Fiat Money Losing Worth, Bitcoin and Gold Getting Important - page 5.

Bezobraznike

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Quote from: carter34 on October 14, 2019, 12:20:53 PM

Op you could be right that inflation is eating up goods and services but I don't think that is it making fiat lose its worth. Inflation can be controlled by the amount of fiat thrown or withdrawn from the system. I think that what is making fiat lose value is corruption. Corruption is one huge factor that makes society, fiat and the economic mechanism collapse because people pay leap services to what actions they are suppose to do, carry out.

Due inflation fiat lose it`s worth. What you could buy before with 1 dolllar now it cost couple dollars. Its like that
everywhere, just take a look on prices 20 years ago and now, you can do it in any currency and you will have the
similar results, in the end currencies are loosing value over the time.

carter34

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Op you could be right that inflation is eating up goods and services but I don't think that is it making fiat lose its worth. Inflation can be controlled by the amount of fiat thrown or withdrawn from the system. I think that what is making fiat lose value is corruption. Corruption is one huge factor that makes society, fiat and the economic mechanism collapse because people pay leap services to what actions they are suppose to do, carry out.

Colt81

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I think it is impossible for fiat currency to lose it's worth or value because there are more people who uses fiat currency than people who uses bitcoin and gold. Even bitcoin and gold are valuable there are still a less chance for both of it to replace fiat currency because the government are the one's who maintains it's value.

bitbunnny

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It's just an phase in fiat currencies cycle but on long term they will not lose so much value that cryptocurrencies would become more important for people.
We all love cryptocurrencies and respect their advantages but let's be realistic and admit that they will not replace fiat and they will not become more important than fiat currencies, that is the reality.

Karmakid

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This is an important thing to remember for those people who are valuing fiat currency rather than the assets and investments that can give them more money. Most of the older generation, prefer fiat currency over anything because they feel safe if they have the money inside their pocket or inside their bank account but they didn't realized that the more they let their fiat currency sit inside their pocket or bank, the more it loses value. It is more important to put the majority of your cash in assets that can bring more money rather than being trapped in an illusion that you are safe just because you have fiat currencies alone.

NathanJB

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I would like to argue that it is indeed a possibility, but how are we to convince them that Bitcoin is better when the price of Bitcoin can also dive without any sort of warning or sign? And in addition to that, the price could only recover until two years later. Bitcoin is good in the longer term but for some people having their treasure lost 50% of its value is not good at all. Fiat is subject to inflation but it is somehow stable. Inflation is not like the dump of Bitcoin's price that would possibly reach as high as 50% in just a single day.

Murat

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When fiat money will face crisis then you have to also consider that the monetary system is not going well, There are a lot of reasons to make changed fiat money value such as Inflation, Increasing Import than Export, political unrest, Central bank has no control over money market, Share market Collapse and so on. So it's a usual scenario of the monetary system, we should not think that when people will lose the credibility to the conventional money then they will come to this cryptocurrency platform, it's a totally wrong conception. Until cryptocurrency is acceptable and well regulation basis, a large number of people will remain behind this platform, but it's true that Bitcoin and cryptocurrency is getting a place in comparison to previous year.

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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.

airdnasxela

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Inflation is increasing but not necessarily means that fiat is losing worth. Bitcoin is slowly achieving main stream which is good. People are recognizing its worth and becoming more valuable to a lot of people. But we still end up converting our bitcoin and other crypto into cash for everyday use so it's still valuable

timerland

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Fiat hasn't really been losing value per say, it's just our regular inflation rates that are affected, but they've actually gone done in the past couple of years.

Inflation is impossible to stop, it's just a crucial aspect of our society, and it's commonplace for that to occur.

BTC has been getting more and more important in recent years, and the limited supply really does help out inflation and basically stops it, it's pretty futureproof.

magneto

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Quote

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.

Actually in recent months, inflation has been fairly low which is why the Fed is contemplating further rate cuts on top of what is already 2 rate cuts. Other world central banks are also pursuing easings of their monetary policy.

So it would be unfair to say that fiat is losing purchasing power right now, in the short term.

But in the long run, fiat doesn't have what BTC or gold has, which is a natural hard cap on the circulating supply, which is what should be concerning to asset holders. Not necessarily the short term depreciation, which doesn't always exist unless the currency is grossly mismanaged like in Venezuela or Zimbabwe, earlier on.

lionheart78

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Quote from: senne on October 13, 2019, 09:32:47 AM

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.

