Bitcoin Forum

What is the point of having a limited money supply like bitcoin when a unlimited money supply like fiat(usd,cad,euro,yen) can buy it all? the bankers still win no?

anyone?

Unlimited supply will cause inflation and will make the value of fiat lower. Unlike with bitcoin, it has a fixed supply limit and soon its value will increase because its supply is limited and fixed. Just apply the law of supply and demand. (https://www.investopedia.com/terms/l/law-of-supply-demand.asp)

If someone will use fiat to buy as many as bitcoin as he can, you'll see a price spike. Buy = demand, the more buyers, the higher demand.

yah but the price does not matter to one who can create fiat
so again what is the point of having a limited supply that can be bought by a unlimited supply

The meaning of bitcoin is the absence of intermediaries, the absence of such long transactions as between the Bank to bank , but so far everything spoils such a strong volatility of bitcoin , and no any regulation on legal

I thought it was to stop things like banker bailouts as mentioned in the genesis block

The point is that unlimited supply (fiat) can buy everything and is centralized so its value is stable and declared by the government.
While bitcoin (limited supply) isn't controlled by the gov't which has its own value predicted by its supply and demand through us . I don't know if this answer will satisfy you.

So this is your point?

Banks still have their duties and services. But in the future, banks will have to participate in the crypto market to be able to grow. Stablecoin like USDC, USDT can serve for trade and financial transactions. in the future it will be used more and the bank will go bankrupt.

But what is the point of having a money supply that is limited like btc when another unlimited money supply can buy all of that supply

Man you are just repeating your question even though I've answered it already that fiat can buy everything and about its inflation/deflation.

Your question is confuses me to be honest and I don't know what answer can satisfy your question. Could you please give your point with that question? if my answer doesn't satisfy you, let's wait if someone can explain it better until you get satisfaction.

despite what you think "money" doesn't have unlimited supply. a government can not just start printing unlimited amount of money as they wish. there are some limits there too and if they do then the value of that money will fall so imagine if today value of 1 bitcoin is equal to 4000 units of another currency if that currency started being printed out of control then the value of it would fall and then you have to exchange something like 10000 of it for 1 bitcoin.
so what happens is that unlimited fiat can not buy up bitcoin.

You think that by creating money the value of a unit of 100 let's say of your money will stay the same?
Nope, google Venezuela inflations and you're going to understand what printing non-stop money means.

You're going to buy the first BTC with one second of print time, the 10000th with 2 hours and by the time you want to reach your first million already it costs you more to print money than the banknotes are worth. Do you think any sane goverment will destroy their economy just to get their hands on all the BTC? And what's next, do the same with ETH, LTC, ETC, etc. ?

Also, you really believe that banksters do whatever they want with the money the banks have in their custody? It's nice for a tinfoil hat scenario but in reality, it doesn't work like that.

Good luck to everyone trying to buy all Bitcoin's in existence. You can't do something like that without people quickly noticing, and when people do start to notice that whatever entity or entities are buying in big, they simply won't let go of their coins. On top of that, you don't gain much by trying to buy all coins in existence since there is no way to stake them or vote with them.

The only thing you do is make everyone even wealthier on paper, and miners extremely happy. Sounds like a bad deal for governments who only want you to become poorer and poorer. ::)

Only if Bitcoin holders sell all their coins to the bankers, and then fiat currencies collapse. You expect that to happen?

Around 83% of the total supply has already been mined and distributed to the market anyway. Bankers and governments are late to the party. The real question is whether Bitcoin attains mass adoption as a P2P currency. If that happens, bankers will only ever attain a portion of the market and if they try to buy up the market, all holders benefit from increased power of purchase.

Those who own that 'unlimited' supply of money you're talking about wouldn't want to mess up with bitcoin. If they do, they've done it a long time. Also, another question is if people would be wanting to sell their bitcoins in the market. Sure, with hundreds of trillions of money printed around the world can buy the supply, fiat can easily buy bitcoins no question. Assume that all bitcoins were bought, then what now? A new system would probably been floating around by then, and do you think these same people who bought all the bitcoins would likely buy the new system tokens all over again? No. They'd rather keep their money safe and sound than spend it all on bitcoin alone.

