Crypto Exchanges

Why Bitcoin Can't Replace the US Dollar (Fiat)





Can Bitcoin / cryptocurrencies replace the US dollar / US government and fiat currencies? Can Bitcoin be the revolution that takes down the fraud that is central / commercial banks worldwide? Have they finally gone too far with zero interest rate policies and quantitative easing? Probably, but believe it or not, that is besides the point. Bitcoin is not capable of implementing even some of the most basic functions of monetary policy.

For one, Bitcoin isn’t even inflationary (well, it won’t be in the long-term), which would be unhealthy for the economies it supports (especially for those driven by consumption). In addition, credit in a Bitcoin based economy would be rather difficult. Monetary policy helps alleviate both credit crunches and overheated economies through influencing interest rates.
While such actions have been controversial, they have worked well for us (literally US) over time and has helped create some of the wealthiest nations in the world by bolstering GDP by encouraging spending when it is slow and decreasing probability of the economy overheating.

Bitcoin would have to lose its function as a store of value to become a true currency that encouraged spending, in which case it would no longer really be an investment anyway. Instead, Bitcoin should operate as an alternative to traditional payment channels and fiat currencies for remittances and general business transactions for those who “opt-in.” There is plenty of market share here and it is realistic.

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33 comments

  1. Everyone – getting tons of comments, lots of them criticism, some nice ones. I read them all. I'll likely do a follow-up video for this at some point in future, but not going to throw it together haphazardly. I will likely write an article along with it (which forces me to cite all my sources) and also present the other side of the argument more fairly. Continue on commenting, it helps give new ideas for that video. I appreciate ALL of the feedback everyone, even the trolls.

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  2. Well then why can't inflation be at something like .005%

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  3. It can replace investment savings accounts, so how can central banks and Banks function without trillions of dollars in savings and investment accounts ?

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  4. Ignorance is bliss for this YouTube. Inflation is good for the morons that don't understand it. First of all our inflation numbers are fraudulent and leave out critical factors. The true inflation rate is 9-10% annually. Also, our purchasing power has dramatically decreased over time. Since 1913 we have lost over 98% of the dollar value. At that time you could buy a home with an average year salary. Now an average year salary would take 5 years to pay for a home. Money is slowly becoming worthless and all Ponzi schemes must come to an end eventually. Soon people will be using US dollars as toilet paper or to burn to keep them warm as they do in Venezuela. As the dollar continues to lose purchasing power bitcoin and other crypto's gain purchasing power. Banks will be forgotten and not used anymore by 2022. Then governments will fall and collapse because they have no control over taxation or printing the money supply that majority of humans on earth use which is crypto not just bitcoin. This is inevitable and anyone who attempts to reason agains this is like the old man in the early 1900's saying that the automobile will never replace the horse or the old man in the 80's saying the computer will never replace the typewriter or the old woman in the 2000's not willing to get a cell phone.

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  5. Bitcoin has zero debt. But the rich and powerful can manipulate anything of value.
    The American dollar is just one country. A multi trillion dollar country. Bitcoin will be worth the same. There should be no debt and no inflation. The jews charge interest. The Catholics are not allowed to.
    Workers earn less when woman enter the job market and inflation. And it's done intentionally to attack a stay home mother who's children grow up to rule the world. We want either whores kids to rule the world or holy women. Either way inflation is not good

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  6. Mr Patrick Brown is the right person to start a bitcoin mining investment with. he knows his way around the miners

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  7. We have low inflation because the top 1 percent own over 60 percent of the economy and and the lower 80 percent of of population can barely afford groceries.

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  8. tell me how your inflating grocery bill is a good thing…I"ll wait here for a response. Do I feel safer, more secure, more positive about the future when milk prices and food prices rise…no it doesn't. Inflation is bullshit and always has been.

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  9. Inflation sucks. It does not encourage anyone to spend more. It scares people into hoarding money. SAving money, investing it will let you retire early and leave the rat race. Inflation is a tax on your money.

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  10. What about a crypto currency that is inflationary like xrp or something, that could definitely replace paper money and bitcoin could be a store of value in the future

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  11. Yeah no. There will be the haves and have nots. Simple as that.
    No more free lunch
    No more tweakers in the park
    No more welfare
    No more Walmart
    No more human farming
    No more poor infrastructure
    No more coke a cola
    No more diabetes

    Only the ones that take responsibility will survive.

