In a world economy where what governs is debt, and part of inflation, it is best to protect yourself with Bitcoin, some give options better known as gold, it is valid, but an economy where it is managed by debt and fraction of inflation the best It is a deflationary economy.
And that is the opposite of what they want, governments cannot tax your wealth directly, they have tried in the past and people have always been strongly opposed to this, so they had to figure out how to tax what you have saved in fiat and they found their solution in inflation, if they print 3% more money then there is a 3% inflation and your money will lose as much purchasing power, they are effectively stealing your wealth and the only way to protect you from this is by not holding fiat and hold something else.
Topic: Fiat currency value and Economy debt (Read 660 times)
Money is money, there is no difference. Cryptocurrency (just like Bitcoin) is money as well and there is no difference.
If we should switch from Fiat to cryptocurrency we are still going to face the same thing we are facing and maybe even worse.
Some people think that if the world should start making use of cryptocurrency there will no longer be debts to be paid and everyone in the world will become rich, well that's not true. When the world starts making use of cryptocurrency, your debt that you owe will still be there for you to pay, the only thing that is going to change is that transaction will be fast and transparent, but you won't be protected if it should be anonymous (well I know for sure that it wouldn't ,because the government will regulate it).
If we should switch from Fiat to cryptocurrency we are still going to face the same thing we are facing and maybe even worse.
Some people think that if the world should start making use of cryptocurrency there will no longer be debts to be paid and everyone in the world will become rich, well that's not true. When the world starts making use of cryptocurrency, your debt that you owe will still be there for you to pay, the only thing that is going to change is that transaction will be fast and transparent, but you won't be protected if it should be anonymous (well I know for sure that it wouldn't ,because the government will regulate it).
Bitcoin is not money!
Money is USA dollar and eur.
If You Want to get dollar you dont pay some fee to get 10 usd... You just exchange it with other people.
To get btc u pay high fee
Btc has problems... Its slow and highly volatile!
Fiat currency will never disapere, When there is crisis then fiat currency is Even more sacred!
At the crisis or Economic turn down fiat currency will have Even more purache power.
Bitcoin is classification likely as Property but not Money!
In a world economy where what governs is debt, and part of inflation, it is best to protect yourself with Bitcoin, some give options better known as gold, it is valid, but an economy where it is managed by debt and fraction of inflation the best It is a deflationary economy.
And that is the opposite of what they want, governments cannot tax your wealth directly, they have tried in the past and people have always been strongly opposed to this, so they had to figure out how to tax what you have saved in fiat and they found their solution in inflation, if they print 3% more money then there is a 3% inflation and your money will lose as much purchasing power, they are effectively stealing your wealth and the only way to protect you from this is by not holding fiat and hold something else.
Money is money, there is no difference. Cryptocurrency (just like Bitcoin) is money as well and there is no difference.
If we should switch from Fiat to cryptocurrency we are still going to face the same thing we are facing and maybe even worse.
Some people think that if the world should start making use of cryptocurrency there will no longer be debts to be paid and everyone in the world will become rich, well that's not true. When the world starts making use of cryptocurrency, your debt that you owe will still be there for you to pay, the only thing that is going to change is that transaction will be fast and transparent, but you won't be protected if it should be anonymous (well I know for sure that it wouldn't ,because the government will regulate it).
If we should switch from Fiat to cryptocurrency we are still going to face the same thing we are facing and maybe even worse.
Some people think that if the world should start making use of cryptocurrency there will no longer be debts to be paid and everyone in the world will become rich, well that's not true. When the world starts making use of cryptocurrency, your debt that you owe will still be there for you to pay, the only thing that is going to change is that transaction will be fast and transparent, but you won't be protected if it should be anonymous (well I know for sure that it wouldn't ,because the government will regulate it).
In a world economy where what governs is debt, and part of inflation, it is best to protect yourself with Bitcoin, some give options better known as gold, it is valid, but an economy where it is managed by debt and fraction of inflation the best It is a deflationary economy.
