When the USD collapses what will happen to Bitcoin?

[Blazin604]

Hey guys I am new here....just purchased my first coins today. I want to know what everyone else thinks will happen to Bitcoin when the dollar falls off?....will people holding Bitcoins suddenly become "millionaires"? and smaller transactions will be made in mBTC or litecoin?  Also can someone help me understand why the price of a Bitcoin is valued at the price it is today? What effects this price and so on? 

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[waldox]

just look at cyprus last spring, when cyprus gave certain accounts a large hair cut against their will

people rushed into bitcoin, pushing the price up

some people kept their holdings in bitcoin because they will never trust their government/banks with their savings again

[roslinpl]

IMO - if (IF) dollar will EVER collapse - bitcoin will be worth "a lot" ... but there is enough place for $$ and BTC

[Don007]

If any decent fiat will crash, I'm sure the price of gold etc. ánd Bitcoin (and even many altcoins) will increase!

You've got to find somehow 1 way to pay each other, and e-currency might be the solution.

[Bit_Happy]

When the USD collapses...?
The USD is already down ~97% in ~100 years.
How much lower does it need to go before we say it already collapsed?

[MarketNeutral]

All fiat currencies eventually became worthless, and so will the US dollar one day. Yet I defer to the inimitable J.M. Keynes, The market can stay irrational longer than you can stay solvent.

Don't be surprised if the USD collapse takes far longer to happen than you think, for the destruction of debt and monetary deflation, not inflation, often precedes hyperinflationary and hyperdeflationary currency events; hence why the Federal Reserve is so keen on maintaining inflation and only inflation, and the mechanisms by which debt may be destroyed or purged are purposefully protracted and open-ended. One could even make a cogent argument that, despite their ostensible mandate, the Fed has been successful at slowly, decade by decade, collapsing the USD on purpose.

(I'm no Keynesian, by the way, but his work is certainly worth studying, if for no other reason than Keynes is more reasonable and perceptive than nearly all the parrots who worship him.)

To your question, what will happen to bitcoin when the USD collapses? Depends at which point during the collapse one considers the exchange rate, if the collapse is total, and if the collapse is controlled. If it's a total, uncontrolled collapse, then infinite dollars wouldn't even buy a single satoshi. If the collapse is controlled and mitigated to allow for a new currency to take the place of the USD, then the price of BTC would somewhat depend upon whether they whom the collapse is controlled by are keen on bitcoin. Perhaps an initial panic depreciation in price followed by swift appreciation.

All else being equal, supply and demand, your momma, etc......

[Satosh¡ Slot]

All fiat currencies eventually became worthless, and so will the US dollar one day. Yet I defer to the inimitable J.M. Keynes, The market can stay irrational longer than you can stay solvent.

This is very true. We knew years that the U.S. and the E.U. have unsustainable monetary policies. But yet the years pass by without any really devastating crash. For the U.S. dollar to crash, it has to crash relatively to something better, and it doesn't seem like any other big fiat currency is going to apply for that task. May it be gold, Bitcoin or certificates to cultivate land for all we know, but the USD need to get quite a bit worse before we need to go back to self-sufficient farming.

I think a crash might hurt the Bitcoin value in the short run. It would need to be videly accepted to actually benefit from a USD collapse.

[gollum]

In a scenario where dollar collapses to zero you would benefit more from owning a gun, ammo & food than bitcoins.

[Beliathon]

When the USD collapses...?
The USD is already down ~97% in ~100 years.
How much lower does it need to go before we say it already collapsed?

Wisest comment in thread.

[Don007]

In a scenario where dollar collapses to zero you would benefit more from owning a gun, ammo & food than bitcoins.

That's for sure. Are you a prepper? ^^

I think that's true if all fiat crashes. If it's 'just' the USD, then the people might use other fiat. If all fiat crashes, we're doomed. Move to the nearest farm and be sure you've got enough guns & ammo. And some protecting gear. Maybe landmines will be usefull then.

I hope we won't experience such situation ever.

[durrrr]

world would be over and we would be fighting eachother for whatevers left. there will be no internet for bitcoins lol. get your guns and ammo and take cover in a shelter.

[redwhite037]

yes, send some of bitcoins FUD to the USD instead.

[twiifm]

If dollar collapse people would use a more stable currency.   But thats not bitcoin.

Why would dollar collapse?   Only if something big happened.   Its not gonna collapse because of debt

[durrrr]

it would have to be a major disaster or the end of the world. and then people would be using food and guns and gold as currency tog et what they want

[CurbsideProphet]

In a scenario where dollar collapses to zero you would benefit more from owning a gun, ammo & food than bitcoins.

That's for sure. Are you a prepper? ^^

I think that's true if all fiat crashes. If it's 'just' the USD, then the people might use other fiat. If all fiat crashes, we're doomed. Move to the nearest farm and be sure you've got enough guns & ammo. And some protecting gear. Maybe landmines will be usefull then.

