Topic: Fiat Money is a Bubble - page 11. (Read 1794 times)
You're right, it's a bubble, but only in theory, why? Everything in the world is happening around it, it is money that determines the value of goods or services, without which we would not be able to control ourselves or know the value of products, and all these are set within the norm.
Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.
Not at all! Fiat money is not a bubble because they are mostly backed up by a physical asset like gold. Any country can't print unlimited amount of money to circulate in their economy. They can only print according to the value of their gold deposits. So the value of money is directly co-related with the price of gold and that's why Gold has been used as a safe investment vehicle since decades. One investor may not make much profit from holding gold, but it can certainly protect the capital investment.
On the other hand, bitcoin is not backed up by any physical asset. It is just backed up by the public trust which doesn't have any monetary value. It's just an emotional quotient. Bitcoin is riding high on positivity and that's why it's price is also increasing. So bitcoin can be called as a bubble, but not fiat.
Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.
Not at all! Fiat money is not a bubble because they are mostly backed up by a physical asset like gold. Any country can't print unlimited amount of money to circulate in their economy. They can only print according to the value of their gold deposits. So the value of money is directly co-related with the price of gold and that's why Gold has been used as a safe investment vehicle since decades. One investor may not make much profit from holding gold, but it can certainly protect the capital investment.
On the other hand, bitcoin is not backed up by any physical asset. It is just backed up by the public trust which doesn't have any monetary value. It's just an emotional quotient. Bitcoin is riding high on positivity and that's why it's price is also increasing. So bitcoin can be called as a bubble, but not fiat.
Fiat money at present are not backed by gold or anything. In 1971 Richard Nixon ended any remaining link between the dollar and gold. Today less than 5% of US dollars in circulation are ‘backed’ by gold, the rest backed by false promises and goodwill. It is same with the rest of the countries.
Except that the fiat bubble is controlled by the State. Whenever abnormal deviations occur in terms of currency exchange rates due to some event, the Government steps in to either restore confidence in the economy so as to stabilize the currency or will artificially devalue/increase the value of the currency. Btc doesnt have such a backing and works on thw whims of only market forces.
If we look back into the past there was the .net bubble and also the Tulpen bubble. Before this happened then was probably thinking : "This is not a bubble". So stay and wait what will happen.
Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.
Not at all! Fiat money is not a bubble because they are mostly backed up by a physical asset like gold. Any country can't print unlimited amount of money to circulate in their economy. They can only print according to the value of their gold deposits. So the value of money is directly co-related with the price of gold and that's why Gold has been used as a safe investment vehicle since decades. One investor may not make much profit from holding gold, but it can certainly protect the capital investment.
On the other hand, bitcoin is not backed up by any physical asset. It is just backed up by the public trust which doesn't have any monetary value. It's just an emotional quotient. Bitcoin is riding high on positivity and that's why it's price is also increasing. So bitcoin can be called as a bubble, but not fiat.
I came to this topic to laugh, but suddenly realized that I have to agree.
Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.
It is the most inherent problem with money is that it has zero physical value, it's why there can be such problems when confidence goes and there is a run on a currency.
Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.
All money is created out of thin air these days. It has no tangible resource backing up its value. That makes monetary value purely fictional, yet everybody uses it. So yes, fiat is de facto a bubble.It's hilarious to think about how the world actually works, it's complete nonsense and everybody believes that it isn't.
Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.
It is the most inherent problem with money is that it has zero physical value, it's why there can be such problems when confidence goes and there is a run on a currency.
Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.
It is obviously a bubble, but is a bubble that is sustained by a monopoly in violence. You are forced to accept fiat money and you are forced to work for it, therefore the flow of such money is never ending.
People all over the world accept dollars no matter how much they print, and this will be the case as long as it is accepted.
Bitcoin attempts to create an asset that is of limited supply and global, and optionally accepted, which is the opposite of fiat. Sooner or later, all fiat currencies fail due their government's failing, and bitcoin since it has no government or country attached to it, with reap the benefits and reign as ideal (or the most ideal thus far) money.
Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.
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