Think about this: Is crypto a bubble.... or is fiat a bubble ? - page 2.

freeyourmind

sr. member

Activity: 364

Merit: 252

Quote from: ppc.pt on June 08, 2017, 06:10:29 PM

Maybe a repeated question ? Not sure...

Just simple economics, no need to get very deep into this question.

USD (as an example, could be other currency) has no limit, nothing scarce, it has value because people believe in it, it has history and is issued by an entity that is loosing the trust once had.

In the other hand, any crypto currency is limited, it's scarce, it's been almost 10 years since the creation and you can trust the technology.

Why is this still not worth trillions ?

There are forced transactions on fiat currencies (like the USD) which artificially increase demand substantially. In the states, all taxes must be paid in the national currency. Which means that the default currency for a business to use is going to be the national currency. Personal taxes and property taxes need to be paid in the national currency. So unless you are a currency trader, the default is to just use the national currency. People that don't know shit about currencies will use the national currency.

There are no forced transactions in cryptocurrencies. They are an alternative to fiat, and are optional. So you need to go out of your way to get a hold of it and use it. It will take time for those advantages to become clear, and for the infrastructure to be such that it is the currency of choice. If I have Bitcoin in Canada, where I live, I can't go into a store and buy anything. It's almost useless locally, unless you interact with another Bitcoin fan. The products and services that I need are sold in fiat, so that's what I need to use. Once Bitcoin adoption proliferates, then we can actually use it in day to day activities, and the demand will raise the price vs. fiat.

2bfree

sr. member

Activity: 686

Merit: 251

I'm investigating Crypto Projects

Quote from: freedomno1 on June 08, 2017, 09:18:11 PM

Quote from: ppc.pt on June 08, 2017, 06:10:29 PM

Maybe a repeated question ? Not sure...

USD (as an example, could be other currency) has no limit, nothing scarce, it has value because people believe in it, it has history and is issued by an entity that is loosing the trust once had.

In the other hand, any crypto currency is limited, it's scarce, it's been almost 10 years since the creation and you can trust the technology.

Why is this still not worth trillions ?

USD has a historical track record of centuries which is why people see it as good, not declaring bankruptcy etc.

Cryptocurrencies have a history less than a decade long that is why it is not worth trillions at this point, but give it a few more years or a few more decades to build up a longer track record and proof of safety and we will see a digital ocean for countries who want to make it a component of their financial system, we are just seeing some sparks of it now before they become embers and eventually flames.

USD (today's version) the fake dollar is 100 years old. The real dollar was deflationary lookup what the word dollar means whey those real American's made the dollar one of their people said it was defined as 26 grams of silver or something like that and it was a recept now they abused that name and it's fake currentcy it's not even money any more. Not sure why Americans doing this deception they where better off with truth and honest money why they switch to deception i don't know. I read their history and think they where better off sticking to original principles they started and keep the real money they would be very respoected nation today.

CyberKuro

hero member

Activity: 798

Merit: 506

Quote from: ppc.pt on June 08, 2017, 06:10:29 PM

Maybe a repeated question ? Not sure...

Just simple economics, no need to get very deep into this question.

USD (as an example, could be other currency) has no limit, nothing scarce, it has value because people believe in it, it has history and is issued by an entity that is loosing the trust once had.

In the other hand, any crypto currency is limited, it's scarce, it's been almost 10 years since the creation and you can trust the technology.

Why is this still not worth trillions ?

Because Fiat money backed by government, it take decades - centuries to grow until reach this price, it's not a bubble such as cryptocurrencies which just brand new (less than 10 years) to become an accepted currency everywhere. Japan maybe the first country that declared bitcoin as legal payment, but some cities already use it in daily transaction. Why bitcoin still not worth trillions? If bitcoin accepted everywhere such as fiat money, than it would be worth more, maybe thousands of dollars or million but not trillions obviously.

Genesis1337

full member

Activity: 154

Merit: 100

Quote from: ppc.pt on June 08, 2017, 06:10:29 PM

Maybe a repeated question ? Not sure...

Just simple economics, no need to get very deep into this question.

USD (as an example, could be other currency) has no limit, nothing scarce, it has value because people believe in it, it has history and is issued by an entity that is loosing the trust once had.

In the other hand, any crypto currency is limited, it's scarce, it's been almost 10 years since the creation and you can trust the technology.

Why is this still not worth trillions ?

Don't really understand what you are asking here, but I trust crypto supply (with supply cap and good deflationary rate built into code) more than I trust fiat (interest rates and money supply entirely controlled by a small group of people). Obviously I can go into much more depth about cryptoeconomics vs fiat economics, but I am going to say crypto and fiat are both in a bubble, but I would still rather hold any store of value crypto that fits my specifications.

