Bitcoin Forum

The Bitcoin followers keep saying the Bitcoin is a new currency.

If that is the case then by definition it is fiat.

When it is fiat, then we will see inflation and breaking the 21million limit.

Fiat is currency, but not all currencies are fiat. Fiat is, by definition, issued by governments as legal tender. No government has the power to issue Bitcoin. Therefore, Bitcoin isn't fiat.

Bitcoin is deflationary, so I have no idea what you're talking about.

You are confusing definitions. Fiat is currency issued by the government and do not have limited emissions. Bitcoin is decentralized and limited to the issue.

You what mate?

Explain

No. It is inflationary, as the forks act as a de facto inflation mechanism. And unlike the central banks where there is a decision process, inflation in Bitcoin happens whenever someone feels for making their own fork

As far as I know, no country has supported bitcoin as a national currency. The individual shops that accept bitcoin for payment are a drop in the bucket, they can accept eggs, acorns, Zimbabwe's currency, or whatever else that only for them is valuable. From this, all these means of payment will not become a fiat. Inflation is an economic concept. I do not know how to fix it to bitcoin. Demand and supply as market factors, but not inflation.

The main point is, fiat currency is issued by an authority, and bitcoin is not. Unless the architecture of bitcoin changes completely, bitcoin will never be fiat.

When we talk about paper money, we can talk about inflation. The government and the national bank can issue money indefinitely. The more money is not supported by real growth of the economy, the higher the inflation. Bitcoin will end in I do not remember which year. It has an end. He is not infinite. Its price is not supported by the development of gross domestic product.

I think they are just saying that it is the new currency because it is becoming popular and widely accepted in some countries. Bitcoin is not really a currency but a digital currency in which it is decentralize and volatile.

Bitcoin is used in some payments and others, if you search the meaning of currency it is a currency that is being used in a country as a their main means of payment and not only that, currency also means that it is accepted or being used. Bitcoin is not a main currency of one country but it is accepted as such.

Bitcoin is different from fiat currencies, and they cannot be equal. And if bitcoin may soon become the new currency, it will act more way different than fiats. And remember that by definition of definition, it was more like a statement.

I think they are all currencies and they have the same features at all so somehow you could compare one to each other to see which one is more potiental and better than another.

Bitcoin is alternative currency so it's different compare fiat. But as we can see bitcoin have same function as same as fiat so for who still early know bitcoin will consider bitcoin as currency.
But for me as long as bitcoin can be use as transaction then bitcoin can be consider as alternative fiat !

I think you don't even need to stick with the definition of currency, if you really know bitcoin, it is just a common sense.

Bitcoin is not issued by the government and it cannot be the main currency of one's country but why do people say that it is a currency? Currency also means "the fact or quality of being generally accepted or in use"  (https://www.google.com.ph/search?rlz=1C1NDCM_enPH757PH757&ei=tJIWWoeDDYb28QXzr7WIDA&q=currency+definition&oq=currenc&gs_l=psy-ab.1.0.35i39k1l2j0i131i67k1j0i67k1l3j0i131i67k1j0l3.117544.118457.0.120316.7.7.0.0.0.0.299.840.2-3.3.0....0...1.1.64.psy-ab..4.3.838...0i131k1.0.TmvQldfwDlk), bitcoin is being popular and being accepted by many countries by now, some even legalize bitcoin, so we can say that it is a currency but not a fiat.

You have said it all, the difference between bitcoin and any other faint currency is they legal tender.

I do not understand how you can overcome the limit of 21 million, if all 21 million Bitcoins? Fiat tied to a particular state, is in the form of paper, coins, or gold bars, but it is controlled by the state, create it.

And right now, their are many businesses either online or IRL are accepting bitcoin as payment. I have yet to see some altcoin payments because for now bitcoin is the most famous coin suitable for payment. Cryptrading is allowed in our country but not most of the citizen are aware of bitcoin. If the transaction wont take long, i would totally in bitcoin than in fiat in most cases.

It's not and it's not even close.

Until you can go to the local supermarket or market stall and pay for anything in bitcoin, until you can pay your mortgage or get a haircut....it's not on a par with FIAT.

People need to understand, we, as a community, are the minority...we are early adopters of this 'asset'...the majority of the population is still wondering 'what is a bitcoin?'...hell you don't even see older generations using contactless or mobile banking, they don't get it and they don't trust it....so bitcoin is a long long way away from being equivalent to FIAT.

Fiat is the currency but all currency is not fiat.

You will excuse me, but this is deliberately illiterate in terms of economic concepts. Perhaps you mean something when you say "inflation." However, I do not understand what exactly. The increase in demand leads to a price increase. Demand will not fall, as more and more people around the world want to have bitcoin. But it is limited to a certain number.

Wow the inconsistencies in here.

Nothing is "prohibited". Do you have a Bitcoin "law" that cannot be changed? No, of course not.

