Bitcoin Forum

https://i.ibb.co/jGN5p9r/IMG-20210528-WA0009.jpg (https://imgbb.com/)

If you understand this picture, congratulations, if you don’t , then you don’t understand money , no matter how much you have in the bank.
#Bitcoin  is down 4% today. But next few months BTC could pump 400%.  Pump or dump, storing your money in crypto beats saving up in the bank.

Well, 1967 has a different value of money back then and the money right now is just the same as back then, the difference is that there is an inflation so whatever you are trying to imply on this post, you failed. You are right about storing your money on crypto in a bank though, crypto is a poor man's hedge for inflation.

"Gold is good store of value, so buy bitcoin" That's what you just said :)

Good picture:
https://cdn.howmuch.net/articles/Rise-and-Fall-of-the-USD-64c2.jpg


In term of store of value - I can't imagine a rational,experienced investor that go all in Bitcoin to "store value of his money". But I do understand a rational investor that puts 10% of his money into bitcoin, and the rest in gold, silver, value stocks, reits, real estate. Thats the true bulletproof portfolio for inflation hedge.

This picture is misleading, gold prices in 1933 cost around $500 USD (adjusted for inflation). The image suggests that each dollar in the 2 stacks has the same value, when in reality, the right stack is 1933 US dollars, and the left stack is 2020 US dollars.

The correct comparison would have been to have a stack of ~500USD on the right side, but that doesn't convey the pro-gold dogma as clearly.

Also:
https://web.archive.org/web/20210322191128/https://s3-us-west-2.amazonaws.com/gs-live/uploads%2F1536602670694-goldinf.png

We can pick dates as arbitrarily as we like. How small would my money stack be today, compared to 1980? Less than 15% the height of the 1980 stack.

Even though I agree with the sentiment that having fiat means absolutely nothing at all and everyone should own something else to fight inflation. I however do not agree with the photo there, it is deliberately done that way. You can use just 100 dollar papers and it would look so much smaller, photo uses 1 dollars to make it even more higher than what it should have been, you would have either 1 20 dollar bill versus 17-18 bills and that would basically be it, you could literally use 1 dollar bill and have 20 bills for 1933, and use 100 dollar bills and have 18 bills for 2020, so 2020 would have less bills even though it is so much more money.

We already have a valid point and when you have a valid point there is really no reason why we should also look for other angles to carry out the message. Always but ALWAYS have something other than fiat that will value over time, usually people prefer real estate which works if you make a good investment, but gold would be fine, bitcoin would be great anything but fiat.

I'm quite confused by the photo you decided to use. I guess you are trying to explain that the Dollar is worth much less but selectively choose to ignore the fact that gold is worth much more. One is not directly connected to the other. The gold standard was not fit for purpose in the 19th century and giving governments the flexibility to set monetary policy has been a major benefit to the vast majority of people around the world. A relatively small amount of gold is extracted each year - some is put to industrial purposes, some is used for making jewelry and some is just hoarded as a store of value like Bitcoin. That does not make gold special and gold has actually been losing ground to other precious metals in the last few years, so be careful which "horse" you back.

Only if your intention is to speculate and not preserve wealth. As you mentioned, bitcoin is down 4% today.  Do you know how frequently the USD is down 4% in a day?  Never.  That's the difference.  People who understand that bitcoin is nothing but speculation understand the true risk of putting all your wealth in a speculative asset.  That's why even the most bullish crypto enthusiasts who are actually wealthy advocate for maximizing your crypto exposure at only a few percentage points of your wealth. 

I feel like there are many different morals and narratives to this story. The US abandoning a gold standard in 1933 is certainly relevant. The rise of the US dollar as a global reserve currency in 1944. To nation's like china working to undermine and replace the US dollar as the reserve currency in 2021. I've seen charts claiming average worker productivity from the 1950s to the present having almost doubled. While the average working day could be longer today than it was in the 1950s.

There are many different trends at work. Different dimensions which make analysis complicated.




If inflation metrics were accurate. Wouldn't there be $1700 stacks on both sides of the table?

One potential explanation for only $500 on the right side is inflation metrics being under reported. The way unemployment and virtually every other vital statistic has been under reported for decades. 

I don't think you can justify saying that the price of gold has not actually changed between 1933 and 2020 (after adjusting for inflation in all parts of the economy, not just normalizing against CPI).

Gold itself is inflationary too, so if anything its price would have decreased. Keep in mind that the right side being $500 simply means that in 2020, you would need $500USD to buy 1oz of gold at 1933 prices (~20USD from 1933 = ~500 usd from 2020).

I see inflation and bitcoin is one of the ways to beat it.

It is okay, they may be hark working and a saver person and that's a good thing already for them as a start to learn how money works because they're responsible in keeping and saving.

