Topic: Fiat Currency Always Fails - page 14. (Read 2060 times)
It is also important in our country that now the economy is moving through fiat money and the paper money is available all the time and it is true that fiat will not always but just like currencies market some time a great pressure arise from some forces due to which the prices become down and fiat is normally going on and for us the bitcoin is the crypto investment opportunity and hope full that future will more shine than now.
I mean let's face it, it's easier to handle money electronically than with papers in the hand. And if we compare fiat on the bank account and the blockchain money guesses who have the advantage...well not quite yet, but the potential for the blockchain is huge.
The advantage of electronic money is the major reason that bitcoin and digital currency have not been dismissed or jettison. The usage of electronic money helps in the understanding, usage and near adoption of cryptocurrency. It would have been a total failure if there was nothing like electronic money in the first place. This is why we still hear of bitcoin and altcoins, otherwise, it would have been long forgotten to the anals of history.
See:
There Is No Escaping History. Fiat Currency Eventually Fails.
Notice that this is a critique of fiat money -- not a critique of state-issued money under a gold/silver or other standard. Fiat money is a rare occurrence in modern history. (We live in strange times!) As we can see, the examples found by the author are a small number of short periods here and there.
I have my own critique of gold/silver standards, but that's another issue.
There Is No Escaping History. Fiat Currency Eventually Fails.
Notice that this is a critique of fiat money -- not a critique of state-issued money under a gold/silver or other standard. Fiat money is a rare occurrence in modern history. (We live in strange times!) As we can see, the examples found by the author are a small number of short periods here and there.
I have my own critique of gold/silver standards, but that's another issue.
Imo it's just the natural progression of humanity sir.
In the past we still can use gold/silver or paper money backed by gold because the money can still keep up with the demand (or mainly because population).
And when money cannot keep up, it became fiat to make sure people still can get enough money even when its intrinsic value decreased.
This is to prevent chaos and ensure order.
Surely fiat currency will eventually fail, but i don't see any solution for that issue.. maybe cryptocurrency?
The Central banks made a laughing stock of themselves post the 2008 meltdown. Revelations regarding the nexus between mortgage companies, insurers, investment banks and the regulator should be enough for anyone to never dare to trust them anymore.
What the article says may very well be true. Their is a resurgent China which is making things difficult for US and other Western countries. The US/ West cannot cut down on their expenses without risking the scenario of a Russia/ China dominance or being seen as weak in the wake of of Jihadist terrorism. This brings us to a situation where they need to print more and spend more. This is very similar to the examples given in the article.
If this does happen, it'll be a painful and long process. In today's connected world, we don't want this to happen. If a decision has to be taken on replacing the reserve currency, can it be taken without hurting world stability? I don't think it's possible for such a thing to happen in a non-violent, prudent decision kind of way.
What the article says may very well be true. Their is a resurgent China which is making things difficult for US and other Western countries. The US/ West cannot cut down on their expenses without risking the scenario of a Russia/ China dominance or being seen as weak in the wake of of Jihadist terrorism. This brings us to a situation where they need to print more and spend more. This is very similar to the examples given in the article.
If this does happen, it'll be a painful and long process. In today's connected world, we don't want this to happen. If a decision has to be taken on replacing the reserve currency, can it be taken without hurting world stability? I don't think it's possible for such a thing to happen in a non-violent, prudent decision kind of way.
There was global financial meltdown in 2008. The US was severely hit and the company I worked for then collapsed as management couldn't raise enough dollar to pay its staff back home in Africa. That experience makes me always laugh whenever I read fear and panic into people's posts here once there is a dip in bitcoin price level. I have come to realise (within my few years on earth) that anything used as means of payment once in a while gets to crash and lose value. The dollar, euro or bitcoin isn't exempted from this.
Very interesting informative ( Article ) and for me, the era of FIAT will end and disappear after a few years, As well, with the presence of bitcoin, it has led to a decrease in the value of FIAT ( Euro , Dollars ..) and however, due to the decline in the value of gold/silver , there have been some economic losses.
