Fiat Currency Always Fails - page 4.

MMysterious

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Bear season or just the beginning

Quote from: gorodi on September 09, 2018, 11:46:34 AM

Quote from: Noelnada on September 06, 2018, 11:57:30 AM

I think fiat and cryptocurencies have more in common than we generally assume because they both rely exclusively on trust and the law of offer and demand. That said fiat are also indirectly backed by networks of banks and central banks and many other institutions yes. What I like the most in crypto is the transparency of the rules (codes) and the endless possibilities in the real of smart economies and digital scapes.

Sure, traditional and digital money will be always connected. I do not understand why fiat should fail. Yes, the cryptocurrencies will be used more often in future but it will not change much.

Fiat is failing that their purchasing power or their value is keep decreasing when the time passed. Maybe you are right that fiat and digital money will co exist in the near future but not necessarily fiat will die. Is just that fiat fail because of the one who controls it. The bank and the government, and the one who control it control the world. Crypto in general cannot be control thats why people like it and believing that this will be the new currency.

gorodi

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Quote from: Noelnada on September 06, 2018, 11:57:30 AM

I think fiat and cryptocurencies have more in common than we generally assume because they both rely exclusively on trust and the law of offer and demand. That said fiat are also indirectly backed by networks of banks and central banks and many other institutions yes. What I like the most in crypto is the transparency of the rules (codes) and the endless possibilities in the real of smart economies and digital scapes.

Sure, traditional and digital money will be always connected. I do not understand why fiat should fail. Yes, the cryptocurrencies will be used more often in future but it will not change much.

tulezua

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As the dollar rises, it has a huge impact on the prices of products all over the world. It is complicated when life with material value increases while monthly salary does not increase. And there is national currency inflation, there are even central banks printing too much money to make the currency lost value.

blackbold

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Quote from: BobK71 on April 03, 2018, 04:42:24 PM

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.

i think so, because everytime fiat currency has loss their value for purchasing any things, at this time, goods are not expensive but the value of fiat currency that has decreased

goaldigger

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The problem of fiat is that, the paper bills' value is greater than what the value it is made of and coins value is vice versa. We also are the ones who produces our own money by printing it unlike gold who needs to be mined. On the contrary, we wouldnt need to print more because of some chaos of the oversupply.

LigwagGanern

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Quote from: BobK71 on April 03, 2018, 04:42:24 PM

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.

Fiat currency is not always fails there is just an incident that fiat currency fails. But not always time they are fails. Fiat currency is the most currency that is use many people or in the whole world. It is first type of currency that use by the people. Crypto currency was built because many people think that fiat currency is not safe, but crypto currency is not totally safe. Digital wallet or crypto wallet is the key to keep your bitcoin safe from the hackers or bad people.

orayorayan2

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but I see the fact that currently the country still relies on fiat money, although in reality there are still many shortcomings in fiat money, the government is still thinking of breaking away from fiat money and turning to digital currency, they may not have found a strong reason to do that, but hopefully it will happen sooner and become a solution so that the monetary crisis will not occur due to the weakening of the exchange rate of my country's current currency

maxreish

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Every fiats are evaluated to become successful. If crypto fiats are most likely to be ignored and failed, that is because it doesn't fit the standard and didn't pass the required characteristics. We all know crypto fiats are still unstable with inflation and deflation attitude.
But well, their are still some country who are very much open about bitcoin.

deisik

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English ⬄ Russian Translation Services

Quote from: South Park on September 08, 2018, 03:59:19 PM

Quote from: MUG1WARA on September 07, 2018, 09:30:49 PM

in some countries there is a lot of inflation with small or large numbers, but in my opinion it has nothing to do with the failure of fiat money because fiat is money that is used and controlled by the government so a good government will still maintain the exchange rate of its currency

Then you don't really know what is inflation, inflation is nothing more than the expansion of the money supply, for example bitcoin suffers inflation every year since miners mine new bitcoin every day, but this is a controlled process, but the governments just print as much fiat currency as they like and then they want to establish price controls which always fails, we have seen that story many times already, we know how it ends, and it always ends with the destruction of the fiat currency.

