Topic: Fiat in trouble - page 2. (Read 534 times)
But tell me one thing it isn't that this is happening for the very first time we have seen in past recessions as well that the economy has collapsed due to increased inflation and ultimately leading to a spiral situation but eventually after a recession the economy stabilizes itself somehow or the other. Never have I ever seen the economy completely getting ruined or fiat coming into question on such a crash. Why do you think this time is different? why are people thinking that this time fiat would end?
There's a real problem with fiat
According to the information I have from many countries fiat currencies were falling every day and if you check the value in long term you would be shocked because of that and that's all because of the government's policies in any country and pricing worthless by the government while the doing this will make the that fiat more worthless, for example, a country like Turkey, they were losing the fiat currency value in long term but recently and during the last months the inflation rate was much higher compared to the last months and this made Turkey fiat even more worthless than it should be normally.
Yes, fiat will remain no matter how strong the inflation is in the land, because the government still have the power to make it depreciating or appreciating in the country. I don't think, this inflation can affect crypto the way is affecting fiat money right now to devalue because crypto is a decentralized currency that has the capacity to increase higher without the permission of the government and decrease without the permission of the government. Owning crypto in this bearish season, it will really help you to make a huge amount of money in the future when the price of crypto hit higher in the market.
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This is simply true as regards the massive adoption of bitcoin. Inflation is only creating avenues for cryptocurrency to be explored because why pay higher price when I can get it at a cheap rate on any exchange network. Future cities are being developed in recent times to encourage the use of only cryptocurrency. The fait is definitely in trouble if this standing inflation does not pass.
Yes, fiat will remain no matter how strong the inflation is in the land, because the government still have the power to make it depreciating or appreciating in the country. I don't think, this inflation can affect crypto the way is affecting fiat money right now to devalue because crypto is a decentralized currency that has the capacity to increase higher without the permission of the government and decrease without the permission of the government. Owning crypto in this bearish season, it will really help you to make a huge amount of money in the future when the price of crypto hit higher in the market.
governments will soon be revising policies to maneuver this crisis and since this is a like a snowball rolling from the top, its gonna be harder to stop it which they will need to print more fiat bills if they chose not to invade another country's resources.
we may not hear it from the news but people from European countries are already protesting. Moldova alone recently have a big one.
crimes will rises as well. Pelosi's husband just hours ago was hammered.
This is the risk that very few are talking about but that is there, when a huge economic crisis strikes the world people are more willing to raise their voice and fight for a change, so if things keep being as bad as they are I would not be surprised if several governments fell and in the rest there was a change on the people at the top as people look for solutions to their problems, and at Europe this could mean more countries following the path of England and leaving the European Union for good. we may not hear it from the news but people from European countries are already protesting. Moldova alone recently have a big one.
crimes will rises as well. Pelosi's husband just hours ago was hammered.
As it is, the value of the fiat is collapsing and as it's not linked to a physical reserve and has no intrinsic value unlike gold and silver, it has the tendency to disappoint.
Historically, fiat currency in the united states was considered intrinsically backed by gold reserves inside fort knox and US central bank vaults.
(There are near to 13,000 metric tons of gold stored in fort knox to help back the US dollar.)
https://en.wikipedia.org/wiki/Fort_Knox
The degree to which fiat currencies are backed by gold reserves has arguably diminished over time with the loss of gold standards. Fractional reserve banking has also played a role in gold reserve capacity to back fiat thanks to general expansion of money supply.
More recently, internet trolls have claimed the US dollar is backed by the combined might of the US military which will seize foreign assets in the event of the US economy becoming insolvent. Considering russia's unpopularity when Putin attempted this with ukraine, I don't know how the united states was supposed to pull this off. Yet it seemed to be a common sentiment and urban myth and so may be worth acknowledging if only for pure myth busting purposes.
All the world's banks and companies do not borrow in dollars and repay loans in dollars. A dollar is only valuable because borrowers are required to pay back more dollars.
World politics is like a big theater. While everyone is watching the performance (the events in Ukraine), the main thief is stealthily robbing all the spectators.
