Topic: People don't understand the problem with monetary system. - page 3. (Read 545 times)

Indeed. One reason why a lot of people don't care about Bitcoin is that they don't actually understand much the problems involving fiat. Once they will see how rotten the fiat system actually is and they come to know Bitcoin, they will probably realize that Bitcoin is indeed a better alternative.

However, fiat's problems are not really that intricate. We only have to look at the continuously rising prices of basic goods and services to realize that fiat's purchasing power is always getting weaker over time. We only have to realize how opening a bank account is not that easy.

We don't have to learn the latest monetary and financial policies of the government for us to see the bad side of fiat. We only have to understand that sending money overseas through remittance centers costs so much, or that accepting card payments to your business means payments take time to be deposited to your account.

It's all because of the bias of familiarity. It's the reason why there are people who are indignant about choosing fiat over bitcoin, it's also the very reason why there are bitcoin maximalists in the first place. People will almost always lean towards those that they are most familiar with cause at the end of the day, they gauged the risks and the dangers of it and know the ins and outs like the back of their hand. For most of us we've known about money since the time we learned how to count and buy stuff. It's no wonder why bitcoin adoption is taking this long. The very act itself of selling the benefits of bitcoin over fiat is hard enough to drive especially to people who really don't want anything to do with bitcoin. That's just how it is. This bias is engraved into our genetics.

The monetary system is quite complicated to understand. A lot of people can't understand how the centralized system is getting rich off of them, but I believe everybody should understand inflation. It doesn't take much to know that the value of $1000 at the start of last year is not the same today. Today, a thousand dollars can't do what it would have done last year.

If not for anything, the single fact that Bitcoin shields me a little bit from inflation is something to sing praises about. As we all know, we can't escape inflation because we all buy stuff, but at least my savings is not been eating into by inflation and that's all thanks to BTC.

And i am grateful that i came to know about BTC or crypto because if i were not then the whole of my generation will be in the influence of Banks and there fake systems. (i know my generation is still on the way hehe). And i can say for sure you must be enjoying and praising your decision too. Because, BTC and crypto do provide us financial freedom and as you were on the way to financial freedom then i hope or wish you must found it. If not then you will soon. Once we reach the required goal of accumulation of BTC.

The average person in developed countries do not understand their financial system or how it operates, that is why it is a career itself to study economics and finances.
In the case of developing countries it can be worse, people are limited to see money as a medium to get things they want and that's it; they do not manage terms like inflation, liquidity, deflation, collateral, ect.

So it is not as simple as explaining what Bitcoin is and what the advantage is in comparison to paper money. It implies a (basic) course on economy, finances, blockchain and cryptography, because there is no point in understanding if in the end people will continue to lose their private keys to a scammer to to a washing machine.  

But not many people realize it, even with the financial crisis and inflation going on, many people still don't care about how to hedge against inflation if it gets worse. Everyone wants to be rich but they just work harder to earn more fiat, they never thought to find an asset to replace fiat. Very few people realize that fiat currency is depreciating day by day and there will come a time when it won't be able to buy anything anymore. But that's what the government wants, they want the people not to become too smart to easily control the people.

Neither am I honestly, just looking for more opportunities to earn cross-border with my skills on my way to financial freedom. My thinking doesn't even have to go that far as if to be an economist, monetary awareness will come by itself as the frequency of using bitcoin increases and more interactions with people with various backgrounds and experiences that vary around the world.

They have the laws in their hands, which they will use in any way they can to maintain the state of affairs that allows them to maintain the existing system. I can't talk about all countries, but there are many cases when politicians do not even understand the system that is currently functioning, they understand the basics of the economy very poorly, but at the same time they try to manage it and create legal entities that act only in their interests.

The same applies to the population, they do not want to delve into what they think they are not able to influence. For most, it comes down to the fact that they need to feed their families, that's all they know, at best they will save something and they will know that inflation is eating into their savings, but no one knows what to do about it.

Understanding the monetary financial system is a long way to go for a lame man but this doesn't mean that if that person have the knowledge or is willing to try something new wouldn't be happy to adopt bitcoin. The fact remains that people believe in government and fiat system a lot and they know that fiat is depreciating and that the banks are extorting them but because they have been decieved that the banks is the only safe place to keep their funds that is why they find it difficult to do without the banks. It is only if they can understand that the government and banks are only after controlling their financial life and not helping them to save their funds,is when they can start thinking of an alternative method to keep their funds without the banks.

Those that are still ignorant about the monetary system Bitcoin is creating are doing that at there own lose. In everything we do as a human, we should always endeavours to get understanding. When we are not ready to learn and understand the system, we might keep complaining about the system since we are still not ready to take a bold stem.

Bitcoin has created a way for us to earn if we are ready to study the structure and abide by the system of buying and holding for as long as we wanted until we are ready to sell to make extra profits. The government need to understand the system so that they will know that Bitcoin has not effect on any financial economy system of any country.

There are a lot more things that people do not understand about the problems in the Fiat monetary system, namely :

~ The manipulation of the inflation basket
~ The deflationary and devaluation of all Fiat currencies
~ The risks involved with centralized control over people's wealth by Banks and governments
~ The false sense of security that a signature on a Bank note gives you as the holder of that money.
~ That most Fiat "money" are digital entries in centralized databases.

