Topic: Fiat Currency Always Fails - page 3. (Read 2101 times)

I do not know what planet you are on, but if you go out and ask passers-by about cryptocurrency and their choice between cryptocurrency and regular money, more than half of them will say that they only heard about cryptocurrency, but they never used it, and those who faced it, will give very conflicting opinions.
Let's consider the situation if you want to buy something on the street with your hands or even in a small outlet. You need to constantly wear any technical device, such as a laptop or a smartphone with the received Internet. Carrying out transactions takes quite a long time, there may also arise along the way a number of technical issues. However, the most important thing is safety.  When they steal from you a smartphone, you will immediately have a lot of very intractable problems - a SIM card, electronic card, various secret addresses and access codes, and so on. You will not carry a piece of paper with you and manually enter private keys and other codes, they will most likely be in your smartphone. There are just a lot of problems. And here you just take out the cash money - and no problems. Everything is fast and clear. The cash money are stolen from the pocket of the bill, it does not matter, this is clearly not your last. Beauty.

However, you should agree that people are not yet ready to change all of the paper money they have in the cryptocurrencies. The mankind will use fiat for centuries more, even despite the inflation.

Like i have used fiat for many transactions and fiat is also necessary for life because crypto can not be use for every thing and fiat is using for the lives from the begging so it is true that bitcoin is also important but we can not ignore the fiat as well and through fiat we can enter into the crypto world for investments.

Sell it is a cycle but it always begins and ends with Fiat. Basically Fiat is a trust. A trust that the piece of cloth or minted coin you have in ypur pocket does actually have value dictated by the governing body on finance. They can tell you that you can buy more now than yesterday then laugh at your face. crypto currency is the future.

I understand your reason for this, and a lot of people think this way.  The problem, though, is that these are not good stores of value as they require maintenance, and will go bad after a while.  Also, the supply and demand of these things have been distorted by the greater economy, driven by fiat money.  (E.g. people think they are rich, from central bank money creation, so they buy more wheat and waste it.  So you're buying over-priced wheat when you invest in it.  When the financial crisis comes, wheat prices might collapse.)

Underestimate the FIAT and promote gold/silver as the measurement values ​of exchange make things worse. FIAT is one of the great inventions, and FIAT has failed economically because the country can not control the FIAT they created that made things upside down.

I think it is necessary to store the final resources, such as wheat, milk, animals, it is also a reliable asset

Indeed, after US Government not depending on Gold when print paper money/USD Dollar, purchasing power paper money always decreasing and its not safe to hold paper money for long term. Inflation make our money value decrease and crisis always coming on every country because dollar used by most country in world

Fiat money or paper money always creating time bomb and its economic crisis. Paper money always printed and the reason is economic growth but its increasing inflation. Paper money printed from thin air without proper back up and only trust from government

Yes im agree all money are related to dollar. Its very strange and i do believe every country need to use cryptocurrency so we would see how the economy condition more easier and more transparant by blockchain technology.

Precisely, no one is arguing otherwise on this point.  No one is an alien.


Leaders in Communist countries genuinely wanted the best for their country too, in the same sense that you're saying here.  Unless you can provide more specifics as to how the elites' interests are more aligned with society at large than at this generic level, we'll have to stop at this, and we know how well the Communist countries turned out.


If you're trying to argue that the dismantling of the gold standard was for the public good (as today's economists seem to argue,) you only have to look at how each gold standard was 'dismantled' only when the elites were about to lose all their gold, due to a rush by holders of the paper to redeem for gold.

Otherwise, please explain what you're getting at here.

Whether losing the gold standard was a good thing for society, is a much more complicated question, but I'll be happy to go into at some point.  Let's just say for now that the gold standard, as implemented by the elites of the time, was essentially a system of theft like the 'fiat' system we have.  But you could argue a future gold (or Bitcoin) standard, combined with the level of democratic power we enjoy today in the West, would potentially be a more stable and beneficial system than today's.


I hope we're not falling into a condition where in order to discredit the other person, you have to distort what they mean.  You can certainly do better than that!

In a certain sense, everyone is only after their own interests.  But we can certainly talk about what system best serves the interest of all, as in preventing murder and theft, for example.  And we can all agree to uphold such a system because it's in all our basic interest.

Understanding the power of creating money and the corruption it brings is the next major step in social awareness.  And it's important to explain to the average person the full ramifications of this money creation, in order to bring about proper understanding of the true nature of the system we're living under.  