Governments are "helping" by throwing more money at the problem imo instead of doing as some are going to do with electricity and offering loans to suppliers if their costs go higher (as a pay as you normally do and we'll cover the rest - which is what should really be done in these circumstances and wouldn't be too expensive to do).
That is the problem with governments. Most of the time they don't try to cure the root cause of the problems instead they take some initiative here and there. They are making things worse by throwing more money at the people. Printing unlimited amounts of money and then distributing it to the people to relief their problems. If that is the best govt can do then they are of no use.
As it is, the value of the fiat is collapsing and as it's not linked to a physical reserve and has no intrinsic value unlike gold and silver, it has the tendency to disappoint.
Historically, fiat currency in the united states was considered intrinsically backed by gold reserves inside fort knox and US central bank vaults.
(There are near to 13,000 metric tons of gold stored in fort knox to help back the US dollar.)
https://en.wikipedia.org/wiki/Fort_Knox
The degree to which fiat currencies are backed by gold reserves has arguably diminished over time with the loss of gold standards. Fractional reserve banking has also played a role in gold reserve capacity to back fiat thanks to general expansion of money supply.
More recently, internet trolls have claimed the US dollar is backed by the combined might of the US military which will seize foreign assets in the event of the US economy becoming insolvent. Considering russia's unpopularity when Putin attempted this with ukraine, I don't know how the united states was supposed to pull this off. Yet it seemed to be a common sentiment and urban myth and so may be worth acknowledging if only for pure myth busting purposes.
Well, the U.S. economy is backed by an entire military industrial complex that is prepared to defend its own sovereignty and the sovereignty of its allies at a moment's notice. It's not entirely a conspiracy or anything, a currency is backed by the government's solvency and that solvency includes a military ready to defend a country's assets.
I'm not suggesting that the U.S. military will go out and invade a country for pure profit motive, war's are expensive. USD has long drifted from the gold standard and even some of the looniest conspiracy theorist will say that Fort Knox doesn't have the gold anymore. Without dispute, USD isn't backed by anything anymore.
As it is, the value of the fiat is collapsing and as it's not linked to a physical reserve and has no intrinsic value unlike gold and silver, it has the tendency to disappoint.
Historically, fiat currency in the united states was considered intrinsically backed by gold reserves inside fort knox and US central bank vaults.
(There are near to 13,000 metric tons of gold stored in fort knox to help back the US dollar.)
https://en.wikipedia.org/wiki/Fort_Knox
The degree to which fiat currencies are backed by gold reserves has arguably diminished over time with the loss of gold standards. Fractional reserve banking has also played a role in gold reserve capacity to back fiat thanks to general expansion of money supply.
More recently, internet trolls have claimed the US dollar is backed by the combined might of the US military which will seize foreign assets in the event of the US economy becoming insolvent. Considering russia's unpopularity when Putin attempted this with ukraine, I don't know how the united states was supposed to pull this off. Yet it seemed to be a common sentiment and urban myth and so may be worth acknowledging if only for pure myth busting purposes.
Inflation is a term virtually everyone is associated with and in one case or the other, is battling with in their economy as the cost of living a comfortable life is now looking like an illusion
I want tl believe that by now things have gone so bad beyond the reach if fiat to ameliorate them back to normalcy, fiat itself cannot fix things back as were before and that's why many have been looking for various alternatives with bitcoin in cryptocurrency, we must adopt am economy that is free from inflation, invest and retain the value of our asset than with fiat which diminishes in value with time and not until we begin to source for a means of survival outside fiat then there may not be any visible changes to come.
FIAT is always in trouble, now the only additional problem is inflation, which surprised many with its numbers, and now everything looks much worse than 2-3 years ago. The problem that the OP and many others have is that they think that countries should be even more tolerant towards Bitcoin, especially if they are referring to the EU, which so far has not caused problems for anyone who wanted to use Bitcoin in one way or another.
Bitcoin is only an alternative currency that cannot be a solution to the problem, even if the entire EU declares it legal tender - the problem still remains. The system is rotten, no doubt about it, but to change it, it would have to completely crash and reset. But if it were to happen, many would wish it had never happened considering the consequences it would cause.
