Topic: Was the coupling of Bitcoin to fiat a mistake? - page 3. (Read 614 times)

Do humans have another way to make the transition? The dominating currencies are fiat. A merchant who's supporting bitcoin by pricing their goods to it, has to somehow come to an agreement with the client. If both the client and the merchant get paid, buy goods, pay taxes, other dues etc, using fiat, they're reasonably going to use it as a measure.

Note that some online stores do price goods in bitcoin, regardless of the exchange rate. (e.g., lightning.store)

alot of people thing that the btc:usd. is the only way bitcoin can work..
but thats just americans narrow mindset not understanding anything outside of USD

there are 7.5billion people that DO NOT use the USD. and so when they see btc:usd, they are personally then having to convert it into something they understand because USD is meaningless metric to them.

too many countries seeing their conversion then makes them see its out of their reach

over 1 billion people in africa converting a tx fee into usd and then to african native currency end up seeing the fee as being many hours of their minimum wage labour
when converting the BTC value of buying an asic to usd and then converting to native currency, again. out of reach its like 37 YEARS min wage salary to buy 1 asic in africa

however if we take away the americanised presence of btc and stole playing to the whims of america then people can see better utility

people (devs) foolishly think the bitcoin tx fee's are fine because its only 6 minutes of american min wage labour, they dont see that its 3 hours of min wage labour for africans or 20 minutes min labour for china or 3 hours for some people in india

they want americans to think bitcoin is fine and have the half of the planet on poverty line to use other networks saying it wont "cope" for them and pass them off with another network

we see it everyday now how some dont want small amounts spent on bitcoin. EG an american coffee amount bit no no for bitcoin. but that american coffee is a weeks groceries amount for billion of people..
yet some think bitcoin is fine for americans to use for their weekly grocery shop amount..

seem fair? nah.. but oh well
(i personally am wealthy and in a developed country(UK) where prices are similar to US.. but i can atleast understand how the unbanked/poor, unprivileged get treated/feel due to the disparages of the forex market and the elitism of american mindsets)

1 BTC = 1 BTC  looks good theoretically but not practical at this moment. I don't know what will happen in the next 20 years, but for now, it is not really practical. At the backdrop of the current economic situation, what else can you do without coupling bitcoin with fiat? There's no alternatives available to determine the value of bitcoin.

If today I say, 1 gm gold = 1 gm gold, it would not make any sense! Same with bitcoin! It's no mistake, it's the correct thing to do to determine valuation.

This is to be expected since fiat is still the common unit of account for every good on earth. This can change, but before this Bitcoin needs to be an estabilished store of value and medium of exchange. Its just the natural evolution of money. Its only a practical unit of account when the world adopted it. We gotta be patient here.

Nope, its the process every good that wanna become money has to go trough. Most people wouldnt even have the chance to acquire Bitcoin otherwise, leading to no significant adoption. Theres also no practical benefit to account in Bitcoin right from the beginning, when only a tiny minority does it, so patience, this will change with adoption.

They cant really ban it, they can prevent services to build around Bitcoin, but thats it. It would have probably slowed things down. All the bad these exchanges are doing is also a reason for more people to improve their security practices and a real world example of what centralization leads to. Its like an immune system that adapts, it becomes stronger if you challenge it regularly, so nah i dont think it wouldve been better.

We have this fiat-decoupled version already, because it never existed in the first place. The common money is still fiat so it doesnt have any advantage to not be able to get Bitcoin with it. Its about what people are accepting in exchange for Bitcoin voluntarily, this is always a individual choice, not a set rule. There would always be people accepting fiat in exchange for Bitcoin,so there will always be a market to exchange fiat and Bitcoin, this happened naturally and couldnt have been differently. In the future people can just use satoshis instead of fiat to price things, there wouldnt be much difference to how it works now.

We still live in that broken system, Bitcoin is designed in a way to use the weaknesses this system has, to its own advantages. Let the dumps happen, we will beat them at their own game, thats the only way. If we wanna beat them, theres really no way around the pain we have to go trough now.

Most people more convenient to coupling Bitcoin price to fiat since fiat price is stable, even though it always inflate. At least fiat price doesn't change 10% in a day, the price is slowly decreased without anyone noticing it after a year or few years. If fiat price isn't stable, many people will panic and think the price is controlled by the government, they can do anything to control the price.

Coupling Bitcoin to fiat isn't a mistake, but we're not ready to see any price in Bitcoin due to high volatility.

The idea here is good, but fiat plays a vital role in the business chain. The vendor accepts bitcoin, maybe a wholesaler, but the producer may not be a bitcoin trader. It brings forth a barrier to the business chain of such a vendor. The government will have no such power. However, they are always a means to cut side into other people's businesses, and the government is a part of such practice. Consider other valuable assets like gold, silver, and other country currencies being changed to fiat in different countries to ease the circulation of money. The peer2peer bitcoin traders that change bitcoin to fiat for-profits can't be erased from the market. I don't think such an idea will happen soon, as many people are involved in the market, including the same government you dodge.

It is probably helping BTC. Change is difficult. Large changes are even more difficult.
If you had to remove all ideas of fiat to BTC people would be giving much more resistance to using it.
Now they have a reference point that they have had since they understood what money is.

-Dave

But how would we able to get it otherwise ?

Humanity always prices everything, even things that shouldn't be sold/bought...

1BTC = 2000 min wage labour hours (no matter the countries fiat value)
imagine the effect that would have on arbitraging forex wallstreet taking the bitcoin path of opportunity to disrupt the forex rates to arbitrage cycle for profits

Bitcoin price is first and foremost measured in fiat, mainly the dollar. 

Bitcoin is bought and sold with fiat since the beginning. Was that a tragic misstep in the evolution of Bitcoin? Would we have it better if all governments outright banned the purchase/sale of BTC with fiat?

If we had a fiat-decoupled version of Bitcoin which could be traded for services and goods without a third party currency, how would that look? Obviously the government would have no power over people accepting BTC for their goods and services (other than intimidating people with punishments, if caught).

From my observations, the more the regulators go against Bitcoin, the more it evolves into what seems to be a liberated global currency. By my thinking, the rebellious nature of the Bitcoin community against the old, corrupt generation of money and its corrupt services (like banks) is what drives the evolution of Bitcoin. So why not let that nature loose?

In such a reality, I think the purchasing power of Bitcoin would see the same rise in value from its inevitable adoption but without the dumps caused by the broken fiat economy and stock market crashes.

1 BTC = 1 BTC