What will happen to Bitcoins if the $ collapses?

[Syc0]

After watching the youtube series 'Hidden secrets of money' by Mike Maloney (I recommend everyone to watch it!), I have come to the conclusion that the $ will collapse in the near future (within 10 years or so).

My question is, after the $ collapses, what will be the outcome? Do you think we will move to a gold standard and people will then trade bitcoins with gold (as we do with the fiat currencies currently), or will bitcoin reign supreme and become the standard currency? I have been trying to figure this out before I invest everything into bitcoins. My theory (& Mike Maloney's) is that we will go back to some form of gold/silver backed currency, hopefully bitcoins will still have retained it's value and still be desired. What do you think?

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[MicroGuy]

I think that bitcoin along with it's altcoin cousins would rise exponentially.

However, keep in mind that the US Dollar is backed by the most powerful military regime in the World, so I don't see the dollar disappearing entirely.

[whtchocla7e]

What will happen to $ if Bitcoin collapses? Absolutely nothing.

[minerpart]

Good question, no expert here but after a bit of searching - have a look at what happened when the Dollar devalued in 1930's due to similar high levels of credit (debt) and high asset prices:

http://www.foreignaffairs.com/articles/136779/barry-eichengreen/when-currencies-collapse


'As international liquidity grew scarce, central banks and private investors searched desperately for other assets, that is, alternatives to the dollar and sterling that were liquid and promised to hold their value. They found them in the currencies of countries still on the gold standard: Belgium, France, the Netherlands, and Switzerland. '


This time there are surely more numbers of substantial economies across the World where money can fly to (to their currencies and markets). Global trade impact (deep recession) may be similar esp with huge amounts of US debt in China. But BTC could, if it's well established by then, take a huge pump.

[Johnny Bitcoinseed]

This is why tangibles always trump non-tangibles.  Get your "beans bullets and band-aids" (a term for it) stocked up.  Then no matter what happens you know you will eat, have basic supplies of every sort on hand, as well as trade items in case stuff becomes unavailable due to economic or societal breakdown.

That, my friends, is true wealth.  Any extra goes into AU, AG, BTC etc

Stay liquid, my friends.

[acoindr]

I think that bitcoin along with it's altcoin cousins would rise exponentially.

I agree. While I don't think all alt-coins will be successful a few select ones will do quite well.

However, keep in mind that the US Dollar is backed by the most powerful military regime in the World, so I don't see the dollar disappearing entirely.

That and legal tender laws, so I agree it may not disappear entirely. However with trillions of units in existence if the primary use is limited to govt debt settlement it may take a wheelbarrow full of them to buy a loaf of bread.

...
The most likely answer to your question is that bitcoin would also collapse with the collapse of the dollar ($) ...

No it's not. Why do you think the value of Bitcoin is dependent on dollars? You may be confusing the exchange rate, which is often in dollars, with the underlying value. The two are not the same.

OP: consider the people in Argentina are very familiar with currency collapse. This last time in 2001 I heard people tried in desperation to create trade alternatives, resorting to local exchange systems including home computer printed "currency". Of course this didn't last. Now imagine they had access to bitcoins in that situation. It paints quite a different picture.

[pening]

In the event of a $ collapse, if it occured despite all the vested interests around the globe, what trust do you think people will have in a virtual coin?  Not you, but those who haven't been involved previously.

[virtuexru]

This is why tangibles always trump non-tangibles.  Get your "beans bullets and band-aids" (a term for it) stocked up.  Then no matter what happens you know you will eat, have basic supplies of every sort on hand, as well as trade items in case stuff becomes unavailable due to economic or societal breakdown.

That, my friends, is true wealth.  Any extra goes into AU, AG, BTC etc

Stay liquid, my friends.

this.

[tabnloz]

I'd say people will flock to put their money into things that they think do not devalue or will hold value. This would of course drive up the price.

Gold (true money)

Real Estate (already happening see: Chinese getting money out of CHina into foreign markets)

BTC (cant be devalued, not 'governed')

Art, Wine, Antiques.

[acoindr]

In the event of a $ collapse, if it occured despite all the vested interests around the globe, what trust do you think people will have in a virtual coin?  Not you, but those who haven't been involved previously.