Do you think these data are correct? Who published them - the IRS, the state statistics office or perhaps some CEX? To me, that seems overblown, just like the numbers coming from Nigeria or India. When you add up all those millions around the world, it turns out that 20% or more of the world's population owns Bitcoin or cryptocurrencies, and that brings us to 1.6 billion people, which cannot possibly be correct.
Bitcoin is only an alternative currency that cannot be a solution to the problem, even if the entire EU declares it legal tender - the problem still remains. The system is rotten, no doubt about it, but to change it, it would have to completely crash and reset. But if it were to happen, many would wish it had never happened considering the consequences it would cause.
...like the US were there are over 46m users and roughly 22% of the adult population own a share of Bitcoin, there can still be a number of digital assets and the Fiat currency but the govt would recognize both of them.
Do you think these data are correct? Who published them - the IRS, the state statistics office or perhaps some CEX? To me, that seems overblown, just like the numbers coming from Nigeria or India. When you add up all those millions around the world, it turns out that 20% or more of the world's population owns Bitcoin or cryptocurrencies, and that brings us to 1.6 billion people, which cannot possibly be correct.
Bitcoin has so many advantage over fiat currency,it might also be a good hedge against inflation as fiat value is depreciating as time goes. I don't think it will be possible to scrap the fiat currency totally,since it has been in existence for a long time. Moreover not everyone has the knowledge of bitcoin and its benefits. In the next 20yrs bitcoin will overcome the fiat currency
Inflation is natural but it becomes a problem when it continues rising without stopping just like this one we are experiencing presently. Fiat currency is facing so many challenges because inflation is hitting it hard.
I sometimes see that they write that bitcoin is not a very good instrument against inflation, due to the fact that it has fallen very much in price. But it seems obvious to me that bitcoin is an excellent tool that can protect against inflation, look 10 years ago how many dollars one coffee cost and what the price was in bitcoins, and look at this difference now. The answer seems obvious to me, fiat currencies are significantly inferior to bitcoin. Inflation is natural but it becomes a problem when it continues rising without stopping just like this one we are experiencing presently. Fiat currency is facing so many challenges because inflation is hitting it hard.
Anyway, I don't agree with Business Insider that "digital assets will replace govt issued currencies." That's next to impossible.
Well, there's a scenario in which digital currency could replace fiat. With more more and more people getting to know and use Bitcoin, its value increases and in turn it affects the growth of the economy and as such, the society can embrace crypto to the point that the country's fiat would slowly fizzle out or like the US were there are over 46m users and roughly 22% of the adult population own a share of Bitcoin, there can still be a number of digital assets and the Fiat currency but the govt would recognize both of them.It may seem like a fairy tale to think Bitcoin could replace fiat due to it's high volatility rate, but I believe it can be used as a solid alternative to the fiat.
Replace is one thing; alternative is another. I can hardly imagine that there will ever come a time when a country's currency is issued by somebody else private, completely replacing the one issued by the central bank. That's too much power and control being let go by the government. Of course, there is El Salvador and the Central African Republic that are using Bitcoin as a legal tender, but even in their case Bitcoin isn't replacing fiat.
Anyway, I don't agree with Business Insider that "digital assets will replace govt issued currencies." That's next to impossible.
Well, there's a scenario in which digital currency could replace fiat. With more more and more people getting to know and use Bitcoin, its value increases and in turn it affects the growth of the economy and as such, the society can embrace crypto to the point that the country's fiat would slowly fizzle out or like the US were there are over 46m users and roughly 22% of the adult population own a share of Bitcoin, there can still be a number of digital assets and the Fiat currency but the govt would recognize both of them.It may seem like a fairy tale to think Bitcoin could replace fiat due to it's high volatility rate, but I believe it can be used as a solid alternative to the fiat.
CBDC is a new trend that needs to be integrated to keep up with other countries. Skillfully managed CBDC will allow you to more effectively manage, track financial flows and fight inflation.
Inflation is a consequence of the fact that most countries lived in abundance, because they sold their debts to other countries in the form of bonds and so on. And now there are many times more debts than all the values on the planet.
