Topic: Why do people trust fiat money? - page 7. (Read 7467 times)

So you think people trust fiat money because they can use it to buy food/rent/gas? How about Euro then, you can't use it to buy these things in US either

I can't buy food with bitcoins.
I can't pay rent with bitcoins.
I can't buy gas with bitcoins.

These are the big three reasons.

Currently bitcoins can only purchase luxuries, not necessities. And before someone brings up Bitmit, I am not waiting days for my food to be delivered.

I still think that people's consensus about fiat money's value will change sooner or later. It is just a consensus, not a real cost or backed by some valueables, it can change over night

Before, government can create a lot of jobs and send money to those worker's hand as salary, the fiat money circulated well. But now they are no longer able to provide more jobs and more salaries, people will seek their own means of income, then bitcoin income have many benefits, they only need fiat when they need to pay tax

Who feed people? Normally the States.

until i can get hookers for btc, i will convert all my savings to btc. but now?  btc aint got shit. maybe in the future it will.

Another reason is that people get fiat money as a form of income: salary, insurance, sales, social security, pension etc... it is connected to the whole government controlled system, and it has been inflated into every corner due to endless supply

People trust fiat because it is all we have ever known as an exchange medium.

Generally most never thought to question where their money comes from, or how the fractional reserve system even works. All we know is "go to work, get paid" is where money comes from.

Those that do however know the secrets of the FED and their global ponzi scheme, see a serious problem there...

Of course not everything on the planet, just like no chinese airline accept USD payment, you have to exchange to CNY first

can i buy a piece of land with btc?  oh hey i want to go to hawaii, i need a plane ticket. should i use my credit card or btc?  oh wait no airline accepts btc. duh.

So, if you can buy anything with bitcoin you will give up the fiat? Look at bitmit.net and see what you can buy there

I don't think the option of consumption is the deciding factor, in fact many merchants accept bitcoin, but people still don't use them, maybe they are afraid that one day government will invervene and shut it down (although technically it is not possible)

Here here.

oh and since you think you and your btc can make it without the 'system' why dont you give up all the stuff you bought with fiat, give up your job that pays you fiat and try living on your btc.

let's see if you're not sucking men for fiat in a couple of months.

are you an idiot?  its not a matter of trust. we need fiat to buy stuff...  like hookers. i cant get a hooker to suck me with btc.

oh, and what did you use to buy your house, your car, that burger you ate?  btc?  wtf are you?  jesus?!?

Exactly, but this trust is established by the law enforcement of government, that's also one of the reason that people can not barely trust the math and network behind bitcoin, since there are no powerful entity behind it

So people will have better life being a euro maker, not a lens maker

A few people sitting there making money without doing any real work, and let the others slaughter each other(competition) to chase for those money, is there any good reason for that?

Because you can go and buy a computer let's say for 1000 usd.

You can go and buy the same computer for 10 BTC. But tommorow you might pay 95 or 105 BTC , but still 1000 USD.

Currently bitcoins acts just like another set of paper bills with different value (77,130,125) , nothing else.
Much needs to change before people will think in btc not usd.

What has shocked me is my, until recently, utter faith in fiat money. We are born into a world where there are pre-defined facts we take to be axioms. Money issued by our government is one of those facts, but which is also TOTALLY HOLLOW. The more I think about fiat money the more utterly ridiculous it is. Of course it's primary value stems from the fact 99.99999999999% of the population believes in it. I would define ultimate power to be getting a population to believe that pieces of paper that represent its future labour with diminishing returns is the ultimate store of value.

I use BTC to buy gift cards for everything from shoes and burgers to amazon and fandango via gyft.com.

https://www.gyft.com/bitcoin.html

i cant buy a burger with btc where i'm from. so fiat it is.

I'm aware of that. That does not change my statement.

I disagree. You can't say that. In my opinion we have a light deflation, when the central bank wants to achieve a 2% price inflation level. That is, because of the calculation of the inflation level. How much costs a VW Golf 2 of the year 1990? 5 average month wages? And the VW Golf 7 in 2013? 7,5 average month wages? So the price for "cars" went up by 2% every year. I don't think so. You can't compare both cars. The newer car is simply another class of car. Much more comfortability, savety, power, efficiency and so on. So quantity went down, but quality rose. So want? Are cars cheaper or not. You can't say. How much money is the higher savety worth in €?

Yes, the USD is stable. Decreasing in value or not. It is relative stable. Whether you can buy 2% less or 2% more in one year, we could disagree. But that BTC is more worth in one year? Even for that guys, which bought at 250$/BTC? You don't know. Maybe one bitcoins sell for one $ in one year. You can't know.

I'm with my heart into the austrians economics. Really. But I'm still waiting for the prophesied apocalypse   (hyper inflation)

Hope that helps.

PS: Edit: I have a few over 1000€ on an giro account, so no interests and the 2% price inflation. I want to buy lenses for my camera or even a new camera. But I wait. Why do I wait, when every euro on my account is decreasing in value? Because it isn't. If I wait, prices of lenses or bodies will go down, or newer better devices will appear. So for that particular need, my euros are definetly increasing in value over time.