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Exactly. 'Legal tender' is just a matter of perspective. If tomorrow the US economy flops, US Dollars plummet in value. In a fictitious world where government-

• tomkarlo 15y ago
  "Legal tender" is a matter of fact, not perspective. The USD dollar is not going to plummet because the economy "flops". (We've tried that.) In the end, what we consider a "flop" is really just a very small adjustment in growth rates, generally temporary. It's painful, but it has relatively little effect on overall economic productivity. At the end of the day, people have to pay taxes in USD. They have to pay their rent or mortgage in USD. They're only going to be interested in bitcoin if they can dependably convert it back into USD at a moment's notice, and there isn't large amounts of volatility in the exchange rate. That only happens if you've linked the value of the currencies. Otherwise, you're asking people to do currency speculation, which not only isn't advisable, it generally isn't possible, since they have an ongoing stream of income and spending to match, not a huge pool of cash that they're holding onto. There may be some short term arbitrage as prices move up or down, but it will still end up being largely neutral to them, since only a small % of their annual income will be in bitcoins at any one moment.