On the other hand, the financial transaction ( crypto) through the internet and it has become a great value in this period, and has many advantages like (Some facilities, low fees..) , that's why many people are using digital currency instead of FIAT .
On the other hand, the financial transaction ( crypto) through the internet and it has become a great value in this period, and has many advantages like (Some facilities, low fees..) , that's why many people are using digital currency instead of FIAT .
Very interesting article and by the sounds of things we may be heading for
What will be the result of over printing the $ and a trade war be?
What will be the result of over printing the $ and a trade war be?
We're speaking of long-term issues here, so the trade war, or even the Fed's 'quantitative easing' are uncertain as to their effects.
The main long-term issue is that, all the incentives are for the elites to maximize the printing of money, and it eventually destroys or at least devalues their money.
Have a lot of factors affect to Fiat Currency, not at all case fiat fail, but if your country economics not strong - your currency will cope up with flation, so everybody think they fails, they only talk about hyperinflation - don't talk what the reason make this situation. As for me currency is number which present for how asset we own 
.
. At one time, our money was backed by the tangible value of gold or other precious metals, legal tender for anything of equal value.That is not the case any longer. The value of a dollar bill these days is what the government says it is. This arbitrary value is dependent on the whim of the government. And the government can print money like a copy machine run amok. There are no limits to how much money can be put into circulation. That is because this money isn’t backed by any real value
And even having inflationary national currencies, even having the central banks printing money with not much background, we still "need" a crash now and then to equalize the markets. And this is the system that is considered good, working and established, while they call crypto a scam and a bubble.
Yep, the world is upside down....
Exactly... I'm so tired of being told by friends and family members saying that cryptocurrencies are obviously some sort of scam and will eventually be "hacked" or something else stupid like that when not understanding the fundamental properities of Bitcoin or "blockchain" in general. Yet, they are so quick to defend the system that we are currently using when not even knowing why or better yet how the federal reserve works the way it does, because no one really does...
I mean, it's literally like 10-12 old white people in suits single handedly controlling the nations money supply... what could go wrong?
Very interesting article and by the sounds of things we may be heading for
some trouble id the US keeps the printing presses moving.
I dont know enough of economics but these recent 'trade war' rumours
could have an effect on the world economy.
What will be the result of over printing the $ and a trade war be?
some trouble id the US keeps the printing presses moving.
I dont know enough of economics but these recent 'trade war' rumours
could have an effect on the world economy.
What will be the result of over printing the $ and a trade war be?
Hyperinflation, you'd get a venezualian situation or post WW1 Germany. Its food stamps and no jobs when that happens. But in context of Bitcoin, will likely do very fucking well.
I understand about the result of hyperinflation with the overprinting of money, but how would a trade war spur hyperinflation too? Is it because of the fact that you have more goods staying in the nation and not enough goods being sold on top of the over printing of money? Is there something else that I'm not really thinking of here?
The Fiat dollar has little inflation, only a couple of percent per year. Cryptocurrency for the year may show inflation 50-90%. Because they're not secured by anything other than the dollar.
I don't know that much but this thread does have some solid ground. Fiat does have an impending
tendency to fail and deflate and all commodities suffer because of it. It's different in crypto, deflation
is quite expected since dips do open up opportunities in an unlikely manner. In some nations when
dollars increase it's greatly affects the products locally and internationally. It's complicated indeed
and when you try to find answers, you will be buried with stacks of rhetorical words and terms. The
US dollar is quite influential in some nations, as well as with crypto. Fiat may be failing in many ways
but it is still a necessity in the economy. If it's falling, we are in a world of trouble after all.
In my opinion As long as fiat money still serves as a medium of exchange, it will always be needed by the people of today and therefore it will always have a function as an asset to all of us. although the best value-keeping asset is gold but even though gold is quite liquid, it is no longer money that serves as an intermediary.
if the fiat currency better for transaction tool, while gold is better for investment and not suitable for transactions. fiat currency the longer the inflation value the higher so it is only suitable for transact meet the needs of everyday life 
At one time, our money was backed by the tangible value of gold or other precious metals, legal tender for anything of equal value.That is not the case any longer. The value of a dollar bill these days is what the government says it is. This arbitrary value is dependent on the whim of the government. And the government can print money like a copy machine run amok. There are no limits to how much money can be put into circulation. That is because this money isn’t backed by any real value
And even having inflationary national currencies, even having the central banks printing money with not much background, we still "need" a crash now and then to equalize the markets. And this is the system that is considered good, working and established, while they call crypto a scam and a bubble.
