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The former will be less difficult to imagine if you read *When Money Dies* by Adam Furgusson. It gives a lot of interesting information about the effects of hyperinflation in Weimar Germany. That book was more densely packed with good and useful information, which was new to me, than any other I'd read in a long time.

BlessedBovine 1y ago

Thanks for the book referral.

nostr:nprofile1qqs2dh95s8kwhljccpkgujxgc8h739t3c4v6qmjd7h9f30d3zzd3ghcpz3mhxue69uhhyetvv9ujuerpd46hxtnfduq3qamnwvaz7tmwdaehgu3wwa5kuegpzpmhxue69uhkummnw3ezumrpdejq36hs8j, I think it will occur from a mixture of the two. If the USA government moves back towards a hard money standard, with a basket of Bitcoin and precious metals being the backing, then I think that would also reshape USD as it is known today. Pumping the value of Bitcoin, and USD against commodities and consumer goods.

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Discussion

Tony Carrera 1y ago

I agree it would be a mix.

I’m certainly no economist but I just don’t see how the US can move towards being fully backed by hard money given the global debt is exponentially larger than available currency and quite larger than most asset classes. This doesn’t even include the compounding interest on that debt.

Partially backed by hard money, maybe, but the repricing would be fascinating to watch. The level of defaults/bankruptcies/restructuring would be jaw dropping. I still really don’t see it happening but way more likely than fully backing up the USD.

The more realistic scenario is the USD continues its trajectory and BTC exists side-by-side increasing its market cap.