The entire concept of "Currency" is to create "Value" and that value has to have a common denominator, otherwise it will not work.
Now, if we get into the aspect of the real world economics, then there most definitely has to be a correlation to fiat currency, because the business that imports goods from Japan, China or India will have to pay not only for the goods, but the shipping costs, the excise taxes, as well as import duties and then employee wages to stock and sell those goods. You would never be able to pay all those costs without having a set value to them based on something...somewhere...
No matter what the initial cost if the circle was round then yes you would be able to buy all this with crypto. Let's say I buy product X for 100k Mint. of this 10k would go to shipping, 30 to company, 20 to factory and maybe 5 to worker. Worker would buy food for 2k. And farmer gets his mint for all the products he sells. Then buying fertilizer from my fertelizing company and voila. No need for fiat since everyone accepts mint as legal tender and sets his or her own price based on what others have set for prices and thus what you are able to trade with it.
In the current world of crypto however you are right. Since crypto is used as both a currency as well as an investment there is no way to have a set value (value set by the people accepting and offering) cause one one hand we have a way of trading but on the other it is linked with btc and thus linked with fiat. Investors/traders play the market and thus create and almost always unstable market.
Currency has come a long ways since trading four smooth shiny stones for a dead magpie, and crypto currencies are just another step on that path.
Definately. It went from shiny stones, to shiny metals, to paper (or stones) backed by metals, to papers linked to each other untill we arrive at today where it is just paper and the person making the paper says how much it is worth/ how much value it has.
example : (yes it was a real bill and wasnt able to buy you more then a bread at one point.)
Zimbabwe dollar doesnt exist anymore but paper still holds value since it has such an absurd number on it it has become a collectors item. So something that had value then didnt, now has real value again simply because people gave it value.
Cryptos will never ever replace fiat currencies, at best, after a very long period of time, they will co-exist with each other at best.
Satoshi designed and developed a wonderful thing, the problem being, is that a select few with deep pockets saw the potential to turn it into a means to fill those deep pockets further and now we have to accept that fact and move forward with changes along the way. You are going to see in the next year or so, governments starting to impose regulations on BTC and altcoins, for the simple fact that they want their cut as well, and once this happens, fiat and cryptos are then married to each other.
Yup yup and yup! I agree wholeheartedly. crypto is still a great idea, but fiat and crypto are already married to each other unfortunately. Soon taxes and rest will follow. But that only brings me back to my original tought. That it could be wise to start looking at crypto as an alternative currency (not as a replacement) Use it to trade for stuff. And not just trade for fiat. As the marriage between crypto and fiat does more harm in my opinion then good. Something can still have value without being linked to a price. (Like a painting can have value but only get a price after an art appraiser hangs a fiat price on it)
And as i stated in my first post starting this
I realise ofc this is a uthopian thought as we all are in some way driven by greed. And even when trading merchants will look for a price to match a trade. But the more people try to abandon the tought of price the more crypto will flourish as it was once intended.
I get that crypto will never replace fiat in our current world. Like you said will co-exist at best. Just wanted to say that if you can, try not to look to much at how much btc it is currently worth and how much $ btc is currently at and calculate how much you gained/lost.
Just wanted to say, if you can, just look at the merchant section, start there and see what you can trade for your mints.
