Semantics of "fiat" - page 4. | Bitcointalksearch.org

amspir

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Quote from: teukon on February 07, 2015, 02:37:29 PM

Quote from: amspir on February 07, 2015, 12:55:40 PM

In my opinion, Bitcoin is the ultimate fiat currency, since it has no inherent value (you can can't use it for anything other than paying someone else bitcoin). It is a currency issued by "decree" through a protocol enforcing a consensus of users and miners.

The term "fiat" in this context describes the root of the value of a currency, not its issuance.

And the root of the value is? Without a network of computers and people and businesses willing to trade it for something of value, what exactly is that value?

thelibertycap

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Quote from: amspir on February 07, 2015, 12:55:40 PM

It seems to me that many bitcoin proponents use the word "fiat" to describe central bank issued fiat currency, but don't use the word to describe Bitcoin.

In my opinion, Bitcoin is the ultimate fiat currency, since it has no inherent value (you can can't use it for anything other than paying someone else bitcoin). It is a currency issued by "decree" through a protocol enforcing a consensus of users and miners.

If bitcoin is not fiat, can you really call it a commodity currency? If the argument is that is a commodity in the sense that it valuable a currency, one could also say that USD has commodity value in that its only guaranteed value is that it can be used to pay taxes and keep an American taxpayer out of jail for failure to do so.

definition by wikipedia
Fiat money is currency which derives its value from government regulation or law.

how is it related to bitcoin?

teukon

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Quote from: amspir on February 07, 2015, 12:55:40 PM

In my opinion, Bitcoin is the ultimate fiat currency, since it has no inherent value (you can can't use it for anything other than paying someone else bitcoin). It is a currency issued by "decree" through a protocol enforcing a consensus of users and miners.

The term "fiat" in this context describes the root of the value of a currency, not its issuance.

amspir

member

Activity: 112

Merit: 10

It seems to me that many bitcoin proponents use the word "fiat" to describe central bank issued fiat currency, but don't use the word to describe Bitcoin.

In my opinion, Bitcoin is the ultimate fiat currency, since it has no inherent value (you can can't use it for anything other than paying someone else bitcoin). It is a currency issued by "decree" through a protocol enforcing a consensus of users and miners.

If bitcoin is not fiat, can you really call it a commodity currency? If the argument is that is a commodity in the sense that it valuable a currency, one could also say that USD has commodity value in that its only guaranteed value is that it can be used to pay taxes and keep an American taxpayer out of jail for failure to do so.

Topic: Semantics of "fiat" - page 4. (Read 3977 times)