Bitcoin is decentralized so decisions have to be accepted by a majority. Exactly. And a majority can decide to go beyond 21 mill.



Here you are literally contradicting yourself within the same sentence. You are saying someone can control Bitcoin, they just need to have 51%.

No it is not. You fork it and thereby have more coin. This will draw off money from the original - and in reality it is inflation. That you call the altcoin another name does not change the fundamentals.

What level of stupidity can you show? Can you define and differentiate that two things? Probably not. Digital Coin is different from FIAT, you really HATE bitcoin to the point that you are creating lies, Shame on the person behind this account. Are you really happy trolling here? Get out of here and Get a life!

I think you need to do some more research .... once you learn a bit more you will realize how Btc and fiat are worlds apart.

I think there's a little misunderstanding about what really bitcoin is for other people. Well people do consider bitcoin as an online or should we say digital currency, yes it is also, but for some reasons we do also need fiats, the reason is that, not all merchants accepts bitcoin as a method of payment, so please just stop comparing fiats and bitcoin, they are both currencies but with different usage and purposes.

It has a limit unlike fiat.
Therefore it gets valuable as it gets lower and lower in the market.
The rarity of one product makes the price go soaring to the highest amount.
Fiat value now are getting lower and lower because they keep on creating new ones.
Can you create bitcoin on your own?

Wrong

Just because something is limited does not mean it gets valuable.

There is a limited amount nuclear waste in the world, that does not mean it is getting more valuable

That may be the silliest parallel you've tried to make, yet. Scarcity is typically a factor in value in general terms as well as availability. However, there are some things which are rare that aren't valuable or are hard to establish a value for because there's nothing to compare it to in order to get a baseline price. That I will give you.

They say a currency is 'backed' by something. This is just to say that they cannot print unlimited amount of currency.
If it is not backed, it is called fiat, because it has no limit to how much it can be print.

Crypto is not backed by much, but on the other hand, it cannot be printed at will, so it is not fiat.

No it isn't. Until now Bitcoin is still not fiat cause we still can't use Bitcoin directly to buy or pay for everything. If Bitcoin is fiat, it must be legalized worldwide and everyone can use Bitcoin in everywhere and everywhen they want in both online and offline market but for now we can't do that with Bitcoin, almost market that accept Bitcoin for payment are online market and when we wanna buy anything out there, we still need to exchange Bitcoin into  local currency to do it.

There is a big difference between fiat currencies and Bitcoin. Bitcoin is virtual cryptocurrency that doesn't have the same characteristics and it's not functioning on the same platforme like fiat currencies and in many countries is not recognized as a payment instrument, it's not backed by any government or central bank so it shouldn't be mixed with fiat.

not yet, once it becomes the universal currency that is accepted by the government as an official means of payment and value in society, then it will become something that can be called a fiat currency. and the 21 million limit cant be broken; first off, the limit is there so curb inflation by limiting the amount in circulation. it'd take one hell of a hard fork to remove that limitation.

no. fiat is just something that the government accepts as an official form of payment. for all i care buttons can be considered fiat as long as it's accepted by the government as a form of payment. it does not by any means have to be created and issued by the government. doesn't take a lot to do a google search before you spew out bs.

The only difference between Bitcoin and fiat is that the first one is decentralized and can not be managed by a centralized group of administrators, while the latter is centralized and can be managed by a centralized group of administrators.

the conclusion is too simple. you should read more. although fiat and bitcoin have the same functions as currency, but the system is much different. bitcoin is predicted to be inflation-free because the amount has been determined. in contrast to fiat whose numbers can become infinite or increasing.

Yes bitcoin is the new currency and people will get confuse. though it should be explain by governments and friends who knows about bitcoin. fiat currency is what we are using right now!

Bitcoin is a different currency, based on the financial system it operates under and how it works, if you look at it in an open-minded way you can easily see how different is the system from the regular inflatable financial system. I think this system might work and even achieve better results than the old financial system.

They don't say that bitcoin is fiat.
By saying that bitcoin is the new currency, they mean that bitcoin is a next generation currency that no one has seen before , and has some features that weren't available at the fiat currency, such as decentralization, fixed inflation and etc.

It's a new payment system, not a currency, that's where people fall.
Bitcoin is not anything that we have seen before.

That is not true. Fiat is created by governments and is usually considered printed currency or digital currency that is not based on any blockchain. They do have their Fiat digital obviously, as we can bank online and move money around from one place to another and they don't physically move it.

But that isn't the same as being on a blockchain, where there is Proof Of Work or Proof Of Stake happening. That is probably the main difference I would say. You should look both of those terms up and read more on it.

