Topic: Fiat Money is a Bubble - page 9. (Read 1794 times)

maybe you are right. but since fiat money is known as one of the traditional guarantee currency, it is hard to say it is a bubble. I mean it can also be manipulated but it is not so easy to do it.

I guess that's one obvious difference, Central Banks can just print money, issued by the Government and regulated. So it is a bubble per se, as they continue to print more money out of thin air and there is a possibility that it will be worthless due to hyperinflation. While Bitcoin is limited in supply, with no central authority on top and also based on supply and demand. That's why Central Banks all over the world are against it because they can't really control unlike fiat wherein they can enslave their population with the debt creation paradigm.

Fiat money is just fiat money.That what Central Banks are doing with fiat it is dangerous
Money creation done by banks that is bubble .Debt creation what is slavery tool .At the end people has pay debts banks never losing because Central Banks are printing next money and manipulating currencies.It is maybe why bitcoin is growing so fast because btc is kind of alternative money not manipulated by Central Banks

Fiat money is the slowest bubble of all time that is why people not recognising it as a bubble and we were never taught about Fiat money anywhere while we are in schools are college so government even didn't want us to know about it.

All fiat currencies are scam.

There is perhaps only one country in the world has 100% gold reserved for total money they printed.

So ruling party, central bank print money and they keep piles for them when people raise question why government want taxes when they can print money as much as they can the same old answer is if more money printed currency will be devalued. Ruling people fool common men giving same old example that 'if a family has 1 kilo gold and 10 members in family, now head of family holds that gold and makes 10 tickets and distributes among each family members which mean each ticket is worth 100 gram gold now if 10 more tickets created for same amount of gold and distributed to all family members then value of single ticket will become 50 gram gold so if you have 1 ticket or 2 tickets value will be same. This type of answers from economists and governors are heard since decades and common men believe it.

Now question is who knows if head of family created 1000 tickets and kept 991 by him?

And also gold or other assets are with him which he may have sold?

In my opinion currency notes are just printed piece of papers issued by governor and made people believe this is money.

They have imposed value of these printed piece of papers in people's mind, whether one wants or not he/she has to accept it as payment in corporate world.

In future may paper currency will not exist and only digital currencies will be accepted and our next generation will believe only digital cash is money.

Or maybe something more advance than digital money in future.

Let's watch, what new form of money is coming in future.

The book can not be balanced. There is always more debt than money in the world due to the nature of the system. This won't change until central banks start using negative interest rates either.

You should remember that in order for new money being created they also created more debt, there will come time where all this debt have to be factored in the calculation in order to balance the book and thats the time they realized they actually broke and have no more money to spend, expanding the supply will just hurt the economy more, at that time people will realized how bad fiat money system is and value their asset into something more sound like crypto or better gold/silver

Fiat currency is per definition worthless. The moment people stop giving a damn about "IOUs" the whole imaginary money system would collapse. I would love to see that happen just to see how it would play out to be honest.

You have good optimism with fiat but its naive to think that fiat currency can never become worthless, its devalued and devalued very rapidly and in no time it will become worthless because it is being canceled by mountain of debt its created in order to exist, expecially when there is better sound alternative currency compared to fiat gaining more mainstream adoption

Well, increasing the monetary supply does help the economy. But ultimately money is worthless anyways... people are just pretending that they are working for money, while in reality they are doing their job for free and just hoping that someone else will do their job for free in a way that will help their lives. Money really is a very strange phenomenon...

if you look at USDBTC inverse of BTCUSD you normally refer to as bitcoin bubble, you can see that USD is losing values against bitcoin very rapidly, it means that USD or any fiat currency is not in bubble anymore because its already popped and now imploding. There is no chance this trend can be stopped because government and central bankers think that expanding monetary system is healthy and they need it supposedly to grow the economy, the truth is they want to steal peoples money, that will not end well

now bitcoin almost a working currency therefore it is very liquid, other than being thrown away by government there is no other threat of bitcoin go away like other currency in the past, currency can never be in threat of total devaluation in a bubble situation because its always be exchangeable with good and services, like gold and silver, the price may fall to zero but the utility of bitcoin will remain, but in order for the price to fall to zero dollar you need to stop printing dollar which will not happen unless SDR is being introduced once SDR is introduced bitcoin will rise in SDR value again

In my part of the world banks strive on fees and mostly on lending. Its not the savings that support the business. Its a rule that banks must have a certain % of the money we put in available...like 10 or 15%. that is scary. And that system is fed through central banks with the lendings to developing countries with bigger economic growths.

Agreed. Not a bubble. Just a massive inflationary scam. How else do you explain the 99% decrease in buying power.

(if your post is directly to me) "Mostly" Which means? NOT EVERY CURRENCY. Do your duty to proofread and comprehend everything that you read online before rebutting to my post. And I agree to you that some of the country's currency is backed by another currency. Again, FIAT is not a bubble.

Currencies in themselves are not the actual bubbles. When they are starting to be traded in exchanges then their value is subjected to the traders will. When coins go as collateral and then someone buys the ability to collect the collateral, then a certain amount of money costs more than it was before, for example study the home loans case in the US. These tactics, when used carelessly specially from banks, make a currency look like a bubble.

You have to do your research. Asset backed fiat money were abundant 40 years ago. At present every currency in the world is backed by gold less than 5% and many countries back their currencies by another currency.

How do you define a currency and a bubble? FIAT IS NOT A BUBBLE it is a currency same with Bitcoin, how come you can just spread fake assumptions without supporting information regarding to your claim?. FIAT money have been used for almost a hundred years, mind that. Mostly of fiat money's value are based on the gold reserve of that Country. Make sure to do your research first.

In my opinion fiat money is not a bubble because they are the national currency that is used on it of every country and in a fact that is the physical assets that corresponds to gold. Whatever the value of gold contains in a state or country reflects the amount of money circulates in the economy. That could be the basis of printing fiat money according to the value of there gold deposits.

That description you provided is not a bubble. A bubble is an asset price that rises far beyond the fair market value and eventually cashes. The fair market value of a dollar is literally a dollar. Even if the currency devalues, a dollar is still worth a dollar, so you cannot have a bubble of a currency that is denominated in that same currency. Fiat may have zeroni nherent value, but that doesn't make the value we assign to it a bubble, because it's relatively stable over time. That's quite the opposite scenario Bitcoin occupies presently where the value has zero inherent value but there are people who assign ever-higher values to it in a cycle of mania.