Quote from: EricTyle on August 26, 2014, 02:29:13 AM

Quote from: tinof on August 25, 2014, 11:48:40 AM

Hyperinflation is one.

But in case of hyperinflation, there will be currency exchange control in place. You may have a hard time doing transaction using btc hence rendering it useless.

Then with hyperinflation, would BTC really raise in value or relatively would it stay the same only to be worth many useless paperbacks?

Bitcoin would do both.

Raise in absolute value ( bitcoin price of bread would drop ), caused by bitcoin cap growing.

And rise massively in fiat value ( fiat price of bitcoin would rise ), caused by people escaping the sinking ship.

So if we consider a loaf of bread as an anchor; then after hyperinflation starts bitcoin would fly above the bread and fiat plummet below, relative velocity between bitcoin and fiat would be tremendous.

Perhaps the bitcoin price of gold might remain the same order of magnitude.

edit: currency exchange control mechanisms are always black marketed away (the people responsible for the controlling often taking a cut), people are very eager to jump ship and people are also very eager to profit during the whole affair, it's CHAOS!