Quote from: Augusto Croppo on January 14, 2014, 09:46:24 PM

Quote from: devphp on January 14, 2014, 07:55:31 PM

So far in history we've only witnessed cases of certain countries' currencies going to dustbin and resurrected with the loans from international financial organizations willing to provide those loans to countries, but what I am talking about in my previous post is the situation when the reserve currency itself is going to dustbin, who would back up other countries' currencies then? That's when your fiat wouldn't buy you a cabbage, actually you might even get your face punched for offering to pay in fiat for that cabbage

I don't even want to comment on your 'responsible central banks' phrase, it's too funny, I wouldn't know where to start.

LOL (Again).

No.

Reserve currency ≠ Fiat currency

This whole conversation started with you stating that "until Bitcoin is recognized legally as a currency, all trades done with Bitcoin are to be considered bartered trades, no tax applies" bullshit. Your doom's day scenario where all world economies will destabilize at the same time and everyone will suddenly only use only BTC to trade is far fetched.

If you live on the same planet as me, reserve currency (the one that international trade is settled in) of this planet is still USD (although there's been steps by other countries in the last 2 years, especially China, to move away from USD), which is a fiat currency. We don't need to theorize here of what reserve currency can or cannot be. We're talking about what it is now. USD, which is a reserve currency of this planet, is fiat now, backed by nothing, unless you count aircraft carriers, of course.

By the way, I didn't say what you quote me to say, it was someone else. And I never said everyone will use BTC only to trade, because that'd be utter nonsense to say. Cryptos will have their place as supplementary currencies, but I don't believe they will ever be universally accepted, or even by any significant number of people.

Quote from: Augusto Croppo on January 14, 2014, 09:46:24 PM

Quote from: devphp

It's actually been decades now that the reserve currency has been depreciating in real purchase power terms, since Nixon canceled the Bretton Woods system in 1971. Since then all currencies have been living on borrowed time.

When I said 'a few years', I meant the final accelerating hyperinflation period, when hyperflation becomes noticeable to everyone, who goes shopping for groceries.

Depreciation of reserve currency ≠ Price inflation of goods

For all practical purposes depreciation of reserve currency that other fiats are pegged to in one way or another = price inflation of goods, both in that reserve currency and pegged local fiats. Again, if you ever did groceries, especially over the past 2-3 years, you'd notice either higher prices or smaller packages per serving for the same price.