First of all I'm on board the bitcoin train philosophically. I don't own bitcoin because I want to keep an open mined for the moment. I don't have gold either, nor a lot of dollars.
I think we know the advantages of bitcoin: 1) no more closed room meetings between bankers to determine our economic realities 2) no more manipulation of exchange rates to exploit 3rd world labor 3) no more banks lying about how much gold they have in their safes to deceptively create values through interest from nothing.
Here is a problem that I anticipate, I'm curious to hear what is the solution to this problems:
The value of bitcoin is still tied to the dollar. Bitcoin's value rose recently, but with respect to what? With respect to dollars. Or, from the frame of reference of bitcoin, the value of dollars decreased. The problem is that the purchasing power of bitcoin got changed accordingly with respect to dollars.
I'll give an example:
Imagine that $1 = 1 bitcoin and $1 can purchase 1 unit of X. Accordingly, 1 bitcoin can purchase 1 unit of X.
If suddenly it happens that $2 = 1 bitcoin (or $1 = 0.5 bitcoin), now 1 bitcoin can buy 2 units of X (am I wrong in this?). If this is the case, the bitcoin value is still tied to dollars and not fully independent of it. Furthermore, I'm not seeing a way for it to achieve independence (maybe it's due to my lack of imagination). The reason is as follows:
Imagine that even when $2 = 1 bitcoin, the price of 1 unit of X is still 1 bitcoin. In this case, bitcoin value is independent from dollars. But, here is the problem: if $1 can purchase 1 unit of X and 1 bitcoin can purchase 1 unit of X, then what is the basis for $2 = 1 bitcoin? Furthermore, if $2 = 1 bitcoin and the purchasing power remains the same, then people will simply transfer their bitcoin to dollar and purchase 2 units of X instead of purchasing 1 unit with bitcoin.
Here is the problem that is caused by bitcoin remaining on the dollar standard: The bankers and thieves who acquired a lot of dollars through usury and market manipulations still have all of their value. They can simply transfer all of their wealth from dollar to bitcoin and they will still have all of their purchasing power. In other words, not much has changed. Okay, the banks no longer have power to control currency flow, but bankers are still powerful because they will have the most bitcoins and with that power they can still manipulate and subvert and consolidate power again under the bitcoin system.
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source https://www.reddit.com/r/btc/comments/bq5ld7/i_love_the_idea_of_a_bitcoin_coup_to_depose_the/
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