I am worried if people suddenly flocks in to Bitcoin to escape the incoming economic crises. It maybe good for us pioneers but I guess it will be devastating to those who rushed to take refuge since by that incident, Bitcoin might skyrocket in value, increasing multiple time than its actual value, that may cause lots of people losing their investment value once everything settles down. See the buy -rush of 2017, lots of people were left with negative portfolio once the price correction occur. But I think it is natural since same thing will happen to gold market if the same scenario happen.

ashmodeus

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Yes, that right , everything you quote it's totally right.
since money can be printed , its just no more than paper with bright color,
but well, how the schme works is as the population continues to grow, the money printed will increase as well.
i am not saying money is a bad thing, because how we can live without it.
the point is , just buy something fcking rare like btc/gold or even lambo limited edition.

yoseph

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Quote from: djselery on October 13, 2019, 11:23:36 AM

It is obvious that more people around the world are turning into saving cryptocurrencies instead of fiat and local currencies. Gold is a traditional asset and it is trusted by many people, but nowadays the financial revolution is represented in blockchain technology and cryptocurrency, and people are building trust with time on these assets too.

With the reports and speculations of a possible recession probably looming it's not surprising that fiat may lose their value but that will depend on the strength of each individual economy. Bitcoin wasn't widely used during the last recession and we are not going to know if and whether it is going to be affected or not but I am very certain that Gold will be able to survive and maybe generate profits for those that end up investing into it.

Oceat

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Quote from: Dhoe on October 13, 2019, 11:07:19 AM

The world currency phase will change from fiat money to digital money, so we will wait for that moment where at that time fiat money has no value anymore, But the digital money phase will also not last long because the real currency will arrive namely gold, Yeah gold will become the world's currency again.

But for now, this is just all a speculative information that is lack of support. Maybe you were right of the fiat to digital money thing but I still doubt on that part since cryptocurrency doesn't work without fiat. And I don't think the government would allow the digital money to reign in power over fiat. Gold is exceptional since it has been here for over a century.

djselery

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It is obvious that more people around the world are turning into saving cryptocurrencies instead of fiat and local currencies. Gold is a traditional asset and it is trusted by many people, but nowadays the financial revolution is represented in blockchain technology and cryptocurrency, and people are building trust with time on these assets too.

Dhoe

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The world currency phase will change from fiat money to digital money, so we will wait for that moment where at that time fiat money has no value anymore, But the digital money phase will also not last long because the real currency will arrive namely gold, Yeah gold will become the world's currency again.

Eclipse26

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The cause of inflation in a country depends on how the government handles it's nation and how the economy is doing. But with some developed countries, inflation there are not that high compare to other countries. The worth of fiat money depends on what country. If we're talking about Venezuela and Zimbabwe, we can say that their money are losing (or already lost) its value while other countries with less inflation, their money still has value. As for bitcoin and gold getting important, gold was already important even before. It never loses its value until now. Bitcoin is the newest and is still gaining recognition which I can say that is important as it has value. I cannot say who's more important among the three as all of them have value. Anything that has value and valuable are important.

teosanru

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The thing here is that you are contradicting your own points by keeping two opposing points. First you talk about how inflation is harmful and then you say negative interest rates are joke too. But the thing is that inflation is the main reason why we have inflation in the very first place. interest is basically an incentive which the banks give you to fight with inflation. Now similarly they price their loans higher and therefore fight inflation in that case too but if we adopt a deflationary currency like btc even then the interest rates would go negative only. So either you can stop negative interest rates or stop inflation. By the way this instance of negative interest rate is temporary and will auto correct itself.

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Quote from: CryptoBry on October 13, 2019, 08:56:46 AM

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.

Quote

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.

Bitcoin and Gold has a lot of advantages that we need to know. Although they varies in time, they don't vary in any bad circumstances or situation. Problem like inflation, fiat money decreases its value because of inflation.

Cryptocurrency has a lot of program on how you can store your money in a good hand. The same as gold, it never change its value from time to time. You better invest in something thay you're certain sure.

Topic: Fiat Money Losing Worth, Bitcoin and Gold Getting Important - page 5. (Read 2490 times)