knb comments on [LINK] Two articles on Bitcoin - Less Wrong

4 Post author: David_Gerard 16 May 2011 02:36PM

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Comment author: knb 17 May 2011 03:56:03AM *  0 points [-]

And if you do assume "fiat money is doomed, doomed!" then why wouldn't something like bitcoin become the world's reserve currency?

Because governments would prefer other currencies. They would even prefer a gold or silver restandardization to Bitcoin, since bitcoins are harder to track than movements of physical metals. As far as spontaneous restandardization, (i.e. without government approval), metals have the advantage of an industrial price.