People do not acquire the knowledge about these things and they are oblivious to the threats and risks that it is posing to their wealth. They blindly trust their governments and their Banks..... and it will cost them, if they fail.  

I also encountered the same problem as that found by the OP regarding the number of residents who actually did not understand the centralized system that was used on the fiat that they used every day. Maybe they really do not intend to dig further about it.

In fact, many of them do not understand inflation and other terms related to the economic crisis. What makes them more vulnerable is not having the preparation to face the economic crisis that could occur in the future.

We cannot avoid using fiat and a centralized system. But at least we should have an understanding of the things we use in our lives. And about Bitcoin I think for now it's only good for long term investment. Meanwhile, to be widely used as a means of payment, it may not be the time yet, but on the internet, we are no strangers to paying with bitcoins. but in the real world we can't do it yet Except in a country that has adopted it like El salvador.

People are different, I doubt it most Bitcoin investors understand how revolutionary Bitcoin is and how much better than fiat it is. It's not a secret that many Bitcoin investors are only after a quick buck (get rich quick etc). 

Regarding using Bitcoin as an alternative to fiat, well, I don't think many Bitcoin users do it (is it even possible?). Most Bitcoiners are hodling or trading I guess. 

It's really strange that people are not aware what is the main cause of inflation. Bitcoin is a hedge against inflation and those who know this will move their wealth in bitcoins. The general public has no concern to know the flaws in the current monetary system. All they want is to get the wealth.

You're right that people these days invest in Bitcoin because they want to spend online, or they want to do trading but there are very few who are accumulating Bitcoin in order to perverse their wealth and keep them safe from the ever-increasing inflation.

The next financial crisis, similar to the one that happened in 2008, is very near and if we do not keep our wealth in Bitcoin or Gold, it will be very difficult for us to survive that crisis.

Yeah it is more on freedom on transaction since there is no need for third party financial institution when doing Bitcoin transfers. 


Even if people see a flaw on the monetary system, the can't do anything about but to accept that flaw,  they may get into Bitcoin but due to the limited use case of Bitcoin, people are still forced to use the monetary system because it is the universally accepted payment system.

Almost nobody is using any money or refrains from using any money because they understand a monetary system. The vast majority of people have no idea how the fiat system works and I will be honest, there is always a next level if you want to fully understand it. There are even discussions between economists when it comes to certain aspects of the fiat money system.

I don't think there are many people who for their daily purposes replaced their fiat money with Bitcoin. People tend to follow monetary incentives. Some of these incentives can be quite specific and some are less specific. If you take friction as one aspect, it can be very different for different people around the world. If someone holds a VISA card, friction comes into play when the day comes that the VISA card for some unknown reason is frozen or doesn't work. That will not happen with Bitcoin. But how many merchants accept Bitcoin? What are the tax implications for every single transaction? How long do you have to wait for transactions to be confirmed?

It is a question preference and economic incentive / choice (if you can afford to choose).

All of this could change quickly when technology like the Lightning Network finally starts to spread all around the world and using it (or setting it up first) is like an app install and a start button. We are not there yet, but I think we'll get there.

I agree with you on this statement. Those who truly know the potential of Bitcoin are the ones who are using it on a daily basis. Maybe saying daily basis is a bit too much, but you got the point right. But not everyone that is involved with Bitcoin is here for the same purpose. Most of them are here for the money. This sounds a bit odd but this is the truth. Those who are also here for the things that Bitcoin gives are running for the profits too. I mean why not. If you can make money from something then why not take that opportunity? The majority are not here for the main reason behind the creation of Bitcoin. But even if they are here for the money, they are doing a great job in order to spread Bitcoin to the people.

If they use it once and feel the power that comes with Bitcoin, I think they will get interested in Bitcoin in no time. You never know until you try it. So the main thing would be to get people to use it first. After that, they will understand the problem and get interested in Bitcoin to solve the problem with the monetary system.

well if your speculation leads there, this is not to be confused with what you want to convey, if indeed you direct it into this scope, but not necessarily all because of bitcoin, because basically everyone has to understand what inflation is and the value of a currency , until he realized what the world of finance was like, which made him care even more about the money he owned, whether he was storing it in bitcoins or other assets that had very strong resilience to maintain and add value to his money.

Because we are here, making bitcoin the main alternative to maintaining the value of the wealth we have.

You can call it ignorance, or perhaps a MSM propaganda campaign, if you want but it's really a problem with blind trust in the system. Over recent years, the trust is eroding, especially with recent inflationary spikes that are primarily government induced.

If there ever was an indictment on the fiat system, it would be every metric related to debt and inflation for every currency. At some point, the system will collapse. The current path is not sustainable and it's not as if it's some secret. The metrics are public information.

We're still saying same thing, for anyone to have adopted bitcoin to invest in it  in place of fiat as an alternative then such persons must have gotten an understanding of how the fiat monetary system in terms of value rate is been affected by inflation and adopts BTC as way of cushioning the inflationary effect from fiat monetary system system. They don't need to have expertise knowledge in that field, understanding the benefits of bitcoin to fiat and grabbing the opportunity is just somehow enough.