A Question about Fiat | Bitcointalksearch.org

CryptoCarmen

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Quote from: bitcoinwien on October 30, 2014, 03:44:39 AM

Honestly I dont know how to start this conversation but what Im trying to say is this

What happens if we in America that can afford to save every month maybe a few hundred bucks

start to burn every month 100$ insteed to save tham.

Now this happens 1 time every month a few million american practize this.

Wouldnt be the rest of our money now worth more than before we burned the 100$??

I hope you guys understand what im trying to say

the point is if there are 100 Billion Dollars around and I got 5000$

arent 4900$ worth more if there are only 90 Billion Dollars aroud??

You guys see where I try to get with this

am I even right with this thought??

if you burn $100 , they wil print $200 more and the rest $4900 will be worth 2% less

worle1bm

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No, it wouldn't. The physical monetary supply is dwarfed by the digital supply.

Q7

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In reality that scenario can never happen because basically you can't control how people spend their money. Plus there are so many factor that comes into play here.

bitdraw

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on the one hand you are right, the value increases if the supply falls.

but a currency is a little more complex. it also depends on how it is distributed and how much of the currency is actually in use.

BootstrapCoinDev

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Burning currency seems to only hurt the person doing it, since everyone else gets richer. Unlike if one collects one million dollars in new bills, which hurts everyone else, if only slightly, since only one person's wealth has increased(hence the inflation - prices doubling is no biggie if wages double too!). It would seem that, if 300 million dollars were printed, provided that every American gets 1 of those dollars, everything will be peachy.

lucasjkr

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Nothing. As with bitcoin, unless the destruction is done in a verifiable way (i.e., sent to a burn address for the former, literally set on fire on video in the second), no one should ever take anyones word that something of value has been destroyed, or at least not adjust the value of the remaining assets.

How does one tell, for instance, that the coins stored at a given address have had their private keys lost, or that the owner is just sitting on them?

And how does one tell that the $100 you said you burned, you did in fact burn?

Even if you did burn your $100 in a completely verifiable way, the Treasury could ID the bill thanks to the serial number, and either reissue the note you destroyed or issue a new one in its place.

hilariousandco

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Quote from: bitcoinwien on October 30, 2014, 04:16:46 AM

Looks like Fiat is made by the Devil

What happens if we (the People) agree on stop using FIAT

Could the government arrest us for refusing to work or do anyting for money??

I know those are questions way out there but seriously, what if just stop using fiat??

Well, the banks certainly are one of the biggest evils in the word and for those in power controlling the money supply is naturally what they'd want. And of course we could stop using fiat, but it won't happen. Why? Because people are sheep. We could change the word if we cared, but most people just want to get on with their lives and with minimum fuss and discomfort so they just carry on moaning about the state of the world from their armchair or computer but aren't willing to do anything about it, and that's why no real change will ever happen. Apathy, it's the greatest of all human diseases.

bitcoinwien

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Looks like Fiat is made by the Devil

What happens if we (the People) agree on stop using FIAT

Could the government arrest us for refusing to work or do anyting for money??

I know those are questions way out there but seriously, what if just stop using fiat??

hilariousandco

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Quote from: bitcoinwien on October 30, 2014, 03:44:39 AM

Honestly I dont know how to start this conversation but what Im trying to say is this

What happens if we in America that can afford to save every month maybe a few hundred bucks

start to burn every month 100$ insteed to save tham.

Now this happens 1 time every month a few million american practize this.

Wouldnt be the rest of our money now worth more than before we burned the 100$??

No, the people who burnt their money would just be a hell of a lot poorer. Fiat is inflationary and the fed can just keep printing more and more so it will never get 'rarer'. If they stopped printing it it could rise in value when supply and demand kicked in.

bitcoinwien

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take bitcoin for example

right now you can say the more Bitcoin I owe the better

but what happens if I owe all the bitcoins, than they arent worth anything anymore other than value I give them

and if I want to sell them I have to agree on a value with the buyer

and this value could be way under the value I paid for

and this is with everything like that isnt it

Even with real Money, what sense does all the Fiat in the World do me good if Im the only 1 using it

so to give a currency a value I have to find people that play in this system, in the FIat we get forced into
but bitcoin is our own free will

damn, im getting sidetracked here I guess but it is some crazy shit, if you think we just forced into the fiat currency, im i getting paranoid??

AnonBitCoiner

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If only it were that simple lol. That's not how the currency value is determined.

bitcoinwien

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Honestly I dont know how to start this conversation but what Im trying to say is this

What happens if we in America that can afford to save every month maybe a few hundred bucks

start to burn every month 100$ insteed to save tham.

Now this happens 1 time every month a few million american practize this.

Wouldnt be the rest of our money now worth more than before we burned the 100$??

I hope you guys understand what im trying to say

the point is if there are 100 Billion Dollars around and I got 5000$

arent 4900$ worth more if there are only 90 Billion Dollars aroud??

You guys see where I try to get with this

am I even right with this thought??

Topic: A Question about Fiat (Read 1249 times)