Yep, the world is upside down....
Very interesting article and by the sounds of things we may be heading for
What will be the result of over printing the $ and a trade war be?
What will be the result of over printing the $ and a trade war be?
We're speaking of long-term issues here, so the trade war, or even the Fed's 'quantitative easing' are uncertain as to their effects.
The main long-term issue is that, all the incentives are for the elites to maximize the printing of money, and it eventually destroys or at least devalues their money.
At one time, our money was backed by the tangible value of gold or other precious metals, legal tender for anything of equal value.That is not the case any longer. The value of a dollar bill these days is what the government says it is. This arbitrary value is dependent on the whim of the government. And the government can print money like a copy machine run amok. There are no limits to how much money can be put into circulation. That is because this money isn’t backed by any real value
See:
There Is No Escaping History. Fiat Currency Eventually Fails.
Notice that this is a critique of fiat money -- not a critique of state-issued money under a gold/silver or other standard. Fiat money is a rare occurrence in modern history. (We live in strange times!) As we can see, the examples found by the author are a small number of short periods here and there.
I have my own critique of gold/silver standards, but that's another issue.
There Is No Escaping History. Fiat Currency Eventually Fails.
Notice that this is a critique of fiat money -- not a critique of state-issued money under a gold/silver or other standard. Fiat money is a rare occurrence in modern history. (We live in strange times!) As we can see, the examples found by the author are a small number of short periods here and there.
I have my own critique of gold/silver standards, but that's another issue.
Hmm.. Pretty interesting article you have here man, would be hard to admit for some but what this article says is somewhat true in a sense. Clearly, the past has already spoken a lot about fiat and how it can become through the years. Honestly, this has happened so many times that it is actually pretty scary. But still, we humans have the greatest power in the world which is to learn and improve, and in this case, after all the same mistakes, I think by now there would be enough knowledge to prevent this from happening again. If not, then I really think that we should find other ways.
The Fiat dollar has little inflation, only a couple of percent per year. Cryptocurrency for the year may show inflation 50-90%. Because they're not secured by anything other than the dollar.
The problem is that now all the money issued by countries is fiat after the United States went out of the gold standard in 1971 which means that if the main fiat currency around the world the dollar were to collapse that could in theory collapse the entire economy of the world.
Yes, most currencies are explicitly, softly, and/or unofficially pegged to the dollar. This is because the world system ensures (in effect) that every financial system is weaker than the US system. (And yes, that includes the euro!) The pegging is done by by non-US elites because it helps create confidence in the currencies they issue.
But, when the dollar is in real trouble, there is no inherent reason why these currencies can't stand on their own, if their countries can keep inflation in check.
Another thing to remember is that currency collapse is not the same as economic collapse. The 1923 Weimar hyperinflation completely destroyed the German currency, but the economy was back to normal as soon as a new stable currency was issued before 1924. Yes, there were big winners and losers, and it was not good, especially to those who kept believing in the paper money and kept most of their savings in it, and were too old to work after the stabilization, but it was not the end of the world for the economy or the country as a whole. (Hitler's rise came only later, after 1931, during the Great Depression, which was a deflationary problem.)
I mean let's face it, it's easier to handle money electronically than with papers in the hand. And if we compare fiat on the bank account and the blockchain money guesses who have the advantage...well not quite yet, but the potential for the blockchain is huge.
Bitcoin is not competing with paper money. But with money controlled by central banks. This is the main discussion that can end Bitcoin or make it the main means of store of value or for monetary exchanges. Governments may decide to end paper money, but keep as the only accepted currency in a country for government negotiations, tax and fines payments, digital money. Bitcoin is more them any kind of digital money.
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