- I think in a post collapse world trust will be the issue that crushes bitcoin. No one will want something they can't physically control.
- Once again, you are misunderstanding what fractional systems are, so I will leave it be.
- 99% of all trades end up with USD as the end result. Just because you bought something doesn't mean it wasn't dumped into dollars. If things are priced in dollars, and you pay in bitcoins, it still ends up in dollars. You not seeing the exchange doesn't make it not real.
- That is a simple miscommunication. I mean in a more broad way, not just the "exchanges" (i.e. cryptsy, etc.) But to go further, what stores will allow me to use my bitcoin wallet address to pay for something? Where can I go down the street to pay with bitcoins? The simple answer is nowhere. Why? It would require a massive infrastructure change and we're already talking post collapse so where will the capital come from to make this possible?
All the guns in the world have already stopped the collapse. You're allowing wishful thinking to cloud good judgement. What about our world is sound? What about our world makes sense? The fact that we need money at all is a fallacy in itself! But to be truthful, the world trusts dollars because America can land a military anywhere on the planet within 18 hours and crush the opposition.
It's a pleasure debating our opposing opinions.
- Bitcoin isn't a system built on trust. It's just math... There is no possibility of a "Bitcoin run" or "Bitcoin went bankrupt".
- I know what fractional reserve systems are. Rather than attacking the entire system I'm focusing on a single aspect. When I consider a gold/resource based commodity as "fractional reserve" I'm telling you that people don't want to carry a coin purse around. The resource is deposited into a treasury and a note is issued to guarantee availability. You can only redeem these notes at the local treasury where the resource was deposited... Why would I accept a note to a local treasury in a different state? The only way to eliminate the "fractional reserve" aspect is to do away with paper notes. Bitcoin doesn't suffer the same issue...
- The change will come either slowly by gradual innovation (before the collapse) or quickly from necessity. If Bitcoin is used to facilitate international trade then the incentive will be there. People don't always get paid to change the system. Sometimes people are forced to adapt out of necessity.
The guns haven't stopped anything, they stalled it. I think money is necessary; just think about it. How else could a dentist and a car salesman make a deal when the salesman has good teeth and the dentist needs a car?
The world doesn't trust dollars, the world trusted gold. The USA fleeced the world without the consent of the world. It's not going to last...