to do.

Yes and it would be danger for countries who have reserves in dollar? What happens to USA, europe and oil traders after it?

[Amph]

Just remember that global reserve currency can be replaced, if everyones willing to accept it.

If everyone accepts yuan or yen, then we lost it all and lose x100 times harder, which is what china wants to do.

Yes and it would be danger for countries who have reserves in dollar? What happens to USA, europe and oil traders after it?

they will either declare bankrupt or join the other currency by dumping everything with the dollar

[expert4knowledge]

Just remember that global reserve currency can be replaced, if everyones willing to accept it.

If everyone accepts yuan or yen, then we lost it all and lose x100 times harder, which is what china wants to do.

Yes and it would be danger for countries who have reserves in dollar? What happens to USA, europe and oil traders after it?

they will either declare bankrupt or join the other currency by dumping everything with the dollar

It can be very dangerous for countries who relied on only one currency like dollar.

[thejaytiesto]

Just remember that global reserve currency can be replaced, if everyones willing to accept it.

If everyone accepts yuan or yen, then we lost it all and lose x100 times harder, which is what china wants to do.

Yes and it would be danger for countries who have reserves in dollar? What happens to USA, europe and oil traders after it?

they will either declare bankrupt or join the other currency by dumping everything with the dollar

It can be very dangerous for countries who relied on only one currency like dollar.

I don't think the true richest people in the world (the people that are above the ones in Forbes, such as the Rothchilds) are going to let a currency crash, not unless they get all of their wealth out of there before it happens.

[elusive1]

Unlike other countries such as Argentina, the USA is unique and in a powerful position in that it owes it's debt in its own currency. They could could pay China with a simple XTrillion Dollar Coin should they want to. There would of course be terrible ramifications, but that keeps China from doing anything aggressive.

[mrhelpful]

Unlike other countries such as Argentina, the USA is unique and in a powerful position in that it owes it's debt in its own currency. They could could pay China with a simple XTrillion Dollar Coin should they want to. There would of course be terrible ramifications, but that keeps China from doing anything aggressive.

No, that wouldnt make things better at all.

And we have no room for another massive amount of money to pay china in a trillion  dollar coin, and if we did that means bitcoin would be already accepted as a part of a global reserve. Since you mentioned "coin".

[expert4knowledge]

Unlike other countries such as Argentina, the USA is unique and in a powerful position in that it owes it's debt in its own currency. They could could pay China with a simple XTrillion Dollar Coin should they want to. There would of course be terrible ramifications, but that keeps China from doing anything aggressive.

No, that wouldnt make things better at all.

And we have no room for another massive amount of money to pay china in a trillion  dollar coin, and if we did that means bitcoin would be already accepted as a part of a global reserve. Since you mentioned "coin".

I think he made a mistake in using coin since the nuance of this topic was  not related to bitcoin that much but I agree that usa is powerful and it is difficult Dollar does not be the universal currency.

[elusive1]

Unlike other countries such as Argentina, the USA is unique and in a powerful position in that it owes it's debt in its own currency. They could could pay China with a simple XTrillion Dollar Coin should they want to. There would of course be terrible ramifications, but that keeps China from doing anything aggressive.

No, that wouldnt make things better at all.

And we have no room for another massive amount of money to pay china in a trillion  dollar coin, and if we did that means bitcoin would be already accepted as a part of a global reserve. Since you mentioned "coin".

I didn't say it would be good, just why the USA is in a far superior position vs. other debtor nations.
I did not mean Bitcoin, just that the USA could print a single bill and pay China the entire debt should it deem needed.

[deisik]

Thanks from your response, in fact I want to know what if for example GBP had the situation of Dollar? Now for example USA buys a  good from country x to 1b$, can it simply print the dollar and pays the debt to country easily when in treasury there is not any money? I hope I can explain what passes in my mind.

They have already done so. They even went so far as to sponsor so-called freedom fighters all over the globe with the newly printed "authentic" US dollars (starting from the Soviet-Afghan war in the 1980s). Needless to say, that these dollars are forbidden to enter the territory of the US...

[elusive1]

Thanks from your response, in fact I want to know what if for example GBP had the situation of Dollar? Now for example USA buys a  good from country x to 1b$, can it simply print the dollar and pays the debt to country easily when in treasury there is not any money? I hope I can explain what passes in my mind.

They have already done so. They even went so far as to sponsor so-called freedom fighters all over the globe with the newly printed "authentic" US dollars (starting from the Soviet-Afghan war in the 1980s). Needless to say, that these dollars are forbidden to enter the territory of the US...

I have never heard of these type of US dollars, can you provide a link or citation?

[expert4knowledge]

Thanks from your response, in fact I want to know what if for example GBP had the situation of Dollar? Now for example USA buys a  good from country x to 1b$, can it simply print the dollar and pays the debt to country easily when in treasury there is not any money? I hope I can explain what passes in my mind.

They have already done so. They even went so far as to sponsor so-called freedom fighters all over the globe with the newly printed "authentic" US dollars (starting from the Soviet-Afghan war in the 1980s). Needless to say, that these dollars are forbidden to enter the territory of the US...

Interesting point, I did not new that but they can be exchanged with the us dollar that can be entered into us.

[deisik]

Thanks from your response, in fact I want to know what if for example GBP had the situation of Dollar? Now for example USA buys a  good from country x to 1b$, can it simply print the dollar and pays the debt to country easily when in treasury there is not any money? I hope I can explain what passes in my mind.

They have already done so. They even went so far as to sponsor so-called freedom fighters all over the globe with the newly printed "authentic" US dollars (starting from the Soviet-Afghan war in the 1980s). Needless to say, that these dollars are forbidden to enter the territory of the US...

I have never heard of these type of US dollars, can you provide a link or citation?

These are essentially the same dollars, but their serial number ranges are being tracked (on the pretext of them getting into the wrong hands). Actually, this is no longer a secret...