fiat vs commodity | Bitcointalksearch.org

naikturun

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Quote from: tygeade on November 25, 2023, 12:55:39 AM

Quote from: naikturun on November 24, 2023, 05:06:57 AM

This means that almost all commodities are stable in value, although some are rising and some are falling.
but your explanation and the average of all the comments I read state that it is fiat that is weakening.

thank you for all your opinion guys, really happy to hear that Grin

I mean you could have it both ways to be fair. I can see that bitcoin was 68k just a few years ago, we can say that bitcoin went up during that time, of course dollar lost value too not that it didn't happen but bitcoin went up as well.

Did dollar suddenly gain way too much value, like doubled its value at least? Are you spending 100 dollars on something you used to buy for 200 dollars just 2 years ago? Of course not, the prices didn't drop that much, in fact in most cases earnings went up more than costs did so that's why inflation stopped, prices didn't fall and yet when you look at bitcoin price that went down, that's a different situation. This has to be important and needs to be focused on a lot more in the end.

well, it seems I missed something here, it seems what you said is true when a bear market occurs people look for stable coins to hold, because they are afraid that when they hold coins the price will fall.
It seems like you see it from the other side too. Grin

GreenStox

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Quote from: tygeade on November 25, 2023, 12:55:39 AM

Did dollar suddenly gain way too much value, like doubled its value at least? Are you spending 100 dollars on something you used to buy for 200 dollars just 2 years ago? Of course not, the prices didn't drop that much, in fact in most cases earnings went up more than costs did so that's why inflation stopped, prices didn't fall and yet when you look at bitcoin price that went down, that's a different situation. This has to be important and needs to be focused on a lot more in the end.

nah i agree woth you dollar does not rise that fast and does not fall that fast, there are two sides and there are advantages and disadvantages to each, although in the long run fiat will still lose.
but the effect of volatility in crypto is very pronounced compared to fiat in the near term.

shawonngp

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Fiat money price is declining day by day due to inflation over the world, So It is easy calculation if you will put fixed amount of money in bank that price will be decrease after 5 years. Bitcoin investment is high profitable to bank and high risky as well as. Online money can be hacked but in the bank your money is safe.

Baki202

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Quote from: fauzan Ichsan on November 24, 2023, 12:34:33 AM

Bitcoin is indeed an investment opportunity, where the increase can exceed the increase in property. However, risks must also be considered, therefore we must have prior knowledge, so that we don't make the wrong move. The value of fiat will decrease due to the rate of inflation, therefore, to save assets, choose investments in strategic areas where the increase can exceed the inflation that occurs, even double.

At all cost I will still prefer to commodity to fiat because if my business should go well then I will have something sustainable and possibility of increase of property so that is what I feel and and no matter the risk all risk all worth taking so and the value of faith will decrease and you might end up spending it and many more so the only thing I suggest is invest and any time you make profit you will be proud of your self.

moneystery

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Quote from: naikturun on November 23, 2023, 12:33:37 AM

okay here I just want to find out the answer from the members here because I think about it and sometimes get curious Grin

People say that if we save 100k$ in the bank and take it out, say 5 years later, the value will not be equivalent to 100k$ 5 years ago.
then if I put my money 100k$ into bitcoin 5 years later the value let's just say it rises to 300k$. just for example.

My question is whether the price of bitcoin is rising or is fiat experiencing a decline?
because someone on the internet I saw once said, house prices don't rise, fiat is the one that weakens every year.

if you save 100 usd in the bank and you withdraw it, let's say 10 years in the future, then your money will still be 100 usd when you withdraw it, there is no decrease in value or anything else. you only feel the decrease in value when you spend 100 usd in supermarkets or other places, such as the price of mcd which was originally 3 usd could become 8 usd, this is because inflation reduces the purchasing power of fiat. that's why banks provide interest on deposit products to balance the value of money in the future.

and for bitcoin, if you invest 100 usd today and hold it for the next 10 years, its value could reach 5000 usd or even 10000 usd when you sell it because the increase in the value of bitcoin could be significant in the 10 years when you hold it.

so from these two examples you can see which has better potential in the future, whether fiat or bitcoin.

tygeade

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Quote from: naikturun on November 24, 2023, 05:06:57 AM

This means that almost all commodities are stable in value, although some are rising and some are falling.
but your explanation and the average of all the comments I read state that it is fiat that is weakening.

thank you for all your opinion guys, really happy to hear that Grin

I mean you could have it both ways to be fair. I can see that bitcoin was 68k just a few years ago, we can say that bitcoin went up during that time, of course dollar lost value too not that it didn't happen but bitcoin went up as well.

