US hits credit limit: Good news for the USD/BTC exchange?

[schone]

I wondered what you guys think of this tidbit on the news.

http://news.yahoo.com/s/ap/20110516/ap_on_re_us/us_debt_limit;_ylt=AhS30iKSyObGGEln1OPMUOSs0NUE;_ylu=X3oDMTNkc3Fma3MwBGFzc2V0A2FwLzIwMTEwNTE2L3VzX2RlYnRfbGltaXQEY2NvZGUDbW9zdHBvcHVsYXIEY3BvcwMyBHBvcwM0BHB0A2hvbWVfY29rZQRzZWMDeW5fdG9wX3N0b3J5BHNsawN1c2hpdHNjcmVkaXQ-

Maybe raise the value of BTC even more?

[1714117926]

1714117926

[evoorhees]

It's not "news" really as this was a known event which markets were expecting. What WON'T be expected is if the August 2 date comes and goes and no deal is reached in Washington to raise the debt limit.

Of course, they WILL raise the debt limit, as everyone expects.

What it means for Bitcoin is simply that the road to USD collapse is ever-nearer and announcements like the US hitting the ceiling once again highlight this perilous future. In the midst of a collapse of US currency, every alternative currency from other fiats like the Euro to metals to maybe even stocks themselves will be in demand to fill the monetary void left by the dollar. Bitcoin may be perfectly timed, in that sense.

Let's hope the USD collapse happens AFTER Bitcoin is really ready for prime time... however that may be defined.

[BookofNick]

I think it's great news for BTC in the long run. When people start piling out of the USD, they will turn to all sorts of alternatives. Gold, silver, foreign currencies, and of course BTC. I hope we see lots of currency competition.

That being said, there's not really a credit limit. If a bunch of people can sit in a room and enough of them raise their hands and the limit is increased, then it's not much of a limit. If I max out my credit card, it gets declined when I try to use it. I cannot vote to extend my credit line. If the government maxes out its credit card, it can vote to extend its credit line, as of course it will.

[rezin777]

It's not like this hasn't happened before.