We shouldn't generalize. There are fiat currencies that are or used to be much more volatile than Bitcoin and Bitcoin isn't really stable compared to stablecoins. Just take a look at some fiat currencies that went through the process of hyperinflation. Compare Bitcoin or stablecoins to the currency of Venezuela or Zimbabwe. But wait, there's more cases, much more. Greece during WW2, Poland after WW1 and later when communism was coming to an end in the 80s, China in the 40s...
These currencies weren't going through a cycle like Bitcoin with 500% increase in a year. No, they were going through a cycle of 10,000% decrease! If Bitcoin experienced a bubble like that you'd be able to live like a king for the rest of your life with just 1 coin. Calling bitcoin volatile is really unjust.
Topic: Fiat VS. Crypto, which is a more stable currency? - page 2. (Read 542 times)
The price of fiat might looks stable but it is not and it never will be.
What do you mean looks stable?never the price of fiat becomes stable and we can see that on forex exchange that the value is moving every hourQuote
The price of fiat just keep decreasing year by year due to inflation but the value of crypto changes in the pattern of change in demand for that coin.
Volatility is one significant association with the world of cryptocurrency. This is evident even with the stable coins like tether. In reality, cash is more stable than crypto and I don't think anybody who has experienced both worlds, would argue about this.
Most of the people don't know that fiat even don't have stable value so they might argue that crypto is not stable and fiat is more stable.Quote
Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver
https://www.investopedia.com/terms/f/fiatmoney.aspWhere the government can make it stable? based on the demand and supply? crypto is even doing it.
In the short term meaning days, weeks and months of course all major fiat currencies are more stable. What crypto is doing is providing an alternative means of sending, spending and storing value. Crypto can only work well provided that there are stable societies that permit it politically: meaning that miners and users of crypto are not hunted down as enemies of the state and secondly that there is a stable electric and internet grid.
Come anarchy, come the zombie apocalypse neither fiat nor crypto would have value. In fact fiat would have a LOT more value. It could, once again be considered a means of exchange as it would be relatively scarce and could no longer be recreated. Not to mention, that at worse, it could be used in fires. Crypto? Without electricity and the internet crypto doesn't exist.
Come anarchy, come the zombie apocalypse neither fiat nor crypto would have value. In fact fiat would have a LOT more value. It could, once again be considered a means of exchange as it would be relatively scarce and could no longer be recreated. Not to mention, that at worse, it could be used in fires. Crypto? Without electricity and the internet crypto doesn't exist.
Your analysis of fiat conflates Cash with all fiat; and may actually be backwards.
Without electricity, Crypto safely resides in various blockchains and wallets. Fiat, the largest fraction of which resides in electronic ledgers, may be forever lost.
Neither crypto, or fiat, is dependent on the Internet. The messages by which transactions are sent to miners are not Internet based. And for Fiat, pretty much the same is true.
Hmm. Good point. I did conflate cash with fiat. They are absolutely not the same.
And you're correct Crypto will still exist, but in a very crippled form. I would not consider to be useful in the zombie apocalypse. Although it would be potentially be useful after we rise up out of the ashes.
Even the Crypto stable coins aren't stable, look at something like Dai, Tether, etc -- which has been fluctuating between a couple of percent of their peg for some time.
The stability of Stablecoins doesn't mean flat stability.Gold-backed Stablecoins will fluctuate according with the fluctuation of the gold price.
They are stable in that their volatility is manageable, while the actual volatility of Bitcoin prevent it from being a store of value and means of value transfer.
Further, they are stable in that they save the purchasing power of their owner.
A gold-backed stablecoin is more stable of a $-backed stablecoin, even if its price fluctuate more than the price of the $-backed stablecoin, when compared to the $.
The reason for that is that gold save the purchasing power of its owner more that the $
In the short term meaning days, weeks and months of course all major fiat currencies are more stable. What crypto is doing is providing an alternative means of sending, spending and storing value. Crypto can only work well provided that there are stable societies that permit it politically: meaning that miners and users of crypto are not hunted down as enemies of the state and secondly that there is a stable electric and internet grid.
Come anarchy, come the zombie apocalypse neither fiat nor crypto would have value. In fact fiat would have a LOT more value. It could, once again be considered a means of exchange as it would be relatively scarce and could no longer be recreated. Not to mention, that at worse, it could be used in fires. Crypto? Without electricity and the internet crypto doesn't exist.
Come anarchy, come the zombie apocalypse neither fiat nor crypto would have value. In fact fiat would have a LOT more value. It could, once again be considered a means of exchange as it would be relatively scarce and could no longer be recreated. Not to mention, that at worse, it could be used in fires. Crypto? Without electricity and the internet crypto doesn't exist.
Your analysis of fiat conflates Cash with all fiat; and may actually be backwards.
Without electricity, Crypto safely resides in various blockchains and wallets. Fiat, the largest fraction of which resides in electronic ledgers, may be forever lost.
Neither crypto, or fiat, is dependent on the Internet. The messages by which transactions are sent to miners are not Internet based. And for Fiat, pretty much the same is true.
If a stable coin does not have an 1:1 all-cash reserve, do you think this means it fails to keep its value on par with USD?
