Could Bitcoin Replace the Dollar?

Armstrong Economics ^ | 7 July 25 | Martin Armstrong

[Vermont Lt]

Also consider that hundreds of millions of people in the world cannot do simple banking. Yet they have access to a smart phone. The Bitcoin environment allows those people to transact, transfer, and save small amounts of money that normal banks would simply dismiss.

I have to chuckle at the people who want to tax remittances out of the US by immigrants. I would suggest that MOST immigrants have moved to crypto because it’s cheaper, easier, faster, and it’s not going to be blocked or taxed by any government.

Remember how the Canadian truckers were penalized by debanking? That stuff cannot happen in a bitcoin environment. Governments use banking and taxes as weapons to get what they want—and to direct the herds. Bitcoin destroys that ability.

[TexasGator]

"That said, us older ones that have survived more than a few financial crisis don’t trust intangibles, words or promises….with good reason."

Here I am surviving the 2008 crisis!

[Tallguy]

"In 1996, the US government released a white paper entitled, “How to make a mint: the cryptography of anonymous electronic cash.” Released by the National Security Agency Office of Information Security Research and Technology, this document explains how a government agency could create something like Bitcoin or another cryptocurrency."

The present federal government can't roll-out a simple website without botching it. I'd be shocked if some government agency did this AND kept it a secret.

That said... I've come to the same conclusion as Mr. Armstrong. Bitcoin isn't a currency for everyday use... but it might be a sort of reserve currency.

[TexasGator]

“In 1966, investors bid the mutual funds up beyond net asset value, so during the crash, people lost everything when they thought it was a secure investment. The net underlying assets may have dropped 20%, but they paid 20% over the net asset value and then sold at 50% of the net asset value. Many mutual funds crashed 70-90%, whereas the Dow drop was 26.5%. Ever since mutual funds have no longer been allowed to be listed.”

LOL! No wonder the SEC banned you! You are full of fake BS.

[del griffith]

What you say is true. Add to that it is a great device to launder money. Thus the reason the immigrants have an interest in it.

[Vermont Lt]

It is a public ledger.

Trust me when I tell you, the IRS can track every transaction made from your wallet. And buying crypto in the US requires all of the KNOW YOUR CUSTOMER steps that you would have at any brokerage.

Doing sketchy things on the blockchain is not as easy as it was in 2011.

[LegendHasIt]

NO, Bitcoin won’t replace the dollar.

But I fear that some sort of “Fedcoin’ digital ‘currency’ will.

No way the Feds will ever allow some sort of independent ‘monetary’ exchange system to replace their fiat.

[del griffith]

The key words are buying in the US.

[Vermont Lt]

Well, since I don’t plan on being anywhere else, I only know about buying here.

And money laundering still requires you to convert it back into currency. I am not sure what you are making reference to?

We could do 1000x more to curtail drug trafficking if we simply forced a replacement of the $100 bill with new currency. Lots more bad stuff is done with Benjamins that has ever been done with bitcoin.

[TexasGator]

“I have to chuckle at the people who want to tax remittances out of the US by immigrants. I would suggest that MOST immigrants have moved to crypto because it’s cheaper, easier, faster, and it’s not going to be blocked or taxed by any government.”

Over $60 million a year sent by non crypto methods. Doesn’t sound like most immigrants have moved to crypto.

And neither will a 3% tax move them.

[Vermont Lt]

You think $60 million is a lot?

That is maybe a couple of months worth of money moving out of the US.

[TexasGator]

“You think $60 million is a lot?”

Typo: $60 Billion.