Unfortunately most people don't understand how money works, or the reason to put trust (or not) into a particular currency; many people believe dollars are backed by gold in Fort Knox.

What people would understand is the man behind the counter saying they need to pay in something called "bitcoin" or gold or receive no groceries. Then it becomes an effort to obtain the form of money the grocer wants regardless how it works.

[Siegfried]

Awesomeness.

[mzp]

Thats what I was thinking too. BTCs' most primitive function seems to be to act like gold.

The gold market could actually be a trigger of the collapse. Demand for "physical" gold is hot and getting hotter by the week. The "Paper" market GLD fund buys and sells gold shares or contracts but less than 1% of contracts opt for delivery, actually having the stuff shipped to you. Deliveries will increase as physical demand rises. Inventory shrinks, until one day an order for delivery arrives when there is nothing in the vaults to fill the order. That will be front page news if the buyer turns down a cash settlement. Default. For each ounce I physically own, over 100 people currently hold contracts telling them that they own the same ounce. Suppression of the gold price, selling gold into the market to suppress the price (leasing) or dumping "naked short" sell orders in the paper market both end when everybody knows there is nothing left.

Why the big demand? Why suppress the price? People buy gold to dodge rising inflation, and the Fed holds the price down to avoid giving the impression that there is rising inflation.

So the jig is up and gold price spikes totally out of control. All confidence in the dollar disappears and all foreign T-bond holders begin a race to the bottom. SELL!! SELL!!!

When all inventory of gold everywhere is sold, and then all silver inventory is sold, the people who missed out on that will come down on BTC like a ton of bricks. Somebody said maybe ten years for another major crisis to develop. I am thinking more like ten months.

[MakeBelieve]

I'm thinking Bitcoin would become instanly more popular and used.

[franky1]

if the dollar collapses, then bread, bottled water, milk and everything else would be worth more dollars.. EG $100 for something normally worth only $1.

this would then make bitcoins worth (using the same exampled multiplication) 1BTC=$100,000, whilst at the same time 1BTC= only EUR1000 due to the euro not collapsing

[Bitcoinpro]

I think that bitcoin along with it's altcoin cousins would rise exponentially.

However, keep in mind that the US Dollar is backed by the most powerful military regime in the World, so I don't see the dollar disappearing entirely.

[lyth0s]

However, keep in mind that the US Dollar is backed by the most powerful military regime in the World, so I don't see the dollar disappearing entirely.

The value of the dollar has nothing to do with the military, otherwise we could just double our military and double what we can buy with a $1? LOL. Also do you think there would be a US military if the currency they got paid in instantly became $0 and they couldn't afford their homes, food etc?

[tabnloz]

However, keep in mind that the US Dollar is backed by the most powerful military regime in the World, so I don't see the dollar disappearing entirely.

The value of the dollar has nothing to do with the military, otherwise we could just double our military and double what we can buy with a $1? LOL. Also do you think there would be a US military if the currency they got paid in instantly became $0 and they couldn't afford their homes, food etc?

I think what he means is that the size of the US military provides other countries an 'incentive' to keep using it.

[Sindelar1938]

Not going to happen anytime soon
But if it did, price explosion of altern stores of value including btc

[russokai]

Well any kind of currency crisis or collapse is going to make bitcoin more valuable and increase its purchasing power, at least in general. 

Of course if the dollar really collapses then the world is suddenly so different than the one we live in right now that it's probably impossible to say what would really happen.  But I don't see the dollar collapsing anytime soon because the US gov't will keep stealiing from the poor and middle class to prop up the dollar until they just can't do it any longer....still much more to squeeze there so could be awhile.

[acoindr]

However, keep in mind that the US Dollar is backed by the most powerful military regime in the World, so I don't see the dollar disappearing entirely.

The value of the dollar has nothing to do with the military, otherwise we could just double our military and double what we can buy with a $1? LOL. Also do you think there would be a US military if the currency they got paid in instantly became $0 and they couldn't afford their homes, food etc?

I think what he means is that the size of the US military provides other countries an 'incentive' to keep using it.

Somewhere Saddam Hussein is saying ain't it the truth.