Why are fiat/banks destined to fail and bitcoin to succeed? Explain. - page 4.

On pretty much every thread about bitcoins I see the majority of people saying that fiat is destined to fail, but that bitcoins are the future. I have to ask, what is it that makes bitcoins such a flawless currency?

I said this in another thread, but the euro (the overall most valuable currency) has been around since 1996, and it is the second most popular currency behind the USD, which admittedly has been around for a few hundred years. I can buy anything I want with the euro (although I live in the US so I don't use it) in multiple countries. Asian and African countries have pegged their currencies to it as well, and the euro and usd are accepted in a lot of countries where they aren't even official.

Bitcoins have been around since 2009, a 1/4 of the Euro's lifespan, and I can't use them to buy even the most basic of things. Looking at bitcoin.travel, there are two places in my state where I could use bitcoins. One is a guitar shop and the other is a Asian (probably Vietnamese) café. I like Vietnamese food, but neither of these are relevant to me whatsoever. I also have to drive an hour to get there, and I need to pay money for gas, so it's a deal breaker.

Looking at these two currencies (let's use the USD for fiat because it's what I'm familiar with) side by side, one is useful and popular, and the other is (currently) useless unless traded as a sort of stock. Bitcoin's value is measured in comparison to fiat on all exchanges. Now, a lot of people bring up the argument "Well, 1 BTC doesn't equal $100, it equals 1 BTC." This is true. 1 BTC does indeed equal 1 BTC. What exactly does this mean? Yes, if I have 1 bitcoin I have 1 bitcoin. But what is the value of this bitcoin, and what is it measured in? Without fiat to back it up, it is worthless. There is nothing for me to buy with it, unless I'm going to pick up playing the guitar. 1 USD = a drink at the gas station. 50 USD = my groceries. 1 BTC = nothing, so far.

As for fiat's supposed instability, where is the evidence? Yes, there is inflation, but bitcoins fluctuate far more than fiat. Bitcoins can drop half their value in one month and then go right back up the next. This does not happen with fiat currencies usually.

It appears as though fiat is more valuable than bitcoins. Don't get me wrong, I want to and I do invest in bitcoins. But I invest to make fiat money, which I can actually spend. However, I would like to see some arguments/evidence that show that fiat is crumbling, and bitcoin is going to overtake it.

Topic: Why are fiat/banks destined to fail and bitcoin to succeed? Explain. - page 4. (Read 10903 times)