Fiat Money is a Bubble - page 7. | Bitcointalksearch.org

Darker45

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Quote from: JunoCoin on October 23, 2017, 12:37:09 PM

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 may be a bubble, but it is going to be the strongest bubble no one can easily burst it. Fiat money is intrinsically nothing. But it has become everything because it has the sanction of the government. It is fully backed up with clear stipulations in constitutions. It has the approval and agreement of domestic and international companies big and small, and generally everyone. That is enough to make it very precious so much so that it has become life itself to many.

Ranly123

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It could be a bubble since money is created with no tangibles backing up it's value nowadays. Since the early civilization, money is created to be a receipt of how much gold deposit a country has. But right now, I don't think it was the same as before.

Argoo

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Quote from: carter34 on August 08, 2019, 04:29:01 PM

Quote from: JunoCoin on October 23, 2017, 12:37:09 PM

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.

Anyway, the reason they called bitcoin a bubble is because it is not felt physically which is one characteristics of money, therefore, that it will disappear and people who had already invested will lose there money.

Fiat money is based on the laws of economic development of society and is not a financial bubble. Fiat can partially become a financial bubble and cause inflation if the government abuses the laws of the economy and prints more paper money than the amount of increased gold and foreign exchange reserves of the state and its gross domestic income.

Irvinn

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If the country's economy is working correctly, then really fiat currency plays a very big role and its use is a very interesting and smart check for every nation and government. The main thing is that the government correctly lead the country and prevent any defaults and inflation.

Paulinerims

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While crypto may outrun fiat in the long run you really can't say its a bubble. They have a monopoly in the world. Every single one is basically forced to accept cash paymets. the process of payments will definitely change but money will stay till the states and banks says so..

atjiat

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Of course, many users do not like to hold paper in their hands instead of gold or silver. Of course, the banking system and government agencies came up with paper money to make financial calculations simpler for a person. Of course, Fiat can be considered a bubble, but nevertheless, each currency is assigned an appropriate amount of gold reserves of the country whose currency this Fiat is considered to be.

Herros

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In the world's monetary history, the use of unsustained paper currency with commodities such as gold leads to a number of very serious problems in the economy, among which the problem is, high inflation consequently The value of the currency continues to decline. Secondly, the legitimacy of paper currency is very fragile because it is not in the same way as gold and silver-valued commodities. It is only supported by the government's money law on bolts.

Tylev

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The idea of fiat currency itself is not bad, and I don’t think fiat should be classified as a financial bubble. Paper money should be issued in the amount of the state’s value of goods and can be printed on the gross income for the year. This is all economically sound and works well in practice. The problem with inflation arises only when the government prints paper money much more than necessary. In this case, the extra money can already be called a bubble.

Findingnemo

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Quote from: Tylev on August 04, 2019, 11:42:46 PM

The idea of fiat currency itself is not bad, and I don’t think fiat should be classified as a financial bubble. Paper money should be issued in the amount of the state’s value of goods and can be printed on the gross income for the year. This is all economically sound and works well in practice. The problem with inflation arises only when the government prints paper money much more than necessary. In this case, the extra money can already be called a bubble.

In reality they were printing more money every year which is the reason why inflation rate of many countries keep increasing. But government has no valid reason to say whether inflation rate increases but they keep blaming heir citizens not paying the taxes and for not doing their work and the right way.

Bezobraznike

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Quote from: Ranly123 on August 05, 2019, 05:33:22 AM

It could be a bubble since money is created with no tangibles backing up it's value nowadays. Since the early civilization, money is created to be a receipt of how much gold deposit a country has. But right now, I don't think it was the same as before.

Governments are manipulating with fiat currencies since ever. We all know that this fiat system created by governments and banks suits rich families
that are getting richer, while all others are slaves. It`s not the same as before, now situation is much worse than ever before, with gold standard
they had some boundaries at least. Cause of the greediness this banking system will fail, they will not be able to print money as they want forever!

BitHodler

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Quote from: breathlessz on July 14, 2019, 04:56:59 AM

bubble is a term. we take the example in Venezuela. we know high inflation there, so that their currencies become worthless. and I think this can be called a bubble.

A bubble is a specific market to have inflated to a point where it's considered overpriced-- fiat by definition can't be considered a bubble, especially not the Venezuelan Bolivar. It's called a legal ponzi scheme.

IIRC, the Venezuelan Bolivar is one of the worst performing assets in the more recent years. Seriously, the paper used to print the Bolivar currency on is worth more than the actual value stated on the paper itself. What a scam.

sgenuine

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Quote from: Herros on August 01, 2019, 08:17:39 PM

In the world's monetary history, the use of unsustained paper currency with commodities such as gold leads to a number of very serious problems in the economy, among which the problem is, high inflation consequently The value of the currency continues to decline. Secondly, the legitimacy of paper currency is very fragile because it is not in the same way as gold and silver-valued commodities. It is only supported by the government's money law on bolts.

