Topic: Was the coupling of Bitcoin to fiat a mistake? (Read 614 times)

This is what I am trying to point out when said only a naive government will place a ban on Bitcoin trading for fiat when they can not control the P2P trading of it into fiat. Instead of ban they should implement KYC and taxes which will increase their benefit through Bitcoin.

Yes, the activity is risky but I believe most Chinese citizens that do this always do it in their neighboring country and example is some years ago when some Chinese went to the Philippines for crypto gambling during the World cup.

The fiat system is failing but bitcoin was always going to get paired/coupled with fiat. It’s how we’ve bought things & lived off for a long time now. It’s natural that it happened but obviously 1BTC = 1BTC and that won’t change. Let’s just be happy that we’re here & we found a way out of their inflationary slavery.

That doesn't seem to be the case, governments won't do it if they feel that bitcoin is still in their favor. But in certain cases they will only limit it with all the rules to keep the user centered. An example is KYC, that's the most obvious one as one of the reasons and the rest they just prohibit users from using bitcoin as a legal tender.

It was a risky activity for them but certainly could be done secretly. I don't think many people will be willing to do it once the government imposes a ban, but it can.

If it wasn't for fiat then it would have been something else but there would have definitely been something or the other which bitcoin would have been paired to.
So in the mean time bitcoin was created fiat was already used as a wide means of payment mechanism.
Instead of pairing bitcoin with any other asset or good it would have been more convenient to pair it with fiat itself.
It would avoid the hassle involved to trade it with a physical good or asset.

From my own understanding, is any government planning to outright ban to the purchase of BTC with fiat currency will be someone who's totally naive about the concept of Bitcoin and understands that it's here to stay.
An example is the Chinese government despite all the restrictions and bans placed on Bitcoin by their government, people from there still find a way to buy and invest in Bitcoin.

I agree with your assumption that bitcoin is an alternative means of payment for us and anyone willing to adopt it. Bitcoin is not to replace it but bitcoin provides a good choice for anyone who realizes that this one payment system has something more reliable than fiat.

However, fiat will survive and continue to be used as the main means of payment regardless of whether we have bitcoin or other cryptocurrencies as alternatives. I wouldn't imagine bitcoin will replace fiat anytime soon, but it's possible that the use case of bitcoin as a means of payment will increase even further in the future.

what you need to ask yourself.
bitcoins "coupling" is not about coupled to fiat generally..
the actual coupling grief is the DOLLAR attachment(out of all possible fiats, why DOLLAR?!)

dollar is only used by 330m people. yet other countries like india and china have a billion + each people using their respective currencies

so why have DOLLAR as the coupling

then.. note this while thinking about 'coupling'

bitcoin CAN work without being DOLLAR coupled. heck it can work by being coupled to a non fiat measure.. such as "min wage hours" which would be a more fair coupling for all citizens of the world while disrupting wallstreet/forex
where by the price changes in measures of seconds/hours... which then later EASILY converts to their local fiat rate of their local fiat min wage number.
rather then measured in dollars/cents and then converted to their local fiat rate

anyways..
fiat will never disappear. governments will always exist and taxes to pay for social/public services will continue and governments will always want control or their value in their nation separate from another.

i know the euro has shown a sign of change where by the french government is not using the franc. but instead using a subset/ section of reserve of euro. where some think that can expand to a "one world currency"
..but there will always be rival countries that dont want to be puppets to a master single currency and also it reduces trade options if everyone were to use the same thing. as there is less swap opportunities for rivals to fight over.
forex is a business in of itself.

having bitcoin as a "one world currency" where by all countries only ever use bitcoin.. defeats the point of bitcoin.
bitcoin is a free option to hedge against fiat. its not meant to replace it. its meant as an escape door option away from fiat. if there is no other currency. there is no escape meaning bitcoin becomes as corrupt as fiat if people cant escape from it

This is telling us that Bitcoin cannot do without Fiat currency but can Fiat currency can do without Bitcoin because from the beginning before you get Bitcoin you must to have flat to exchange the Bitcoin that is why I do disagree with people who says that bitcoin will take over Fiat currency in some trend I've seen so far so with combination work between Fiat and the Bitcoin they will know that the element that brings Bitcoin to be known and to be recognise is true Fiat currency and without that it can't cannot  fully

Initially when Bitcoin was released, the developers’ motive of inventing bitcoin was not to replace fiat currencies, but to introduce a safe and faster network of transaction of money without rates of central bank. However, as the years progressed, bitcoin was seen by holders as a means to escape the fiat currency controlled by the Central authorities. This is when people started developing the idea that coupling of bitcoin was a big mistake. Personally, I do not think it was a mistake. The developers did what their goal was, which was clearly not to replace fiat currency. 

In the present date, it will need an official declaration of the developers of bitcoin to decouple it from fiat currency. This will result in an unimaginable crash of BTC market cap and value, as till date all of it was dependent on fiat currency.

