Russia to Drop USD as reserve currency - could mean 5000+ USD bitcoins

[cbeast]

The USD has been such a weak reserve currency for so long, nobody would really notice if it was replaced.

[JoeChmoe]

A thread full of people who have no clue what is even going on in the world. Russia's economy cant survive in the long run with sanctions.... Its plain and simple, if you think otherwise you are clueless to how the international economy fundamentally works and should probably stick to speculations.

[Okurkabinladin]

It wont matter, they can drop what ever they want, sanctions will screw them.

You probadly missed, that BRIC (most notably China) countries don´t play these sanction pissing games. Russian exports like somebody before me said have intristic value. Gas, oil, metals, food and weapons. There will always be market for those and Europeans are already backpedalling in sanction department.

If you add cold war approach, that Washington assumed against leading BRIC powers, way overbought wallstreet, USD expansionary policy and high debts of western countries - we could be heading towards global economic meltdown (this time no chinese bailout). It could mean megabubble for bitcoin.


It´s not mere  speculation. Investment gurus like Mark Spitznagel predicted months ago, that 2014 will be critical for global economy.
http://dealbook.nytimes.com/2013/09/24/a-hedge-fund-manager-who-doesnt-mind-a-losing-bet/?_php=true&_type=blogs&_r=0

In short, I agree with original poster. It is highly possible.

[Okurkabinladin]

A thread full of people who have no clue what is even going on in the world. Russia's economy cant survive in the long run with sanctions.... Its plain and simple, if you think otherwise you are clueless to how the international economy fundamentally works and should probably stick to speculations.

Do you even know character of these sanctions or are you simply talking out of your ass? I bet the latter, actually Kremlin already benefitted from crisis as they bought back cheaply strategic companies privatized (stolen) in the Yeltsin era. Pigs panic sold shares of Sberbank, Lukoil and few others as much as 30% below their market value during takeover of Crymea. Price has since recovered.

So far the EU/USA sanctions limited themselves to specific credit providers and small group of influental Russians. Non-issue for large export based economy. Even then price of corn is already up by 25% (Russia is responsible for 17% of export of this vital resource) Everybody is fearful of escalating as the world market is already fragile and ripe for correction.

[Onar]

The problem, if the dollar lose as the world currency is more other long term difficulties. For example the Western world will get problems in losing a strong partner in NATO. If US get internal problems regards to echonomics it will give a negative effect on the military budget and in long run weaken it. Then China, russia and others will get more military power and trade power. The russians and the chinese government do not care about their citizens, they can prioritize military budgets even though if people are starving.

lets hope all go well with US, and russia and china not will dominate the world currency.

[beenyce]

so apparently Russia's Rossiya bank is only using a gold-backed ruble now? FUD?

[BitchicksHusband]

For you traitors and morons trash talking the USD, the United States of America  is the number 2 in exporter in the world:

United States Top 10 Exports:

The following export product groups represent the highest dollar value in American global shipments during 2013. Also shown is the percentage share each export category represents in terms of US overall exports.

Machinery: $213,108,199,000 (13.5% of total exports)
Electronic equipment: $165,604,449,000 (10.5%)
Mineral fuels including oil: $148,426,743,000 (9.4%)
Vehicles excluding trains and streetcars: $133,640,479,000 (8.5%)
Aircraft and spacecraft: $115,380,944,000 (7.3%)
Optical, technical and medical apparatus: $84,281,276,000 (5.3%)
Pearls, precious stones, precious metals and coins: $72,830,232,000 (4.6%)
Plastics: $60,836,970,000 (3.9%)
Organic chemicals: $46,510,903,000 (2.9%)
Pharmaceutical products: $39,742,717,000 (2.5%)

To compete in the world economy the dollar needs to be weak!

The US in 2014 or 2015 will be the number one oil exporter at some point !?

I would have thought Software would have been higher, what with billions of copies of Windows and all.

[Cluster2k]

Yeah, I can see Russia dropping the USD and heading for... bitcoins.  For all they know, a USA government invention.  Traded on a few exchanges around the world that can easily have their money supply shut off.  I can't see a reason for Russia needing more than 7 transactions per second that bitcoin supports.

[fonzie]

RUSSIA WILL PROBABLY BAN BITCOIN. just like china

[adamstgBit]

RUSSIA WILL PROBABLY BAN BITCOIN. just like china

RUSSIA already has

[fonzie]

RUSSIA WILL PROBABLY BAN BITCOIN. just like china

RUSSIA already has

But only 1-2 times.
I think there is some room left

[bitcoinsrus]

No bitcoin!  But doge I like!

[Operatr]

The US Dollar is at the end of its days I think.

China, Russia, and India have entered in a large energy pact, and they won't be trading resources with Dollars. The Petrodollar is really the lynchpin, if it dies, the Dollar dies because oil is about the only thing backing the US monetary system beyond its world reserve status, which is already ending as other countries are dumping US bonds and trading in Dollars.

Though even without the new Eurasian axis dumping the US, the FEDs rampant money printing, crooked banks built on Fractional Reserve, massive distortions in stocks, bonds, real estate, etc, are spelling the death of the Dollar every day. The retail market in the US is violently crashing as the middle/bottom classes are running out of spending money. We will see 1000s of big box stores crash and burn this year, where Sears, JC Penny and many others are already staring at a noose as their stock prices implode.

Sadly the US is not the only government doing this. China and everywhere else is devaluing their money supply every day through inflation to keep the credit bubbles fed. Once those pop, the global markets will be headed for a financial worldwide cataclysm the likes of which we've never seen.

All of that said, this is what I see Bitcoin doing while this occurs:

Now that tax guidance has been laid out for traditional investors, they will start putting BTC in their portfolios in large amounts, driving up cost.

When the fiat markets really begin to burn, these same investors will be looking for the exits, and Bitcoin and other cryptocurrencies may be the only safe haven as the only economy that is still functioning and fundamentally sound. Sudden huge demand from people with a boatloads of dieing fiat currencies and stocks will drive the price through the roof, and anyone with the foresight to have jumped in right now will reap the benefits of this wealth transition. Those that choose not to sell will see their wealth explode.

Any way you slice it, we're all in for a wild ride over the next few years as our current financial system goes down the drain to meet all of the other failed fiat currencies. The world is about to change, and as usual change can be painful. The only thing on my mind right now is just making sure I'm on the right side of the transition. I think investing in digital currencies is a solid way to start.

[igorr]

http://lmgtfy.com/?q=dollar+bank+of+russia