Yes, you are right. But in all developed countries, fiat is supported by gold. Fiat becomes a bubble only when the government starts printing money without any control. This stuff makes the money even not a bubble but something that is very useless. In this case, cryptocurrencies seem to be more stable and reliable, as they at least depend on demand.

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Quote from: inoes on July 31, 2019, 11:56:12 AM

Unlike the case with Fiat money backed up with gold or other assets. If a country prints fiat money carelessly and does not match the value of deposits in the bank, it can cause inflation.

Quote from: sgenuine on August 04, 2019, 02:52:13 AM

But in all developed countries, fiat is supported by gold.

there is no country use gold standard (backed by gold) anymore
issuing fiat money is no longer based on the amount of gold owned by a country
now gold is used as financial asset to hedge or stabilize one country's economy

imo, fiat can be said a buble because it doesn't have fundamental value, zero value
it becomes a legal tender and has value just because it is issued and backed up by current government
if the country falls (or government failed), what we called fiat currency will turn into a worthless piece of paper

CryptoBry

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Well, to me everything and anything can be a bubble. All of us humans are bubbles since we will not last forever in this Earth we are in...the same thing with the fiat currency as no single currency from the past remained to be existing except for gold that is why this is considered to be the most stable and the safest haven among all investment tools available. Right now, we have Bitcoin which is likened by many to be the Gold 2.0 and due to its assumed scarcity (fixed supply) the value should be increasing as the demand rises. Is Bitcoin also another bubble? I would rather compare Bitcoin to the rising phoenix.

slaman29

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Quote from: inoes on July 31, 2019, 11:56:12 AM

Bitcoin is not supported by any physical assets. Unlike the case with Fiat money backed up with gold or other assets. If a country prints fiat money carelessly and does not match the value of deposits in the bank, it can cause inflation. Like in Venezuela. Bitcoin is only supported by public trust that has no monetary value. If Bitcoin gets high trust, the price also increases. So bitcoin is better referred to as a bubble.

Why should it want to be supported by physical assets? It is already backed by so many things. The scarcity factor. The security that is almost impossible to hack. The fact that it can never be taken away, it can never be reversed, it can never be falsified.

Fiat has all of these weaknesses AND is not even any longer backed by gold or other assets!

jrrsparkles

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Quote from: inoes on July 31, 2019, 11:56:12 AM

Bitcoin is not supported by any physical assets. Unlike the case with Fiat money backed up with gold or other assets. If a country prints fiat money carelessly and does not match the value of deposits in the bank, it can cause inflation. Like in Venezuela. Bitcoin is only supported by public trust that has no monetary value. If Bitcoin gets high trust, the price also increases. So bitcoin is better referred to as a bubble.

All the country in this world has inflation issues which means we are keep losing the value of our money every year gradually but government still says that fiat money is secured and bitcoin is highly risky.

If cryptocurrencies becomes more popular among the common people then we might have no reason to use fiat.

iv4n

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Quote from: hotforblockchain on July 31, 2019, 05:49:19 AM

Technically you are right, FIAt is constantly generated out of thin air.
but there is a huge difference between crypto and fiat, fiat is very strictly controlled and regulated and has enormous liquidity.

Someone said what email did to post offices, crypto will do to fiat. Crypto is better in everything, more secured, faster transaction, no need for third party services, that`s a huge difference! All fiat currencies are created and controlled by governments and banks, inflation is known problem in the world and my countries suffered a lot from inflation, there are numerous examples for that. Fiat is a bubble and that bubble burst several times in the past, we had great depressions and we know what happens after. We had many economic crisis in the past, I believe it will happen again, it`s just a question of time.

haidil

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Quote from: breathlessz on July 14, 2019, 04:56:59 AM

bubble is a term. we take the example in Venezuela. we know high inflation there, so that their currencies become worthless. and I think this can be called a bubble. so that the bubbles on fiat currencies are determined by the economy in that country

because the bubble was caused by the government, because bubbles in the currency were caused by the government.

playboy654

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Quote from: hotforblockchain on July 31, 2019, 05:49:19 AM

Technically you are right, FIAt is constantly generated out of thin air.
but there is a huge difference between crypto and fiat, fiat is very strictly controlled and regulated and has enormous liquidity.

But fiat is strictly controlled by who created it but if it is crypto it is controlled by the people who uses it so one who want to use will decide whether its worth or not and also cryptos cannot be created out of thin air but fiat money does.

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bubble is a term. we take the example in Venezuela. we know high inflation there, so that their currencies become worthless. and I think this can be called a bubble. so that the bubbles on fiat currencies are determined by the economy in that country

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