Question regarding Bitcoin

[leex1528]

So I have heard a lot of people say that Bitcoin will be the new currency. 

My question is this:  So for all the other currencies out there, if you don't have any bitcoin, you would essentially be poor if Bitcoin did become the only usable currency correct?

Ex:  Hollywood millionaire Salma Hayek does not invest in bitcoin.  In the year 2016 Bitcoin's value is worth $100,000 dollars per 1 bit coin.  She can basically afford say 30 bit coins....just guessing.  Now, some average person who got into the game early, he invested and has 500 BTC.  I mean will stuff still cost a normal amount, how would it work, what sort of problems could it cause with economies?  Any thoughts on this anyone?

[Meuh6879]

People that it hold bitcoin is not the same as "the rich people" (aka politics or familly from decade).
Bitcoin is more "free" than fiat money ... no regulation, no freezing account, no limit.

It's me at work holding bitcoin... :

[leex1528]

But if becomes the main currency and the others become worthless....

How would people convert their wealth into Bitcoins?  Doesn't make much sense to me!

[AliceWonder]

But if becomes the main currency and the others become worthless....

How would people convert their wealth into Bitcoins?  Doesn't make much sense to me!

There will never be just one currency and fiat currency will never go away.

As bitcoins become harder for newcomers to obtain there will be altcoins that fill that need, and eventually an altcoin will supercede bitcoin as dominant only to be at some point superceded by another.

That's how free market works.

[Elwar]

But if becomes the main currency and the others become worthless....

How would people convert their wealth into Bitcoins?  Doesn't make much sense to me!

You have a point considering people can only buy in denominations of 1 bitcoin at a time. And when it comes to spending no less than 1 bitcoin is accepted.

I have never considered this. If only bitcoin was divisible into much smaller units. Alas...Satoshi let us down on that one.

[Elwar]

If bitcoin replaces all other currencies...what will people be paid in?

[leex1528]

But if becomes the main currency and the others become worthless....

How would people convert their wealth into Bitcoins?  Doesn't make much sense to me!

You have a point considering people can only buy in denominations of 1 bitcoin at a time. And when it comes to spending no less than 1 bitcoin is accepted.

I have never considered this. If only bitcoin was divisible into much smaller units. Alas...Satoshi let us down on that one.

Hmm....Not sure where you assumed that but I appreciate the sarcasm. Since you don't quite understand I will try to elaborate a little.

If the dollar crashes completely(they are worth next to nothing) and Bitcoins skyrocket, say 1 bit coin is worth 1 million dollars.

That means anyone who had dollars are essentially broke....They just lose all their wealth because Bitcoin takes over?


I assume if bitcoin is the only currency people would be paid in Bitcoin...

[Ektra]

Her existing fortune would be worth-less, yes. But if she could continue getting high paid jobs, she could ask for payment in bitcoins and do just fine. Basically if BTC did end up consuming fiat currencies, it would devalue fiat savings and make earlier adopters savings worth more, but doesn't necessarily have to ruin people's salaries because those can be compensated by (hyper) inflation or switching to BTC.

[Elwar]

But if becomes the main currency and the others become worthless....

How would people convert their wealth into Bitcoins?  Doesn't make much sense to me!

You have a point considering people can only buy in denominations of 1 bitcoin at a time. And when it comes to spending no less than 1 bitcoin is accepted.

I have never considered this. If only bitcoin was divisible into much smaller units. Alas...Satoshi let us down on that one.

Hmm....Not sure where you assumed that but I appreciate the sarcasm. Since you don't quite understand I will try to elaborate a little.

If the dollar crashes completely(they are worth next to nothing) and Bitcoins skyrocket, say 1 bit coin is worth 1 million dollars.

That means anyone who had dollars are essentially broke....They just lose all their wealth because Bitcoin takes over?


I assume if bitcoin is the only currency people would be paid in Bitcoin...

People who hold dollars will lose them soon enough anyway. Look at all of the people in Zimbabwe who were millionaires. Now everyone in Zimbabwe is a millionaire. If the dollar crashes, it is not because bitcoin takes over...but because it failed as a currency. With the fortunate timing that bitcoin is there as a lifeboat, otherwise we would be like Germany and people would start trading in bottles of whiskey and cigarettes. You wouldn't blame the crash on booze and cigarettes.

As bitcoin catches on, it will eventually replace certain percentages of the economy. Right now it is about .0001% of the economy. As people start using it it may move up to 1% of the economy. Reasonably that would mean that people might have 1% of their wealth in bitcoins. Once bitcoin reaches 10% of the economy people might have a few millibitcoins that they spend when it makes the most sense (paying for things online, sending money overseas, etc).

