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.
Topic: Fiat in trouble - page 3. (Read 612 times)
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.
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.
..A fiat currency such as the dollar, euro, pound or even the yen is a
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.
...
The simple truth is that they should not be trusted because they will always fail. You only trust something that cannot fail or wrong you. Fiat currencies would have to be perfect in order not to fail you but they are not perfect hence must not be trusted
Their collapse is a proof why they should not be trusted.
Agree 100%
This is one of the most severe probelm in bitcoin history, his correlation to fiat money.
This is one of the most severe probelm in bitcoin history, his correlation to fiat money.
Bitcoin's role as a hedge against inflation has actually been in question. This is primarily because for the past recent months or even years, its correlation with the traditional market like the S&P500 and Nasdaq has not only risen but even hit an all-time high. Below are a couple of charts I recycled from one of my older posts. Apparently, while there is fluctuation in terms of Bitcoin's correlation with these markets, it is high during the time when the inflation rate has gone through the roof.
Bitcoin-S&P 500 Correlation
https://www.newsbtc.com/news/bitcoin/bitcoin-correlation-stock-market-new-all-time-high/
Bitcoin-Nasdaq Correlation
https://www.bloomberg.com/news/articles/2022-04-11/bitcoin-s-correlation-with-big-tech-increases-to-record-chart
Anyway, I don't agree with Business Insider that "digital assets will replace govt issued currencies." That's next to impossible.
Bitcoin-S&P 500 Correlation
https://www.newsbtc.com/news/bitcoin/bitcoin-correlation-stock-market-new-all-time-high/
Bitcoin-Nasdaq Correlation
https://www.bloomberg.com/news/articles/2022-04-11/bitcoin-s-correlation-with-big-tech-increases-to-record-chart
Anyway, I don't agree with Business Insider that "digital assets will replace govt issued currencies." That's next to impossible.
Money supply or the increase in the monetary supply is not the only one responsible for inflation, but there are many factors that can be controlled or uncontrollable and may lead to inflation.
Thus, high or uncontrolled inflation is what makes the economy in a state of chaos, and it is a symptom of several economic diseases, but inflation in itself is not a problem.
Also, comparing the inflation rate between countries gives a wrong measure of the difference in the method of calculation and the impact on citizens and the extent to which the state protects its residents.
Thus, high or uncontrolled inflation is what makes the economy in a state of chaos, and it is a symptom of several economic diseases, but inflation in itself is not a problem.
Also, comparing the inflation rate between countries gives a wrong measure of the difference in the method of calculation and the impact on citizens and the extent to which the state protects its residents.
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.
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.
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.
Bitcoin might be helpful during inflation or currency depreciation when it is seen as a form of investment. Hodling bitcoin until the bullish market emerges wouldn't be a bad investment in this global world economic crisis. But currently most people are not considering investments or alternative currencies, their main focus is survival. People are faced with high prices or goods and services which is reducing their purchasing power. Only few people that have extra cash can afford to invest in bitcoin Inflation compared with bitcoin over the last year would be nearing 100%. It's easy enough to say it'll act as a hedge in these situations but what if it doesn't?
Bitcoin can be considered a viable hedge against inflation in most developing countries. Most of these nations suffer from hyperinflation that makes their currency worthless. Bitcoin might have lost some good grounds but there is still hope that the price would soon rise. But most of these nations never recover from the inflation they suffer. 
Inflation compared with bitcoin over the last year would be nearing 100%. It's easy enough to say it'll act as a hedge in these situations but what if it doesn't? Most of the inflation now is because people are forced to pay those higher prices and fairly willing to do it to not change their lifestyle (you did include the Netherlands in your list). Inflation can make people panic spend in cases where they expect it to go higher too, which would drive down the price of bitcoin quite dramatically if it were implemented as a full fiat currency and the only method of exchange (I don't think governments or people are going to leave fiat alone for a long time because they have some levels of protection and value as determined by those trading in it).
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).
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).
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.
https://www.statista.com/statistics/225698/monthly-inflation-rate-in-eu-countries/
https://www.investopedia.com/ask/answers/041515/fiat-money-more-prone-inflation-commodity-money.asp
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.
https://www.statista.com/statistics/225698/monthly-inflation-rate-in-eu-countries/
https://www.investopedia.com/ask/answers/041515/fiat-money-more-prone-inflation-commodity-money.asp
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