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Author Topic: If bitcoin becomes world's reserve currency?  (Read 2848 times)
zeetubes
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May 30, 2014, 01:06:51 AM
 #41

For most countries whose currencies became the reserve, their currencies were initially backed by gold, which in turn could be seen more as an international currency than as a reserve. All other countries kept their own currencies intact (sometimes pegged to the reserve currency) but typically traded across borders using the reserve currency. China has recently set up many agreements with other countries to trade directly in Yuan, bypassing the USD and most notably with the Russian Natural gas deal announced last week. On a daily basis $USD3-5T changes hands.

For BTC to become a reserve currency it would first have to be adopted as a national currency. BTC is already an international currency but whether it will be used to back a national or reserve currency can only be answered over time. An interesting scenario would be for some country to suddenly dump a few $B into BTC to buy up as much it can in anticipation of BTC becoming more powerful. A few $B is a drop in the ocean for most countries' central banks to print. 

The petrodollar was an agreement by the US and the middle east that the ME would only trade oil in USD if the US provided military protection for the major ME oil suppliers, but especially for Saudi. It was put into place after the US took itself off the gold standard and it greatly extended the life of the USD even though it was no longer backed by anything. The death of the petrodollar is probably coming soon because the ME seems to running out of easily accessible oil while the US is producing more at home. Incidentally, 19 of the 20 WTC terrorists were saudi nationals but the US chose to invade Iraq.

Perhaps the Yuan will become the next reserve currency but it will have to prove its military strength first and China is definitely flexing its muscles into Vietnam, Japan and the Philippines.  About the only good thing that will come out of this is that we can say we watched history in the making.
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May 30, 2014, 05:21:52 AM
 #42

If these currencies are so valuable and doing so well then why is everyone poor? Answer me that.

Everyone isn't poor. The net worth of the world is estimated at $223 trillion.

Sorry, you're right on the poor thing, not everyone is poor but most are.

Oh and LOL you think that number is real, I'll try to explain it to you though if you're going to actually read my explanation, what's happened is that what I would call the 'real' net wealth is essentially being doubled or tripled through money printing so it's a bit like taking £100 and then printing more money until you have £1,000,000 oh look! I just became a millionaire! They go around telling all their friend and other countries and they actually buy into it.

It's such a simple con that people fall for, but now everyone has realised what's going on and that people don't actually have products and services worth that much, fact is, to pick up that much net worth globally we'd have to either take up asteroid mining or take over Afghanistan completely and mine some giant holes in it to even come close to the numbers these central bankers have made up.

If you're actually bothered about learning how the bond market and paper money works this video explains it perfectly: https://www.youtube.com/watch?v=iFDe5kUUyT0

Hows that different than BTC being $580?

Because Bitcoin didn't have an organisation behind it multiplying itself in secret to make it that price, somebody actually considered it worth that much in order to pay for it, therefore it's that price, that's how a real free market is supposed to work, prices will go down as people decide it's worth less than the highest price, but then it will go back up again.

If we obeyed the logic of other people claiming that by suddenly going up in price Bitcoin is a 'bubble' then going by that logic everything else should be a bubble including gold and of course we know that isn't true, ti's because the people throwing the term around don't even know what it is. Stuff like the housing market and the stock market were a bubble because instead of people trading it honestly and openly it was the central bank buying up everything in order to artificially keep it high.

You could argue that the $1000 high that Bitcoin reached earlier was a bubble because of the bot trading that was spotted but even then those of us who were in the know knew MTGOX was dodgy as fuck and weren't surprised by the market manipulation. I actually said myself before that Bitstamp's prices etc. were more realistic because they were actually going around filling orders and executing them properly.
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May 30, 2014, 05:29:55 AM
 #43

United States will never accept that.
In this case - for once - it's up to the people of these United States, and not up to the Oligarchs of USA Inc.

We the People will embrace crypto and reject fiat, and in doing so we will sever the strongest of the threads the puppetmasters use to control us. Money.

This will also destroy the wealth of any oligarchs stupid or stubborn enough try to cling to their power over us via fiat scrip.

Say goodbye to credit scores, by the way.



Reads: "gentrification is humiliation" and "credit score = slavery".

Remember Aaron Swartz, a 26 year old computer scientist who died defending the free flow of information.
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mining is so 2012-2013


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May 30, 2014, 06:18:11 AM
 #44

Real wealth is much more than just money. Just like now, the wealthiest people in the world would be those with most non-cash assets.

+1

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May 30, 2014, 06:34:19 AM
 #45

For BTC to become a reserve currency it would first have to be adopted as a national currency.

Interesting assertion. What is your rationale?

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May 30, 2014, 06:41:14 AM
 #46

For BTC to become a reserve currency it would first have to be adopted as a national currency.

Interesting assertion. What is your rationale?
His rationale is a complete misunderstanding of the fact that Bitcoin is already Earthcoin, it doesn't need to be [insert arbitrary sub-section of Earth]coin too.

Remember Aaron Swartz, a 26 year old computer scientist who died defending the free flow of information.
zeetubes
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May 30, 2014, 07:21:00 AM
 #47

For BTC to become a reserve currency it would first have to be adopted as a national currency.

Interesting assertion. What is your rationale?
His rationale is a complete misunderstanding of the fact that Bitcoin is already Earthcoin, it doesn't need to be [insert arbitrary sub-section of Earth]coin too.

"A reserve currency is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves."