Did dollar suddenly gain way too much value, like doubled its value at least? Are you spending 100 dollars on something you used to buy for 200 dollars just 2 years ago? Of course not, the prices didn't drop that much, in fact in most cases earnings went up more than costs did so that's why inflation stopped, prices didn't fall and yet when you look at bitcoin price that went down, that's a different situation. This has to be important and needs to be focused on a lot more in the end.

STT

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The reason commodities outrank and outperform FIAT is the supply and demand is self defined and they have been the backing for currencies in the past due to this long term strong commodity market. The present backing we have for paper currency is politics, they control people who pay taxes and they are spending and borrowing as much as possibly the supply of more money is way too lax and doesn't seem likely to end without a crash. Most commodities are far more reliable though subject to industrial economic progress hence politics oversees that too to some extent and can interfere in all markets. I still trust commodity value far more then cash however its frequently less liquid which is a problem for many as we live in a world and economy powered by debt.

Promocodeudo

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Bitcoin is big as that has the potential to appreciate its price if one decides to invest in it, fiat is a liability if we allow it to be idle without using it to invest in a profitable asset like real estate or bitcoin as the individual choice may be, fiat can never be compared to bitcoin no matter how bitcoin dips in price it can never be as the same as fiat, inflation will always be friendly with fiat but Bitcoin is exceptional, I don't want to be misunderstood, I know that people will say that am over hyping bitcoin, but the truth is that, am not, the truth is that fiat has its functions so do bitcoin, bitcoin can not rule out the existence of fiat but in the other way round bitcoin current multipurpose function is topnotch.

Winterfrost

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OP, what the person said was true. It is the value of fiat decreases which made an increase in the price of goods and services. Value is something that affects everything and money is no excluded. It might be a bit confusing but this is the simple explanation. What makes that house is expensive and cost more in the future is because it's value has increased. Also, the value of materials used in the production of the modern houses are expensive. This is because they are tagged to be the best due to the fact that it is of high quality and also a new trend.

It's obvious you can give value anything and the purchasing power will increase.

Stepstowealth

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Quote from: naikturun on November 23, 2023, 12:33:37 AM

I saw Robert Kiyosaki say he owns 15,000 houses and doesn't like Bitcoin a few years ago, but recently I looked back at his interview when he said he bought Bitcoin, and said it was a valuable asset?
Does he see that bitcoin is an opportunity?

A further analysis by Robert Kiyosaki revealed that fiat currency was losing purchasing power and that Bitcoin had greater potential. The value of an asset can be increased by commodities, but digital commodities like bitcoin, whose supply is restricted, help to preserve asset value. On the other hand, the more money the central bank issues, the less value it holds. Money placed in the bank creates a liability for both the bank and the owner because there will always be fees associated with providing services. Instead of hoarding currency that may lose its purchasing power, I believe it is important to safeguard the value of any asset with commodity rather than fiat.

AnonBitCoiner

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The value of bitcoin is increasing as the time passes like in the year of 2012 the price of bitcoin was 12k$ but as we see towards that price then present price is very much higher which means that in 2025 bitcoin will be accepted by everyone due to its quick and secure profit. Fiat does not goes higher in value so when you save amount this amount will be same until bank do some reduction according to rules and regulations.

Bitcoin decline in price but after bear market the price is again profitable. The worth of house as OP mentioned does not remains same and goes higher as that of bitcoin but bitcoin growth is faster than price of house. I think not a little thing can reduces in price because everything alter in huge price after years. Just the value of fiat reduces as inflation increases but other asset increases like that of bitcoin, gold and property etc.

BRINIRHA

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It's like the price of candy 10 years ago and now. And I also feel that the actual value of candy is the same. But it is the value of a fiat that decreases. Which makes the price of candy increase almost 10 times in my country in a period of 10 years. But if we talk about houses and other types of property, I think there are other factors that cause prices to rise and fall in the long and short term. the first may be due to inflation and currency depreciation. Secondly, land and property remains the same but the number of human populations who need it continues to increase. So, in the past, when the human population was still not dense, the price of land was still cheap, but when the population became denser and more numerous, the price of land would increase rapidly. Or even conversely, property prices could fall if conflict and war occur. But since this is talking about an increase, there are actually many factors causing it. And one of them is due to deflation and inflation which have an impact on the currency itself.

Hewlet

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I think that the value of money doesn't rise or drop, what happens is that the prices of goods and commodities increase. if for instance you save up 2000 dollars today in the bank and go back in the next five years to get back that same amount of money, you are literally at a high disadvantage because what that 2000 dollar could buy at this time will be far less that it purchasing power in the next five years because Ihe price of goods would have had an increase in price while the money you saved in the bank remained what it was.