But do you? Do you really know that there are many definitions of inflation, and the expansion of money supply as you call inflation is only one of them, and a minor one at that? In the vast majority of cases people use the term in the context of rising prices, which means depreciation of the currency, i.e. price inflation. Typically, people who raise the issue of terminology, and especially in the case of inflation as monetary expansion versus currency depreciation (as you are far from being the first such) have nothing else to say apart from saying just that (which as they expect should give them substance and authority)

It is almost always clear from the context in which meaning the term is being used, so no need to show off here. In most cases it doesn't work as expected

setialovers

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Quote from: BobK71 on April 03, 2018, 04:42:24 PM

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.

Fiat money or paper money always printed because the reason of economic growth. Fails on this strategy is central banks creating time bomb called inflation and inflation will decreasing money value and i think thats why economic crisis always happen

djgtr

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Quote from: MoonIsBlue on April 03, 2018, 06:01:15 PM

Quote from: aoluain on April 03, 2018, 05:43:38 PM

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?

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.

In bitcoin their is always have a different situations that would always depends on how the bitcoiner run his own world. In Germany Bitcoin is already legalized it is because a lot of supporters and creators wants to achieve the perfect status of the cryprocurrencies.

South Park

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I am terrible at Fantasy Football!!!

Quote from: MUG1WARA on September 07, 2018, 09:30:49 PM

in some countries there is a lot of inflation with small or large numbers, but in my opinion it has nothing to do with the failure of fiat money because fiat is money that is used and controlled by the government so a good government will still maintain the exchange rate of its currency

Then you don't really know what is inflation, inflation is nothing more than the expansion of the money supply, for example bitcoin suffers inflation every year since miners mine new bitcoin every day, but this is a controlled process, but the governments just print as much fiat currency as they like and then they want to establish price controls which always fails, we have seen that story many times already, we know how it ends, and it always ends with the destruction of the fiat currency.

MUG1WARA

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in some countries there is a lot of inflation with small or large numbers, but in my opinion it has nothing to do with the failure of fiat money because fiat is money that is used and controlled by the government so a good government will still maintain the exchange rate of its currency

MMysterious

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Bear season or just the beginning

I do agree with you with this topic. In some point fiat currency fails, when time flies the purchasing power of fiat is decreasing. 1$ is not the value of $1 anymore. Get it? it keeps depreciating in value. and 5% of the people around the world is the major holder of fiat currency. I dont think its a good thing right?

andika2018

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Quote from: BobK71 on April 03, 2018, 04:42:24 PM

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.

Paper money created with no back up asset and just trust on government. Maybe thats why fiat money always reduced the purchasing power value. Central banks always print paper money to boost economic growth but inflation always increase

tonyosa

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Fiats will eventually fail in most instances as there is nothing to back it and it is often abused by the Government by constant devaluation (inflation), printing too much of it to meet it s needs

South Park

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I am terrible at Fantasy Football!!!

Quote from: Neutrality on September 06, 2018, 06:39:29 PM

Quote from: South Park on September 06, 2018, 01:48:01 PM

Quote from: BobK71 on April 03, 2018, 04:42:24 PM

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.

This is true but the big problem here is not that fiat currency fails but the terrible effects it has in the economy in general and in the economy of each person, when the fiat currency fails it tends to sink the country and everyone becomes poorer because of it and then you need to trust that the government is going to finally get it right when they issue a new currency.

Yes, fiat money being not back by anything, lets governments off the leash and gives them an instrument to abuse, and it's not surprising that most of politicians do abuse it following their selfish goals.

And that is another problem with fiat currencies, in theory a fiat currency could work but politicians abuse its power, they do not want to pass unpopular laws to raise taxes and they use the easy way out of just printing more fiat currency and tax people in a subtle way but eventually like always they are going to lose control of the system and it will crash.

JackdunR

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Fiat is the strongest currency I think the market will never be able to replace the fiat and into it the cryptographic coin, the crypto is just to support the economy somewhat

valentine401

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Quote from: BobK71 on April 03, 2018, 04:42:24 PM

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.

Fiat will fail depending on the economy, the price of cryptocurrency will decrease depends on the inflation rate while cryptocurrency is just basing on supply and demand, that's the reason i prefer digital coins rather than fiat.

ToyotaFortuner

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yes maybe not only in fiat currency if you are aware of the cryptocurrency currency conditions also have a very high risk and can even be failed because in the future no one will know whether the technology is still used or not.

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