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A comment on Bitcoin has little shot at ever being a major global currency. Parent comment

Re:Bitcoin has little shot at ever being a major global curr... by Retric on Thursday January 11, 2018 @07:15AM (#16123172)
Oil has almost nothing to due with the value of USD. People need to pay a few trillion dollars in US taxes every year based on the size of the US economy. If the dollar was worth 1/10 as much they would then need to pay 10x as many dollars in taxes because people pay taxes as a percentage of value creation not simply arbitrary units.

On top of that people who want US goods like movies need USD to buy them. Further, US companies foreign profits need to be converted back to USD to pay out dividends. Apple may sell a Chinese made iPad in China, but the profit needs to be converted to USD.

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Re:Bitcoin has little shot at ever being a major global curr... by kuschku on Thursday January 11, 2018 @07:48AM (#16123351)
Oil and international transactions has everything to do with the power of the USD.

There are more transactions, and of larger volume, and more savings between EU citizen than between US citizen.

Yet, the EUR is only ~20% of global currency volume, and over 60% is in USD. That is all due to international transactions.

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Re:Bitcoin has little shot at ever being a major global curr... by Retric on Thursday January 11, 2018 @08:31AM (#16123665)
Trading volume has little to do with a currency's power.

To be a medium of exchange something needs to have value. Euro's are unstable due to polical issues, but the EU's economy is why it has any value in the first place. Now this has and will change over time, but it's really stability not military power that backs the adoption of USD's.

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