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If cryptocurrency replaces the dollar, there's no reason it can't replace the Euro, so maybe a valuation should be extended to the likelihood it replaces all gl

If cryptocurrency replaces the dollar, there's no reason it can't replace the Euro, so maybe a valuation should be extended to the likelihood it replaces all global currency.

sgt101 9y ago
A cryptocurrency could replace the dollar; if the Fed decided that it should. My guess would be that this would be called The Dollar, but that some of The Dollar would be issued via the banking system and some of The Dollar as crypto. For this to happen the Fed would need to see that there was a non bank system use case that was economically positive. I see no usecase right now but someone else might think of one. The same for The Euro - they won't be the same crypto just as they aren't the same fiat now. Whatever, the chances of Ripple, Ether or Bitcoin being the new dollar or euro are 0, regulators and governments would be literally insane to attempt this, and would be nearly immediately replaced, imprisoned and executed if they did try. So you are correct the valuation for these based on them being the new dollar or new euro or both is the same.
- solotronics 9y ago
  I think it is possible for the fed to make a crypto for a couple reasons. 1) hyperinflation in the regular dollar and they need a method of escape 2) to combat cryptos if they really take off, they would make bitcoin illegal and provide their alternative
  - sgt101 9y ago
    Not sure how a new crypto would help in scenario 1, unless is was a "limited tokens" deal like bitcoin, but if cryptos really did go mainstream 2 is likely for me - and a strong reason to be very bearish about the current crop.
- aserafini 9y ago
  I'm not sure the Fed needs to decide if Bitcoin can replace the dollar. Did someone 'decide' that html, http and smtp would become a worldwide standard for citizens interacting with governments and business, covering ~95% of those usecases?

If cryptocurrency replaces the dollar, there's no reason it can't replace the Euro, so maybe a valuation should be extended to the likelihood it replaces all global currency.

sgt101 9y ago

A cryptocurrency could replace the dollar; if the Fed decided that it should. My guess would be that this would be called The Dollar, but that some of The Dollar would be issued via the banking system and some of The Dollar as crypto. For this to happen the Fed would need to see that there was a non bank system use case that was economically positive. I see no usecase right now but someone else might think of one. The same for The Euro - they won't be the same crypto just as they aren't the same fiat now. Whatever, the chances of Ripple, Ether or Bitcoin being the new dollar or euro are 0, regulators and governments would be literally insane to attempt this, and would be nearly immediately replaced, imprisoned and executed if they did try. So you are correct the valuation for these based on them being the new dollar or new euro or both is the same.

solotronics 9y ago
I think it is possible for the fed to make a crypto for a couple reasons. 1) hyperinflation in the regular dollar and they need a method of escape 2) to combat cryptos if they really take off, they would make bitcoin illegal and provide their alternative
- sgt101 9y ago
  Not sure how a new crypto would help in scenario 1, unless is was a "limited tokens" deal like bitcoin, but if cryptos really did go mainstream 2 is likely for me - and a strong reason to be very bearish about the current crop.
aserafini 9y ago
I'm not sure the Fed needs to decide if Bitcoin can replace the dollar. Did someone 'decide' that html, http and smtp would become a worldwide standard for citizens interacting with governments and business, covering ~95% of those usecases?