And that is the opposite of what they want, governments cannot tax your wealth directly, they have tried in the past and people have always been strongly opposed to this, so they had to figure out how to tax what you have saved in fiat and they found their solution in inflation, if they print 3% more money then there is a 3% inflation and your money will lose as much purchasing power, they are effectively stealing your wealth and the only way to protect you from this is by not holding fiat and hold something else.
Strong point you made there. Inflation is a hidden form of taxation, which is something the majority of the people don't know about because it's not something that they are made aware of at school.
I think that's done on purpose to keep people ignorant and vanish a percentage of their purchasing power every single year, and that while the same governments hoard gold to escape from their own financial mismanagement.
At least, I'm glad that Bitcoin made people more aware of the financial system and how rotten it actually is. It's a tiny drop in the ocean still, but it's getting better every single day that goes by.
I think that's done on purpose to keep people ignorant and vanish a percentage of their purchasing power every single year, and that while the same governments hoard gold to escape from their own financial mismanagement.
At least, I'm glad that Bitcoin made people more aware of the financial system and how rotten it actually is. It's a tiny drop in the ocean still, but it's getting better every single day that goes by.
Basically fiat money has no meaning (worthless). Fiat money is just a piece of paper or a coin bearing a certain value. The new value has meaning if he can give you something: exchange it for food, clothing, and other needs.
Poor countries with weak economies, its fiat value tends to continue to weaken against the country whose economies are stronger such as the US Dollar, Japanese Yen, Euro. These weak state assets are very cheap because their value is measured by their weak fiat value. Cheap assets, very easily controlled by foreign countries that have stronger fiat money.
Inflation is often called a hidden tax and is considered the worst tax because most people are not even aware of the impact on the money they have. Inflation also has a positive impact on state revenue. inflation has a positive effect on VAT receipts. This is because if there is an increase in the inflation rate, it will automatically increase the selling price, which is the basis for VAT Tax Imposition.
Through the two fiat and inflation mechanisms, a poor country will get poorer, so will the poor population continue to multiply and increasingly because they also continue to be taxed by what is called inflation.
To break this chain what can be done; Countries and all institutions in it (including private institutions), no longer calculate their wealth with a measuring instrument whose value is biased like fiat money. Use a standard measuring instrument such as gold. Thus the value of the country's wealth is maintained and cannot be mocked through the 'price' of fiat money on the market.
The state must be able to reduce inflation to its lowest point so as not to burden its population with inflation as a 'hidden tax' for the entire population. The use of money that has intrinsic value is one solution because the use of currencies that have intrinsic value will initially stop the process of impoverishment further. With the next hard work, prosperity will be distributed evenly for the entire population.
In my opinion, a good economic system is an economic system that can create equity for access to capital, access to markets and access to the same values.
And that is the opposite of what they want, governments cannot tax your wealth directly, they have tried in the past and people have always been strongly opposed to this, so they had to figure out how to tax what you have saved in fiat and they found their solution in inflation, if they print 3% more money then there is a 3% inflation and your money will lose as much purchasing power, they are effectively stealing your wealth and the only way to protect you from this is by not holding fiat and hold something else.
Strong point you made there. Inflation is a hidden form of taxation, which is something the majority of the people don't know about because it's not something that they are made aware of at school.I think that's done on purpose to keep people ignorant and vanish a percentage of their purchasing power every single year, and that while the same governments hoard gold to escape from their own financial mismanagement.
At least, I'm glad that Bitcoin made people more aware of the financial system and how rotten it actually is. It's a tiny drop in the ocean still, but it's getting better every single day that goes by.
In a world economy where what governs is debt, and part of inflation, it is best to protect yourself with Bitcoin, some give options better known as gold, it is valid, but an economy where it is managed by debt and fraction of inflation the best It is a deflationary economy.
And that is the opposite of what they want, governments cannot tax your wealth directly, they have tried in the past and people have always been strongly opposed to this, so they had to figure out how to tax what you have saved in fiat and they found their solution in inflation, if they print 3% more money then there is a 3% inflation and your money will lose as much purchasing power, they are effectively stealing your wealth and the only way to protect you from this is by not holding fiat and hold something else. 