Yeah, literally said that beats the inflation.

Pretty nice giving an example with the one thing Bitcoin might replace as a store of value, I wonder if that happens we're ever going to see these pics again but with just a few copper coins on the table this time?


If you would indeed be an expert you should have posted how much those 20$ would be now if put in a bank too with the annual interest :)
But that would screw up the whole point you're trying to make, right?  ;D
Or better, but for this you need to get 3 more tables, do one by putting that coin in Coca-Cola shares in 1919!

Wait-wait, how did we jump from gold straight to crypto? Are you suggesting that crypto is as good an instrument for hedging inflation as gold? Then I'm about to disappoint you...
First of all, gold isn't such a good hedge, it's been shown many times. Secondly, crypto is even something riskier.
Yes, Bitcoin can be up by 400% anytime soon, but have you considered that it's as likely to be down? No matter how much you believe in crypto, you have to be rational. Putting all assets at stake is irrational, IMO.

Yeah that’s true. If you take a look at the all time chart of Bitcoin you wouldn’t need anyone to tell you that investing in cryptocurrency would be the best thing to do for a long term because Bitcoin will eventually have more value than the fiat and only those who were able to have the level of patience to hold for a long time will benefit from it.

Although looking at the image you have here – 1933 – 2020, that’s around 88 years and I don’t think anyone will be ready to hold for that long. Five years is good, because you need to reap the fruits of your labor.

If people were to choose, I think that a lot of them would probably choose bitcoin and roll the dice whether it is going to go up or down unlike gold that doesn't even guarantee a big profit. Of course, you don't have to put everything that you have as an investment because it would be stupid to do so otherwise.

Amazingly. Hyperinflation will make the US dollar useless one day.

I understood one thing from this picture: Gold is now very costly and so as to a candy bar, clothes, vehicles, broom stick and what not!!
There are multiple angles to look at this picture. I mean if the cost of living is compared to that gold then be it, our wagers are being adjusted in the same manner. (Except developing & underdeveloped countries).

However, if we gonna consider the Fiat to crypto angle then yeah, crypto is the winning stick here and it’s gonna hit dollar bill very hard one day.

A person who invests in cryptocurrency might become rich overnight, if the moment he buys and sells is on time, but you need to take into account the risk when you buy bitcoin at a high price, and have to wait a long time, while the price of Fiat currency fixed and there is no risk of losing the money we have

See, fiat is important.
Cryptocurrencies are important.
Both of them has their own place which is irreplaceable. You have to understand for a fact that storing everything in cryptocurrencies might be efficient for rich and the wealthy. But you have to keep in check about the present too. The problem is, you can't take out money that instant. You would have to wait for the price go pump up so that you are not in a loss. Which does mean you might have to always keep some amount of money in cash. As an investment it's good but as a sole Investment entirely. It's foolish.
There is nothing like banks are superior or cryptocurrencies are superior it's a synergistic relationship and the faster you understand it, the better it would be for your economic situation.

Aren't there enough threads regarding this topic in this forum? Check these out.

https://bitcointalk.org/index.php?topic=491337.0

https://bitcointalk.org/index.php?topic=5325101.0

https://bitcointalk.org/index.php?topic=5284280.0

https://bitcointalk.org/index.php?topic=5084692

Both currencies have their advantages and disadvantages. It all comes down to personal preference at the end of the day. I prefer using both in different scenarios.

Cryptocurrencies is very important to the global nations as we can see since the existence of cryptocurrency in the year 2009 and 2010, but right now we can't compare cryptocurrency with Fiat, because fiat has been in existence over ages which people values fiat than crypto, looking at the scenario very well young adults that are up to 70 years don't really value crypto but up till date old adults values fiat because they are have been acclimatized with physical currency than digital currency.

At least dollar currency is still dollar currency since its beginning, now look how many countries around had/have their currencies names changed and their values reseted from times to times due to inflation which is much more violent than in USA. Compared to these situations, dealing with dollar and euro keeps being a privilege nowadays.
Thankfully we finally have stablecoins and bitcoin to avoid massive devaluation of our earnings. If it weren't for those currencies it wouldn't worth saving a penny.

Its happening in some countries already and it can also happen to a rich country if they failed to control the economic crisis. We have to understand the value of our fiat money today will always worth less in the future because of inflation, and the purpose of investments like in cryptocurrency is to beat those inflation. We have to know what’s best for out money and don’t just settle on fiat money, look for ways to make it more valuable.

Although some think that cryptocurrencies will eventually replace fiat currencies the two offer different advantages. A common criticism of fiat money is its sensitivity to inflation local governments can increase the supply of money at will reducing its value over time in the worst case scenario economic instability can lead to hyper inflation which rapidly reduces the value and perceptibility of the fiat currency bitcoin the most popular cryptocurrency in the world has a fixed supply of 21 million worth of coins. Due to the limited supply, many people prefer to hold bitcoin without using it as a medium of exchange.

