Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Jonty30
However tenuous the "true value" of the dollar is, it is theoretically backed by the US's ability to back it.

If the dollar collapses it will be because people no longer think that the US can continue to back it, e.g. because we are too far in debt, we are too corrupt, etc.

There is no backing at all to BitCoin. It is just an algorithm that determines how many BitCoin's will be available on such and such a date.

It may work out if enough people believe in it (e.g. emperor's new clothes.) It may especially work out if important folks have made huge bets on it and something happens to make unloading BitCoin's very difficult.

What's most likely going to happen is that around the time BitCoin reaches its peak government's around the world will accept BitCoins as payment. Those who have the BitCoins will sell them off slowly to governments and the last suckers who will end up holding worthless currency.

6 posted on 01/20/2014 2:45:41 PM PST by who_would_fardels_bear
[ Post Reply | Private Reply | To 2 | View Replies ]


To: who_would_fardels_bear

That’s how I look at it.


9 posted on 01/20/2014 2:50:45 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
[ Post Reply | Private Reply | To 6 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson