As you may know, Ron Paul is predicting an upcoming failure for the US dollar. He asserts that since the US dollar was taken off the gold standard in 1933, the only thing preserving the value of the dollar is the confidence of people. Ron Paul asserts that this confidence will not endure because of the aggressive printing and creation of money.
But what does this have to do with bitcoin? Well, if Ron Paul is correct and the value of the US dollar decreases, all else the same, the price of bitcoin and other cryptocurrencies may rise. The rise in bitcoin’s price will be due to a three factors.
First, as the value of US dollars is changed, and the value of bitcoin is unaltered, it will require more US dollars to get the same about of bitcoin as before. This is a principal that is true with any currency.
The second reason involves the perceived value of unchanging coin creation. Bitcoin and other cryptocurrencies don’t face the same issue that fiat faces in this regard. Cryptocurrencies are programed to create a certain amount of currency in a defined amount of time. No government or any