Posted on 10/27/2015 4:57:24 PM PDT by Another Post-American
So Bitcoin is fiat currency, just as dollars are.
The value of money is the “full faith and credit” of the United States, and the fact that we all agree that it is worth something in exchange for goods and services.
It sounds like the same is true of bitcoin. It’s based on everyone involved having faith that a bitcoin unit is worth a certain amount in exchange for goods and services, if you can find people willing to accept payment in bitcoin.
I understand bitcoin operates outside the established banking system. But what happens if the system crashes??
So Bitcoin is fiat currency, just as dollars are.
The value of money is the “full faith and credit” of the United States, and the fact that we all agree that it is worth something in exchange for goods and services.
It sounds like the same is true of bitcoin. It’s based on everyone involved having faith that a bitcoin unit is worth a certain amount in exchange for goods and services, if you can find people willing to accept payment in bitcoin.
I understand bitcoin operates outside the established banking system. But what happens if the system crashes??
Absolutely incorrect. The dollar has an extremely important advantage: it is backed by the force of law. It is a valid medium of exchange for all debts public or private. On the other hand, I don’t have to accept silly bitcoins. I suppose if we mutually values signed pictures of Bruce Caitlan Jenner, we could exchange them for goods and services amongst ourselves, but no one else has to accept them.
Bear in mind that according to the Constitution, only the federal government has the authority to coin money. That makes bitcoin unconstitutional. Therefore, if it ever becomes a real threat to sovereign currency, it will be banned in a heartbeat. Right now, it’s about as significant as Pokemon Cards as a medium of exchange, so the government doesn’t care.
So - to answer your question about the system crashing: the same thing that will happen in other countries. The government will step in and take control. They will print new money and quick ban anything that could be used as an alternate medium of exchange. While you may be able to buy your weed with your bitcoins through shady back-alley deals, grocery stores, gas stations, the electric company, et al will still be forced *by the force of law* to transact in dollars.
That’s the part these bitcoin fanatics seem to fail to understand. Two people can barter just about anything. But the real retail engine of this country will operate on dollars, and will continue to do so unless the Constitution is amended.
FreeRepublic has several of these “strict constitutionalists” who are so ready to throw away the coinage clause JUST LIKE the libtards are ready to throw away the Second Amendment. Idiocy.
Thanks for the explanation. I learn a lot on this site, and have been educated by you today about our money.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.