Times has changed for people when it comes to money. Before the existence of crypto, everyone used to put all of their savings or investments in the bank but now that bitcoin and other crypto appeared, there are more people who are choosing to invest on it rather than in banks. The volatility in bitcoin is much higher regardless if it is upwards or downwards while in banks, your money is just slowly growing but it is assured that the price is going upwards. You should rather be on investment that goes high once or go down for s bit but as its value plummets you will gain most of the benefit and that is on crypto.

If you look at how the value of fiat changed over time, you would see that it started by it being a replacemnt for gold to make transactions much more easier so it got its value from that and worked for a while until governemnt just decided that thye can just print more and decied the value as they whish just because they can and have the power to, and that where bitcoin and other crypto came here to change, they are currencies that get their value from the poeple they use it and its value will only increase over time.

We are doing the trade to earn more from the fiat money.Because,we just keep the money.It won't increase to any value.And cryptocurrency are the good platform to get good profit in a short period.So invest your money in reputed coin like bitcoin,ethereum. Deciding is important one in cryptocurrency ,when to buy and at what price.

for now in the end it must be realized with fiat, because only fiat is flexible to buy various goods we need. By utilizing the function of cryptocurrency for trading and investment, profits from these activities can be exchanged in fiat currency and entered into bank accounts that have been legalized by the government.

Surely, gold's value increases as time passes by. It is one of the nicest investment assets if you'll look it up on the Internet. However, also put into consideration the hyperinflation that happens as the world moves forward. It also plays a role in why certain assets have a price value higher than it was declared years ago.

Crypto is a good investment, no doubt. But also put in mind that it is a speculative asset. Nothing is ever certain so I never recommend putting all your eggs in one basket. You have to diversify your funds because it's so risky to store them in one place. If a bad thing happens at that specific platform that you have invested all your wealth, you'll end up having nothing in a snap.

In my opinion, comparing crypto with fiat is useless because both of them have to survive together with their uniqueness. Both of them are reliant on each other as the government will never choose crypto over fiat. They can co-exist but they can never replace one another.
Cryptocurrencies and fiat both have disadvantages as well like valuation, fees, inflation, etc. Hence, they will be dependent on each other somehow or the other.
For example, we still have to purchase cryptocurrencies using fiats and we still spend our earnings from crypto in the form of fiat after exchanging it most of the time.
Regarding Gold, it will always hold a separate position in investors' minds because it is completely different and not any form of currency.

Apart from comparing the two which are "less" relevant, I think there are still some sides that make people compare the two. besides that, both can also play the same role in the current financial system, where crypto is better than fiat and the banking system is not good for the community, imo

What you wrote is simply a way of saying Gold is a good store of value and so we should accumulate as much gold as possible. While I understand your point, your objects of comparison are absolutely wrong.
While you want us to buy crypto instead of fiat, you compared fiat with gold.

Anyways, crypto is better than fiat not only in the fact that it's a good store of value, the other benefits of bitcoin over fiat such as anonymity and low transaction fees are more than enough to use bitcoin over fiat

The worst thing is that governments try to justify this by saying that even if the crash in their currency is massive over a long period of time the economy has roughly grown just as much which means that people are roughly earning as many inflated dollars as the people were earning dollars backed by gold but this is a false premise, the economy would have grown anyway as we would had all of those technological advances and they are trying to mix those two concepts to confuse people and make it seem as if they have been doing a good job when that is not the case.

     Welp, that was awkward. lol. Bitcoin or any alternative coin in this industry aren't the only ones a person can invest on. Clearly, you are way too focused on bitcoin right now that you forgot about this. Also, you were giving a sense of ignoring others and focusing on bitcoin. Just think about it, who in their right mind would even invest a hundred percent on bitcoin alone? There obviously are a lot of okay to great investments in and outside of this industry that are also great for the purpose of storing value. Or maybe you just mean that letting your money stay idle without gaining anything is wrong? If that's the case then, well I strongly agree with you.

You might want to take a little bit of caution with this advice of putting the spare money in investment, don't put everything in an investment, especially with a volatile one like bitcoin. Take it easy in investing because there is a lot of unforeseen events that may need a lot of money and you put it all in investment which is going to leave you with no choice but to get it out prematurely. For me, crypto is a really good investment and fiat is a useful tool that I can use to buy services and products.

Comparing between cryptocurrencies and fiat is maybe not a good idea because these are two different thing with two different features and ways. I would say crypto is not an actual currency but it's an asset. As you mentioned, things like inflation rate can make the fiat money worthless time after time, here is why people use crypto and gold to save themselves from losing money. even during the short bearish period the investors of bitcoin are still taking profits and this will show how fiat is losing it value against crypto.

