4 ms·
Bitcoin will not bring down anyone. People will jump on Bitcoin when governments completely destroy value of their paper and confidence in themselves. If tomorr
by oleganza 13y ago
Bitcoin will not bring down anyone. People will jump on Bitcoin when governments completely destroy value of their paper and confidence in themselves. If tomorrow you start seeing prices going up 10% daily and people getting rid of worthless paper notes, where would you go? First, you'll try to buy some physical goods: food, gold, car, houses etc. But then which money would you use in the remains of the economy? As everyone already has smartphones and if telecom industry does not collapse completely, it would be super easy to install Bitcoin wallets and go on buying and selling stuff in BTC.
Hopefully, if people jump on BTC earlier than later (and we have more useful services, apps and hardware keeping and transacting in BTC) the total collapse will never actually happen. We will just more or less smoothly transition the whole economy on BTC at the expense of all USD-holders (unfortunately). It will be painful, but at least industries will not stop working for months, but will continue going on. Only remaining cash will become worthless during the race to get rid of it.
However, if governments magically stop printing money, default and regain some confidence, then they may probably avoid total run from USD/EUR/etc. Maybe. But right now the speed of money printing and amount of debt is so huge, I don't see any way out of it other than complete USD replacement (more or less peacefully) or brutal tyrannical controls to keep people using gov paper until some bloody revolution happens when economy get completely paralyzed and people starve.