Topic: Is bitcoin actually protecting fiat money? - page 8. (Read 9009 times)
Highly doubt the governments and nations who are in charge of fiat money decide to create a system that challenges the status quo. Sure they could be behind it, but are they really operating a decentralized system all by themselves? Are they really controlling hundreds if not thousands of people to get this objective done? I would answer no to both and because of that, it doesn't really matter if they created the system to protect fiat or not. The system is what it is now, and no one single entity or person has any control over it, Bitcoin is a system and product of the world we now live in.
The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.
Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
I saw this from different point of view like people are transferring their money value into the bitcoin so the fiat money may lose its value in some years.But we are still in the early stages of adoption so it needs time to settle down and to understand what will happen. Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
It is true that economic activity is created by crypto and that can stimulate GDP. That's one reason Japan, for example, is quite keen to introduce regulations that don't prohibit or prevent its use. Jumping from that to tinfoil hat conspiracies takes a very vivid imagination though. It certainly doesn't back the value of fiat and they are not creating new wealth, it is just being transferred into to new asset class and to different people. The benefit comes from all the service industries that have popped up and the money spent by early adopters that have struck it rich. The regulators are not blind and they have taken action where it is necessary, don't believe all the FUD you read.
I don't think the link would work out, because while the crypto ecosystem does remove a lot of fiat transactions and act to combat inflation it also does the opposite, there are still so many fiat transactions attached to cryptocurrencies that would have an inflationary nature on fiat.
The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.
Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
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