How would a world with BTC as reserve currency look like?

[Hfleer]

Hey guys,

I was thinking about how the world would change if it used BTC as reserve currency in the future.

- What would need to change for this to happen?
- What would change once it actually is used for it?
- What would be the benefits of this?
- What would be the downside of this?

Lets hear some answers, then I will tell what I think will change. I don't want to bias this thread!

[Hfleer]

Other than the fact that the dollar would be destroyed, I don't think there would be much difference.

So if the dollar would be destroyed, don't you think this would have massive consequences, as printing USD is the biggest source of funding for the US govt?

[bitwarrior]

- What would need to change for this to happen?

Bitcoin needs to be properly regulated internationally before this could happen and masss adoption has already taken place.

- What would change once it actually is used for it?

It will change the way people deals with money, the socio-political make-up of each country will change.

[futureofbitcoin]

The only real change is that I would be sitting in my penthouse in toronto or tokyo or my mansion in LA, sipping on chateau mouton rothschild, and eating a wagyu foie gras hors d'oeurve.

[Possum577]

It would need to be decentralized, it would need to have a community driven authentication system for transactions, it would need to be accessible to everyone, it would likely need to have a hard version (like cash) in the near term or for people without easy electronic access.

[countryfree]

That would bring huge changes, with countries unable to run a deficit.

That would call for an entire new class of politicians, as those who are in power now have no idea of what a balanced budget is.

[Hfleer]

That would bring huge changes, with countries unable to run a deficit.

That would call for an entire new class of politicians, as those who are in power now have no idea of what a balanced budget is.

You could still borrow BTC. Or work with a token that could be redeemed for  BTC.

Govt will always be running some kind of fractional reserve. Don't you think?

[shulio]

- What would need to change for this to happen?
Mass adoption is important for this to happen, to serve as a currency, bitcoin needs to be used as the other traditional currency, as of now, bitcoin is consider as a long term investment, which few hold in cold wallet, or used it as an instrument as daily trade, this does not serve the true purposes of bitcoin as a currency

but before being use as a currency, bitcoin need to have a stable price

[V for Varoufakis]

Like a deflationary hell.

[Ron~Popeil]

Like a deflationary hell.

There would undoubtedly be some short term pain. The long term benefits outweigh the short term pains by a large margin. If governments cannot devalue currency people can retain their wealth and personal freedoms. Imagine how peaceful the world would be if governments could not print currency to fund wars. How would history look if the Soviets had to pay for the invasion of Afghanistan with real currency? Or if the Third Reich simply didn't have the hard currency to build their war machine.

[r0ach]

Imagine how peaceful the world would be if governments could not print currency to fund wars. How would history look if the Soviets had to pay for the invasion of Afghanistan with real currency? Or if the Third Reich simply didn't have the hard currency to build their war machine.

Lol, this sure stopped the Romans, oh wait.  Wars were still fought.  The generals promised their troops land and other things.  Instead of taking from others by stealth with fiat cash debasement, they would just physically take land from some guy and give it to the soldier, or the soldiers would rebel against the general for false promises.

[Hfleer]

Why does the general consensus seem to be that there would not be debt based govt money?

[AtheistAKASaneBrain]

The price will be huge (1+ million per coin) the price would be really stable and you could sleep at night knowing you would wake up with the same price.

[vrm86]

eating a wagyu foie gras hors d'oeurve.

After reading this I'd rather see bitcoin  sinking into oblivion.

[picolo]

Why does the general consensus seem to be that there would not be debt based govt money?

There could be but if Bitcoin is the main reserve currency, it means it is widely used and a lot of people don't fall for the fiat sleezy tactics so there would be less fiat systems.

[Hfleer]

The price will be huge (1+ million per coin) the price would be really stable and you could sleep at night knowing you would wake up with the same price.

And this is mostly due to a working financial derivatives market. Those markets help find the real price very fast and help stablize prices in the longer term. High market cap is also helping with this.

[Hfleer]

Why does the general consensus seem to be that there would not be debt based govt money?

There could be but if Bitcoin is the main reserve currency, it means it is widely used and a lot of people don't fall for the fiat sleezy tactics so there would be less fiat systems.

This is actually a point I am very interested in knowing. Basically this will determine how the systems really change.

[Snipe85]

- What would need to change for this to happen?

Greedy bankers and politicians would have to change. They all come from a different era (look at what Buffet is saying) and old farts like that don't change easily.

- What would change once it actually is used for it?

Bitcoin would go through the roof and we'd all gain much from it.

- What would be the benefits of this?

Banks would lose a lot of control and would have much less to say and couldn't blackmail whole countries anymore, taking advantage of the ones in debt.

- What would be the downside of this?

Who knows, maybe it would destabilize some economies. I'm sure not all countries would finally accept it. The world rarely agrees on something (think Russia vs USA).

[GreenStox]

Hey guys,

I was thinking about how the world would change if it used BTC as reserve currency in the future.

1 What would need to change for this to happen?
2 What would change once it actually is used for it?
3 What would be the benefits of this?
4 What would be the downside of this?

Lets hear some answers, then I will tell what I think will change. I don't want to bias this thread!

1) Nothing, people would need to use bitcoin and stop using fiat crap. We dont need the maffia to give us permission to use bitcoin instead of $ or €, we would just simply use it and ignore what the maffia thugs tells us to do... People would be free!
2) True Freedom, political thieves, thugs and parasites would lose all their power which would be too good to be true...
3) Freedom? We would get rid of the 10.000 year old BEAST of the State & Government and similar forms of tyrranical ruling classes, which are the worst parasites that drink our blood and energy and money for 10.000 years...The control freaks would be gone once and for all...
4) Poor politician maffia thugs would lose their control over the human population, man it makes me so sad 

[Bytty]

It would be , probably, the same way as gold is the reserve currency, it is used as garantee so countries can acquire more debt, it would be overvalued and highly regulated at state level, individuals would use the same way we use it today.