“The Franklins are still only an IOU on paper though.”
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Backed by “the full faith and credit of the United States government”. The guaranteer backing bitcoin is....who, now?
“Most Franklins only exist in the digital world.”
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Yup, a bank can be robbed digitally or in real life. Again, your money is covered by FDIC, up to 250,000. When Bitcoin is hacked and your money taken, you are covered by...what, now?
“Once that expectation is gone, it’s just paper...”
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I haven’t seen too many people who, spotting a dollar bill on the street, pick it up, grumble about litterbugs and then toss it into the nearest trashcan. And I’ll be more than happy to take a pile or two of that “paper” off your hands, if it’s taking up too much space.
All kidding aside, though - if the SHTF and world governments collapse, all the bitcoins in the world ain’t gonna help anybody - same as with government issued currency.
At least the tangible paper currency is still good for toilet paper, if nothing else.
“All kidding aside, though - if the SHTF and world governments collapse, all the bitcoins in the world ain’t gonna help anybody - same as with government issued currency. At least the tangible paper currency is still good for toilet paper, if nothing else.”
Agreed. I was trying to point out that both are equally worthless in SHTF scenario except for wiping your a**.
Dollar is of course safer and more stable but bitcoin is a tool to avoid scrutiny from corrupt governments worldwide. It is merely a method of exchanging value that 2 people agree upon without involving any government currency.