This is vseravno what to say - why do we need to live, we vseravno die. The fact of the matter is that life is a constant risk. Cryptocurrency gives us additional features and convenience, but requires additional risk for it. Therefore, here you need to make the right decisions on time. Who is ready for this - welcome to the world of cryptocurrency.

Yes, only bailIns, not bailouts.
Does anyone here really believe that your deposits of fiat in the banks would not be confiscated to sustain insolvent too-big-to-fail financial institutions? One day in the not too distant past majority of citizens of Cyprus found out that the amount of money they control is much lower then the balance of their bank accounts. So the point of bitcoin is that if you don't surrender control of your money to your bank then your bank can't take it from you even through inflation.

This is what makes the Bitcoin valuable. I give you a simple example. If oil production increases, its price will be kept, but if production falls and the country's oil reserves decrease, the price will rise. So the Bitcoin is limited in number and with time it will become the rare coin as I see it

Dont get hung up about the limited and unlimited points. No one person
can buy all of the bitcoin but all bitcoins will be bought (or earned, or traded etc.)

The point is not that bitcoin can be bought with an unlimited currency, the
point is that it is an alternative payment method to FIAT

There are mini 0 that could be given to people when the time comes and people can buy something in a shop for about 0.0000001 something sats.

The point of having limited of bitcoin will affect the price in market just like if there's too much demand the price will probably increase. Even we have unlimited supply of money or simply fiat we can't  buy all supply of bitcoin.

I liked your question.
That's why we all want Bitcoin to replace paper money. The paper offers governments to use it as they wish, without limit, without any laws. Also, why can not we get BTC while getting everything is possible with paper money? Even we have to pay paper money to the doctors to save a dying man. And now compare.  :-\

Eventually no one will want to accept fiat anymore. Specially not to exchange for bitcoin.

This is the meaning and value of bitcoin.The endless emission of fiat money creates inflation and ultimately makes people poorerIn many countries, the national currency is not tied to anything.This is a problem.Bitcoin is ready to solve this problem by creating a limited number of coins that will grow in price over time.The main problem is that not everyone can get bitcoin.And the one who has money can own, if not all, almost all bitcoin.Logically, the bankers still win this race.

Your value of currency will be Zero if you are using an unlimited supply money,so you need to learn how the money are getting value,even the fiat money like USD or others are not unlimited but no specific limit level for it,it can be printed as much as the banker wants so the value will get decreased if they keep printing so if you are still trusting the fiat when we have something like bitcoin.

This would only work if you were able to buy all Bitcoins for fiat. The supply circulating on exchanges isn't even half of all Bitcoins in existence. Even if you were able to make accounts on all exchanges in the world you would be able to buy maybe 30% of all coins present on exchanges because a lot of it is being held there and used for active trading. Not sitting on open positions and can't buy coins from accounts they have to be up for sale. Buying all coins is impossible.

I guess OP understands it now but if it is now enough for him, google is free all the time. Decentralized and centralized money is totally different and yet the government couldn't buy everything in the market, they don't have such power to take those bitcoins from every people around the world. Of course, the market will notice that if someone was buying but no one is selling then they would stop, right?

For easier thoughts, imagine that you are selling something which you can make it freely? What it's like? Unlimited? Nah, you're wrong you were just making it worse, everything is connected in the society because everything is a fixed data already.

That it can printed at any time doesn’t mean you can just keep on printing. If you keep on printing money just like that, then value of the country’s currency will drop. As for Bitcoin, it is limited and we all know that. But as the demand for it continues to increase you will see that the value will also continue to increase at the same time. It will reach a time where you won’t talk about buying a whole Bitcoin, rather you will talk about buying in fractions (that’s in satoshis)

You have a crude understanding of money OP. Printing money isn’t a zero sum game. As they print and buy bitcoin the purchasing power of bitcoin will rise and rise. Eventually they will have printed piles of worthless fiat and still not own even half the BTC.

They cant buy every Bitcoin as the entire monetary base is not available for purchase, some of it is only available via mining new blocks.     I think you are talking about cornering the market which has been tried in a few commoditys and generally is acknowledged not to work out in favour of those buying

It would not be a success for a central bank to print money to buy Bitcoin.   Quite a few people would be selling their bitcoin and exchanging back to FIAT, this always happens with every rise in price.    So the flow of new money back to FIAT causes inflation and will show as lower value for that currency, which means more of them are required in exchange for one bitcoin.

