Topic: Fiat Currency Always Fails - page 10. (Read 2101 times)

It does not matter because of the fiat problem so there are such problems, as you say. There are also problems in our country not just because there is already a fiat. There are so many good things to do with our fiat, we use it for trading or anywhere in the country. There are just a few countries that do not really accept fiat as a currency, then the war begins. Kung ang cryptocurrencies ay magsisilbing ginto napakalaking tulong nito satin. 

I think it's likely the major thing that has been learned over the last 40+ years by the elites is that totally fiat money makes for an unstable world (not just financial troubles but wars and terrorism.)

As I wrote many times, the elites would love to go back to something like the gold standard, where they still rip off the world, but more slowly and with more stability.  At this point, it seems likely that cryptocurrency will be used as the new gold, since the Western countries don't have much gold left (since most of their gold has likely been spent in the four decades of suppressing gold prices.)

fiat money when is not backed by a standard as stated in the post is something with low resistance but at the same time no one wanted to try that resistance and hope btc will be the one.

Yes it is very true, this is happening right now in my country, fiat exchange rate has decreased over time due to inflation or others, it is really very sad, I am very afraid to have a lot of fiat because the decline is very drastic lately this. now i begin to divert to cryptocurrency money i hope the future will be more stable than fiat.

     I believe so too but I think that crypto currencies cannot offer a solution yet since crypto currencies as of this moment has more flaws than the fiat. I think that fiat is still better than cryptos in terms of easiness or usage and availability. And out of all the things that has happened in the past, it would be really impossible if people on top never really learnt anything from the past. I think it would be safe to say that as more mistakes happen, more is learned and improved.

This is a key point.  Growth is a function of advances in technology, management, etc. and in its natural state needs have nothing to do with the monetary system.  What state-money has done is to create artificially fast growth, during the inflationary phase of the asset bubble.  We are incentivized to buy things we don't really need.  When the asset bubble eventually crashes, we have economic pain.

The way the system works is that the best benefits always flow to the top during 'good' times, and the worst pain always flows to the bottom during 'bad' times.  So, you're correct that the elites prefer the inflationary phase too; it's just that the system they set up guarantees that the deflationary phase will follow.  On balance, the average member of the elites does much better than the average person, over the long term.


Hindsight, as they say, is always 20/20.  When you're at the December highs, you can't tell if it was a high water mark, or it was like last spring and summer when Bitcoin kept going up and up.  Just forget all that, see the big picture, and hold on to your Bitcoin for the long haul.  Of course, always diversify your bets, since even if you're correct about the way the system is going, there's always a chance the elites can change the game.

I never mean something is wrong simply because it comes from the establishment.

This argument comes from the establishment, yes, and I only mention that because our system is fundamentally deceptive, in the sense that intellectual dishonesty is incentivized across the society, so that, for example, all 'top' economists, if they value their career, will not expose that fact that we really live under socialism.

Deception likely also means plenty of online commentators are secretly paid to propagate the establishment arguments.  I have no evidence of it (because I'm clearly not one of them!) but all the incentives are there.


As I wrote often, and I would like you to respond to it this time: deflationary pain as we know it is only because various demands in the economy have been inflated artificially during the inflation phase of the asset cycle.  And this artificial inflation is what state-controlled money does.


So you make a 'moral' argument that money 'should' be flexible, for the common good.  But when someone brings up a counter-argument that money should be market-based for the common good, you argue that the world is what it is, and there's nothing anyone can do about it?

People don't always act rationally, true.  But generally speaking, people don't want to lose money in the financial markets.  The fact that market booms and busts happen all the time over the modern centuries can be simply explained by savers' reaction to state-driven monetary inflation to benefit the elites, and yet mainstream economists have resorted to all kinds of psycho-based theories to explain how people like to throw their own money away.  When there's a simpler explanation, let's stick with it.

What matters here is whether the economy grows over the long term. If it comes about through manipulation, then so be it. It looks like you fail to understand that the manipulators ("the elites") are in the same boat with the manipulated ones. They are also vitally interested in the growth of the economy at large. Or do you really think that kings and rulers lived better lives than most people today in the developed world?


Try telling that to people who bought at December highs. Personally, I would stick to gold since as I said, I'm pro-gold deep inside, long-term wise. For the record, I'm pro-Bitcoin too, but I would never trust my life and my wife on it. If you have some funds you want to multiply while your well-being in no way will be affected by losing this money, then Bitcoin as well as other cryptocurrencies may be a right choice after all, depending on your risk tolerance. But no matter how much you are willing to expose yourself to the risks associated with Bitcoin, it remains a highly risky asset.

There is no doubt FIAT currency is broken, and cryptocurrencies are definitely a solution for what has been flawed. I do hope many people become more educated and soon will realize how broken the system is.

The implications of the incident in the currency-devalued state-he has to pay more for products and services from abroad, whereas overseas people will be more products and services from countries devalued in their currencies. This is a real injustice, because of the inability of the government to maintain the value of its currency, due to the use of fiat money.

Regarding this and your following posts where you also make references to "key" arguments allegedly brought forth by the establishment, I can't take this as an argument in its own right. I rather consider it as an evidence of no more arguments. If someone belongs to the establishment and says something (note that this is not the case here since you basically just came up with an excuse), it doesn't mean it is false and has no value on its own. If someone whom you dislike very much says that the Earth is round, would you challenge that too?

Deflationary money is a hindrance to the economic development, it is a universal truth, no matter who says it. It can be argued whether a small rate of inflation is good for the economy and how small precisely, but with respect to deflationary money, there is no point in arguing how detrimental it is. In essence, deflationary money is money only in the part which is not deflationary, the part which actually gets circulated.


