As we all know that all is going to be more expensive when using fiats as payment. The ongoing war is causing price spikes for gas and other goods. I just wonder if in current situation the world would use BTC instead of fiats to pay for an example for gas? Could prices stabilize or still go high because it still depends on relation between demand and supply? By all means I personally think that if BTC should be integrated and adopted into current financial system as fiat is adopted then it will be a little affected by inflation because taxes are subject to have higher rates and this artificially increases prices no matter in which form payment is made.
What if the whole world would use BTC as payment method everywhere?
byu/Top-Care-8946 inBitcoin
Posted by Top-Care-8946
14 Comments
> if BTC should be integrated and adopted into current financial system as fiat is adopted then it will be a little affected by inflation because taxes are subject to have higher rates and this artificially increases prices
What?
Seriously,
> then it will be a little affected by inflation
What?
> because taxes are subject to have higher rates
What?
> and this artificially increases prices
What?
>if the whole world would use BTC
>Could prices stabilize
Of course. The more people use bitcoin, the more stable it’ll become.
Oil supply disruption causes price of gas to increase. Not because of “paying using fiats.”
>then it will be a little affected by inflation because taxes are subject to have higher rates and this artificially increases prices no matter in which form payment is made.
Not sure what all this is about. What affected by inflation? What taxes, what rates, increasing what prices?
Never!! Makes no sense for BTC to be a payment method. Imagine waiting for 10 mins to pay for a bar of chocolate. BTC has lost it original purpose..
Are you 13? Serious question.
If everyone in the world made 1 Bitcoin transaction, it would take 50 years for the block chain to process.
I think you would benefit a lot by listening to Jeff Booth. He discusses his vision for bitcoin society
M3 supply estimates global money at 130 trillion, divided by 21 million Bitcoin is 6.2 million per coin
Would be difficult in places with limited electricity.
BTC will become more and more institutionalized.
The bulk of bitcoin will gradually move from first mover wallets into hedgefunds, governments and cooperations wallets –
simply because they have deeper pockets and longer time horizons, than most individuals.
It will never reach mass-adoption. Bitcoin will be out of reach for most people, even with 2 layer options.
Coming generations will sell whatever you have managed to gather – and it will be near impossible to regain after a few years.
The good news is, that if you’re aware of this, you can still benefit from the massive upside BTC will continue to have as store of value and financial settlement layer between gigants.
Even if you only hold a few satoshis.
And if you are able to save a little for your great great grandchildren, thats even better.
Well, it would certainly raise the price of bitcoin astronomically – right now all the bitcoin there ever will be is under US$2 trillion. The worldwide money in circulation (including electronic bank deposits) is closer to US$100-150 trillion, so bitcoin would need to have a value of $5-7m or more to have enough room for the world economy.
Transactions will take longer
If the whole world would use BTC as payment method…. the fees would explode, the blocks full and the queue of transactions so large that trading comes to a standstill.
If the whole world actually used BTC for payments it would probably change how prices behave. Bitcoin has a fixed supply so you would not get the same money printing that happens with fiat. That could mean less long term inflation, but prices would still move because supply and demand never disappears.
Also people forget something. Even with Bitcoin the economy would still have taxes, businesses competing, shortages, and human behaviour. Those things move prices way more than the payment method itself.
In the early stage it would probably be messy too. Huge volatility, governments fighting it, banks trying to adapt. Over time though if adoption kept growing the system would likely stabilise a lot more.
Also side thought. A lot of people think Bitcoin replacing fiat instantly fixes everything. It doesn’t. It mostly just changes the rules of the game.
If you like thinking about stuff like this I write about money, investing and Bitcoin sometimes. My newsletter is free and the link is on my profile.