Topic: Rookie thing. - page 3. (Read 727 times)

I agree with this statement.
But for me, fiat money has utility when it has value. The price of it depends only in economy. Banks can issue more fiat when there is a crisis (expansionary) in order for the households and markets have a PP. They can also hold tight the money making when the economy is reaching its boom called contractionary. So unlike with bitcoin, banks can easily control the circulation of the fiat making its value more/less everyday.

Let's take Bitcoin as current currency we are spending for instance, a manufacturer could place a price of X BTC, other altcoins would also have their exchange rate with BTC just like fiat.
 It's somehow crazy to explain because we know USD is pegged to almost nothing and could be printed but with crypto being our main currency, there will be a limited supply.

I do understand where you’re heading to. There is not going to be anything as cryptocurrency replacing fiat, take for example – Bitcoin replacing USD. No, that’s not going to happen, but the government might decide to create their own cryptocurrency which will be controlled and sold as an asset to the people through the Central banks.

Last year there was news about China creating their own cryptocurrency, and this year it seems they are close to it and almost done with the development. Other countries might choose to do the same or they will not. But let’s just imagine that Bitcoin replaces every other currency, when you want to buy things you will pay an amount of Bitcoin or Satoshis that’s worth what you’re buying.

I'm not an economic analyst but here's my own opinion about this . It's up to you if you will agree or disagree on it hehe.

I guess Bitcoin's price will rise. You know why? Because btc remain as the only existing currency so tendency the whole wide world will shift into it which result to a mass adoption. There would be a high demand for this asset therefore will result into a price hike. But well all of this won't happen either if from the very beginning mankind won't choose btc as their currency and prefer other means of transacting (eg. Barter trading).
Hmm, but how did you say the car was worth $5000 if $ has no value in the first place? You get my point ? What I think will happen here is that we will establish a new pricing standard (using btc of course) but I don't know how tho lol.

You ask about things that are unknown. Now the value of things like a machine is measured in Fiat currencies, as is the value of cryptocurrencies.
If all fiat money is transferred to cryptocurrency, then people will evenly measure everything in the equivalent of $ because some kind of reference point is needed.

Well, from those questions by the OP I can answer my honest view. The questions are too technical for me to answer. It may have it's own value nowadays but like what you mentioned in the future when other currencies will be abolished, --we only have bitcoin as global currency the value of it may either go high or might be lower than what we are expecting. In trading, using bitcoin in the future when we use the only bitcoin as the only currency. Perhaps base on the value of the product like with car as you mentioned then the price of it will still be paid per bitcoin, with regards to the current market price of the car and the value of bitcoins in the future.

From your question above it is assumed that fiat lost its value or fiat lost on this earth. The loss of fiat certainly has its cause. If the cause is the use of intrinsic money made from precious metals, then bitcoin will be compared or measured with a unit that replaces the fiat money. If fiat is lost from circulation because its existence is replaced by bitcoin then bitcoin will become a new unit of price measurement, so all goods will be compared with bitcoin to determine the price.

Talking about the loss of fiat value is the same as eliminating dollar dominance. The only possibility that can shift the dominance of the dollar is the intrinsic gold-based currency. But the move to shift the dollar requires God's miracle. Because it will crash into a platform with a United States state since the 1940s that has never changed with its Kennan policy. America is consistent in its foreign policy to continue to do hegemony with the aim of maintaining and perpetuating its wealth. Dollar, IMF, world bank are programs owned by America to support the "we want to keep it forever" platform.

@OP at the question number one you are asking what will happen to the bitcoin when the fiat currency does not have any value and my answer is it's affected by the value of the fiat currency because the main purpose of the bitcoin is the digital currency it is a visual representation into a coin that is already converted even in a different currency and also the bitcoin is decentralized that's why many people want to use this and also it has a lot of benefits if you want to use faster transactions, does not require too much kyc also it has fewer transaction fees and that was great to escape too much expensive taxes for every transaction.

If fiat losses its value, I think the country will be in chaos because people will not believe with their government, there will be many demonstrations around every city. In that time, people cannot use fiat again to buy something because fiat doesn't have value. We don't know if, at that time, bitcoin can be used as an alternative for payment system or not because that will depend on the government. If the government approved, then people will use bitcoin to buy something. But I don't think that fiat will lose the value because the government will back up that before it's happening.

That depends on how much the seller wants their customer to pay. If the sellers ask for $5,000 in crypto, and they have many coins option, for example, bitcoin, ethereum, litecoin, monero, dash, and else, their customer can use one of that coin to pay $5,000 in crypto. If the sellers want the customer to pay for $4,000 in crypto, their customer needs to pay for that amount.

If Fiat losses its value then Bitcoin value will still be there and 1 BTC is going to be equal to 1 BTC. Simple as that. Another option is the fact that it is paired to other cryptocurrencies in the market.
If Bitcoin losses its value it will still have value but you will need more BTC in order to "cover" the value that it had previously.
Either way, Bitcoin is not going to be vanished and it will have value forever.

Hi there!