I do not need to compare crypto and fiat because crypto and fiat have different purposes. For me, crypto is a new investment and could be used to pay for something in the store. Fiat is a currency that I still used daily, and fiat can not be my investment. Gold will be like crypto and it can be an investment, but the gold price will not move too volatile. We all use crypto and fiat both in our lives, and until crypto can be used to pay or buy something in real life, we can use crypto for the investment.

it's true that both are equally important, because fiat is a legal means of payment in every country while crypto is still categorized as a commodity asset, even I hold 50% fiat and 50% more assets, especially in crypto and gold.

if we can share it like you, then later financial freedom can be achieved. By placing their respective functions, cryptocurrencies are assets that are not affected by inflation, even tend to increase in value

I live in a country with inflation, all my income is obtained in bitcoin and cryptocurrencies. I prefer to only make use of them to spend on my daily needs, while my savings in crypto are destined for a long time. This is my life in crypto, I love this life and it is the one I want my family to take as an example.
I think that Bitcoin and cryptocurrencies are here to stay that there will be no one who can take it out of our lives.
The best of Bitcoin is yet to come.

people will always compare crypto and fiat, but let's admit the fact that most of us are still relying on fiat and that will not change anytime soon. up until now, only small population are into crypto, though adoption is increasing day by day. for those crypto users, just be grateful that you are oriented in this technology, and that you may find benefits to your advantage. but don't expect that everyone you know of will be in favour of using crypto or investing in crypto.
the volatility is the reason why many of us like bitcoin or other alts to be included in our investments, however, because of such feature, we can also lose big time if we are not careful with the market.

You correctly said about a small part of the population that uses cryptocurrency. Exactly the same can be said about the same small part of the population that will compare the fiat currency and cryptocurrency. This is a fairly popular topic, but only in strictly defined circles, and the ordinary population does not have such a comparison problem. People in any case, even in the near future, even in the distant future, will still rely on fiat currencies simply due to the fact that the states will prescribe to do this and put the main emphasis on it, even in the field of economic management, even in the field of public administration. Here, the sphere of investment or use as a speculative asset is a completely different story, here the state and citizens have a very good platform for cooperation.

Well, what I understand is that the longer it takes, the more expensive the price of a valuable investment, therefore, we need to be patient if we invest in something that people think will develop in the future at this time. well, so far, I'm also still trying to collect and hold crypto assets that I think will have great potential in the future. however, a very real picture is also of bitcoin, or any other popular altcoin.

About this I want to say that it will continue to coexist for a long time, the opportunity is still wide open also a good opportunity will still happen.
However, basically this is like the progress of human economic life, especially in terms of income, this could be the bright side of getting a good chance.
I just hope that more people will continue to believe in crypto until it becomes more popular in life.

Your thinking is correct, because to be able to generate large profits if we hold crypto in the long term. The longer we HODL, the higher the profit
we make, because as we all know the development of crypto is very fast. And if we choose Bitcoin and popular altcoins the price will be more expensive
the longer we HODL,  then from that we really have to believe in the future of crypto. If we talk about fiat, we know that its value will decrease
if we HODL, so fiat is only worth using as payment. But it is not recommended that we store wealth in fiat, if we do not want its value to decrease.

I disagree with the bold part, everything is an investment since you are putting your time and efforts and holding them in the form of fiat, with this anyone that is holding a great deal of their wealth in fiat is basically saying they trust the way the government are managing their fiat currencies, since I do not trust them especially since the have printed so much money during the last year I prefer to have as little fiat as possible so in the case of an economic crisis I will not be affected as much compared to those that hold most of their wealth in fiat.

I am in the same exact situation, I make my money from the crypto world and then I try to keep as much of my money as possible in crypto, I turn the rest into fiat and then spend it for my livelihood, otherwise I wouldn't be capable of spending anything, I would be doing bad, however now I am doing better and that is a good thing for me because otherwise I wouldn't know what to do with my nations fiat, I can't even think about how horrible it would be to work for fiat, I have friends who do and every year they are a bit poorer and poorer and they are doing bad, which is why I am trying to make as much profit as possible from crypto since there is at least a chance for me to make more profit each year to cover that inflation, it is hard and usually I do not make that much more, but at least I am not making the same amount of money neither.

I am now currently jobless and same with you mate all my income today is obtained by my crypto related job. I maybe jobless today but I didn't complain about it. I love the way of life I have right now, no mandatory 8 hrs office works, don't need to set my alarm at early in the morning to prepare to go to work but sometimes i come to bed late because of some pending works, i control and hold my time and I felt that doing this crypto thing for me is not boring, i learn everyday and I improve myself. At the end of the day I just can't compare the worth of fiat and crypto coz for me these things is equally valuable but what i have enjoy today is the freedom to do what I like while earning.

