At the moment fiat currency has decreased, it is likely that many people have started using digital cryptocurrency to make payments simpler and faster. Hopefully there is no economic crisis due to the weakening of Fiat.
The fiat money are decreasing its value not because there is a lot of people that using digital cryptocurrency to make payments. The fiat currency is decreasing its value because of the inflation and it is unstoppable. The best thing that can do to deal with the inflation is to invest into something that is higher than the inflation rate so we can maintain the value of our money. 
Topic: Fiat Money Losing Worth, Bitcoin and Gold Getting Important - page 4. (Read 2490 times)
At the moment fiat currency has decreased, it is likely that many people have started using digital cryptocurrency to make payments simpler and faster. Hopefully there is no economic crisis due to the weakening of Fiat.
the fall of the stock market will make investors look for alternative investments, namely gold and bitcoin. bitcoin and gold are good choices for investing because they are good storage devices. I am optimistic that the price of gold and bitcoin in the future will be even higher.
IIRC there is a study that said most people still believe that Bitcoin is a speculative asset. This means, if economics crumbles, then they won't store their wealth in Bitcoin. Gold is still the choice for a store of value, and the next one is land.
This might change with time but I don't think it can change that easily.
Other than that since cryptocurrency is decentralized system then we can't use them in our daily lives.
IMHO, crypto being centralized or decentralized makes no real difference when it comes to usage in our daily lives.... you can choose to use it at any time of the day if it fits your needs. The only major disadvantage of something like Bitcoin that's decentralized, is the fact that it won't likely scale to a level where hundreds of millions of people can use it simultaneously.
Overall, we don't need Bitcoin to scale big as long as most people only use it as store of value. How often do people look at their gold they use as store of value? Probably once a year? All because it's stored inside a bank vault.
Something being a store of value attracts more value than any other characteristic of an asset.
Maybe Fiat money is losing its value globally, but I do not think that cryptocurrency will soon become a replacement for them. Financial institutions have entered our life very tightly, the infrastructure is very well developed. Even with a complete collapse, the fiat money engine will fight back with all its might, and Bitcoin, likely against the backdrop of this agony, may fall in price due to various manipulations in the news background. The reverse option is not excluded, but to be honest, I can’t imagine a scenario where the state so easily allows its national currencies to sink into oblivion
If you see, we might be heading towards a global recession. Trade war has lead to economic slow down in many countries. If that's the case people are likely to shift towards a safe investment asset which won't be much affected by the slowdown in economy. Gold has always been a safest option in such situations. But now since cryptocurrencies have gained enough marketcap and are popular enough, they can provide a better alternative investment as you must have seen that it isn't much affected by price movement of other financial assets.
yes I agree with you now the world economy is weakening due to the trade war that occurred between America and China. As a result of this trade war China weakened the yuan exchange rate against the dollar. this caused the stock market to decline. the fall of the stock market will make investors look for alternative investments, namely gold and bitcoin. bitcoin and gold are good choices for investing because they are good storage devices. I am optimistic that the price of gold and bitcoin in the future will be even higher.
You're right inflation makes gold and crypto brighter, but for cryptocurrency fluctuations it becomes a problem later and not much different from FIAT inflation. Talking about inflation makes FIAT useless, if inflation is not controlled with interest rates, the FIAT value is low. And printing uncontrolled money with the country's low economic situation, the currency of Zimbabwe for example. I lack of some informations about the economy in other countries and the existence of inflation, some opinions are due to natural resources and unlimited desire.
I don't even thinking fiat money will be lose its worth and even I'm not agree if that fiat money lose its worth/value just because many people tend to use cryptocurrency in their daily lives. As you mas know, we can use cryptocurrency just throught money fiat because I'll bet just a few people out there who use/sold their assets to be use cryptocurrency, their intentions just use them as an investment place.
Other than that since cryptocurrency is decentralized system then we can't use them in our daily lives. We still have government which fully have regulation and also they have a right to make a decision between ban and accept. I just guessing you have such this think just because there is some information who stated some problem who comes to economic state, war trade and other problem which can make the fiat money goes deacreasing and however I still have a thinking that is far if we connected into cryptocurrency.
