Chances of BTC surpassing the value of Fiat Money - page 3.

yazher

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Quote from: Joel_Jantsen on December 03, 2020, 07:47:05 PM

Sorry if the topic sounds logically flawed I didn't dig much deeper into the financial fantasies of such.

I'm wondering what if one day Bitcoin goes so high up in value that it causes somewhat a fiat crisis? I mean imagine, you've Bitcoins but there isn't much cash available in the market to buy your BTC, or simply put people can't afford it? Will bitcoin be of any value then?

What about satoshis? as you can see right now BTC has already surpassed all of the currency around the world regarding its value. But if 1 Satoshi will be equivalent to up to $10 each, that would be insane and that surely surpassed the current highest value currency in the world. The best thing about BTC is its investment capability and you always have an assurance to recover your losses when you have enough courage to hodl it no matter what happens to the market. because throughout its history, it always recovers its price from the bearish market until now.

maxreish

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When that time comes I'm pretty sure people will not gonna buy bitcoin at high price and will gonna consider other type of investment rather than this one. Our government will also not allow that financial crisis will happen due to btc price growth. And to think that bitcoin has a limited supply thus we can expect that high price is normally happen for the next years.

And for that, bitcoin will surely survive and exists for a very long time.

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Quote from: serjent05 on December 04, 2020, 03:05:51 AM

Isn't the fiat money continue to depreciate in value? The once $1's great value that can buy more goods is just a mere dollar now that can only buy one or two cheap items. The printing of lots of paper money will simply devaluate the currency so it is not a solution to patch things about matching the valuation of Bitcoin if ever BTC becomes so precious.

It is fiat money. What I meant with the cost is the actual costing for printing the bill, not the bill itself.

I re-read the question of OP and I think I misunderstood the question the first time around. What I think about now is that the price of BTC is so High that 1 satoshi could be 1 dollar? 1:1 value with a satoshi is pretty damn high and we will all be millionaires. All of it will cause an imbalance in the economy and no more physical bills by that time. I think the 1:1 comparison is the best way to visualize what the OP meant.

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Quote from: crwth on December 03, 2020, 09:28:43 PM

The chances of fiat money losing value wouldn't happen because the government is just going to print more and more money, and there wouldn't be any shortage of cash. It's just the value of it. BTC had already overtaken it even before it reached ATH. The value per bill is less than the actual value it has for sure, but it's the paper bills that cost more than the bills over time.

I'm not sure if that's what you mean, but that's what I thought about.

Isn't the fiat money continue to depreciate in value? The once $1's great value that can buy more goods is just a mere dollar now that can only buy one or two cheap items. The printing of lots of paper money will simply devaluate the currency so it is not a solution to patch things about matching the valuation of Bitcoin if ever BTC becomes so precious.

Anyway, if ever 1 BTC surpass all the fiat money in the world, I am sure it will possibly create chaos. All those BTC holders will just dictate the world's economy since they have all the money to buy things. The government will possibly create an emergency system that will tackle this kind of problem. They may start confiscating or banning BTC usage in order for the Government to regain control of the economy. BTC having such value is great for BTC holders but it will be disastrous for the finance industry so they may possibly start some kind of "war" against BTC until one of the two give in.

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Quote from: Joel_Jantsen on December 03, 2020, 07:47:05 PM

Sorry if the topic sounds logically flawed I didn't dig much deeper into the financial fantasies of such.

I'm wondering what if one day Bitcoin goes so high up in value that it causes somewhat a fiat crisis? I mean imagine, you've Bitcoins but there isn't much cash available in the market to buy your BTC, or simply put people can't afford it? Will bitcoin be of any value then?

Such case scenario simply isn't possible.There's always enough fiat in the financial markets.Actually there's an abundance of cash.That's why cash is losing value(inflation) and that's why cash will become worthless some day in the future.
Bitcoin can be divided into millions of satoshi and doubt that people can't afford to buy even one satoshi. Grin

I'm not a Bitcoin maximalist and I don't believe that Bitcoin will ever reach some astronomical(to the moon) price of,let's say,a few million dollars per BTC.This won't happen due to the nature of Bitcoin and all the HODLers,who will decide to sell their BTC at some point,therefore creating selling pressure.