I hope we won't experience such situation ever.

There is no scenario where only the USD collapses.  I don't understand why people (not you) think the dollar can collapse and everything will go on in an orderly fashion.  A collapse of the dollar would have systemic impacts that would damage the entire global economy. 

[Peter R]

If the USD collapses to zero real value, and if bitcoin retains finite real value, then the price of bitcoin measured in dollars would go to infinity.  

If you mined a coin at this time, you would owe infinity dollars to the IRS.  

 

[gollum]

In a scenario where dollar collapses to zero you would benefit more from owning a gun, ammo & food than bitcoins.

That's for sure. Are you a prepper? ^^

I think that's true if all fiat crashes. If it's 'just' the USD, then the people might use other fiat. If all fiat crashes, we're doomed. Move to the nearest farm and be sure you've got enough guns & ammo. And some protecting gear. Maybe landmines will be usefull then.

I hope we won't experience such situation ever.

There is no scenario where only the USD collapses.  I don't understand why people (not you) think the dollar can collapse and everything will go on in an orderly fashion.  A collapse of the dollar would have systemic impacts that would damage the entire global economy.  

Exactly, It's a bigger issue if USD collapses than other currencies, that's because most of the worlds international trades are settled in USD.

USD could collapse in one of these scenarios:
-Oil producing countries refuses to sell oil in USD
-Political instability, civil war or revolution in USA
-World war where USA is affected
-Black swan events that are impossible to predict or speculate about

[ebliever]

You know, I used to wonder why fiat currencies like the dollar and euro hadn't already collapsed given their obvious mismanagement/inflation and the horrid trajectory that welfare (and military) spending was clearly taking. I came to the conclusion that the chief reason the collapse had not already happened was simply that the major alternatives to the yen, euro and dollar were each other. They were all being mismanaged to roughly the same degree, giving people who wanted a way out of the rotten system little alternative. I mean, you could buy lumps of shiny yellow rocks and hide them in your mattress, but that was just not practical.

Along comes bitcoin. Now there IS an alternative. And I think that ironically when we hit critical mass with bitcoin, it will trigger just such a seismic collapse. As people begin to shift funds to bitcoin on a large enough scale to start to noticeably deflate fiat currency, it will become a vicious cycle as people rush into altcoins to avoid being the last person holding worthless fiat. That's why I've been annoying all my friends/family on facebook saying "Look, you need to start learning about this NOW!" Because I really do think this is coming, and the banks and government can't really stop it.

[Peter R]

Exactly, It's a bigger issue if USD collapses than other currencies, that's because most of the worlds international trades are settled in USD.

A sudden and severe blockage in global trade due to the lack of sound money in a "dollar collapse" scenario would damage the supply chains that provide the constant flow of energy and goods into the world's major cities.  Without sufficient energy and goods, society in heavily-populated areas would break down.  

In a dollar-collapse scenario, gold is too slow to facilitate global trade if it has to move and requires too much trust to facilitate global trade if it doesn't.

To permit a quick transition away from debt-burdened fiat currency without a breakdown of order in the cities, there would need to be a robust proven alternative in place at the time of collapse.  Political institutions like the IMF will not be trusted, as power structures will be fragmenting.  One would need some sort of trustless money, sort of like gold, but with the ability to quickly send it across the world in order to keep the vital trade lines moving.  It would be helpful if this money already had a sufficiently broad user base so the most communities had members familiar with how it worked, and a sufficiently established billion-dollar network of globally-connected hardware that would stand up to turmoil during the transition.  

With something like that, the transition away from fiat currencies could seem anticlimactic in hindsight.  

[railzand]

Exactly, It's a bigger issue if USD collapses than other currencies, that's because most of the worlds international trades are settled in USD.

A sudden and severe blockage in global trade due to the lack of sound money in a "dollar collapse" scenario would damage the supply chains that provide the constant flow of energy and goods into the world's major cities.  Without sufficient energy and goods, society in heavily-populated areas would break down.  

In a dollar-collapse scenario, gold is too slow to facilitate global trade if it has to move and requires too much trust to facilitate global trade if it doesn't.

To permit a quick transition away from debt-burdened fiat currency without a breakdown of order in the cities, there would need to be a robust proven alternative in place at the time of collapse.  Political institutions like the IMF will not be trusted, as power structures will be fragmenting.  One would need some sort of trustless money, sort of like gold, but with the ability to quickly send it across the world in order to keep the vital trade lines moving.  It would be helpful if this money already had a sufficiently broad user base so the most communities had members familiar with how it worked, and a sufficiently established billion-dollar network of globally-connected hardware that would stand up to turmoil during the transition.  

With something like that, the transition away from fiat currencies could seem anticlimactic in hindsight.  

depends on how damaged the energy supply chain becomes