Usually, crypto is fully adopted by a country when its currency loses value because there is no alternative but to adopt crypto, as is the case with Venezuela.
Yes. And it is a chicken and egg situation. After your currency has crashed by 50%, it's 50% more expensive to buy crypto. In a currency crash situation people won't even have enough to pay for food and rent let alone a bit of spare money to buy crypto.
The best answer is to buy some crypto BEFORE the currency crash. Also, try not to elect idiots - you can prevent currency crashes in the first place by not electing the Maduro's of the world to power.
becomes his financial health.
Yes. And it is a chicken and egg situation. After your currency has crashed by 50%, it's 50% more expensive to buy crypto. In a currency crash situation people won't even have enough to pay for food and rent let alone a bit of spare money to buy crypto.
The best answer is to buy some crypto BEFORE the currency crash. Also, try not to elect idiots - you can prevent currency crashes in the first place by not electing the Maduro's of the world to power.
The best answer is to buy some crypto BEFORE the currency crash. Also, try not to elect idiots - you can prevent currency crashes in the first place by not electing the Maduro's of the world to power.
I am not a supporter of Maduro, but the economic crisis in Venezuela is caused by serious illness complications if explored deeper.
- The nature of Venezuela is its economic dependence on crude oil exports and, unfortunately, America is the only Venezuelan export market
- The legacy of the previous government. Namely the president Hugo Chavez with socialist government policies creating a large financing burden when oil prices plummet, for example, is a social program of housing construction. In addition, under the pretext of reducing the gap, the government pegged the prices of basic necessities such as flour, cooking oil and bath necessities. This makes many companies not get profit and go bankrupt.
- Power struggles that are not in accordance with the constitution & elections with participants below 50% of citizens who have the right to vote. if the people are more active in elections such incidents can be prevented.
- The custom of the Venezuela government prints money which causes higher inflation.
Not all crypto applications can solve the problems of inflation or a country's economic crisis. Petro's adoption cannot overcome the economic problems faced by Venezuela even though Petro is a cryptocurrency. Now the Venezuelan government has instead adopted bitcoin.
Why the PVSDA choose bitcoin, not another cryptocurrency because bitcoin is the only crypto that is purely decentralized, permissionless, fair launched & bitcoin is used as a benchmark for altcoins.
Based on some readings I have made on the subject, first of all the economy is made on debt, since 100USD does not have the same value today as in 1980, this is due to the inflation that has suffered, every time the money supply Cash is running out, it's simple to print.
But the world economy has been responsible for its falls worldwide, as in the 2008 crisis, all the fault lies with the banks, and the next fall will be their responsibility. The debt has always been but it is focused on countries where its local economy is not the US dollar, impossible rates are generated to pay off its debts in countries that owe the US, The hegemony of the dollar is becoming stronger.
Now the way to start not seeing this debt is through the Fed when it gives statements that the system has liquidity, and its negative interests are less and less, here comes the low correlation of Bitcoin with respect to other actions, where the best Diversification is with Bitcoin.
In a world economy where what governs is debt, and part of inflation, it is best to protect yourself with Bitcoin, some give options better known as gold, it is valid, but an economy where it is managed by debt and fraction of inflation the best It is a deflationary economy.
But the world economy has been responsible for its falls worldwide, as in the 2008 crisis, all the fault lies with the banks, and the next fall will be their responsibility. The debt has always been but it is focused on countries where its local economy is not the US dollar, impossible rates are generated to pay off its debts in countries that owe the US, The hegemony of the dollar is becoming stronger.
Now the way to start not seeing this debt is through the Fed when it gives statements that the system has liquidity, and its negative interests are less and less, here comes the low correlation of Bitcoin with respect to other actions, where the best Diversification is with Bitcoin.