Other than that since cryptocurrency is decentralized system then we can't use them in our daily lives. We still have government which fully have regulation and also they have a right to make a decision between ban and accept. I just guessing you have such this think just because there is some information who stated some problem who comes to economic state, war trade and other problem which can make the fiat money goes deacreasing and however I still have a thinking that is far if we connected into cryptocurrency.
If you see, we might be heading towards a global recession.
That's what people keep saying around here, and it's probably because its been a while since we've had one. That doesn't mean one is coming.You're right, just because we haven't had one in a long time, that doesn't mean we will have one coming soon. However, the recent trade wars between US and China along with other negative global economic news seem like big indicators that allude to it.
I do seriously hope that a recession doesn't occur again because many people will suffer and i look forward to cryptocurrencies becoming the light and solution against such economic crises.
But at least people should prepare for it as this might be one of the worst recessions ever.
Did we see the forthcoming recessions in 2008? Lehman Brother's collapse was one of the catalyst that time, but we didn't see it coming and the next coming years proved how big it was.
So I guess its time, to learn from it, and hedge our wealth, if we have to crypto specially bitcoin.
Inflation be main reason why much people start switching their assets into bitcoin,gold or maybe property.saving in the bank only give small return,meanwhile year by year commodity price rise gradually.investing be good ways to keep our money value and even add it.gold and property be good portofolio before bitcoin occur in the world.bitcoin could alternative portofolio that will give bigger return.
Fiat money losing its value is even wrong because fiat does not have any value at all in the first place. I am speaking of actual value. The fiat money that we are using is but a piece of paper or a piece of metal that is not valuable at all. It is only the governments and their gods which are the banks that create value for it, they themselves adjust the value, lowers the value, and so on. This is just all but a game by these people. Gold has real value by way of its natural limit and the preciousness of it that is assigned by the entire humanity. Bitcoin is on that path.
I see lately many people are starting to buy gold to protect their assets, they no longer want to save their fiat money in the bank, because they don't know about Bitcoin then they save it in gold. We still need to give people knowledge about Bitcoin so they can save their assets in Bitcoin.
Countries such as Venezuela or Argentina are registering very high inflation rates. While Venezuela is currently in a hyperinflationary spiral, Argentina could shortly follow Venezuela’s steps. Populist governments are printing money trying to convince their populations that owning more coloured papers would make them wealthier.
As the fiat money is losing its value, more and more people will realize that it is time to get into the Bitcoin bandwagon as a way to partially protect their wealth and investments.
As the fiat money is losing its value, more and more people will realize that it is time to get into the Bitcoin bandwagon as a way to partially protect their wealth and investments.
These are a couple isolated cases. This logic doesn't work in places where the fiat money is relatively stable, i.e. most of the world. If inflation is eating away savings at 2% year over year like in the US, people barely notice it, especially if wages are rising to compensate.
This is also why Venezuelans are much more interested in USD than volatile assets like BTC. They want stability.
Even stocks cannot be relied too.
US stocks are going through the biggest bull run mankind has ever witnessed. No other asset but Bitcoin has performed better than stocks in the last decade. If you held any traditional safe haven asset to counter inflation instead of US stocks or Bitcoin, you have done a very poor job.
In a gold vs bitcoin scenario the former is more stable on price movement but there are too many supplies coming as deposits are still widespread. Bitcoin is very limited in supply which makes it a better pick.
A lot of Gold supply has been taken out of circulation this year because ETF's need to stock up on physical Gold to maintain their 1:1 backing. The demand for Gold ETF's has gone through the roof and there doesn't seem to be an end in sight. I'm pretty sure that as we speak, more Gold is being bought up than there is fresh Gold being mined. In other words, there is a shortage of physical Gold. I think because at this time in the future there have been signs of using digital currencies so that bitcoin and other cryptocurrency are increasing because there will be many requests that will use digital currencies that will make transactions that prove to be more efficient and easier when you want to use them.