Sadlife

sr. member

Activity: 1400

Merit: 269

I can't agree with you that Fiat is a bubble because it is controlled and regulated by our Governments as long as their are bankers fiat will never become a bubble cause that's how they make their profit by providing this centralized currency to their citizens which taxes people and eventually the money is returned to the owner. You could say that bitcoin is bubble from years ago where it has only few supports but right now many institutional investors and countries supports it and also it is open source so any developer out there can contribute to bitcoin, more and more people are starting to know about it and using it as their source of income. So it has gained millions of support and trust around the globe.

BartS

sr. member

Activity: 980

Merit: 255

Quote from: ppc.pt on June 08, 2017, 06:10:29 PM

Maybe a repeated question ? Not sure...

Just simple economics, no need to get very deep into this question.

USD (as an example, could be other currency) has no limit, nothing scarce, it has value because people believe in it, it has history and is issued by an entity that is loosing the trust once had.

In the other hand, any crypto currency is limited, it's scarce, it's been almost 10 years since the creation and you can trust the technology.

Why is this still not worth trillions ?

Because bitcoin is a completely new way to understand currencies, we cannot expect this concept to be accepted immediately but as time passes more people will begin to accept it and understand that bitcoin is the future and with it the rate of acceptance will begin to increase.

investinator

member

Activity: 112

Merit: 10

Quote from: ppc.pt on June 08, 2017, 06:10:29 PM

Maybe a repeated question ? Not sure...

Just simple economics, no need to get very deep into this question.

USD (as an example, could be other currency) has no limit, nothing scarce, it has value because people believe in it, it has history and is issued by an entity that is loosing the trust once had.

In the other hand, any crypto currency is limited, it's scarce, it's been almost 10 years since the creation and you can trust the technology.

Why is this still not worth trillions ?

As long as the USD is legal tender and inflation is kept moderate it will never be a bubble and to suggest otherwise is ludicrous. The fact that a currency is limited and scarce is not what gives it value, its the number of people using it and crypto has proven it is safe but not that it can handle large number of transactions plus it still can't be used offline.

Both serve a good purpose and neither is an ideal replacement for the other, crypto however has pumped way more than is natural given its current growth rate.

freedomno1

legendary

Activity: 1806

Merit: 1090

Learning the troll avoidance button :)

Quote from: ppc.pt on June 08, 2017, 06:10:29 PM

Maybe a repeated question ? Not sure...

USD (as an example, could be other currency) has no limit, nothing scarce, it has value because people believe in it, it has history and is issued by an entity that is loosing the trust once had.

In the other hand, any crypto currency is limited, it's scarce, it's been almost 10 years since the creation and you can trust the technology.

Why is this still not worth trillions ?

USD has a historical track record of centuries which is why people see it as good, not declaring bankruptcy etc.

Cryptocurrencies have a history less than a decade long that is why it is not worth trillions at this point, but give it a few more years or a few more decades to build up a longer track record and proof of safety and we will see a digital ocean for countries who want to make it a component of their financial system, we are just seeing some sparks of it now before they become embers and eventually flames.

ktabb

full member

Activity: 266

Merit: 103

Quote from: ppc.pt on June 08, 2017, 06:10:29 PM

Maybe a repeated question ? Not sure...

Just simple economics, no need to get very deep into this question.

USD (as an example, could be other currency) has no limit, nothing scarce, it has value because people believe in it, it has history and is issued by an entity that is loosing the trust once had.

In the other hand, any crypto currency is limited, it's scarce, it's been almost 10 years since the creation and you can trust the technology.

Why is this still not worth trillions ?

Fiat isn't a bubble, it can't really be a bubble. It is regulated by the US government, so they could never allow it to be a bubble. Furthermore it is highly liquid so investors flocking to USD would not cause its value to rise. USD value and price is stable, so it is not characteristic of a bubble. Crypto, however, is highly volatile, illiquid, and driven up and down by retail investors. Furthermore, it is unregulated in the sense that fiat is. This makes it much more bubble-esque.

ppc.pt

member

Activity: 84

Merit: 10

Maybe a repeated question ? Not sure...

Just simple economics, no need to get very deep into this question.

USD (as an example, could be other currency) has no limit, nothing scarce, it has value because people believe in it, it has history and is issued by an entity that is loosing the trust once had.

In the other hand, any crypto currency is limited, it's scarce, it's been almost 10 years since the creation and you can trust the technology.

Why is this still not worth trillions ?

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