Any sense getting into forex because the end of fiat is on the horizon?
- Thread starter wxytrader
- Start date
Bitcoin, which began as a tool to carry out money transactions that were difficult if not impossible to trace has morphed into a gambling medium. There is nothing behind it other than supply and demand. And the demand now comes mostly from perceived riches. If the perception fades, so too will demand. It is that simple. You have Bingo and you have Bitcoin; the risk to reward ratio is similar for both.
You can buy things with both bitcoin and sovereign, fiat money, and you can gamble with both. But these are about the only similarities. Fiat money trades relative to other fiat money, according to supply and demand, but it doesn't float entirely free on open markets because issuing governments may intervene in markets to stabilize their fiat issue as they deem desirable.
Fiat money is here to stay as it is by far the most practical and flexible of all sovereign money's yet devised. Basing a sovereign money on a rare commodity is a ridiculous idea bound to fail. The only reason it worked in the past is that people* hadn't realized how utterly ridiculous commodity based money really is. Once the absurdity and non-sustainability of commodity-based money was recognized it quickly disappeared in favor of much more sensible fiat money.
Fiat money ultimately takes its value from the issuer's authority to tax**, the issuing nation's productivity, the amount of fiat in circulation and the public's perception of these factors. Reserve, fiat money also derives stability from large pools of reserve-currency-denominated assets in the hands of non-issuers.
These highly desirable features are absent from crypto currencies. This is the reason that any nation foolish enough to adopt a crypto currency as a national unit of account will very quickly revert back to the use of either their own or another nations sovereign fiat currency. No nation, however, will adopt another nation's fiat currency unless circumstances force it to do so. ***
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*Some of course did recognize the absurdity of basing a national currency on a particular commodity, but their arguments were unpersuasive until crisis, easily enough predicted, forced recognition.
**This is the critical factor that must be present, because no country that issues its own fiat currency will accept any other currency in payment of taxes.
***In the EU monetary Union we have an example of what were independent countries voluntarily giving up absolute sovereignty over the currency they use in favor of joint sovereignty among several States and without adopting a universal Euro Bond. (Germany has consistently opposed the Euro bond.) Thus the States of the Euro monetary union have accepted an incomplete union by voluntarily ceding control of their currency to a collective without a common bond. This has caused no end of difficulties for the union, and may ultimately cause its dissolution. Many of these problems can be traced back to long held anachronistic beliefs about money that no longer make sense.
You can buy things with both bitcoin and sovereign, fiat money, and you can gamble with both. But these are about the only similarities. Fiat money trades relative to other fiat money, according to supply and demand, but it doesn't float entirely free on open markets because issuing governments may intervene in markets to stabilize their fiat issue as they deem desirable.
Fiat money is here to stay as it is by far the most practical and flexible of all sovereign money's yet devised. Basing a sovereign money on a rare commodity is a ridiculous idea bound to fail. The only reason it worked in the past is that people* hadn't realized how utterly ridiculous commodity based money really is. Once the absurdity and non-sustainability of commodity-based money was recognized it quickly disappeared in favor of much more sensible fiat money.
Fiat money ultimately takes its value from the issuer's authority to tax**, the issuing nation's productivity, the amount of fiat in circulation and the public's perception of these factors. Reserve, fiat money also derives stability from large pools of reserve-currency-denominated assets in the hands of non-issuers.
These highly desirable features are absent from crypto currencies. This is the reason that any nation foolish enough to adopt a crypto currency as a national unit of account will very quickly revert back to the use of either their own or another nations sovereign fiat currency. No nation, however, will adopt another nation's fiat currency unless circumstances force it to do so. ***
_____________________
*Some of course did recognize the absurdity of basing a national currency on a particular commodity, but their arguments were unpersuasive until crisis, easily enough predicted, forced recognition.
**This is the critical factor that must be present, because no country that issues its own fiat currency will accept any other currency in payment of taxes.
***In the EU monetary Union we have an example of what were independent countries voluntarily giving up absolute sovereignty over the currency they use in favor of joint sovereignty among several States and without adopting a universal Euro Bond. (Germany has consistently opposed the Euro bond.) Thus the States of the Euro monetary union have accepted an incomplete union by voluntarily ceding control of their currency to a collective without a common bond. This has caused no end of difficulties for the union, and may ultimately cause its dissolution. Many of these problems can be traced back to long held anachronistic beliefs about money that no longer make sense.
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Your reply is so badly flawed that I don't know where to begin. But lets look at this point. How many countries are doing well with their own fiat? Of the strongest ones outside of USD, Yen is crashing and Yuan is also trying hard to fall. Everyone wants to run to USD as the strongest fiat, which blows a hole right in your thesis, but USD will also fail miserably.
The truth is actually the total opposite of everything you say. For easily the bottom 95f% of currencies out there, the citizens would be smart to get into anything other than their own government issued fiat.
In order to understand bitcoin, you need to understand what money is. Money is just a ledger. And the type of ledger that is decentralized and one that you cannot manipulate is the best ledger of all.
Then why bother to begin?, at least until you decide where to. If my statements, not arguments, just statements, are as badly flawed as you say, then everyone will see it and there is no need for you to go out of your way to explain the obvious.
.Imo Fiat will disappear as it has shown to be manipulated and exposed to hyper inflation since there is an unlimited supply. The USD will not hold as the defacto global currency so they better get on board or be left behind by other countries. All countries will be creating digital currencies that will be backed by Bitcoin....not gold. Essentially the gold standard will return in the digital form. If the US does not follow suit then they will eventually be sitting on a pile of worthless gold.
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You f****** nerds will never learn oh let's start a campaign where we call something Fiat and start pedaling travesties like this crypto bro who just went to prison with his ugly ass I think it's a girl I don't know what it really is but it's nothing I want to have anything to do with. It's even worse than d******* wonders pissing into the wind out of what who knows pathetic crypto bros
Hahhaha. you gave me some good laughs. Thanks!
Its interesting to me how so many people can see the current problems in the world, but not understand how the way that money is done today is where the problem is.
I kind of wonder how much the government has to steal from you, how badly hurt you need to be by inflation, how much of your freedom you will give to the government, before you realize that maybe the problem is the government control over money.
I also notice that nobody is willing to explain how money isn't just a ledger. They have no problem saying how horrible Bitcoin is, but can't come up with a definition of money and can't disprove how Bitcoin isn't a better form of it.
I kind of wonder how much the government has to steal from you, how badly hurt you need to be by inflation, how much of your freedom you will give to the government, before you realize that maybe the problem is the government control over money.
I also notice that nobody is willing to explain how money isn't just a ledger. They have no problem saying how horrible Bitcoin is, but can't come up with a definition of money and can't disprove how Bitcoin isn't a better form of it.