Quote:
Originally Posted by MikeRoth
All currencies depend on "faith" in the currency. That's why the U.S. dollar is claimed to be backed by the "full FAITH and credit of the U.S. government." Without the faith, the currency collapses.
Who has faith in the credit of the U.S. Government? The national debt is rising exponentially and they are in debt to China... inb4 getting loans from North Korea
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If you look at world economic history, hyper-inflation / massive currency depreciation, are always political/emotional events, not economic ones. What happened to the US dollar during the great depression? What happened to the US dollar in 2008?
Faith in a currency is lost when the government doesnt pay its debts, or there is massive fraud such as counterfeit currency becoming too big in the money supply. That's why if bitcoin gets hacked again, it will collapse. Security is the number one priority at bitcoins right now. They know it.