Salauddin1994

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BTC's potential exceeds the value of fiat money btc will never be able to replace fiat without btc everyone can trade with fiat currency but without fiat currency it is not possible to run the country btc usually increases its demand depending on the market. Fiat prices can never be discounted the rate of bitcoin investment is increasing due to the rise in the price of bitcoin but in the future bitcoin will take a long time all over the world everyone can do cryptocurrency transactions as they wish, but this does not apply to fiat.

unusualfacts30

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there isn't enough market for bitcoin just yet but if it surpasses fiat in the future, we'll have another crypto for fiat like china have come up with own version. btc and cryptocurrency in general is still way behind other markets like gold which is trillions of dollars yet its value hasn't surpassed fiat just yet. there is so much adoption that has to happen before we can ponder upon this scenario. most people don't even use or know how to use cryptocurrency. its still small.

another thing is that unlike other commodity you're able to divide btc so people will always be able to buy it in sat if not whole btc. it'll have to surpass every other market combined.

shield132

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Quote from: Joel_Jantsen on December 03, 2020, 07:47:05 PM

Sorry if the topic sounds logically flawed I didn't dig much deeper into the financial fantasies of such.

I'm wondering what if one day Bitcoin goes so high up in value that it causes somewhat a fiat crisis? I mean imagine, you've Bitcoins but there isn't much cash available in the market to buy your BTC, or simply put people can't afford it? Will bitcoin be of any value then?

There will be available cash to buy bitcoin and satoshis. There will be a moment when the richest guy or guys together won't be able to buy the whole supply (no one is able at the moment too).
I have one question for you: How much gold do we have right now in overall? A lot, yeah? And did gold cause fiat crisis? No. If we define bitcoin's price into USD or fiat, then how will we have fiat crisis? There won't be a similar moment.
If fiat will be defined in bitcoin and bitcoin's value will skyrocket, i.e. one snickers will cost 0.00001btc instead of $1, then maybe we will have the fiat crisis.

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Bitcoin rising so much in value will only mean that, it will become so precious and scares, that is, those holding will hardly want to sell and that will continue leading to the increasing value of Bitcoin. However, in the aspect of Bitcoin rising so much that it causes a fiat crisis? I do not think so; my reason is this, we should always remember that fiat belongs to the government, that is, the government controls everything pertaining to fiat, and I don't think they will ever come to that level of having fiat crisis.
Nevertheless, what I think is, the more Bitcoin rises, the more the price increases, and it will only be a selected few who can afford it that will be able to buy it, but as for fiat, it will always be available; therefore, in essence buying Bitcoin will now depend on how wealthy you are.
Lastly, Bitcoin and Fiat will stay, because there will likely be people who will find it hard accepting Bitcoin as a means of payment.

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No asset can rise infinitely, including Bitcoin. How is the argument that fiat is doomed because of inflation, so Bitcoin will go to the moon is any different from the same argument that goldbugs make about gold? Yet gold didn't show any insane performance, even in this year when a lot of USD was printed.

idrisalomagold

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Well, it might be possible; but far from the reality if so...

Bitcoin is volatile speculative investment and though its scarcity create more demand and in turns make price grow. Surpassing fiat is already happening but not on the idea that bitcoin couldn`t be bought by a real fiat value. There are hierarchies in the market and gold is an example of it. Dollar is backed by gold. So, it turns out that in the near future, possibly bitcoin could surpassed that standard. However, we are not gurus of the market but definitely as what you have argue about fiats "aren`t be able to buy a single bitcoin" because it is too expensive is far from the fantasies even the federal reserve, banks and government.

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Quote from: MusaMohamed on December 04, 2020, 12:40:59 AM

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Another possibility would also be that the federal reserve would use bitcoin to back the value of the USD à la gold standard. While I think it's unlikely to happen, it's definitely not beyond the realms of possibility.

It is more related to stable coins or Tether USD minted amount, not gold. Stable coins are more favorite to use for buying bitcoin and altcoins. Fiat is not commonly used as stable coins. Will governments allow companies as Tether grows too big like that and especially from all law suits on them we saw?

Here's what I was referring to when I mentioned gold standard: https://www.investopedia.com/ask/answers/09/gold-standard.asp

As for stablecoins, you're probably forgetting that fiat(USD in particular) and stablecoins have the same value; so I don't get your "Fiat is not commonly used as stable coins" part.

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Quote from: xSkylarx on December 03, 2020, 10:57:58 PM

If fiat won't exist anymore then what will be the value of each bitcoin?

Simply it will be 1 BTC= 1 Bitcoin which it is now. If there’s no fiat exist any day, where the needs of measuring BTC against anything? May be GOLD will be measured by BTC like 10 grams of GOLD = 0.001 BTC Wink

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Quote from: mk4 on December 03, 2020, 11:46:23 PM

It's theoretically possibly. But a better question is, how likely? I don't think the federal reserve would allow such thing to happen; and you could guarantee that they'd do anything for it to not happen.

It is theoretically appeared if one of two situations happen.
- Bitcoin skyrockets to very very high price, millions of dollar for one bitcoin. That can be but in a very far future.
- Bitcoin adoption sees massive flourish that creates a massive new bitcoiners. They early and greedy to buy bitcoin and use bitcoin to buy shit altcoins. I mean they will spend their fiat to both bitcoin and altcoins.
It might be a combination of two situations: bitcoin rises to high price but not millions and crypto adoption flourishes.

Quote

Another possibility would also be that the federal reserve would use bitcoin to back the value of the USD à la gold standard. While I think it's unlikely to happen, it's definitely not beyond the realms of possibility.

It is more related to stable coins or Tether USD minted amount, not gold. Stable coins are more favorite to use for buying bitcoin and altcoins. Fiat is not commonly used as stable coins. Will governments allow companies as Tether grows too big like that and especially from all law suits on them we saw?

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It's theoretically possibly. But a better question is, how likely? I don't think the federal reserve would allow such thing to happen; and you could guarantee that they'd do anything for it to not happen.

Another possibility would also be that the federal reserve would use bitcoin to back the value of the USD à la gold standard. While I think it's unlikely to happen, it's definitely not beyond the realms of possibility.

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Quote from: Joel_Jantsen on December 03, 2020, 07:47:05 PM

Sorry if the topic sounds logically flawed I didn't dig much deeper into the financial fantasies of such.

I'm wondering what if one day Bitcoin goes so high up in value that it causes somewhat a fiat crisis? I mean imagine, you've Bitcoins but there isn't much cash available in the market to buy your BTC, or simply put people can't afford it? Will bitcoin be of any value then?

I think it is still a mystery, because as we all know that the movement of bitcoin is volatile. So while there is supply and demand everything is still fine. Especially for fiat currencies when the price of bitcoin is too high there will always be a low value that will happen and it will repeat itself, because when the price is high and people cannot reach it, the owner of bitcoin will also lower the price so that it can be bought, I think this is logical .

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Quote from: Lorence.xD on December 03, 2020, 10:26:29 PM

Quote from: crwth on December 03, 2020, 09:28:43 PM

The chances of fiat money losing value wouldn't happen because the government is just going to print more and more money, and there wouldn't be any shortage of cash. It's just the value of it. BTC had already overtaken it even before it reached ATH. The value per bill is less than the actual value it has for sure, but it's the paper bills that cost more than the bills over time.

I'm not sure if that's what you mean, but that's what I thought about.

I think you got it wrong about fiat losing value. The more they print, the lesser the value, that is why many people objects about the 2 trillion stimulus package, this will devalue the money. Remember Zimbabwe and Post-war Germnay, they printed a lot of fiat and they all went into hyperinflation.

I'm talking about the cost of printing the actual bill not the value of what's printed in it. You are probably talking about inflation but that's not what I'm talking about. Check the bolded part in my first post, I said it's losing value. I didn't say anything about inflation.

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Quote from: Little Mouse on December 03, 2020, 10:36:25 PM

If such things happen, it will be a fiatless world. You can purchase everything with BTC. You don't need to have fiat anymore to purchase things. People will consider fiat as a hassle.
And of course the above post has a point. We have sats, that will be counted too in that time.

If fiat won't exist anymore then what will be the value of each bitcoin? Bitcoin's price is dependent on fiat, without this bitcoin would also be worthless.
Using bitcoin as payment is really convenient, if you're thinking that if bitcoin's price is way too high that its amount of it in fiat is so much then I think only few people will have the capacity to own and use bitcoin considering the fees when sending using it. Bitcoin will be an investment like gold rather than a mode of payment.

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Not possible at. BTC price always reacts on Fiat market situation. Just like what happened when COVID-19 hit that cause stock market plummet tremendously. Although BTC should not be affected since its digital but it follows the trend of the stock market. This will be the same to Fiat money. There is no way BTC will attain that value since Fiat is the one that making price pump. If there is no more Fiat, It means that BTC will gonna collapse because Fiat is what people use to purchase things and not Bitcoin. And for that to happened, I believe it requires all Billionaire like Jeff Bezos, Bill Gates and Warren Buffet to be heavily invested in BTC since they are holding the majority of the Fiat except country funds ofc.

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If such things happen, it will be a fiatless world. You can purchase everything with BTC. You don't need to have fiat anymore to purchase things. People will consider fiat as a hassle.
And of course the above post has a point. We have sats, that will be counted too in that time.

Topic: Chances of BTC surpassing the value of Fiat Money - page 3. (Read 897 times)