As it reaches 50% of the economy, people getting new jobs will start asking to be paid in bitcoins as they see the benefits to the dollar. So it will be like living on the border of Mexico, you keep dollars and pesos and pay with whichever currency is used. As it approaches that 100% mark, most people will not be using the dollar anymore. The rich will still be rich because the reason they are rich is because they are good with their money and will notice the inflationary nature of the dollar and look for a sound alternative.

Sure, if bitcoin replaces the dollar tomorrow, then you might have a point. But how would bitcoin replace the dollar tomorrow? It has to achieve gradual acceptance with more and more businesses accepting it and more people getting paid in bitcoin before that will ever happen.

[odolvlobo]

So I have heard a lot of people say that Bitcoin will be the new currency.  

My question is this:  So for all the other currencies out there, if you don't have any bitcoin, you would essentially be poor if Bitcoin did become the only usable currency correct?

Ex:  Hollywood millionaire Salma Hayek does not invest in bitcoin.  In the year 2016 Bitcoin's value is worth $100,000 dollars per 1 bit coin.  She can basically afford say 30 bit coins....just guessing.  Now, some average person who got into the game early, he invested and has 500 BTC.  I mean will stuff still cost a normal amount, how would it work, what sort of problems could it cause with economies?  Any thoughts on this anyone?

Why would you consider a person with $3 million as poor?

[leex1528]

Why would you consider a person with $3 million as poor?

I never said anything like that at all?  I said if she was forced into buying Bitcoins because that is the new currency...30 Bitcoins would hardly be considered rich.

[odolvlobo]

Why would you consider a person with $3 million as poor?

I never said anything like that at all?  I said if she was forced into buying Bitcoins because that is the new currency...30 Bitcoins would hardly be considered rich.

A person with 30 bitcoins would be worth $3 million. You don't consider that rich?

[bridgesro]

Why would you consider a person with $3 million as poor?

I never said anything like that at all?  I said if she was forced into buying Bitcoins because that is the new currency...30 Bitcoins would hardly be considered rich.

Well, they would be considered rich if we use the example you gave: 30BTC at $100k a coin is $3 million. I think rich is generally more a concept of value than of quantity.

[Elwar]

Why would you consider a person with $3 million as poor?

30 Bitcoins would hardly be considered rich.

If it has the same buying power as $3 million then it is.

Considering there are over 6 billion people in the world, if bitcoin was the world currency the average wealth would be around 3 millibitcoins.

If you buy 1 bitcoin right now, you will likely be rich in 10 years.

[odolvlobo]

It is a misconception that wealthy people would lose everything if the dollar became worthless. The reason is that wealthy people don't actually own a lot of dollars. Inflation hurts the poor much more than the rich.

[aztecminer]

But if becomes the main currency and the others become worthless....

How would people convert their wealth into Bitcoins?  Doesn't make much sense to me!

this is just speculation but if the dollar collapses and another currency is rolled out then the conversion of those dollars will take a percentage hit like the cyprus bail-ins. example... us dollar collapses while hyper inflation goes crazy. people are trying to spend their dollars as soon as they get them because the dollar is purchasing less and less everyday. people are panicking bank runs to move their dollars into other assets .. bank holiday hits and they roll out the new currency with a conversion of funds in the bank at say 25% of it's value. you just lost 75% of your wealth due to dollar collapse and bank holiday bail-in conversions.

[acoindr]

My question is this:  So for all the other currencies out there, if you don't have any bitcoin, you would essentially be poor if Bitcoin did become the only usable currency correct?

Being poor doesn't mean you don't have any bitcoin, or dollars, euros etc. for that matter. Money is a quick and simple way to refer to someone's wealth, but probably not the best. This is because money, what it can purchase, changes. This may not be apparent day to day, but when zoomed out, say over decades, and certainly over centuries it does.

A better measure of someone's wealth is the assets they have. This can be in the form of real estate, stocks and bonds etc., but also includes things like art. Less tangible items include a person's health and access to first world economies, doctors, and technology. In other words, being wealthy is really about having the wherewithal to keep a sustained quality of life, and having the popular currency of the day is usually the most expedient means to that end.

[7queue]

It is a misconception that wealthy people would lose everything if the dollar became worthless. The reason is that wealthy people don't actually own a lot of dollars. Inflation hurts the poor much more than the rich.

Exactly!

It is one thing to be rich, it is an entirely different thing to know how to be wealthy.

8 )

[waldox]

bitcoin is a hedge on getting a ride to the moon

[leex1528]

I gotta say a lot of great points were made during this thread. A lot of stuff I didn't really think of.

I am definitely not the best when it comes to economics(or dealing with currency exchanges) for that matter.



With all that being said, how many people actually think Bitcoin can replace the majority of currencies?  I wouldn't be against it, but I am already in it so obviously I am somewhat biased.