As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.
https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56
As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.
https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56
Define stable? In the short term meaning days, weeks and months of course all major fiat currencies are more stable. What crypto is doing is providing an alternative means of sending, spending and storing value. Crypto can only work well provided that there are stable societies that permit it politically: meaning that miners and users of crypto are not hunted down as enemies of the state and secondly that there is a stable electric and internet grid.
Come anarchy, come the zombie apocalypse neither fiat nor crypto would have value. In fact fiat would have a LOT more value. It could, once again be considered a means of exchange as it would be relatively scarce and could no longer be recreated. Not to mention, that at worse, it could be used in fires. Crypto? Without electricity and the internet crypto doesn't exist.
If a stable coin does not have an 1:1 all-cash reserve, do you think this means it fails to keep its value on par with USD?
As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.
https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56
As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.
https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56
1:1 reserved with what? With USD?
Fiat is stable but it would not be for so long. Its value has an amazing volatility especially when economic events happen and in most of the cases this events are bad and not positive ones.
Volatility is one significant association with the world of cryptocurrency. This is evident even with the stable coins like tether. In reality, cash is more stable than crypto and I don't think anybody who has experienced both worlds, would argue about this.
Most of the people don't know that fiat even don't have stable value so they might argue that crypto is not stable and fiat is more stable.Quote
Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver
https://www.investopedia.com/terms/f/fiatmoney.aspWhere the government can make it stable? based on the demand and supply? crypto is even doing it.
Volatility is one significant association with the world of cryptocurrency. This is evident even with the stable coins like tether. In reality, cash is more stable than crypto and I don't think anybody who has experienced both worlds, would argue about this.
Most of the people don't know that fiat even don't have stable value so they might argue that crypto is not stable and fiat is more stable.Quote
Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver
https://www.investopedia.com/terms/f/fiatmoney.aspWhere the government can make it stable? based on the demand and supply? crypto is even doing it.
Volatility is one significant association with the world of cryptocurrency. This is evident even with the stable coins like tether. In reality, cash is more stable than crypto and I don't think anybody who has experienced both worlds, would argue about this.
Most of the people don't know that fiat even don't have stable value so they might argue that crypto is not stable and fiat is more stable.
Volatility is one significant association with the world of cryptocurrency. This is evident even with the stable coins like tether. In reality, cash is more stable than crypto and I don't think anybody who has experienced both worlds, would argue about this.
The right thing would be that the correlation between fiat and a stablecoin were equally stable. If the stablecoin is more volatile than fiat, it means the stablecoin doesn't fulfil its objective. Tether has already failed, as it was discovered it wasn't backed by a 1:1 proportion, but a 0,74:1 proportion.
But there are other stablecoins that can still work, although I think it's not necessary to have many of them. We just need one of them working properly.
But there are other stablecoins that can still work, although I think it's not necessary to have many of them. We just need one of them working properly.
If a stable coin does not have an 1:1 all-cash reserve, do you think this means it fails to keep its value on par with USD?
As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.
It is a really good analysis and we all know that Tether is not transparent with their finances and they will fall when their lies fall apart, Tether always claimed that they had 1:1 US dollar cash reserve even when they printed billions during 2017 and there were many threads here questioning their reserve claim and now they revealed that they allow other assets too as reserve, not sure about the rest of the stable coins. If there is any stable coin that have transparent audit data, i will convert my coin in them and not in Tether. As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.
If a stable coin does not have an 1:1 all-cash reserve, do you think this means it fails to keep its value on par with USD?
As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.
https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56
As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.
https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56
This is what I call a tricky question and each one here will have a different opinion on this, it’ll be interesting to see if we all can find a consensus on this op add a poll for this. In my opinion both are not stable, and one should allocate funds to both though I’ll suggest to hodl more of crypto’s than fiat for the risk takers.
This'll be a big topic of debate. Recently I saw a video from Tim Draper saying virtual currencies are not the volatile assets - fiat is. It is because of geopolitical decisions/events, turmoil in certain countries, etc, that the price jumps. Although to me it's just the nature of the market (and how easily manipulated it is) with its 'base' being the EUR or USD.
The price of fiat might looks stable but it is not and it never will be.
The price of fiat just keep decreasing year by year due to inflation but the value of crypto changes in the pattern of change in demand for that coin.
The price of fiat just keep decreasing year by year due to inflation but the value of crypto changes in the pattern of change in demand for that coin.
Fiat. (Not saying I like Fiat more)
Even the Crypto stable coins aren't stable, look at something like Dai, Tether, etc -- which has been fluctuating between a couple of percent of their peg for some time. I think that if the USD falls, Bitcoin is going to have to go with it -- because at that point we're going through some sort of insane crisis that may take a LONG time to recover from.
Even the Crypto stable coins aren't stable, look at something like Dai, Tether, etc -- which has been fluctuating between a couple of percent of their peg for some time. I think that if the USD falls, Bitcoin is going to have to go with it -- because at that point we're going through some sort of insane crisis that may take a LONG time to recover from.
If a stable coin does not have an 1:1 all-cash reserve, do you think this means it fails to keep its value on par with USD?
As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.
https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56
As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.
https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56
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