Hacker News new | past | comments | ask | show | jobs | submit login

> If the price of the dollar collapses, you can sell it to the Fed

I think this is a dubious argument. It describes what happens most of the time, when the value of the dollar fluctuates. But what if the collapse of the dollar is accompanied by a downfall of the Fed? Hyperinflation has happened in many, many countries that used fiat currencies, and even the US has had high inflation:

http://en.wikipedia.org/wiki/Hyperinflation#Examples_of_hype...




It may be a dubious argument in theory, but it's not a dubious argument in practice. You have to store value somewhere. If you look at how most people deal with that, they use fiat currencies backed by organizations they trust. There are alternatives, but they have risks as well.


Given the strong guarantees of Fed independence and inflation-targeting written into its establishing laws, I think the hyperinflation case you're worried about boils down to a collapse of the American political system or its defeat in a much more major war than it's been involved in for many decades. This is a risk to think about and plan for, but not at the cost of exposing yourself to the risks of storing your wealth in such a volatile commodity as bitcoin. Stock up on living needs and stable commodities if that possibility seems realistic to you, and be ready to use bitcoin as a medium of exchange.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: