Does Money Need Competition To Flourish

Mauser

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Quote from: tygeade on June 24, 2021, 04:04:16 AM

For sure, you’re right about competition being a drive towards self improvement. If there is no competition, there wouldn’t be that urge for improvement. Everyone wants to come out and do something that is better than the other. But I think that in the case of Bitcoin, and fiat, this is totally different. There can’t be any competition in this case. I don’t know how I am going to put this for you, but maybe I can try.

The example you used here is between an organization that is centralized which is Google and Microsoft, and these two are selling products to people, so in a case like this there has to be a competition and both will be trying to do something better as a way to get better than the other team so they can sell out their project. But since Bitcoin is decentralized, who exactly are you competing with?

Efficency in a free world is usually created through competition. If there is no government agency taking charge like in a communist state, than the customer has to choose the best product for his needs. If something is too expensive or in a bad design than the company will likely go broke. The same holds true for currencies. If a government is spending too much money without earning enough through taxes, the investors are going to avoid it. Competiton in the government bond market makes sure there is no excess spending.

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Quote from: Nunoluck on June 20, 2021, 08:12:26 PM

Competition is needed for business. I learn about it in university, I learning business management now. Competitors are respect each other, although they fight to get market share but actually they don't hate each other. I think since bitcoin is become popular now bank service is getting better unlike in the past. I personally feel that bank is faster in term of local transactions now but it still can't beat bitcoin in term of international transactions and deflation.

Money isn't business though so I think that they are a bit different in terms of flourishing. I don't agree with you about the speed of transaction though, I think that banks still are much faster than bitcoin because we still don't have a definitive solution against network congestion which makes the transaction much slower.

tygeade

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For sure, you’re right about competition being a drive towards self improvement. If there is no competition, there wouldn’t be that urge for improvement. Everyone wants to come out and do something that is better than the other. But I think that in the case of Bitcoin, and fiat, this is totally different. There can’t be any competition in this case. I don’t know how I am going to put this for you, but maybe I can try.

The example you used here is between an organization that is centralized which is Google and Microsoft, and these two are selling products to people, so in a case like this there has to be a competition and both will be trying to do something better as a way to get better than the other team so they can sell out their project. But since Bitcoin is decentralized, who exactly are you competing with?

fulcare

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Quote from: Argoo on June 20, 2021, 10:28:09 PM

Quote from: Kong Hey Pakboy on June 01, 2021, 07:35:55 AM

No, I don't think that money needs any competition because it's not an organism, it's just a tool that is used to do transactions in exchange for services or products. The value of money is dependent on the growth of the country and not competition, competition will only lead to deflation, remember that if there are chocies, the lowest price is going to be one's that will be favored and that's the opposite of flourishing.

The national currency of any state, in principle, does not need competition. To thrive, it needs competent management of the country's economy, which also includes monetary policy. If the country is strong economically, then its national currency will easily compete with other currencies of states.
Cryptocurrency, of course, needs good and healthy competition to accelerate its development. This will stimulate her improvement.

You give the answer yourself that it does need competition. How does a management know if it is performing good or bad if there is no competition at all? How does a car producer know it is working to its maximum of its capabilities if there is no other car producer? How does Apple know it is producing state of the art if there is no Microsoft or Samsung?

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Quote from: Kong Hey Pakboy on June 01, 2021, 07:35:55 AM

No, I don't think that money needs any competition because it's not an organism, it's just a tool that is used to do transactions in exchange for services or products. The value of money is dependent on the growth of the country and not competition, competition will only lead to deflation, remember that if there are chocies, the lowest price is going to be one's that will be favored and that's the opposite of flourishing.

The national currency of any state, in principle, does not need competition. To thrive, it needs competent management of the country's economy, which also includes monetary policy. If the country is strong economically, then its national currency will easily compete with other currencies of states.
Cryptocurrency, of course, needs good and healthy competition to accelerate its development. This will stimulate her improvement.

Nunoluck

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Competition is needed for business. I learn about it in university, I learning business management now. Competitors are respect each other, although they fight to get market share but actually they don't hate each other. I think since bitcoin is become popular now bank service is getting better unlike in the past. I personally feel that bank is faster in term of local transactions now but it still can't beat bitcoin in term of international transactions and deflation.

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Quote from: ILuckyGuyI on June 20, 2021, 04:25:39 AM

Money needs a competition to thrive I believe. Since cryptocurrencies were released, fiat money has started having a tough time I think. Because it has a new competitor now. And it doesn't look like fiat will be the winner at the end.

each country thrives hard to provide their people and the economy is depicted by how competitive the price of the currencies against each other. the countries may be trading partners but their currency competes with each other. the country with more trading partners and the biggest volume are usually the ones to be considered base currency just like USD today.

Bitcoin is a newcomer to the world economy but this is not owned by a country nor a government. its the currency of the people, by the people, for the people, shall not perish from the earth. this last line is plagrized Grin

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Quote from: Silberman on June 14, 2021, 11:20:54 AM

Quote from: fara_buduk on June 11, 2021, 12:56:31 PM

what kind of competition do you really mean? Isn't the money in each country already competing with one another... This can be proven by looking at inflation in each country, the higher the inflation in that country, the lower the value of money in that country and vice versa.

While it is true that all currencies are competing among each other at the same time the competition is cosmetic among fiat currencies, after all do you really think that if instead of the US dollar being used as the currency of the world we used the Euro things will change? Of course not, everything will be the same, however bitcoin has for the first time in at least 50 years brought a legitimate contender, a form of money that is based on different principles than fiat.

Some things may be different for the US as they greatly benefit from the USD being the world currency. They can exert control a lot of power on global markets, in particular with regards to energy markets. Generally speaking though you are right. For society as a whole nothing would change no matter what the world currency finally is. But who knows, maybe it is better that it is the USD rather than the Yuan.

ILuckyGuyI

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Money needs a competition to thrive I believe. Since cryptocurrencies were released, fiat money has started having a tough time I think. Because it has a new competitor now. And it doesn't look like fiat will be the winner at the end.

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Quote from: Coroline on June 15, 2021, 06:16:36 PM

When watching a sports match, remember, you are not watching your team play alone, but the competition between your favorite team and the other team that is the opponent. This competition is the benchmark and comparison to judge the real performance of your favorite team.

“Just like sports, to be able to understand forex you need an 'opponent' as a comparison. For example, you can't understand the standard USD value unless you know the value against which it is compared. It's the same meaning in a sporting match, you can't say your team won if you don't know who they're playing with."

I understand what you mean, because in this life almost everything we have to compete in order to develop and become better. We are looking
for competitive jobs, we as students have to compete in school, even in my opinion worship we have to compete to be a better person. Money have
to compete in order to grow. Because each country has its own currency, it will compete with each other. The winning currency is usually used for
many international transactions, for now I think USD is the winner of the competition. Then Satoshi Nakamoto created Bitcoin, this sparked unrest
in several developed countries. They fear Bitcoin will win the competition, because Bitcoin offers decentralization that many people desperately need.
Therefore it is not surprising that until now there are still many countries that want to kill Bitcoin, but so far Bitcoin is still safe and can be used by anyone.

Coroline

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When watching a sports match, remember, you are not watching your team play alone, but the competition between your favorite team and the other team that is the opponent. This competition is the benchmark and comparison to judge the real performance of your favorite team.

“Just like sports, to be able to understand forex you need an 'opponent' as a comparison. For example, you can't understand the standard USD value unless you know the value against which it is compared. It's the same meaning in a sporting match, you can't say your team won if you don't know who they're playing with."

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People need money to have competition, so that we can flourish.

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Quote from: fara_buduk on June 11, 2021, 12:56:31 PM

what kind of competition do you really mean? Isn't the money in each country already competing with one another... This can be proven by looking at inflation in each country, the higher the inflation in that country, the lower the value of money in that country and vice versa.

While it is true that all currencies are competing among each other at the same time the competition is cosmetic among fiat currencies, after all do you really think that if instead of the US dollar being used as the currency of the world we used the Euro things will change? Of course not, everything will be the same, however bitcoin has for the first time in at least 50 years brought a legitimate contender, a form of money that is based on different principles than fiat.