In a world economy where what governs is debt, and part of inflation, it is best to protect yourself with Bitcoin, some give options better known as gold, it is valid, but an economy where it is managed by debt and fraction of inflation the best It is a deflationary economy.
Usually, crypto is fully adopted by a country when its currency loses value because there is no alternative but to adopt crypto, as is the case with Venezuela.
Yes. And it is a chicken and egg situation. After your currency has crashed by 50%, it's 50% more expensive to buy crypto. In a currency crash situation people won't even have enough to pay for food and rent let alone a bit of spare money to buy crypto.
The best answer is to buy some crypto BEFORE the currency crash. Also, try not to elect idiots - you can prevent currency crashes in the first place by not electing the Maduro's of the world to power.
If bitcoins are accepted in increasing numbers countries as legal tender or a valuable asset, Their value may gradually stabilize and people will be more willing to use them as payment. And given the deflationary model of bitcoin, people will willingly store their money in It, because the supply of bitcoins is limited. Bitcoin in the future can compete with fiat currencies, if it continues to spread in the world.
In other words... If the fiat currency is used to borrow money.
It Will increase the debt to pay back the debt... You need money.
Indeed that will increase even bigger demand to have fiat currency than before!
I can undestood only one thing here!!
That cash is king and HODLE Fiat at the end of bull markets!!!
And That's Logical conclusion and objective way of thinking!
Final conclusion: invest assets now but sell later the End goal is to Get Fiat currency!!
Not really, the end goal is to get wealth in any form possible, those that invest in gold do it because they expect its value compared to fiat goes very high and the same is true for many bitcoin holders and when the bubble crashes you do not want to be the one that keeps holding an asset that is crashing regardless of its name, but cashing out in fiat is just an alternative, you could buy real estate, jewelry, gold, stocks or anything not crashing at the time, if you repeat this process eventually you will get to your goal of being wealthy. It Will increase the debt to pay back the debt... You need money.
Indeed that will increase even bigger demand to have fiat currency than before!
I can undestood only one thing here!!
That cash is king and HODLE Fiat at the end of bull markets!!!
And That's Logical conclusion and objective way of thinking!
Final conclusion: invest assets now but sell later the End goal is to Get Fiat currency!!
I've also seen predictions of around $100k but more in the light of the halving. It's hard to predict a coming economic collapse (even though many people predict it'll be around 2020).
Best thing to do is just have some crypto just in case. I think this is what's good with the development of crypto, even people who can't afford assets like gold have an alternative way of storing their money.
Best thing to do is just have some crypto just in case. I think this is what's good with the development of crypto, even people who can't afford assets like gold have an alternative way of storing their money.
Not really. I mean the currency of Venezuela lost its worth due to its own government and it is not like it has totally shifted to crypto currencies. The replacement of fiat with digital currencies is just a matter of time. We are moving towards an age of pure technology. Digital coins are the future of money and no one can stop it from happening. Governments and companies will be introducing their own projects. Just wait and watch.
Venezuela is an example of a country that has no alternatives (TINA) but to adopt crypto, especially bitcoin. The unskilled government is indeed one of the factors that caused the economic crisis and hyperinflation but, there are also external problems that have caused crises including:
- Drop-in world oil prices, Venezuela is a country that relies on crude oil exports for it's country's income. Nearly 90% of the country's income comes from oil exports. Can you imagine the effect of falling oil prices for Venezuela?
- Unstable domestic conditions triggered by high unemployment, causing a wave of demonstrations even to the extent that many Venezuelans have fled and left Venezuela.
- Due to high inflation, the monetary value continues to fall even if it does not have a price, a fall in the value of the currency causes the price of primary needs to skyrocket.
- The final reason is the main reason why Venezuela is experiencing a crisis is the economic sanctions and the total economic embargo of the United States against Venezuela.
After several times a new currency was issued to replace Bolivar and the government even issued a new Petro stable coin, in fact, it could not be a solution. The adoption of Bitcoin was carried out in Venezuela at the request of the state-owned gas company (PDVSA) because the suppliers of crude oil needed funds for operations. PDVSA saves Bitcoin in a Venezuelan bank and the issue that President Venezuela has several methods for collecting bitcoin (launching Petro was also used as a tool to collect bitcoin).