On the part of buying bitcoin of let's say the same value and holding on to it for the next five years, because of the volatility of bitcoin, its price would have increased to a reasonable amount within the five years and even though the price of goods might have increased to whatever extent, you will never be at a disadvantage

slashz9

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fiat always weakens because the amount will always increase every year, that is why commodity prices can be said to rise because the amount of fiat continues to increase, while for the limited supply factor it will be inversely proportional, that is why houses, gold, bitcoin, and other commodities experience an increase every year, but there is This commodity period also experienced a decline.

naikturun

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Quote from: BenCodie on November 23, 2023, 06:30:10 AM

Quote from: naikturun on November 23, 2023, 12:33:37 AM

My question is whether the price of bitcoin is rising or is fiat experiencing a decline?
because someone on the internet I saw once said, house prices don't rise, fiat is the one that weakens every year.

Historically, when the price of gold has increased, it has been because of the decreasing value or purchasing power of money. Bitcoin works similarly due to it's similar economic characteristics, though I think one of the superb things about Bitcoin as a cyber commodity, is that it gains strength from its own use case and development, which is something that is not entirely the case with gold anymore (in its early times though, it did have use case discovery but markets were no where near as a good at efficiently valuing things as they are now)

In short, the answer is both! This can be seen clearly on Bitcoin's graph

This means that almost all commodities are stable in value, although some are rising and some are falling.
but your explanation and the average of all the comments I read state that it is fiat that is weakening.

thank you for all your opinion guys, really happy to hear that Grin

naikturun

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Quote from: Eternad on November 23, 2023, 06:35:23 AM

Quote from: naikturun on November 23, 2023, 12:33:37 AM

so if you buy a house for 20k$ in 1980 then sell it now for 500k$, he says that the house is not going up but the fiat is going down.
that's why we see rising prices in commodities in the long term.
Are all commodities actually stable, but fiat is weakening or are there exceptions?

This is correct interpretation on how inflation works. Many people think that the value of an asset such house is increasing over time but the real reason behind the increase of value is due to the fiat weakening of buying power due to excessive circulation over time since fiat has unlimited supply.

You will notice that most of the commodity including salaries is increasing too not because of appreciation of their value but rather fiat supply is already saturated that makes it value less in terms of buying power.

but in many cases or perhaps most countries in the world, especially poor and developing countries, salary increases and inflation are very unequal, where inflation can rise up to 50% a year (the last 2 years) while salaries may increase between 10-20%.

Iroh

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The value of fiat is and has been experiencing a decline. What $10 could comfortably purchase for you about 30 years ago can not be purchased today with the same amount. That is evident that the value of the fiat currency is slowly and constantly decreasing. And with steady inflation that has been ravaging the markets, coupled with more fiat currency being printed regularly, is it any wonder why it’s value keeps depreciating?

Owing a property like a house built on a nice location could bring you a better return on your investment in the long run than saving your money in the bank.
With bitcoins, there is a limited amount available while with fiat, new currency is being printed at a whim making its value overtime lessen.

fauzan Ichsan

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Bitcoin is indeed an investment opportunity, where the increase can exceed the increase in property. However, risks must also be considered, therefore we must have prior knowledge, so that we don't make the wrong move. The value of fiat will decrease due to the rate of inflation, therefore, to save assets, choose investments in strategic areas where the increase can exceed the inflation that occurs, even double.

Fuso.hp

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Quote from: naikturun on November 23, 2023, 12:33:37 AM

My question is whether the price of bitcoin is rising or is fiat experiencing a decline?
because someone on the internet I saw once said, house prices don't rise, fiat is the one that weakens every year.

It is probably a fact for every country that fiat weakens every year. The price of goods does not rise but the value of fiat falls. Our country now has 50 plus banks in dollar crisis and the value of the dollar is only increasing every year to half year in our country. An increase in the value of the dollar means a decrease in the value of fiat. The value of fiat in our country has gone down a lot over the last three to four years. The value of fiat has gone down and the value of the dollar has gone up, causing the price of everything in our country, big and small, to rise. Since we have been seeing the value of the dollar increasing gradually in our country for the past few years, it seems that something worse is waiting for us in the coming years.

freedomgo

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When you stash your money in the bank through deposits, the interest it earns is typically meager. When you factor in the inflation rate for the year, you might end up with a slim profit, or worse, none at all if inflation outpaces the bank's interest. The catch is, the interest is fixed, while the inflation rate remains unpredictably variable. So, don't view what you park in the bank as an investment; it's more like a stash you want to keep safe.

Now, about houses – yeah, they don't usually appreciate in value because, generally, they depreciate. The real value boost comes from the land they're on. So, if you're diving into the real estate game, consider the location. A great spot increases the chances of the land gaining value over time.

And as for Bitcoin, if Robert is saying he won't invest in it because he's not interested, maybe that's his way of slyly steering folks away so he can hoard it for himself. Now that he's done amassing, he'll start hyping it up to drive demand and, in turn, boost its value. Basic science.

Topic: fiat vs commodity (Read 354 times)