Kittygalore

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I think they would probably do the opposite because that's what most countries do, they only have one official currency. Money flourishes when it is left alone and no competition, look at what happened to fiat when bitcoin was introduced, they have a less power.

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Quote from: yhiaali3 on June 08, 2021, 11:54:31 AM

I may be exaggerating, but you are concerned that Darwin's theory can work here also for Bitcoin, survival of the strongest and fittest means that survival of Bitcoin and soon there will be the demise of the old monetary financial system,

Yeah, really your right in one aspect, which is survival of Bitcoin, but it's very obvious that fiat can't be eliminated irrespective the adoption or the values of Bitcoin currently in the societies, we know that old monetary system as you called it, has been in existence for some years now, and before the demise of it to occur is not possible as we may think, so therefore the possibilities can only occur in twenty years time, because right now old adults always concentrate on their native money, which i notice that they find it very difficult to adopt new currency.

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what kind of competition do you really mean? Isn't the money in each country already competing with one another... This can be proven by looking at inflation in each country, the higher the inflation in that country, the lower the value of money in that country and vice versa.

Hughes_Ryan

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In my view, money has no competition, it is only changed in denomination from money printing machines with governments and banks. It is just a tool of each country to bring about economic balance. Of course, the effects of inflation and because of non-competition, it has become obsolete and hidden many disadvantages by those basic factors. There will come a time when paper money will have to be replaced.

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Quote from: yhiaali3 on June 08, 2021, 11:54:31 AM

I may be exaggerating, but you are concerned that Darwin's theory can work here also for Bitcoin, survival of the strongest and fittest means that survival of Bitcoin and soon there will be the demise of the old monetary financial system, this theory can be applied here already where through the evolution of the monetary system we were able to reach Bitcoin being the fittest and strongest, therefore, according to the logic of development, Bitcoin will be able to displace the old monetary system and replace it.

This is an interesting take, fiat has all the current circumstances at its favor but that is because the governments are manipulating the circumstances for this to be the case, but they cannot do this forever, which is why they tried to kill bitcoin early only to fail, now that bitcoin has survived then this is nothing more than a waiting game in which bitcoin needs to keep existing until those circumstances change and a more fair playing field is in place which will benefit bitcoin tremendously and help it to demonstrate that it is the fittest coin to survive the economic crisis that is coming.

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I may be exaggerating, but you are concerned that Darwin's theory can work here also for Bitcoin, survival of the strongest and fittest means that survival of Bitcoin and soon there will be the demise of the old monetary financial system, this theory can be applied here already where through the evolution of the monetary system we were able to reach Bitcoin being the fittest and strongest, therefore, according to the logic of development, Bitcoin will be able to displace the old monetary system and replace it.

Silberman

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Quote from: SquallLeonhart on June 06, 2021, 02:01:16 PM

Quote from: Silberman on June 05, 2021, 12:21:44 PM

There are different forms of money and right now we have three different forms that are competing among each other, we have gold, fiat and bitcoin, the three of them based on different principles, gold is based on natural scarcity and its properties that made it the form of money to go for thousands of years, fiat is based on faith and the belief the governments can manage the money and the economy in an effective manner, bitcoin is decentralized and it is the first form of digital scarcity ever created, so even if the three are money they could not be more different from each other.

Gold is not money, gold is an asset and a store of value, people do not pay with gold to buy something, "money" is what you use as a middle man in order to work and earn it and then spend it for living, gold is not like that, you just buy it and store it and sell it, there is no spending it.

Right now, there is only two things in the world people use for purchasing an orange for example, it is either fiat or crypto, it could be any fiat or it could be any crypto, but basically you spend them to buy something. At the end of the day, the competition between them is not that big because fiat is so much more bigger, even dollar itself is bigger than all of crypto, and I am not even calculating all the other fiat involved, which means that the competition is not even close hence I doubt that it would be flourishing each other at all, they are in different leagues.

Gold is money and it has been for thousands of years, if more people do not use gold to pay for stuff is because in many jurisdictions this was forbidden and people then just used it as a store of value, but since the economic crisis of 2008 we have more places accepting gold as a payment, so I will have to disagree with you here, even if gold is way behind fiat and bitcoin at the current time in terms of being money we cannot discard its long history in which this was the case.

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