Could a government supplant Bitcoin?

[Inedible]

Let's imagine the US government is in real financial crisis. It's aware that it can no longer afford to pay off it's debts and can no longer print more and more currency.

It decides it needs a way out and it sees Bitcoin as the solution. Unfortunately, Bitcoin isn't under it's control so they see this as a risk and not one they're willing to take.

They decide to issue their own digital currency instead - USCoin. It's identical in every way except the government controls the codebase and also accepts USCoin for tax payments.

Would you exchange all your Bitcoins for USCoins immediately and ditch Bitcoin or would you hold on and hope that Bitcoin can also compete as a currency?

[knight22]

I will only trade my bitcoin to UScoin to pay back taxes. That's it. Why I should hold UScoin that can be issued endlessly, as a store of value? Bitcoin is still the way to go.

[p2pbucks]

1.It's impossible to stop printing money . FED is a greedy sucking vampire . They would die if there's no blood to suck
2.Virtual currency 's value is backed by people's trust which based on P2P mechanism , they dont give a fk on FED's UScoin
 

[Inedible]

I will only trade my bitcoin to UScoin to pay back taxes. That's it. Why I should hold UScoin that can be issued endlessly, as a store of value? Bitcoin is still the way to go.

I suspect Bitcoin would lose a tremendous amount of traction and thus value. A panic would ensue and then it would be near abandoned.

[DeathAndTaxes]

Given in your scenario the US govt has just destroyed the dollar (due to excessive printing) and wiped out trillions of dollars held by bond holders WTF would I want to purchase a coin where they are in control of the printing?

It is like saying you have some gold coins and someone is selling turds. Would you trade your gold coins for turds?  Um ... no.

[Inedible]

1.It's impossible to stop printing money . FED is a greedy sucking vampire . They would die if there's no blood to suck
2.Virtual currency 's value is backed by people's trust which based on P2P mechanism , they dont give a fk on FED's UScoin
 

Don't people trust the US dollar in the same way?

[Inedible]

Given in your scenario the US govt has just destroyed the dollar (due to excessive printing) and wiped out trillions of dollars held by bond holders WTF would I want to purchase a coin where they are in control of the printing?

It is like saying you have some gold coins and someone is selling turds. Would you trade your gold coins for turds?  Um ... no.

What if the vast majority of the public went with it?

USCoin would get the publicity, the acceptance and the volume that Bitcoin can't.

[DeathAndTaxes]

The vast majority of the public with destroyed pension plans, starving seniors (SS destroyed), hyperinflation, and inability to buy hard goods from other nations who want the US dollars as much as the Zimbabwae one.  Yeah I am sure they are going to say "hey you guys who royally fucked up everything and destroyed our standard of living please do it again".

No the US would be like any other failed currency state.  People would hoard ALTERNATIVE currencies and shun anything that has to do with the state.  For some it might be Bitcoins, for others it might be Euros, Canadian dollars, gold, etc.

[Nemesis]

Given in your scenario the US govt has just destroyed the dollar (due to excessive printing) and wiped out trillions of dollars held by bond holders WTF would I want to purchase a coin where they are in control of the printing?

It is like saying you have some gold coins and someone is selling turds. Would you trade your gold coins for turds?  Um ... no.

What if the vast majority of the public went with it?

USCoin would get the publicity, the acceptance and the volume that Bitcoin can't.

B4 your what if, i would've gotten a collision and found Satoshi's private key.

My chance is alot higher.

[oakpacific]

Given in your scenario the US govt has just destroyed the dollar (due to excessive printing) and wiped out trillions of dollars held by bond holders WTF would I want to purchase a coin where they are in control of the printing?

It is like saying you have some gold coins and someone is selling turds. Would you trade your gold coins for turds?  Um ... no.

What if the vast majority of the public went with it?

USCoin would get the publicity, the acceptance and the volume that Bitcoin can't.

So basically the Gov is going to tell the public:"USD is in trouble! It's in such big trouble that i have to make a Bitcoin copycat, better run from it as soon as possible!"?

[Dodgers]

I will only trade my bitcoin to UScoin to pay back taxes. That's it. Why I should hold UScoin that can be issued endlessly, as a store of value? Bitcoin is still the way to go.