There is no free market, it is an abstract idea or notion which is used to build economic theories on, which may or may not hold in practice. In the end, it all comes down to individuals seemingly acting in their own best interests, but the problem is these actions are only seemingly rational, while in reality they are far from that even at the very cursory inspection.

That is why the cryptocurrencies are here to replace those fiat currencies in the future since they always fail and it is best for us to just wait and have a lot of patience because in the future like a few years from now, we will see a cashless society which have a lot of advanced technologies compare to our slow type of technology.

It is one of the biggest dilemma that we were only be seeing the paper money since centuries and that there was no other alternative which can help us in a better way.

However, with the introduction of the crypto currencies, we have seen a lot of positive change and the personal satisfaction but still there are so many people who don’t know anything about the crypto currencies and that it will take time to help them out as well.

I think the Fiat in many countries will fail, although it is essential for the exchange of money as a country, but we see that the frat in all the countries of the world in the past few decades is a vicious inflation, which is a plundering of the people. Maybe bitcoin can make that happen. We hope that bitcoin will at least reduce the inflation rate of Fiat.

I think as soon as we went off the gold standard in the 1970s the system was doomed to fail. This experiment will inevitably fail. Printing off money through quantitative easing is a short term fix to a long term problem!

The usual reasons to do that behind a war is conflict between two countries or areas and greediness for the resources. Then again bitcoin will recover

Yes, absolutely.  The likes of Weimar Germany, Zimbabwe, etc. are rare.  The trick is to keep a limit on printing money, so the system stays alive.  And the top of the imperial system (which is the US, today) is the best at this game.

Among the major tricks in the bag are:

- Giving a good and proportionate share of the fruits of the theft to appropriate large groups (e.g. professionals, educated people, the entire Western population to some degree), so that they consciously or subconsciously help support the system.

- Having an international political, military, trading and financial setup where the economic pain from burst bubbles at the top of the system can flow out to countries lower down the system.  (And at the low end, like Syria or Yemen, we can have war.)  The elites want to have this pain in order to avoid too much money-printing to inflate away the problem, which would quickly destroy trust in the system.  Pain always flows down, and value always flows up.

But the core nature of this system is that the incentives always lead the elites to destabilize their own system.  Ultimately, the US differs from Zimbabwe only by degree.

"If the crypt can mature quickly enough in the public imagination "! What should be done to make this mini revolution occur in the minds of ordinary layman? How to attract an ordinary buyer to enter the Crypto market? My friends had a little experiment: asking a question on the streets to young people, outwardly quite educated: how do they think if there is a future for crypto currency? Is it ever going to win over Fiat money? So, less than 10% of young people were skeptical about the progress of the crypt. How is it necessary, what ways, what actions and efforts it is possible to promote the crypt? How to attract the maximum number of people to this sector, so that the Crypto currency was the same everyday payment means as Fiat?

I would predict that when 'the system fails,' there are multiple possible scenarios that are very different from each other.

The worst one is economic and societal breakdown.  I certainly don't hope for that, since I don't know anyone, myself included, who is really prepared for that scenario.  Even if you grow or store your own food, it can be taken from you.  Even if you protect it with guns, you can get killed.  (Also, I believe the other scenarios are far more likely, as the elites actually have a back-up plan.)

At the other extreme, the least disruptive scenario is loss of faith in core financial assets, caused by the collapse of some big asset class or financial institution.  In this scenario we still have law and order, and money is still good in the economy (and likely too good,) but the elites will need to take a no. of drastic actions to keep what remains of their system together.  Part of the mix will likely be a de-facto devaluation of their state money against non-state money, to stabilize state money.  This happened, for example, in 1934, when the dollar was devalued by about 50% against gold (and other currencies did even worse, as they had to be taken off gold.)

Somewhere in between the two extremes would be a change of the global monetary regime.  The last time this happened was across World War I, when the US took over global empire from Britain, and a dollar-based gold exchange standard replaced the classical gold standard.  Unless the system lives long enough to see a rising India mature enough to take over the role of the US, this option is not available this time.  A massive devaluation against non-state-issued money, and/or using crypto as the chief non-state-money (if crypto can mature fast enough in the public imagination,) is the likely response.

The trouble with investing in things like real estate and base commodities, thinking they are 'real things,' is that the demand for these is propped up by the elite-controlled system from day one.  So you're not only buying over-priced assets, in a collapse, there's a better than 50/50 chance that the lack of demand from the loss of the asset bubble will drive their values down.

In the two latter scenarios, non-state-issued money like gold, silver and Bitcoin should do well.  Among the three, Bitcoin is especially cheap today.

The key thing to remember is that, during 'good' times, the elites always manipulate non-state-money values down (perhaps with the exception of cryptos, since the elites must allow them to rise to a level that makes them a player, but that's only for now.)  This presents us with an excellent price level to buy non-state money for the long haul.  They won't let good non-state money totally collapse, because that's their back-up plan. The net effect of all this is that we have a one-way bet, for the long term.

The point was correct and agreeable to some extent. In any manner paper is never comparable to anything in value like silver and gold. It's just a piece of paper with no actual value except for the cost of its printing and it could be put into flames like woods in a fireplace. But we should also understand that what makes it valuable is how the state or country created it as a back up the real valuable reserves. That is why they are too careful not to over print it or the econmy of a country could collapse by the imbalance created. Should its value goes to zero, one thing is for certain, the country had collapsed or have replaced it with another form of currency, or maybe the world ends.