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  12. We hord bitcoin just like people hord gold. I own a sole proprietor business and I put my savings in bitcoin because I dont believe in the printing money tax. Bitcoin is a sound investment if you read the daily news

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  13. We survived on the gold standard for years, the stock inflated and deflated like fiat. Printing fiat money just takes money out of your grandparents retirement. Your Democrat mindset doest belong in the stock market, let alone teach about it.

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  14. The U.S. went from colonies to the most prosperous country in existence under a deflationary to neutral monetary system. And has gradually lost it’s edge over the world since detaching completely from gold in 1971…explain to me again why inflation is necessary? Typical government indoctrinated Keynesian

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  15. You realize bitcoin shits on the loan system we have. Reason it probably was made. It’s more like gold but I can see the same problems with gold and backing of gold

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  16. I like inflation. I Like paying more for my stuff and more in rent every year. If inflation works why are all the countries bankrupt and the bankers rich behind believe? You are not one of the wealthiest countries, The US is the most indebted nation in the history of the world. The US was just able to get more and more debt and buy more stuff, that debt is now due. Bitcoin is just digits exactly the same as dollars but the bankers can't keep printing more and more bitcoin like the can with the dollar. But it is sad that the bankers will not be able thieve our money for much longer.

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  17. The problem is that Bitcoins "value" comes from the promise that it will replace fiat, the moment you take that away bitcoin has nothing to stand by.

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  18. No, inflation is not good. Your inflation's value circle is nothing but propaganda for the biggest theft in history.
    One of the key requirements of "money" is that it is something that does not spoil or lessen in value.
    Go watch "the collapse of the american dream in animation" and understand that the world has been enslaved for the past 120years.
    Ps: It's always the same group of people pulling this scam.

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  19. Bitcoin enters the room

    Gold: oh shit!

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  20. xrp enters the room

    Dollar: oh shit!

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  21. Speaking real facts 🙌🙌🙌

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  22. I've been wondering if it was possible to get the US dollar backed by bitcoin. Don't see it happening, but thought it was worth mentioning.

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  23. Gold was and still is a store of value and currency. BTC is just making that ability digital, bye bye banks!

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  24. Bitcoin's deflationary nature is a FEATURE.

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  25. So what if someone creates a video game that you pay in bitcoin to play. Then you get paid in the game depending on you winning or losing. That gives you incentive to spend your bitcoin. There can be things like that that keep people spending bitcoin instead of just hodling as far as u saying no one wants to spend it. At least right now obviously cuz everyone is preparing for the vision. What if only certain buisness accept btc then you will have to spend btc …

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  26. fiat money is the biggest scam

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  27. First they deny, then they fight ,then bargain, finally …accept.
    It's easy to understand this. So you've been told.

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  28. The price will definitely run up more this joyful season, then bleed off and have an extended winter, it might over lap and hit the early summers and actually go lower than current lows… Then as it goes higher, All we need to do is invest what we’re Holding and make more profit, So we don’t feel the lost in fall of price when it happens again. I discovered a comment of someone giving bays to MRS. Rachel Brooke and also thanking her for helping him increase his Portfolio from having 2.2BTC to 11.8BTC in 2 weeks, So i contacted her even though I was skeptical. Behold I have made 5.65Btc in just 14 days Under her. if you have lost so much during fall or want to increase your Bitcoins/Investments like me, or even looking to have the best retirement investment, Here is her email  rachelbrookemonique@gmail.com. or WhatApp her on WhatsApp: +14422433874 and thank me later guys.

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  29. Lol

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  30. WE ALL AGREE WALLSTREET IS MANIPULATING BITCOIN,,,,THEN HOW THE F KKKK IS BTC PRICE EVER GOING TO STABLIZEEEEEEEEEEEEEEE,,,,,,,,,,,,,

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  31. I'll take that as an interesting point of view

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  32. We have more than 2000 other cryptocurrencies. If Bitcoin is to expensive another coin will go further and the people will change from bitcoin to the other coin.
    So i don´t think your views is right.

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  33. This view on inflation is retarded and extremely toxic. We do not need a powerful overlord entity to encourage us to spend money by stealing a portion of all we don't spend every year. That whole idea is absolutely insane and is the most obvious lie clearly made and supported by those that benefit at the expense of everyone in society

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