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...
- I think Bitcoin is just as based on trust as any other currency. Bitcoin is a change of opinion away from being valueless, just like everything else.
- Under this premise Bitcoin is no different than dollars. Except that it cannot be created out of thin air, which it essentially is, except instead of a physical object you have a string of data and that is all. I have the same thing now, my dollars are strings of data on my debit card.
- I just don't see why people would gravitate to Bitcoin, it holds no advantage to any other already existing currency.
I would tend to agree, the world doesn't trust dollars, but now we're beginning to veer into a "world without America" scenario and that is a very different discussion from "the world without the dollar". I would also agree that the "guns" are more than likely pushing the world into an authoritarian government. I think the next major collapse will be the end of the free thinking groups/ideals like the bitcoin community. Hence why I hope the dollar doesn't fall, because I enjoy my freedom of speech.