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.

Actually, no one is particularly interested in the common good as everyone is after their own interests, obviously. And elites are no exception to this rule. You speak of them like they are aliens, while in reality they are essentially the same people only in a position which gives them a feeling or sense of superiority.

In essence, when I said they are interested in the common good over the long term, I meant they are of course interested in their own well-being before anything else. But they also understand (well, at least some of them) that their prosperity is inseparably linked to the prosperity of the whole society as they depend on it more than on anything else and more than everyone else does. The point is that to support their high standards of living, they have to rely on the whole society as their feeding ground, and thus they have to care for it.


Does it mean that elites dismantling the gold standard was the good thing for the public as there is no more "'moral honor of the elites" in the form of paper money redemption for gold?


You talk of them as if they really were aliens. Seen the V television series? Indeed, they are protecting their personal interests, but so does everyone else. So what's the point? This is not Lalaland.

I think all currencies have very unpredictable movements, sometimes the condition of cryptocurrency prices can be very expensive and sometimes it can fall like the current conditions so it's better to use all currency movements to get a profit.

Fiat currency is helping us in different ways of life or life activities so we can not neglect its value and role therefore fiat is strong and we will have it through out our life.

We can invest in the most popular and powerful fiat as well like dollar besides this cryptocurrency has catch the sight of investors as it is a huge profitable source and diversifying investment is also a good strategy so most investors follow this strategy.

Crypto will be part of our future and i want to study and learn about it while it's not yet popular just in case we can use it for the future so i don't feel ignorant if crypto will be accepted in many countries.

The minus of fiat is that it is not the main thing in its sphere.

I think you have it backwards.  You first define an elite-controlled money supply as the natural state of affairs, and then say hard money tightens the supply and is thus harmful.

The natural and beneficial condition is a state-free money supply.  (Elite-controlled money creates artificial booms which always turn to busts.)  Asset values under a state-free money supply would expand or shrink to reward or punish good and bad decisions in investment.  As with anything else, any event or change in the system takes from someone and gives to someone else, but the difference between us is that  you define 'doing something useful' as whatever activity is favored by the central planners, whereas I define it as whatever is favored by the totally free choices of investors.

The big scare by critics of hard money is the vision of never-ending deflation.  The truth is, deflation ends somewhere: as we get older and our savings get bigger, and everything gets cheaper (remember we're talking about deflation!) we have more and more incentives to spend.  In real history, the only big deflationary pain has come from the elites' deliberate effort, after a financial bust, at tightening money to protect the reputation of their system, by making the economic pain even worse.  The 20th-century rise of public political power in the West has mitigated against this somewhat, but not nearly enough.  (Outside the core countries, even today, the IMF always ensures there is an economic bloodbath after a bust.)

Is it not ironic that elite-inflicted pain is used to justify giving more power to the elites?

"The elites are interested in the common good over the long term." -- This is true only to the extent that growth and a better organization of society benefit the very top elites (even if true competition causes harm to some rich and powerful people.)  This is because growth is the ultimate support for the value of the money and debt issued by the top elites.

The way you can tell if they're truly interested in the common good is to observe what they do after a financial bust.

Over the modern centuries, financial busts were generally followed by a policy of tightening the money supply.  This imposed even more pain on the public, on top of the wealth and jobs lost by the bust, and basically put all of the pain from the financial bubble on the shoulders of the public.  The excuse for doing this was to protect the peg of the currency against gold or silver, to guard the 'moral honor' of the elites in being able to redeem their paper with gold or silver.  (Or the fiat-period equivalent of this argument.)

But the real reason is to protect their system.  If the elites used inflation to lessen the pain to the public, by devaluing currency against gold/silver (or doing the fiat equivalent,) the long-term confidence in their system would be harmed.  They benefited most on the way up, but the public suffered on the way down.

The first time the public was powerful and aware enough to change the above partially was the Great Depression in the US.  The government eventually devalued against gold by about 50% and used fiscal expansion to lessen the pain.  But the core nature of the process never really changed.  The elites will always do the minimum required to maintain political stability, even to this day, and the evidence of this is the suffering during the Great Depression and (to a lesser extent) the Great Recession since 2008.

Now, this is not an accusation against any individuals or groups.  It's just human nature for anyone in those positions at those times.  The key for us to understand is that, the only way to better our lives, fundamentally, is by taking the power of money from the elites.

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.