It seems unlikely to work out but its interesting question all the same, there are many unstable national banks which might even attempt this one day.  I can only imagine US dollar being able to succeed to any extent as the majority of the UN holds USD in capital reserves

I look at it as a kind of social experiment, for a lack of a better term. The fiat money system has many flaws, Bitcoin tries to correct them. Now it's a matter of wait and see how it all turns out.

The most important part of having bitcoins is having financial freedom and total control over your money the reason why more people are investing into it. Is because they're sick and tired of banking institutions exploiting their costumers in debts and regulations. Haven't you heard of fractional reserve ? it's where banks lend money that they dont actually have then charge you with huge interest. That's why bank runs are currently happening right now. Soon your proud fiat system will crumble.

I believe everyone here will be preferring their bitcoins to get bought but for the prices they will be quoting. What is the point of buying all the bitcoins ? They will sell after that for lower prices? I believe no one will sell for losses. Bitcoin will match with its limited supply to those fiats even they all are having unlimited supply. I am not sure that you are right with your point of buying all the bitcoins will make them winner against the seller.

Basically bitcoin will have more value according to demand hence sometimes you might not able to cover even with your unlimited fiat's supply (this must be an extreme scenario and may not be possible in near future).

Moreover bitcoin can have any number of units as electronic payments are known for infinitely divisible.

We can assume such an outcome of the event. This is not a problem for States, and all decentralization will be exhausted! Moreover, there is already news that some plan to replenish the state reserve with bitcoins. But I think there is some option to prevent this!

People unfortunately are subjected to the same nonsense here in the crypto world. I'm certain that if people withdraw every satoshi from their exchange, that the exchange just can't have them all be processed. Now people have their fiat locked in the banking system, and their crypto locked in unregulated exchanges that could choose to disappear tomorrow.

People have a lot to learn when it comes to respecting how precious Bitcoin is when it comes to taking care of your own finances. Eventually, when everything around these people starts to implode, they will finally realize the importance of Bitcoin.

They say that you're never too late, but I'm not sure if that applies here.  ::)

You clearly haven't thought very well about this or at least make a little search before asking. Do you really think an unlimited supply of something is good for people? This is the question you should ask, because money can be printed anytime and they can never disappear so why people still think they are better than cryptocurrencies? On a long term the value of fiat will drop because of inflation, while bitcoin only has a limited supply so its not that easy to get them. Now, you can still buy bitcoin from anywhere because there are a few more millions of bitcoins available for mining but after that is going to end, the process of bitcoin will go up like a rocket since everyone would have their own bitcoin and other people are going to want that.

no, if the situation is still the same as now. unless there is a platform that accepts bitcoin as a payment tool, then we can still use bitcoin to buy something.

Limited supply is the one that makes bitcoin become valuable and will be more valuable when more people wanted it, the unlimited supply onky going to cause inflation, because the more fiat being print the value will be drop down and too much fiat in a country will cause the cashflow become stagnant which will make the inflation become worse, that is why a country with debt can't just print out money to pay

in my opinion the advantage of the limited number of bitcoins is the existence of the bitcoin exchange rate itself if we see as an example of a country that produces large-scale money without any control so instead of being profitable the country becomes poor because the money they produce is worthless

usd,cad is controlled by the bankers while bitcoin gives you complete freedom over your money and it is controlled by you. Limited supply makes it more valuable asset as long as people are using it. Unlimited supply isn't a good thing when it comes to money.

I think to control bitcoin we must have large funds, but if we are only a small fish, of course it is better to take a whales trip, and not be in front of it, because we can become food. besides that we are here to make money by earning profit and in a smart way too, besides that there are many ways to get money here, one of them is by following a campaign

The limited number of bitcoins will affect price increases, and with increasing demand for bitcoin it will enable growth, and in the future bitcoin will be used more so that its value will continue to increase.

Therefore, the very idea of a decentralized cryptocurrency is very good, but as for the price, I am absolutely not sure that it will grow to cosmic heights. In addition, it will always be possible to create another cryptocurrency even with improved functionality, which will have a much lower price. Will investors choose a name or functionality? According to the laws of the market, they will choose functionality.