People are gradually relying too much on technology like they are wearing smart watches, living in smart houses, want to create smart cities etc. so the concept of blockchain technology or bitcoin is very intriguing for them. It would be so easy for them to handle all their transactions without heavy fees. Elite class will be soon seen dealing in bitcoin.
Scarce resources will serve as good investments to counter inflation. Bitcoin, gold, real estate, silver and some selected altcoins. These are proven over time to have increase so much in value while fiats are becoming more and more worthless. Even stocks cannot be relied too.
In a gold vs bitcoin scenario the former is more stable on price movement but there are too many supplies coming as deposits are still widespread. Bitcoin is very limited in supply which makes it a better pick.
In a gold vs bitcoin scenario the former is more stable on price movement but there are too many supplies coming as deposits are still widespread. Bitcoin is very limited in supply which makes it a better pick.
As a rule, governments of various states put in their budgets several percent of inflation and it is believed that inflation within three percent even has a positive effect on the state economy. Of course, if governments do not organize the state’s economic activity well and spend more than they have state-wide profits, then inflation will increase uncontrollably. This is one of the main reasons for the rise in the price of gold, which does not know inflationary processes. However, I still do not see any global danger to the existence of fiat.
The government also now limits crypto currencies, whereas crypto currencies such as Bitcoin can help fiat money to always have value, fiat money will not lose its value I'm sure of that. who knows what the government is thinking now?, unlike Japan they use bitcoin and are friends with fiat money
As a rule, governments of various states put in their budgets several percent of inflation and it is believed that inflation within three percent even has a positive effect on the state economy. Of course, if governments do not organize the state’s economic activity well and spend more than they have state-wide profits, then inflation will increase uncontrollably. This is one of the main reasons for the rise in the price of gold, which does not know inflationary processes. However, I still do not see any global danger to the existence of fiat.
Wouldn't get my hopes too high too soon. Yes it is depreciating but governments have plenty of tools at their disposal (including the army) to keep it afloat.
In the long run though, cryptos would find more and more usage. Just yesterday I was in a thread about UN accepting crypto donations. It's getting more and more adoption as months go by.
In the long run though, cryptos would find more and more usage. Just yesterday I was in a thread about UN accepting crypto donations. It's getting more and more adoption as months go by.
There are a lot of reasons to believe that the value of our fiat money is losing its real value. We have inflation eating into the worth of goods and services that our money can buy and although this can be controlled to a certain degree this can never be stopped nor eliminated from any economic system. Another major problem is the tendency of many central banks to just print more paper money (termed as quantitative easing which is nice to ears) and circulate them to the economy. Coupled with a high degree of economic and political uncertainties as well as lack of trust for the government, we can in an era uncharted and which repercussions can be felt in the coming years.
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In a recent interview with the Swiss newspaper NZZ a, Sonntag, Mr. Gruebel explained that negative interest rates are having an adverse effect on fiat currencies. “Negative interest rates are crazy,” he said, adding “That means money is not worth anything anymore.”
Gruebel stated that as long as interest rates remain in place, the financial industry as a whole will continue to shrink. Last month, the European Central Bank (ECB) decided to cut interest rates to -0.5% and Marilyn Watson, global fundamental bond product strategy team head at Black Rock, explained that there is potential for interest rates to go more negative, especially in Europe and in Japan.
Countries such as Venezuela or Argentina are registering very high inflation rates. While Venezuela is currently in a hyperinflationary spiral, Argentina could shortly follow Venezuela’s steps. Populist governments are printing money trying to convince their populations that owning more coloured papers would make them wealthier.
This is where gold and Bitcoin (BTC) could eventually become important for society.
Source.
As the fiat money is losing its value, more and more people will realize that it is time to get into the Bitcoin bandwagon as a way to partially protect their wealth and investments. That time is coming soon. We who are the pioneers in cryptocurrency have many things to thank for that we are involved at the right time.
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