It's already very popular just the ability to purchase products via bitcoins is lacking and it might be because of the confirmation and other problems. Hopefully, a wallet-integrated service something as PayPal can achieve bitcoin transactions through an already refilled wallet like bitrefill does. There are some services like bitpay but there are not complete because even there confirmations are required which kills the fun of spending crypto.

Fiat right now is more popular because there are ways of spending it. Once there are merchants who accept and transact in bitcoins or crypto for that matter, I am sure crypto will overshadow fiat transactions very quickly.

I don't think BTC is going to replace money anytime soon, but I do think that BTC will be more widely accepted in the future. But with all of these companies that require so much info on purchase and an ID for alot of wallets, the anonymity of BTC is slowly being removed from most transactions and wallets.

Cryptocurrency is money insofar as it allows exchange between two parties and acts as a store of value. However, they also offer features that today's traditional money systems cannot offer: cryptocurrencies can be used and accepted by anyone, anywhere, anytime around the world and without the need for a bank or government. This is the most revolutionary aspect of cryptocurrency.

Most of the money the government creates is when loans are taken out. Banks create money when people borrow money. Take the case of the US dollar: if no loans were taken, there would likely be no dollars in circulation either. In other words, without consumers taking debts into the bank, the US dollar would not exist in the world.

While fiat money appears to derive most of its value from debt, this is not the case with Bitcoin. Bitcoin has intrinsic value beyond the belief of its community. Bitcoin does not rely on a debt system, its value boils down to how effective it is as a medium of exchange.

At the moment, bitcoin is a speculative asset and behaves accordingly. The rest of its features and hypostases certainly exist, but so far they do not have a significant impact on the price of bitcoin. And so for now, we can talk about the greater value of bitcoin as a commodity or asset, but not as a means of exchange. The entire modern capitalist economic system is built on the debt system, and if bitcoin does not yet rely on it, then this only indicates a small involvement of bitcoin in the system. That's when, as we all hope, the involvement of bitcoin in the economic system becomes large, then you yourself should understand what will happen next ;)

It will be incredible, scary and interesting to see the USD prices going up tens of % a year, people distrusting the USD and moving their reserves in Gold and maybe in Crypto too.

And yet governments try to make it seem as if we are the crazy ones because we notice those increases on the price of everything and yet they try to downplay it with their own indicators that say that everything is fine, many people understand that things are getting out of control and there are others that even if they can feel there is something wrong they do not know why that is, which is why it is important to do what we can to protect ourselves and bitcoin is a great way to do this.

I think that Bitcoin can't replace money! What will happen is that the entire cryptosystem will replace the traditional fiat system! Digitalization, it's the future! And crypto can deliver what is impossible for a traditional system, billions of users connected  24/7!

And I don't think it's will be an easy ride! Traditional shareholders will not give up their positions so easily, and people as people have a lot more to learn about centralized and decentralized systems, about how crypto actually works! All this is just the beginning, and I believe that this crazy ride is far from over!

The price value of money changes over the years, back then when you buy something in the grocery with 30-50$ you have many grocery bags to carry but now probably a single bag or a pouch because today price value of money is smaller than before same thing with fiat and crypto with a dozen of money in your bank is just a piece of coin in the crypto bank or market.

Without taking any risk you can't be rich, both currencies have positive and negative sides but i go for crypto because if i can invest in good project i will get more profit at a time but fiat can't gibe extra benefits.

Who can guarantee that the bitcoin price will not stay stable below $10k? We believe in blockchain. However, there is no guarantee that a more solution-oriented crypto currency will not emerge after 5 years due to current energy problems.

Yes there are really no guarantees in crypto and all those early adopters have come to witnessed that but still they take the risk and end up having economic progress at the present.

Although risky, but bitcoin investment if you can handle the pressures can definitely beat up gold and real estate investment once properly managed. I do not want to discourage people who only prefer gold and real estate investment but if you can try investing in crypto, you would really say bitcoin is amazing and incomparable.

Many have lost faith in the banks and our original Fiat because of the government interference and its low interest yielding rate. As a result of this development, any other alternative method that will yield good profit over a reasonable while is a more and most suitable option for store and really sort after. An alternative to original fiat that has good prospects with high volatility and less interference from the government is crypto, hence the bulk of people migrating to join in.

It is not necessary to engage exclusively in faith in matters of finance, because it will not lead to anything good. If your faith is not supported by knowledge, then usually this can only lead to losses, that is, you can enter the market at the upper levels, and then exit at the lower levels after being disappointed in bitcoin for life. You can not trust modern banks as much as you want, but the banking system has already proven its efficiency and effectiveness and has been functioning for centuries, which can not yet be said about bitcoin, which has yet to win its place under the sun.