So for BTC to become a 'formal' reserve currency e.g. where one country buys oil or coal etc from another country, those governments would first have to formally pass that ability into law. OTOH it could certainly become a de facto reserve currency (earthcoin) over time.
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May 30, 2014, 01:05:37 PM
 #48

You've heard of separation between church and state.
Well, How about a complete separation of economy and state?

Huh? Who's with me?  Grin

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May 30, 2014, 01:36:59 PM
 #49

If bitcoin becomes world's reserve currency the fraudolent bank system will dead.
We will have an honest money and a honest society.
The fraudolent and disastrous industrial policy of policy maker, in collusion with the bank system, will stop!
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May 30, 2014, 01:48:33 PM
 #50

If bitcoin becomes world's reserve currency the fraudolent bank system will dead.
We will have an honest money and a honest society.
The fraudolent and disastrous industrial policy of policy maker, in collusion with the bank system, will stop!


Well fucking said.

"Billed shall be the warmongers! And then we get peace."
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Remember Aaron Swartz, a 26 year old computer scientist who died defending the free flow of information.
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May 30, 2014, 01:49:27 PM
 #51

You've heard of separation between church and state.
Well, How about a complete separation of economy and state?

Huh? Who's with me?  Grin

The who will save the week from the bad and powerful players in that economy...
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May 30, 2014, 01:51:06 PM
 #52

I personally believe cryptocurrency is the last stage of capitalism, the transition economy to the end of this neo-feudal society, toward a better, more just, more humane, more open, less deceptive society.

I suppose that is up to the next generation, the ones turning 18 now, and the ones being born now. Maybe some of them are reading this. I sure hope so. We need their creativity, their energy, their youthful wisdom.

Remember Aaron Swartz, a 26 year old computer scientist who died defending the free flow of information.
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May 30, 2014, 03:01:28 PM
 #53

You've heard of separation between church and state.
Well, How about a complete separation of economy and state?

Huh? Who's with me?  Grin

The who will save the week from the bad and powerful players in that economy...

save the weak from what?

yatsey87
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May 30, 2014, 03:05:16 PM
 #54

To be honest I can't see it become the reserve currency of the world. The major governments wouldn't let it happen. Maybe they will create their own cryptocurrencies in some fashion, but they'll probably only make it if they have complete control over it, but maybe an actual decent government will use it fairly in the future.
cuddaloreappu
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May 30, 2014, 03:40:05 PM
 #55

You've heard of separation between church and state.
Well, How about a complete separation of economy and state?

Huh? Who's with me?  Grin

The who will save the week from the bad and powerful players in that economy...

save the weak from what?

save them from people like con artists
jonald_fyookball
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May 30, 2014, 04:14:33 PM
 #56

You've heard of separation between church and state.
Well, How about a complete separation of economy and state?

Huh? Who's with me?  Grin

The who will save the week from the bad and powerful players in that economy...

save the weak from what?

save them from people like con artists

Valid point.  

Personally though, I prefer free market solutions like BBB, ripoffreport,
consumer report, etc... over government run consumer protection.    

aeternum.in
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May 30, 2014, 05:57:47 PM
 #57

United States will never accept that.
In this case - for once - it's up to the people of these United States, and not up to the Oligarchs of USA Inc.

We the People will embrace crypto and reject fiat, and in doing so we will sever the strongest of the threads the puppetmasters use to control us. Money.

This will also destroy the wealth of any oligarchs stupid or stubborn enough try to cling to their power over us via fiat scrip.

Say goodbye to credit scores, by the way.

Why goodbye to credit scores? There are people trying to implement credit scores with Bitcoin, nothing to stop someone from rating you and then getting lenders onboard to listen to them. :-(

Aeternum.in - The Future of Bitcoin Cold Storage.
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May 30, 2014, 06:19:05 PM
 #58

If these currencies are so valuable and doing so well then why is everyone poor? Answer me that.

Everyone isn't poor. The net worth of the world is estimated at $223 trillion.

the average life savings of people is $44k (rounded and exchanged from native countries currency into dollars)

223trillion / 7billion people = $31840

so the $223trillion figure does not compute.. the number should be higher

also many people are millionaires, billionaires, meaning for every millionaire there is atleast 20+ people with nothing saved in their bank accounts

for every billionaire they hold the life savings wealth that would/should have been spread amongst 20 thousand people.

so i think you will find that not every single person actually had $30k-$45k life savings. rather, the reality shows 1 billionaire vs 20k poor.. is the more factual statistic

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May 30, 2014, 06:32:05 PM
 #59

To be honest I can't see it become the reserve currency of the world. The major governments wouldn't let it happen.
Assuming the choice will be in the hands of governments, and not in the hands of the people. Push come to shove, in the 21st century, all governments serve at the pleasure of their people.

Remember Aaron Swartz, a 26 year old computer scientist who died defending the free flow of information.
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May 30, 2014, 06:39:58 PM
 #60

If these currencies are so valuable and doing so well then why is everyone poor? Answer me that.

Everyone isn't poor. The net worth of the world is estimated at $223 trillion.

the average life savings of people is $44k (rounded and exchanged from native countries currency into dollars)

223trillion / 7billion people = $31840

so the $223trillion figure does not compute.. the number should be higher

also many people are millionaires, billionaires, meaning for every millionaire there is atleast 20+ people with nothing saved in their bank accounts

for every billionaire they hold the life savings wealth that would/should have been spread amongst 20 thousand people.

so i think you will find that not every single person actually had $30k-$45k life savings. rather, the reality shows 1 billionaire vs 20k poor.. is the more factual statistic


 
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