4 ms·

All monetary systems are dependent on narratives to have real world value. If everyone stopped believing in the value of the dollar, it's real world value would

All monetary systems are dependent on narratives to have real world value. If everyone stopped believing in the value of the dollar, it's real world value would plummet. The cash in my wallet would still exist but it would be of no value for buying real actual things. Bitcoin is no different.

scotty79 4y ago
I don't think any actual currency ever died because people out of blue stopped believing it has value. The cause was always excess of supply. People are slow. Things first become actually worthless, then people stop believing in their value.
- gitfan86 4y ago
  https://en.m.wikipedia.org/wiki/Confederate_States_dollar https://en.m.wikipedia.org/wiki/Confederate_States_dollar
nradov 4y ago
Belief has nothing to do with it. My taxes bills are all denominated in dollars. Even if I stop believing, I still have to get enough dollars to pay those taxes. Otherwise the government will use force to seize my other assets (real estate, cars, stocks, etc) and sell those to satisfy the delinquent tax bills. Cryptocurrency advocates seem ridiculously naive about how money actually works in the real world. It's like they're all little children or something.
- scotty79 4y ago
  Why is it always dollars in US in this argument? Why not Austrian corones in Austria? Or Bolivian peso on Bolivia? Or old Brazilian real in Brazil? Or mark in German Weinmar Republik? Somehow being taxed in those currencies didn't prevent them from becoming worthless. So who's naive by the virtue of lacking historical and geographical perespective?
- gitfan86 4y ago
  But your tax bills do not have to be denominated in USD. IF all the politicians agreed that taxes should be collected in gold, we would have a gold based tax system.
  - nradov 4y ago
    So what? There is zero political appetite in the US federal government for going back to a gold standard, or switching from the dollar to some other currency. It's pointless to even discuss such hypotheticals.

scotty79 4y ago

I don't think any actual currency ever died because people out of blue stopped believing it has value. The cause was always excess of supply. People are slow. Things first become actually worthless, then people stop believing in their value.

gitfan86 4y ago
https://en.m.wikipedia.org/wiki/Confederate_States_dollar https://en.m.wikipedia.org/wiki/Confederate_States_dollar

nradov 4y ago

Belief has nothing to do with it. My taxes bills are all denominated in dollars. Even if I stop believing, I still have to get enough dollars to pay those taxes. Otherwise the government will use force to seize my other assets (real estate, cars, stocks, etc) and sell those to satisfy the delinquent tax bills. Cryptocurrency advocates seem ridiculously naive about how money actually works in the real world. It's like they're all little children or something.

scotty79 4y ago
Why is it always dollars in US in this argument? Why not Austrian corones in Austria? Or Bolivian peso on Bolivia? Or old Brazilian real in Brazil? Or mark in German Weinmar Republik? Somehow being taxed in those currencies didn't prevent them from becoming worthless. So who's naive by the virtue of lacking historical and geographical perespective?
gitfan86 4y ago
But your tax bills do not have to be denominated in USD. IF all the politicians agreed that taxes should be collected in gold, we would have a gold based tax system.
- nradov 4y ago
  So what? There is zero political appetite in the US federal government for going back to a gold standard, or switching from the dollar to some other currency. It's pointless to even discuss such hypotheticals.