US National Debt：30Trillion

[vi-va]

A so-called superpower which will bankrupt in coming decades.

 

[CrazyZ]

Just pay that back then, achievers.

I've thought long and hard about this and concluded that the Federal Reserve can theoretically hold forever an infinite amount US government debt on its balance sheets acquired with money created with a few key strokes. Default is not possible. Biggest issue will be the loss of confidence in the dollar. Over the longer term, the dollar will lose its dominate position in global currencies.

 

[HttpError]

How long did each transaction take to settle? And compare that with the transaction using regular paper money.

With Bitcoin around 5-10 minutes, Ethereum if you select an Economy mode then 5 minutes, and if you Use Solana it is less than 10 seconds.

 

[nang2]

With Bitcoin around 5-10 minutes, Ethereum if you select an Economy mode then 5 minutes, and if you Use Solana it is less than 10 seconds.

Solana is centralized. That defeats the very purpose of having an independent currency. For decentralized ones, do you want to wait for 5-10 minutes to checkout your grocery after scanning all your items?

 

[HttpError]

Solana is centralized. That defeats the very purpose of having an independent currency. For decentralized ones, do you want to wait for 5-10 minutes to checkout your grocery after scanning all your items?

With Bitcoin lightning, it is less than 1 minute. Well, if we want to defeat the centralized system then waiting for 5 minutes or even less than 1 minute in the case of Bitcoin Lightning is fine.

Moreover, with L2 solutions on Eth going to reduce GAS fees and will accelerate transaction timing. This industry is still underdeveloped and obviously will have some bottlenecks but with the passage of time, it can be taken care of.

 

[313ghazi]

3000 billion for the Indians who have a phobia or large numbers.

 

[nang2]

With Bitcoin lightning, it is less than 1 minute. Well, if we want to defeat the centralized system then waiting for 5 minutes or even less than 1 minute in the case of Bitcoin Lightning is fine.

Moreover, with L2 solutions on Eth going to reduce GAS fees and will accelerate transaction timing. This industry is still underdeveloped and obviously will have some bottlenecks but with the passage of time, it can be taken care of.

Bitcoin slow transaction speed is a sacrifice for its security strength. Anytime you want to improve its speed, you sacrifice its security. In the end, if you want it to perform as fast as the regular currency, you end up making it a regular currency, which defeats the very purpose of having an independent currency without subject to the control of any entity, political or commercial.

I believe Bitcoin will remain in a niche market that deals with large sum transactions only. Among all regular currencies, only previous metals are viable alternatives to fiat money.

 

[HttpError]

Bitcoin slow transaction speed is a sacrifice for its security strength. Anytime you want to improve its speed, you sacrifice its security. In the end, if you want it to perform as fast as the regular currency, you end up making it a regular currency, which defeats the very purpose of having an independent currency without subject to the control of any entity, political or commercial.

I believe Bitcoin will remain in a niche market that deals with large sum transactions only. Among all regular currencies, only previous metals are viable alternatives to fiat money.

To begin with, Bitcoin is more of a store of value (Replacement of Gold) than to use it as a currency which obviously it can be used for.

 

[nang2]

To begin with, Bitcoin is more of a store of value (Replacement of Gold) than to use it as a currency which obviously it can be used for.

Any function of value storage is meaningless if it cannot be used for exchange. Gold is both a value storage and an exchange medium. Give me an example that only serves as a store of value but won't be used for exchange?

 

[HttpError]

Any function of value storage is meaningless if it cannot be used for exchange. Gold is both a value storage and an exchange medium. Give me an example that only serves as a store of value but won't be used for exchange?

The same thing you have said about Bitcoin can similarly be said about Gold, have you tried to cash in 50 G Pure Gold Bars? I did there are so many issues with it (First and Foremost) there is a huge Price discrepancy with the Official rates and local market rates (I am not talking about some third-world country, one of the richest countries local Gold market). Then comes the issue of the authenticity of Gold.

No system is perfect, Bitcoin is here to stay whether we like it or not.

 

[nang2]

The same thing you have said about Bitcoin can similarly be said about Gold, have you tried to cash in 50 G Pure Gold Bars? I did there are so many issues with it (First and Foremost) there is a huge Price discrepancy with the Official rates and local market rates (I am not talking about some third-world country, one of the richest countries local Gold market). Then comes the issue of the authenticity of Gold.

No system is perfect, Bitcoin is here to stay whether we like it or not.

First of all, the difficulties of cashing in gold bars are mostly due to the lack of infrastructure, which died out because of fiat money. These difficulties weren't there before when gold or silver was the money.

Second, the rate discrepancy wasn't an issue before, either, when both gold AND silver were the money. Market took care of the rate convergence.

Third, the authenticity of gold is less than an issue than before. Now, any serious Gold owners would invest in detection devices. In early days, government often chipped gold/silver coins to inflate money supply. Now, such a practice would be more difficult.

You are right that no system is perfect and bitcoin is here to stay. But don't expect that it has the power to replace fiat money. If it had such a power, governments would join force to crush it, like US banned the private ownership of gold back in 30s.

 

[mhosein]

When an empire is heading for a collapse, it's patrons always are in an utter state of denial, vehemently defending it. This is where America stands today, with it's debt at $30 trillion, the petrodollar has lost its shine where hundreds of billions dollars worth Oil & Gas being traded in currencies other than USD and to top it off, America is more divided today than ever before in history bar the Civil War.

So when people churn out zippy figures of GDP worth $25 trillion or some other nonsense. It's no wonder the analysts are convinced that America stands at the crossroads of an empire in collapse.

 

[Mista]

The US won't default because the debt is denominated in USD, they can just print more money. Look at Japan with 200%+ debt to GDP. The problem would be inflation and devaluation of the USD.

But then again, a devaluation of the USD (to the extend of the Plaza accord devaluation levels) could be what the US needs to fix its chronic current account deficit.

Plaza Accord: Definition, History, Purpose, and Its Replacement

The Plaza Accord was a 1985 agreement among the G-5 nations to depreciate the U.S. dollar relative to the Japanese yen and the German Deutsche mark.

www.investopedia.com

 

[zectech]

A rigged system, if you cheer for the cia planned demolition of the US economy. While China, Europe, Middle East doesn't have your own alternatives ready in place, such as silver and gold, you are going to end being in a worse economic system designed by Washington.

100% rigged Republicans vs Democrats. cia dollars vs cia bitcoins.

"Did you see those Oligarchs go crashing and burning in the 2024 election, we have freedom now, Washington has fallen, we have trump back in the white house"

same as:

"the dollar is collapsing from the national debt, Washington has fallen... freedom with Washington owning millions of bitcoins and trump supporters owning the rest, now the rest of the globe are slaves. Washington has fallen, Washington now owns the globe."

Bush ally Powell is there to implode the dollar, question is how much does Biden want trump in 2024. Biden obeys the Bush cia. Was part of the red carpet preparation of trump, so don't expect Biden to ever want to save the dollar. Powell wants inflation, without being obvious about doing the deed.

 

[Shotgunner51]

The 2020 Long-Term Budget Outlook

CBO presents its projections of what federal deficits, debt, spending, and revenues would be for the next 30 years if current laws governing taxes and spending generally did not change.

www.cbo.gov

The real situation is even worse than this considering the fact that US adopts the practice of including imputation into their GDP calculation.

Why does GDP include imputations? | U.S. Bureau of Economic Analysis (BEA)

Gross domestic product (GDP) is a comprehensive measure of the nation’s production. In order to be comprehensive, it must include some goods and services that are not traded in the market place. Those components of the GDP are called imputations. Examples include the services of owner-occupied...

www.bea.gov