From the explanation above, we can understand that the Government of Venezuela has no other alternative than the adoption of bitcoin to roll back the wheels of its economy, which is 90% dependent on crude oil sales.
Once we adopted the crypto world, then Fiat currenty will eventually crashed, still it will come in few more years or more decades. Statistics shows that only 1% of the total population are into cryptocurrency so we still have more years to enjoy the fiat before it will be totally worthless. For now, we should support crypto all throughout so that our government can see its advantage and will eventually adopt and legalize it.
Usually, crypto is fully adopted by a country when its currency loses value because there is no alternative but to adopt crypto, as is the case with Venezuela.
I am a crypto user but I doubt that the world economic system will be replaced by crypto because there are many complete paperwork transactions that cannot be accommodated by the blockchain. Besides the biggest obstacle is the majority of a country's government considers the adoption of crypto is to open wide potential problems in a country.
I truly hope that the government will find a win-win solution between openness to crypto and the interests of maintaining economic stability, domestic politics. Because all agree that financial technology is inevitable and will be a loss for the government if refuse the invitation.
I think after economy boom and the end of huge debt wich will be never repayed there will be Economy slow down and fiat currency Will have huge value!!
During the boom assets Prices going up... So More money Will Go the asset owners Once boom is over the most of the money Will be hands of the rich... Everybody Will be debted... Simply everybody is looking for money but simply there Will be significant smaller ammount of the money.
So in my opinion Bitcoin Can Go up like 100k to 500k. Even 1 milj.... But at the end it will crash.
And after crash the fiat currency Will have biggest purache power. Crypto Will be zero.
The point is that debt and quantive easing will Give at the End More value to fiat currency!
So those who talking about fiat currency devaluatiion or so You are all wrong.
During the boom assets Prices going up... So More money Will Go the asset owners Once boom is over the most of the money Will be hands of the rich... Everybody Will be debted... Simply everybody is looking for money but simply there Will be significant smaller ammount of the money.
So in my opinion Bitcoin Can Go up like 100k to 500k. Even 1 milj.... But at the end it will crash.
And after crash the fiat currency Will have biggest purache power. Crypto Will be zero.
The point is that debt and quantive easing will Give at the End More value to fiat currency!
So those who talking about fiat currency devaluatiion or so You are all wrong.
I cannot see the necessary connections you are trying to imply. The debt problem involving fiat is not going to make its value higher. I think the opposite is true. If the debt problem will persist in the level of individuals, companies, states, and nations for a long time, there will come a point when they would think that this fiat system is making everything hard. That has been the case involving over-printing of fiat to support a need, whatever it is.
I never thought bitcoin could crash due to the huge debt impact. and in my opinion when bitcoin can reach a price of $ 500k it is unlikely that bitcoin will fall down and crash.
and when the country has a large debt I think they will still use fiat money to pay. I think it's very risky if we pay off debt using bitcoin, which has high volatility.
and when the country has a large debt I think they will still use fiat money to pay. I think it's very risky if we pay off debt using bitcoin, which has high volatility.
In other words... If the fiat currency is used to borrow money.
It Will increase the debt to pay back the debt... You need money.
Indeed that will increase even bigger demand to have fiat currency than before!
I can undestood only one thing here!!
That cash is king and HODLE Fiat at the end of bull markets!!!
And That's Logical conclusion and objective way of thinking!
Final conclusion: invest assets now but sell later the End goal is to Get Fiat currency!!
It Will increase the debt to pay back the debt... You need money.
Indeed that will increase even bigger demand to have fiat currency than before!
I can undestood only one thing here!!
That cash is king and HODLE Fiat at the end of bull markets!!!
And That's Logical conclusion and objective way of thinking!
Final conclusion: invest assets now but sell later the End goal is to Get Fiat currency!!
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