4 ms·

But does that matter? Would bitcoin being backed by the US military change the fact that it's just a string of characters? Just because dollar is backed doesn'

by ttt0 6y ago

But does that matter? Would bitcoin being backed by the US military change the fact that it's just a string of characters? Just because dollar is backed doesn't mean that it can't lose its value or crash. Unless you use the same military to force everyone at gunpoint to do what you want and even then it's probably still not guaranteed.

andresp 6y ago
It kind of does. In case you haven't noticed yet, the guys that create and enforce laws have a lot of power. Power that can be used against bitcoin if they want for example.
imtringued 6y ago
>Just because dollar is backed doesn't mean that it can't lose its value or crash. Yes but as I said earlier the value of your dollars is backed by the existence of an economy that accepts dollars. If the value of the dollar goes down then that would directly imply that the economy that is backing the dollar is much smaller than the number of dollars in circulation. What many people confuse is that hyperinflation isn't caused by central banks and governments printing an excessive amount of money. It's caused by economic collapse and the often resulting inability to service obligations denoted in foreign currencies. Hyperinflation is the result of your government being bankrupt and the solution is to build an economy that can support itself. That's pretty difficult to do if you have lost a war and surrendered and are now on the hook for reparations or being put under economic sanctions. Is this the case for Europe and the US? Hell no.
- ttt0 6y ago
  I'm not quite sure what are you getting at. Would you say the same about gold or silver? Gold is not backed by anything, in itself it has absolutely no use for me, I can't really buy a piece of bread with it, but it's still valuable. > Is this the case for Europe and the US? Hell no. You've basically described Post-WW1 Germany and similar is true of Eastern Europe under Soviets, so it's recent stuff.

by ttt0 6y ago

andresp 6y ago

It kind of does. In case you haven't noticed yet, the guys that create and enforce laws have a lot of power. Power that can be used against bitcoin if they want for example.

imtringued 6y ago

>Just because dollar is backed doesn't mean that it can't lose its value or crash. Yes but as I said earlier the value of your dollars is backed by the existence of an economy that accepts dollars. If the value of the dollar goes down then that would directly imply that the economy that is backing the dollar is much smaller than the number of dollars in circulation. What many people confuse is that hyperinflation isn't caused by central banks and governments printing an excessive amount of money. It's caused by economic collapse and the often resulting inability to service obligations denoted in foreign currencies. Hyperinflation is the result of your government being bankrupt and the solution is to build an economy that can support itself. That's pretty difficult to do if you have lost a war and surrendered and are now on the hook for reparations or being put under economic sanctions. Is this the case for Europe and the US? Hell no.

ttt0 6y ago
I'm not quite sure what are you getting at. Would you say the same about gold or silver? Gold is not backed by anything, in itself it has absolutely no use for me, I can't really buy a piece of bread with it, but it's still valuable. > Is this the case for Europe and the US? Hell no. You've basically described Post-WW1 Germany and similar is true of Eastern Europe under Soviets, so it's recent stuff.