Fiat is not backed by any commodity or asset, it can be created by just printing more, but in turn it will decrease it's value, a misconception is, once Fiat becomes obsolete, Bitcoin will be the dominant currency and will more likely to become like Fiat instead, one thing they are forgetting is that, Bitcoin is not only a currency, but an asset as well, there is a reason why people call Bitcoin gold 2.0, and that is because it has the traits of gold, but it is in the digital form.

Bitcoin can't compete or replace with fiat, because still people more prefer fiat over bitcoin because of trust issue because we can't trust govt toward behavior against bitcoin. This is the reason bitcoin =/= fiat.

Flawless logic -.- and Internet is the new newspaper. That's where you get your news now right? So there you have it. Get off of your glorified newspaper and go do something productive.

Just as salt is used as a currency back in the days.

Saying bitcoin is fiat since they're both currencies is plainly wrong. Bitcoin would never be inflationary, it would stay its 21 million hard cap and fiat would just keep printing paper money like hell. Aside from that, fiat is centralized whereas bitcoin? No central banks/government issuing and regulating it.

Your reasoning is not true. Let's say bitcoin is a currency. But from the fact that bitcoin currency does not follow that it is fiat. Fiat is the money of a certain state, the usual paper centralized money, and bitkoyn is not. Bitcoin on the contrary is practically the opposite of fiat, because it is not created by the state, and therefore the currency is suprastate and decentralized, digital. Based on this, this is a completely new kind of digital money.

Bitcoin itself isn't really better in that aspect, it's backed by no more than people believing it being worth something. It's being traded as an asset more than as currency at the moment, but it's not gold.

If one assumes that bitcoin is a new currency, then it does not come out logically from the fact that it is fiat. Crypto currency and ordinary paper money are the opposite. Fiat are the creation of one or several states. Crypto currency is not tied to any state and therefore it can be regarded as a supranational currency. Fiat is always centralized, and the crypto-currency is inherently decentralized. Therefore, such a statement is not true.

in my opinion, bitcoin is like a source for us to make money from internet and now bitcoin is not like fiat which can be used in real life although only few country that could used bitcoin for offline transaction. but yes bitcoin can be a new currency in future but for now, its just a new currency that we used in internet and makes us easy to pay something that we bought at internet.

 fiat currency is “centralized” and digital currencies like Bitcoin are “decentralized”

Yes because of bitcoin we can now be easily to purchase any things that supported bitcoin as a payment method in the internet and also they provide us a good way to earn extra income for our daily lives but in order to be fully used bitcoin in our daily life we need to convert it to Fiat so that we can easily to transact in any people that we've been encounter in our daily life.

Bitcoin is completely different from fiat

To me bitcoin is not fiat, not a currency
It is more like gold, an asset, people hold it for long term value
Beside that, will you do a $10 transaction with $5 fee? Not worth it right?  ;D

bitcoin is a new currency not a new fiat. you misunderstanding the difference to the two. fiat is issued by the government by its country, while bitcoin are issuing world wide without anyone can manage or control of it. so this (bitcoin) can be a new currency that can be use of anyone anywhere that no one can manipulate its own price.

Bitcoin is the same as Fiat in my opinion 'Yeah, same .. only, bitcoin is money in the form of Digital while Fiat already prints Banknotes.  ::)

And they can print more and more driving the price down. Can you do it with BTC? Nope. How come those two things are the same in your view?
You're also forgetting another important difference which is control. Nobody can take your coins from you, but fiat doesn't belong to you. It's the property of the government, while you're a temporary owner. If they decide it's time to take back you won't be able to do anything.

I think OverStock CEO Patrick Byrne's This little Interview Clip will help you understand Bitcoin Better.

"It’s Time We Switch to Real Money, Either Bitcoin or Gold"

Youtube Video from Fox Business: https://www.youtube.com/watch?v=Y9XWghQb20k

When bitcoin was designed from the beginning, the total amount was fixed, 21 million. He is, in fact, deflationary. The government does not want to see such a currency, because inflation is beneficial to the government's business. If you don't print money, it means you don't get votes.

What are you saying mate? Bitcoin is more like an asset now like Gold and Silver rather than a fiat currency. A fiat money is controlled by the government and its supply can be massively increase while Bitcoin is not and its price is fixed. And by the way, fiat money is issued by the government while Bitcoin is not. You should read more about Bitcoin and what is the purpose of this.

Actually fiat defines as a currency that a government has declared to be legal tender. There's no government that introduces bitcoin as their national currency, so what are you talking about?

IMO, bitcoin is not fiat , fiat is currency that can be own physically !
Bitcoin is different things and it's consider as asset rather than fiat/currency so it's better to keep bitcoin rather than fiat

You should do some homework on how Bitcoin was created.

https://www.mail-archive.com/cryptography@metzdowd.com/msg09959.html

It would probably help you a lot in your line of thinking.

Yuuup.
Due to the development of the times all can deal with bitcoin., And we use to buy anything without using real money..!!
For now bitcoin prices are very promising because every time is always changing.