Episode Highlights:
- 00:04 – Currency Devalues
- 01:43 – The Us Economy
- 03:46 – Network Of Bitcoin Miners
- 05:39 – When The Dollar Crash
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Transcription:
Hey guys what’s up again it’s Dan from CryptoCamacho.com
00:04 – Currency Devalues
Hey guys I’ve been thinking about something recently and I wanted to just kind of throw it out there get your take on this and I dowant to talk about the market but I also want to kind of just make a quick video on just something I’ve been thinking about.We keep referring to crypto currencies Bitcoin, ethereum other altcoins we keep referring to those crypto currencies value in terms of dollars or Euros or insome other fiat currency.Weoften said I have athousand dollars worth of Bitcoin or Ihave five thousand dollars worth of Bitcoin or I have a thousand Euros worth of Bitcoin or whatever and we measure the value of Bitcoin based on against the fiat currency today; the value ofthe dollar the value of the euro and soforth.But in the future what’s goinghappen as these currencies kind of devalue right as the euro devalues, asthe dollar devalues- if the dollar wereto collapse now and a dollar today has so much purchasing power; you can go to the store, you can maybe buy some milk, you can maybe buy bread, you can maybe buy some candy, can’t buy too much with a dollar, but you can buy somethings with a dollar. Let’s say if the dollar crashed and the actual value of the dollar went down let’s say 50percent, to where tomorrow yougo into the store and a dollar what doesit buy you it buys you really nothing, maybe it buys you a candy bar or a packof gum. But you can’t even buy milk can’t buy bread you can’t buy the basics with it. Now that’s a scenario that could happen in the US in the United States on the dollar, assuming that the market collapses the dollar weakens and collapses and overtime it’s predicted that this will happen.
01:43- The Us Economy
The US economy has not been very strong since 2008 andeven before, it’s been getting weaker and weaker and weaker and we haven’t really learned anything from the 2008 collapse. The housing bubble and kind of the whole market the US market crashingdown the Federal Reserve really just propped up the dollar again with artificial interest rates lowering interest rates again and artificially inflating that bubble again, that’s the US dollar.So my question isin the future; let’s assume that the dollar will be devalue over time and it may even collapse intheir ad hyperinflation against the dollar then how are we going to measure aBitcoin in crypto currencies, we won’t be able to say a thousand dollars willbuy you X currently an X Bitcoin. I meanwe will be able to say that but thinkabout this, think about it kind of the other way around in the futureBitcoin will be the basis by which allother fiat currencies are actually calculated. Bitcoin or someother cryptocurrency whatever ends upbeing on the top and I think that it will be Bitcoin, ultimately whatever cryptocurrency ends up on top will be really the standard or the basis by which any other fiat currencies are calculated.
So the dollar, the Eurowill actually be calculated from Bitcoin; so let’s say today you had a thousand dollars worth of Bitcoin see there we go again I do again butlet’s say I had a thousand dollars worthof Bitcoin today, let’s say that athousand dollars today was equal to 0.25Bitcoin point two five BTC in youraccount. Let’s say tomorrow there washyperinflation and a thousand dollarsdollar bills are now worth five dollarsin purchasing power they don’t buy as much. Well I still have 0.25 Bitcoin Istill have a quarter of a Bitcoinbecause of the dollars that I bought it with yesterday. So bitcoins value is really going to be worth whatever it’s worth in purchasing power; whatever you can buy with Bitcoin in the future is what it’s going to beworth and all other currencies are goingto be based around Bitcoin -it’s really the true standard of calculation the, true standard of currency.
03:46 –Network Of Bitcoin Miners
There’s a network of miners that they mined Bitcoin acrossthese huge networks of computers they demonstrate what’s calledproof of work to show that they’veactually done something to create aBitcoin to create that value they’ve done something. Today its they say itcost about a thousand dollars toactually create to mine a Bitcoin andwell that’s their proof of work that’sthem showing what we’ve used X amount ofelectricity thousand dollars worth ofelectricity to create this entity calledBitcoin and that can’t bereversed. That’s proof that somebody didput in effort, time, money investments to actually create that Bitcoin.So as you’re thinking about Bitcoin and as you’re thinking aboutfiat currencies and how to invest in these things just think that in years to come and it may be sooner than many people think; but the standard of actually calculating the value of dollars, of Euros of any fiatcurrency is going to be really tethered to the price or value of Bitcoin.
Think about all other fiatcurrencies today are pretty muchtethered or hinged on the dollar today, whatever happens to the dollar affects the world and the worldeconomies; the value of Yan, the valueof the Euro the value of all othercurrencies really hinge on the dollar. Ultimately that’s going to all hinge onBitcoin all fiat currencies are going to hinge on Bitcoin in the value of Bitcoin. So think about this when you guyshave a spare moment I’m curious if you guys think this will happen allat once if you think this will begradual or if you think this is something that will happen right away when maybe there’s another crash or so forth and when do you think this is going happen do you think this is going to happen in a couple ofyears maybe 10 years 20 years five years, one year like when you actually think this is going happen and if the dollar does crash and goes down andI’m not a conspiracy theorist, I’m not a doomsday kind of preper or anythinglike that but when the dollar doescrash and I do believe it will crashbecause of the bubbles that we’ve beencreating over time.
05:39 – When The Dollar Crash
But when it doescrash most people are going to think let me make a run on the banks and Ithink it’s better right now if you cansomehow time the crash or kindof have an idea of when the crash isgoing to come, it would be smart to get outof fiat currencies and to get into Bitcoin or other cryptocurrencies that you find secure. Maybeeven get into gold or thingslike that there are some cryptocurrencies now that actually are backedby gold so it’s like a gold block chain that’s being built and you can actuallyconvert your altcoin whatever that altcoin is into real gold and it’s all distributed based onthe blockchain ledger that they’vecreated so pretty. Interesting stuff coming up but anyway I’m really curious about your thoughts on this perspective, curious to know your thoughts on whenthe dollar does crash and when Bitcoin does become a standard of value in terms of currency. I really want to know whatyou think about that and how you think that will end up or you think it’s a whole lot of nonsense I’d love to hear that too.
Anyway, I’m Dan again from Crypto Camacho hope you guys enjoy this video.