I suspect Bitcoin would lose a tremendous amount of traction and thus value. A panic would ensue and then it would be near abandoned.

Thats a narrow minded view… Your assuming that the US is the only market for BTC..

[NUFCrichard]

Let's imagine the US government is in real financial crisis. It's aware that it can no longer afford to pay off it's debts and can no longer print more and more currency.

That is all true now, except for the not being able to print more currency part.

[AnonyMint]

Answer to OP.

Guaranteed.

[Inedible]

The vast majority of the public with destroyed pension plans, starving seniors (SS destroyed), hyperinflation, and inability to buy hard goods from other nations who want the US dollars as much as the Zimbabwae one.  Yeah I am sure they are going to say "hey you guys who royally fucked up everything and destroyed our standard of living please do it again".

Almost like we all learnt that the banks are doing evil work we must stop them in their tracks...

No the US would be like any other failed currency state.  People would hoard ALTERNATIVE currencies and shun anything that has to do with the state.  For some it might be Bitcoins, for others it might be Euros, Canadian dollars, gold, etc.

I could see that happening.

[Inedible]

Given in your scenario the US govt has just destroyed the dollar (due to excessive printing) and wiped out trillions of dollars held by bond holders WTF would I want to purchase a coin where they are in control of the printing?

It is like saying you have some gold coins and someone is selling turds. Would you trade your gold coins for turds?  Um ... no.

What if the vast majority of the public went with it?

USCoin would get the publicity, the acceptance and the volume that Bitcoin can't.

So basically the Gov is going to tell the public:"USD is in trouble! It's in such big trouble that i have to make a Bitcoin copycat, better run from it as soon as possible!"?

Let's say the general public, on average, is a bit uneducated on these kinds of things. They see this magic new crypto currency - I could see them all jump on it.

I'm not saying it would be smart - just me having a low opinion of the average person on the street.

[Inedible]

I will only trade my bitcoin to UScoin to pay back taxes. That's it. Why I should hold UScoin that can be issued endlessly, as a store of value? Bitcoin is still the way to go.

I suspect Bitcoin would lose a tremendous amount of traction and thus value. A panic would ensue and then it would be near abandoned.

Thats a narrow minded view… Your assuming that the US is the only market for BTC..

It is a little narrow but would Bitcoin be half as large as it was a month ago without US funds?

[Inedible]

Let's imagine the US government is in real financial crisis. It's aware that it can no longer afford to pay off it's debts and can no longer print more and more currency.

That is all true now, except for the not being able to print more currency part.

So rationally, everyone should have moved from the Dollar right? I think people believe that just because the situation is bad or there's a lack of trust in a system that people would abandon it.

Clearly that's not the case otherwise people would abandon the banks that got us in to financial crisis and dropped the quantitatively eased Dollar by now. You might say there's a monopoly position there but so would there be for USCoin.

[Inedible]

Answer to OP.

Guaranteed.

I couldn't say guaranteed but I think there would be mass adoption.

[AnonyMint]

Sigh most people are so stupid.

No the US would be like any other failed currency state.  People would hoard ALTERNATIVE currencies and shun anything that has to do with the state.  For some it might be Bitcoins, for others it might be Euros, Canadian dollars, gold, etc.

I could see that happening.

Hoarding what was purchased by 0.01% of the population for 1/10,000 the price, means the public is destitute beyond comprehension. It is a dystopian outcome.

Let's say the general public, on average, is a bit uneducated on these kinds of things. They see this magic new crypto currency - I could see them all jump on it.

I'm not saying it would be smart - just me having a low opinion of the average person on the street.

They can't all jump on it. Their existing assets will be worthless way before 1% tries to buy Bitcoin. Just do some simple math to see that Bitcoin's model can't possibly scale to any other than death and destruction and war.

Goldbugs never seem to learn economics. You must continue to debase the currency, else it can't ever work as a currency. It is simple mathematics.

[DeathAndTaxes]

Answer to OP.

Guaranteed.

3. Bitcoin stops giving coin rewards to miners in 2040

Kinda hard to take someone serious when they have been around for at least six months and don't have even the "Bitcoin top 10 basic facts" down right.