One main problem when trying to stop bitcoin to fiat conversion is that bitcoin is decentralized and popular all over the world. You can never stop people form trading bitcoin with fiat, since form the beginning bitcoin was made to be decentralized and uncontrollable. The value of bitcoin also is not determined by fiat conversion rate, but by the work that is done by the miners. Later this work will result in a fiat conversion rate.

What you say is correct, but think of bitcoin being valued. Each Satoshi equals certain amount of USD in value or valued against some other fiat currency. Everyone can't mine, and when buying we're in need of using the fiat value. Right now is it possible to value bitcoin without USD. If so, bitcoin could've got even more usage and growth.

It wasn't because how can they be able measure the value of bitcoin? And the reason why btc value rose is because someone buys it using their fiat. The reason why bitcoin is created is for us to have an alternative to the existing currencies and not because it was a replacement to all of them so it's fine if btc can work together with other payment methods.

It is still possible to obtain a bitcoin without using a fiat. You can mine it, get in faucets, or work for someone else and prefer btc as payment. You can also spend your bitcoin directly on almost anything so there is no need for you to sell your btc for fiat if you are allergic to it.

This is not going to happen at the moment, unless we get rid of the fiat mentality or all governments in the world accept bitcoin as a global form of payment, people are giving fiat value, we need to change this.
The problem is not the dollar in particular. The problem is the problem of the banking system that gave the dollar a value when it is actually a worthless piece of paper. In the old days, people exchanged food or work for gold. There was no such thing as “fiat” or paper money.
I think in the future we will return to a system like this where people pay bitcoins for goods or for work. But replacing any old system with a new one takes patience and a lot of time.

Irrespective of the differences people try to put up between fiat and Bitcoin, it is very necessary that we acknowledge the fact that fiat is in one or the other the back bone of Bitcoin in terms of the value associated with it. Just as a you said here, how would you know how much you’re buying 1 BTC for? If the coupling was not in place. So, in conclusion, there’s no mistake whatsoever about that cordial relationship between the two.

Bitcoin is relevant due to fiat currency and is always referred to in the terms of fiat currency. Though I am not sure whether bitcoin will replace fiat, I hope that oneday bitcoin is used parallel to the fiat currency.

I think fiat will decouple itself sooner or later from Bitcoin. Just like Blockbuster went out of business from one day to the other as it became clearer and clearer that streaming movies was the future. Redundancy makes itself known early on. But people do tend to hang on to old technology out of habit and nostalgia, if nothing else. Same goes for fiat. Its a redundant old version of money and is currently being replaced. But seeing as the entire world needs to participate in this change, it might take longer for people to see the bigger picture of blockchain technology and especially Bitcoin.

What is your opinion of this happening, I don't think it will happen even if it takes hundreds of years. Our daily lives still require fiat even though it has its downsides and cannot be compared with bitcoin. I wouldn't be able to use bitcoin for a quick breakfast or takeaway coffee because of bitcoin's transaction costs and confirmation time. It would make me miss the express train to the office, but with fiat it would be more convenient in this situation.

I don’t think it was mistake at all. Otherwise how would I known how much I am buying or whats the value for the same. 
Being common user of bitcoin i don’t think much about these short problems. In fact this monetary system is just perfect because it tells you how much bitcoin costs in every currency available out there. Everyone love to see its price in their own currency obviously for ease of user.

but the big picture question is.. why do we.. outside the fiat system choose to re-enforce the fantasy that the US dollar should remain the reserve currency

dollar is american. used by 320m population.. yet other countries with higher population use other currencies..
meaning other currencies are MORE POPULAR.. yet we are deceived and told the US dollar is the popular one

EG the chinese Yuan is use by over 1.3billion people meaning 3-4x more popular currency

also by measuring against the dollar where everything is then priced in images of americanised costs.. we then start pandering to the elitism that bitcoin transaction fee's are justifiable because we are then measuring them against a price of a bigmac/coffee (affordable in "AMERICA") but totally ignoring the BILLIONS of people elsewhere that see the fee as being HOURS of min wage labour
even things like the ASIC costs get measured in btc that then compare to US living costs. where an ASIC is sold at a reasonable 6 month min wage salary(in america).. where as for BILLIONS of people its their whole working life career cost to buy just 1 asic

seems too many want to pander and not cause disruption and just re-enforce the mindset that the US fiat is the world reserve. rather than trying to disrupt it by messing with wall street fiat rates to kill off the US from its top place compared to other countries native rates on forex/world bank rankings

The price manipulation from the governments side is a huge force in the inflation of fiat. A big mac may be worth some amount of money but that price will rise the more the government prints money, making the money already in circulation more worthless. And history shows us that deflation is not in the books when it comes to fiat and the government that controls it. Why? Because it is not profitable. Slowly extorting money out of the people, thats profitable. And if you do it slowly enough nobody asks questions. Of course supply and demand play a huge role even if fiat did not exist, but if we replaced fiat with Bitcoin, that artificial price increase of the Bigmac would not happen.

Im just hoping fiat gets replaced by Bitcoin sooner than later.