Here is the post for archival purposes Author jhoodbossb Content Hi , Does the rise of a currency like Bitcoin mean that a value of a dollar is lower , or is there no direct relationship between the two ? For example , let ' s say 1 Bitcoin 1 Dollar 1 tree , so for a bitcoin or a dollar you can buy a tree . Now let ' s assume the value of the bitcoin compared to the dollar rises , so that 1 bitcoin is 2 dollars 1 tree . Because the value of dollar compared to bitcoin dropped , the amount of dollars needed to buy a tree doubled , so the dollar lost value not only against the bitcoin but against everything else as well although only trees in this example . Is this how it works in real life with all goods and currencies as well ? And does this imply that if Bitcoin is the superior currency and its market cap in dollars becomes as high as the amount of dollars outstanding , the dollar will be almost worthless ? I am trying to compute what will happen to the value of physical currencies if Bitcoin value takes over ? Millionaires in dollars will be poor and those who invested in Bitcoin will be the new wealthy ? That seems detrimental to an economy and surely governments will try to stop it . Is there something wrong with my way of thinking ? Kind regards , Jeffrey Bloemen