Let's say the dollar collapses, what will be the most used currency?
Paper dollars.
Let's say that all the banks close this Friday and never reopen. What will be the most used currency to buy food and gasoline?
Paper dollars.
All the gold bugs would say gold and silver!
But, we have no liquidity in gold and silver. We have a minority of people who can tell a gold or silver eagle at a glance. I think more people in America know about bitcoin, then gold and silver today. Definitely more people who can transact it bitcoin than those who can in gold or silver.
The Rebel Capitalist went to Argentina thinking they could transact with gold and bitcoin, and found that the only thing that was really used is paper dollars. People that they got to trade in bitcoin, instantly converted it to USDT.
Because that is what the currency that Argentinians were using. What they knew about. They use paper dollars. They transact in paper dollars. There wasn't/isn't enough people that know and work in bitcoin or gold.
Not only that, but the paper dollars are scarce in Argentina. So, they are at a premium. No one wants the peso. Very few people want bitcoin or gold. (because they are not currency… yet)
What really is money? What can you use to buy things?
In Argentina the local, used, recognized currency is The US dollar.
However, over in Zimbabwe, where they had trillion dollar notes, they often purchase groceries in grams of gold that was panned out of the rivers.
This is/was because there were people to assay that gold. And since many people in Zimbabwe were panning/mining gold, there grew an industry to weigh and confirm the gold.
The problem with what will be used as currency in the future has a lot to do with what people trust. It has more to do with what people accept as trade for food. Enough people have to trade in it, and want to accept it. (and their must be ENOUGH of it to circulate)
Bitcoin lightning network seems to be becoming more and more a thing. As in, people are using it to send money around. Like the early days of PayPal. A little bit more time, and we may have a viable alternative for when the banks collapse.
We just do not realize how essential The US dollar is, and banks being open, to the acceptance of bitcoin. As long as people believe they can trade into and out of bitcoin, then people can play with it. But, if we see banks closing, and ATMs stop working, then everyone starts hoarding and holding on tightly to any paper dollars they have. It is what you need to buy groceries.
CBDCs may have the same problem
If the banksters try to introduce CBDCs as an alternative system to the dollar, where their system runs parallel to the dollar, it might not be accepted. I am sure that Wallymart and the Fed will work things out before, so that you can use your "UBI" payment in CBDCs at Wallymart, but most smaller stores may have never heard about it, or how to work with it. And will be slow on the uptake.
If it is not a direct dollar replacement (swap 1:1) than the people will balk at switching over. Just like all the people aren't just switching to bitcoin. (which is totes better)
And the banksters need to introduce CBDCs as a separate currency, because The US dollar is inflating away going towards hyperinflation. They need to have a reset.
But, how do they replace every dollar on earth, and get people to buy into their system?
Can the banksters avoid cutting off anyone from there accounts during this time? (like the banks are currently de-personing people right now) If they can't, people will shy away from the bankster's new system, and people will have more reason to stay with paper dollars. They will fight the change harder.
How to win
The ideal system, and transfer, for we, the little people, is to start manufacturing things ourselves, and we all accept various crypto currencies. (and dollars, while they still function). When there is a choice, people will start migrating over. And when enough people are familiar with, and trust the new system, the rest of the population can be brought along.
If we are providing the goods and services, and have a relationship with our customers, we can start to make our own loop of currency-goods. And when we have done this, we are a little less reliant on the old system, and more resilient. This is really what we need for crypto adoption.
The way to kill bitcoin is for all the manufacturers and stores to just avoiding accepting bitcoin. Wallymart will do whatever the banksters tell them to do. This means, really cutting off all the off ramps from crypto. There are so very few manufacturers. There are a small handful of corporations that produce all the food in the grocery stores. And basically, whatever they set as what they get paid in, is what they will get paid in. (as long as enough of it is floating around)
And so, the way to bring about a crypto future is to start selling stuff that you make for crypto. Which means we have to start making stuff that people need.
Your mission, should you choose to accept it, is to make the world a better place…