CBDC is just a digital form of fiat, there's nothing different either CBDC and fiat, both of them will suffer inflation since it's centralized. In fiat they're print money that would lead inflation, while CBDC they're create the token out of thin air that would lead inflation too. If they want to stop inflation, they need to stop create CBDC and print money, if they have debt or want to pay their expenditure, they need to be effective to use their money. Inflation is a consequence of the fact that most countries lived in abundance, because they sold their debts to other countries in the form of bonds and so on. And now there are many times more debts than all the values on the planet.
This is simply true as regards the massive adoption of bitcoin. Inflation is only creating avenues for cryptocurrency to be explored because why pay higher price when I can get it at a cheap rate on any exchange network. Future cities are being developed in recent times to encourage the use of only cryptocurrency. The fait is definitely in trouble if this standing inflation does not pass.
Fiat is in such a big trouble I believe in many years ti come the power value of fiat would drop greatly, every country is having their own fair share of the inflation and economic issues.
I believe in a world where Fiat exist and also crypto-currency exist as well and it's the option of people to either choose with they want, but as the situation of Fiat continues to deteriorate the safer option people would have would be crypto-currency.
Their is no sound statistics to this but the more inflation last the more the crypto-currency adoption continues to grow.
I believe in a world where Fiat exist and also crypto-currency exist as well and it's the option of people to either choose with they want, but as the situation of Fiat continues to deteriorate the safer option people would have would be crypto-currency.
Their is no sound statistics to this but the more inflation last the more the crypto-currency adoption continues to grow.
Inflation is a term virtually everyone is associated with and in one case or the other, is battling with in their economy as the cost of living a comfortable life is now looking like an illusion. According to statistics, a total of 95 countries are battling this scourge and with government policies not helping and the fiat failing woefully, it would be common sense to turn to Bitcoin.
A fiat currency such as the dollar, euro, pound or even the yen is a trusted medium of exchange or legal tender issued by a government or recognized authority.
As it is, the value of the fiat is collapsing and as it's not linked to a physical reserve and has no intrinsic value unlike gold and silver, it has the tendency to disappoint.
At present, Europe is the most hit by this storm and although, there are countries who are Bitcoin tolerant, its not enough. Fiat money looks to be the primary cause of inflation and countries who introduce CBDCs in my opinion are only worsening the situation. It's in times like this Bitcoin is needed as it has proven severally to be a hedge against inflation.
"Digital Assets will replace govt issued currencies within a decade or at least present a solid alternative to them"- Business Insider, Aug 2021.
A fiat currency such as the dollar, euro, pound or even the yen is a trusted medium of exchange or legal tender issued by a government or recognized authority.
As it is, the value of the fiat is collapsing and as it's not linked to a physical reserve and has no intrinsic value unlike gold and silver, it has the tendency to disappoint.
At present, Europe is the most hit by this storm and although, there are countries who are Bitcoin tolerant, its not enough. Fiat money looks to be the primary cause of inflation and countries who introduce CBDCs in my opinion are only worsening the situation. It's in times like this Bitcoin is needed as it has proven severally to be a hedge against inflation.
"Digital Assets will replace govt issued currencies within a decade or at least present a solid alternative to them"- Business Insider, Aug 2021.
Unlike what many people in the crypto world like to think, it is also tied in intrinsically with the fate of fiat currencies as people are moving money around and still classify it as a very high risk asset to hold. People are trading goods in fiat currency, which means everything you need for day to day living is regulated by this - no matter if you hold money in crypto which at some point you need to gauge against a fiat currency and convert it back to a comparative value that the majority of people are using in the world today. Inflation can infect cryptocurrency in just the same way, where traded prices will end up pushed out with many more decimal points instead.
it would be common sense to turn to Bitcoin.
The time we are now globally is different from the past and very difficult with inflation but not many countries will turn to Bitcoin for solution. The example of country turn to bitcoin is El Salvador but no much have been done in the economy since adopting bitcoin, maybe it is gradually but bitcoin is operating different from fiat. I think the inflation can be a result of the challenge that the world is coming down with like increase expenses in the effect of global warming, talking care of refugee camp, war , disaster management.
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