It's so sad that inflation has eaten up everything we have in the name of making some shit income from banks that has been milking us dry since the 70s and 80s.
I don't even know exactly what they have had into people. Saving, just an ordinary interest rate that are insignificant to our life.
Your pictures speak of of just a single solution, invest in cryptocurrency now or wait after 10 years and see your $1000 becomes $10. Such an irony.  :'(

The problem with the inflation is that it couldn't really hurt the people if in parallel with the growth of inflation, the wages for the workers are growing which isn't the case because the government is far too corrupt to give workers a leeway.

The only solution is not to buy crypto, there are other methods you can save yourself but the inflation is there and you will not get the profit of it. The minimum wage in USA did not went up according to inflation, and certainly not according to how much executives get, from the time last minimum wage was decided, if you increased it based on what executives got, it would have been 45 dollars per hour for minimum wage.

Now I know you think that is impossible, but why is it possible for CEO's to get that much increase in short span of time while minimum wage workers do not get anything at all? This is basically how inflation works, rich got richer and poor stay the same. So, the solution is simple; buy gold, buy crypto, buy plot of land, buy house, buy whatever that can stand test of time and just hold on because you will lose your money for sure if you keep it at fiat.

the picture shows that a gold coin can increase in value but you want people to invest or hodl a btc ?
would it be convincing if btc is used in the sample but anyway a money is not hard to understand and all people in the word knows what is it and its function .
 money is used for purchasing and it wont grow fast and big  if you wont invest it in a growing asset like btc and gold .

That happens with every system that feels it is threatened by new technology, before electricity humans used kerosene lamps so when electricity was finally harnessed those in the business of kerosene did everything to try to avoid the adoption of electricity, but it was a lost battle electricity was simply a better technology and at the end it imposed itself, and the same is going to happen with bitcoin, bitcoin is better than fiat and it does not matter how big the market of fiat is bitcoin will eventually take over it.

If the government magically waved a wand and mandated everyone magically get a 3% raise to account for inflation, do you know what that would do to the inflation rate?  Raise it above 3%.  You artificially increase the amount of money everyone has, inflation goes up.

Digitalization is what we are into right now not just in currency but even in some personal necessities that are inevitably out in the market these days.

However, when it comes to currency, crypto are gaining huge interest right now especially with the emergence of this covid 19 pandemic. Digitalization is slowly taking the position of fiat currencies. But i think there are still long processess before crypto takes over fiat and it should be legalized and adopted by the government first. If not, then crypto will be hard to be used as a currency and will only remain as a good store of value.

Bitcoin has its place to secure some value away of centralized systems and registered assets. It is a risky way to store the value but it's a great alternative to cash&gold.

This also happens when governments raise the levels at which people can indebt themselves, for example in the US the government increased the loans that it could give to students to get a good education, but what happened? The loans were so big and so easily available that the costs of education has grown many times over the inflation rate, whenever you try to artificially raise the amount of money that people have at their disposal inflation happens.

Yes the same happens in real estate and with junk bonds.

But that doesn't mean that you have to put everything that you have in bitcoin because despite the big profits that it might give, it can also take away those things and I think that it's a dangerous thing that we put all our money in something volatile not to mention that not everyone has a really good risk tolerance and some don't even know their risk tolerance.

Many people can understand it but they will not get the ideology behind how the money system works, thanks for sharing this picture I am going to use this on social media handle so that people can realize how fool they are, and government doesn't want them to learn as well.

Behind these basic differences, both crypto and fiat currencies have similarities, both can be accepted because of trust to function as a medium of exchange. Fiat currency is believed to have value and is trusted as a medium of exchange because it is issued by the government. While bitcoin, although not issued by the government, more and more people believe it has value, and as a medium of exchange.

Hyperinflation is most likely coming and when it does, everyone will be like dah of course. But right now, only a few of us prepare, it reminds me of the 2013-2014 time in BTC, the writing was on the wall but it seems the price increase will never come.

Both will surely exist because it do really serve out different market in terms of payment which do have that centralized and decentralized basic characteristic and i had never think off that fiat
would really be replaced anytime soon even how crypto would progress in the future.Dont know why it is really needed for one to be replaced as we cant really deny that fiat does have some
pro's too or things that you cant see in cryptocurrencies and same goes on the other way which means they do have their own advantage and disadvantages.
If you do love decentralization then crypto would be the best thing but in the end of the day we do really still trust up fiat.