You must mean that if fiat is losing value what will happen now to BTC if it is not 1BTC=$7,000± or in any other fiat equivalent. If fiat dies, and supposing Bitcoin takes over, things would be much more interesting and simpler. Goods and services would now be priced in Satoshis or Bitcoin, say, instead of 1$ it will become 8,000 Sats, or instead of $10,000 it would now be 0.5BTC. There's not much complication, isn't it?


The same situation with number 1, basically. You just have to remove the $ and replace it with BTC. That would be all.

If we are going to let's say look at Gold and how it gets it price, it is simply base on supply and demand. The demand would come obviously come to jewelry, or countries gold reserved, investments etc. So if Bitcoin will replaced fiat then we can see how it will play out in the future. Will Bitcoin still be in demand 20 years from now that it will have a value? 1BTC:1BTC? At this point it is really hard to answer, maybe we can see big players like China and US or Japan already in the crypto game and trying to control it's supposedly value.

There was gold standard and the USD value was pegged to gold ounce. If I remember right, the 1 ounce gold price was equal to $35. If the opponent can answer this question I will give the answers to his questions. What is value behind the USD bill and for exchanging dollar bill what you can offer to FED?

For your information fiat currency have value, because any assets/currency that's useful and have utility potential automatically have value but i dont know where you got the impression that fiat currency has no value which leads to your question.
With that been said, what fiat currency lack is proper management in terms of inflation prevention which literally led to the economic meltdown.

Fiat money had value but the inflation makes it to lose its value year by year so after 20 years or something the purchasing power of current fiat value will be deep down that is why we need something which has limits in total.

Satoshi is the minimal value of bitcoin, so the manufacturer can price their products in sats or bits and lot more decimal figures available for usage.

I can't answer the 2nd question, as I don't really understand it, but the 1st one is wrong.  Fiat money does indeed have value, and don't let hucksters try to convince you otherwise.  If it didn't, you wouldn't be able to pay for things with cash or a debit card (or even a credit card).  When inflation is high, fiat does tend to lose its purchasing power--and how much of its value gets eroded by inflation depends on the inflation rate (obviously).  But at the moment most fiat currencies are not losing value at an alarming rate, and I don't believe inflation is currently all that high.

Even if you make all the arguments against fiat that you can, there's still no guarantee that bitcoin is going to hold its purchasing power at any given point.  It is subject to the market forces of buying and selling, and there have been quite a few times in the past where demand has gone down significantly and bitcoin's value has plunged.  So as of right now I'd say fiat is far more stable than any of the cryptocurrencies that aren't stablecoins.

As long as there are governments there'll be tax and they will charge it in fiat. They will also pay their employees in it as well as beneficiaries of state largesse. I can't see it ever going away so this is something that never crosses my mind. The government cryptocurrencies everyone talks about will be fiat too.

It may be that people have to begrudgingly convert their crypto back to fiat to pay their government bills but it'll always make up a large portion of economies.

We have to understand that fiat money has no utility, it is just a piece of paper which is used to denote value. In other words, fiat money is the tool used to measure the value of any commodity on Earth. 

So when the economy is facing crisis or the economy is developing at very rapid pace (it can be any of the two cases), then the value of most of the commodities in the economy rise. But people consider the opposite, they think that the value of money is decreasing which is wrong assumption. Value of money remain the same, only the purchasing power (PP) of money decreases. If I have $100 then that 100 dollar bill will retain its $100 value even after 100 years. But I may not able to buy as much goods from that currency note as I can today.

Now talking about purchasing power, PP of any currency cannot become zero. It may fall and fall and everything may become too expensive. But currency will always retain its PP else commodities will become priceless because anything divided by zero gives infinity.

People started confusing intrinsic value of money with market value due to the popularity of Forex Market. Forex has turned money into commodity and we start valuing currencies in terms of other currencies. Else, in the closed economy (i.e. within the boundary of country), the value of currency never fluctuates/remain constant.

So don't worry. If the PP of fiat money falls, the price of Bitcoin will rise but you will never face a situation where the price of Bitcoin will become immeasurable.

The second part of your query has the same answer.

Hi Rengga Jati,

Have you comparing the price of fiat money and other currency first? I will show you

The value of $1 in 1970 is worth $6,65 now
https://www.in2013dollars.com/us/inflation/1970?amount=1

And the value of gold $240 per ounce in 1970 is worth $1,684.30 per ounce now.
https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

So if we compare it, Dollar price lose its value for $0.111/every year
And Gold price raise its value for $28.886 per ounce/every year

What if every year Dollar is losing his value? It's will be useless and there's will be inflation.

According to your statement "we cannot use digital currency in all situation, how if there will be no internet" There is no impossible to send digital currency without internet, you can read here https://bitcointalksearch.org/topic/offline-cryptocurrency-transfer-5239655. What's if in the future we can send digital currency without internet and fiat become useless? No one knows. But if true, it's the future of bitcoins

Fiat currencies are always losing value... I don't think a deflationary model is the best idea but its not acceptable to say currencies don't lose value. In the past 30-50 years, most currencies are worth half of what they were previously worth in the developed world.

Most people use contact less payments for small purchases these days or at least cards and many stores here have moved to streamlining its use, if the Internet goes down, you're 6 minute queue is now 30-60.