I think hyperinflation is already here in the world because almost every nation is worried about cost of goes. Covid-19 is a major cause of this hyperinflation because it got most countries to print more money to take care of lockdown as they need to distribute some food stuffs to the citizens . In US there was stimulus parkages and that saw them printing and floating money into the economy. Likewise other countries went borrowing and that brought in unbudgeted money to the system. Inflation is usually caused when too much money is in circulation and of course too much money was in circulation during the covid-19 and now.

I agree, we have the world economy running under steroids since more than a year: it's like having a drug addict receiving more and more substance, at some point he's gonna break down. This is what's gonna happen at the economy, at some point probably soon, the real economy and the financial economy are going to split for good. And then I hope all of you are prepared for what's gonna happen. You still have time to protect yourself, choose wisely the assets you invest into.

All fiat currencies are ended up to 0

It's plainly obvious hyperinflation is not here and you can tell by the fact that prices are not hyperinflating.  There's no way to hide hyperinflation.  If it was here, you would know it because prices would be growing through the roof across the board.  It's not happening.

It's nothing but inflation and inflation. There is nothing new to it.
While everyone is claiming Fiat is the devil and what they all hate, we all need fiat than any one. Crypto might act as a store of value but I don't think it will anyway serve people as money, the risk is so high that an average man may be left out and the poor masses who lack proper education.
Has anyone thought of how scammers will outrun illiterate with there wallet? Its going to be a disaster.
Bitcoin may be a store of value but its far from what money is doing though what have a merit has a demerit everything ceteris paribus.

Bitcoin is not a store of value either, it works on its own demand and supply but the money issued by the government does more harm than good to the users and if you are still believing that money is the saviour than you are the part of the trapped community and you need more knowledge about financial freedom to understand all these things or atleast the picture in OP.

The world economy has been working on steroids for much longer and the name of these steroids is called the policy of quantitative easing, which is resorted to by almost all the economies of the largest developed countries. Simply due to the peculiarities of the functioning of the current global financial system, miraculously, that inflation practically did not affect developed countries, but mainly affected developing economies. The pandemic has further increased the scale of this phenomenon and even more states have enthusiastically printed even more unsecured money. Another question is that the government had practically no choice in the conditions of the economy stopping due to knockdowns.

Cryptocurrency and fiat currency are two different entities on which they have different way on how they show case their importance as well as their value. Fiat money stored in banks have potential to grow depending on the contract you have with the banking system when it comes to interest rate that is stated on the banking contract you have signed upon creating the account and putting your money into it. In terms of cryptocurrency, the value have a better chance to increase on price because of its nature of volatility. Comparing those two, you can state the storing money in terms of crypto can be better with crypto compared to when it is on bank but there is a high risk that the pump can also gets into dump since it is not a stable market.

As long as inflation can be controlled, it is certainly not a problem, even inflation is needed to make production increase, we cannot expect the price of a pack of rice 10 years ago to be the same as today's price, and crypto is the best solution to control inflation.

the increase in crypto will be greater than the inflation that will occur, so with crypto there will be no inflation like what happened with fiat. where the current fiat every year there is always inflation, the price of goods rises. but unfortunately at this time the government does not fully support cryptocurrencies

The rise in crypto prices may come as a surprise to many, but it won't always go up continuously. You can see for yourself that sometimes people who invest in crypto have a high level of stress. ;D I will choose these two types of investment, crypto and fiat. Some countries have also accepted crypto but not all countries.

I don't understand this picture and I'm a financial advisor.  What are you are trying to portray here really don't make sense in my opinion. Also to state that keeping your money in cryptocurrency is better than keeping your money in the bank is an irresponsible statement.  You need to remember not everyone is in the same position financially and many people simply can't risk the potential losses that highly volatile cryptocurrency exposes you to.  I agree that it's smart to have a good percentage of your portfolio in cryptocurrency, but that also completely depends on your situation, and that may not be possible. It amazes me how many people seems to forget these basics.

Storing money in crypto is better than keeping it in fiat depends on one's position of financial freedom and I agree with that. When we say that because we already have a definite income every month it makes sense, but there are many people whose financial conditions are different. It's difficult to save, let alone convert it into high-risk crypto. A person's ability to take risks depends on his financial readiness. Bullshit can take a risk if eating for tomorrow is still limited.

Digital currency that you can't feel with your hands, everyone is just playing with their smartphone to buy what they want. such is the age to come to see people relaxing at home and buying what they want online.

I don't think it's like that because more or less people will feel disadvantaged by the impact of inflation that occurs, such as price increases in a product because if basically people with fixed incomes will feel tormented if inflation occurs because the income they get is not proportional to rising prices product so that they will feel aggrieved for it. and this is only from one sector, there are already some people who feel the impact of inflation.

I disagree, btc isn't changing or replacing money. Just imagine the recent dump that happened from $60k to $30k is money, how do we adapt to such change and the effect on commodities. Its going to be a man-made disaster if money is having that quality.
We shouldn't be blind with the profit we are all trying to make and wish or want btc to be money.
I respect it as hedge against inflation but money? No no no for me.

In fact, some concepts are wrong. For example, legal currency is a state guarantee, and currency is a consensus. Bitcoin, as the consensus of all mankind, is even stronger. It does not rely on the endorsement of the state and is not controlled by others. It is a truly free currency. But his market is also highly volatile and risky. If the private key is lost, it cannot be recovered.

Each has its advantages and disadvantages. It depends on the investor's choice. Choosing cryptocurrency as an investment is the best choice. The profit you make in a year at the bank may not be as high as the market's rise in a few days, but this is also an optimistic situation. The income fluctuates greatly and the risk is also high. If you don't control it, you can lose your money. But at a bank, you will not lose your principal unless there is an accident beyond the bank's control.
It all depends on your mentality. If you want to speculate, it is best to choose encryption. If you invest in a part of the crypto market, the gains may make your eyes shine.

I got the point you are trying to portray, keeping money in banks as saving is shit, because banks would use your money to make big incomes and gives you peanuts in return, no matter the volatility of crypto choosing a potential coin and saving your funds there is much more better than saving in banks, but honestly speaking I don't agree with your photo, $1800 can't be that huge, but well it's fine I got the message your trying to pass on but next time try to make things go accordingly.

This picture shows us a very common thing-inflation. It eats our savings, that’s right. I share your point of view that to save our money we should invest. Long-term investments will be more profitable than just holding fiat money in your bank account. USD is devaluing all the time, and investments can increase, and they will if you find correct financial instruments.

Just goes to show how big of a value crypto (especially Bitcoin) is in the future, just like Gold, Bitcoin will continuously grow as the years pass by, meanwhile, fiat will be at a constant level, but it does not mean that fiat will stay flat, of course, it will grow as well, but compare it to Bitcoin and you'll see the difference, the OP wants everyone to know that holding what we have right now will definitely benefit us if we do hold it for a long time, if gold gained its value like that for a long time, just imagine Bitcoin alone, and just imagine how huge the profit we'll gain.

The fiat currency has completely different goals and the increasing value is not only a priority goal of existence, but to some extent even harmful according to modern economic theory. The falling value of the fiat currency to a moderate extent should contribute to economic growth and the recovery of the state's economy as a result. It is best that money should always be in circulation, and not a dead weight in the reserves of the population, and therefore reasonable inflation should contribute to this. Another question is that this is not the best option for the population itself, and therefore it is necessary to look for objects for investment and savings, and they are actively trying to use bitcoin in this role.

Yes but the problem is that we as holders and users of fiat actually only experienced devaluation. It seemed to be a one way ticket once you amassed wealth in fiat and that was towards negative progression. With assets that counterbalance this, like Gold or now specifically Bitcoin, I think we have a much better equilibrium and range of choices that even make an economy more vibrant when hoarding is also an option under certain circumstances. Central banks can't know everything and they can't control for everything like wish to. The citizens of the nations carry a certain sentiment within them towards spending and saving/investing, and that can't always be manipulated like a monopoly game. With Bitcoin's success I think it becomes evident that people want some place to put their money in a way such that it isn't constantly devaluing over night.

Absolutely true. If you let your money sleep in banks even it takes years the interests are really small and only the bank benefited if you store your money on them. But this is not the case if you invest in crypto, you're the one controlling your funds and can use several strategies to maximize your profit. Though investing in crypto is risky, but it is proven to be profitable and worth it.

Haha it would be great if the interests rate were at least positive (+) small. The truth is that banks are now even raising negative interest rates on deposits. That is crazy, seriously. They want by all means that you pick up your money and either let it shrink in your safe at home due to inflation or that you damn bloodily put it into the stock market further inflating equity and housing prices. We are going to face a big fat bubble exploding right into our, yes... faces...

There is a risk in certain ways almost everywhere. With fiat it is the inflationary risk and the hyper surveillance possibilities once it is fully digitized. With cryptocurrencies you have a whole lot of other risks that maybe regulatory or legal, but also volatility risk. There is of course also technological risk involved, which is not quite the case for fiat currencies.

You mean don't keep cash for the long term right? I agree with that view because a lot of money has been printed over the years. Bitcoin is always scarce and it will increase in value over time. I love bitcoin and I understand its value.nBitcoin is always scarce and it will increase in value over time. I love bitcoin and I understand its value. It exists on the internet, invisible and valuable.

risk will always exist wherever it is because risk is a form of uncertainty that has the potential to be bad for a person's life.  When people feel anxious about their health and are afraid that they will not be able to pay the expensive costs, people choose to buy health insurance to ensure a sense of security from economic difficulties when they are sick.  This insurance is one form of us buying a guarantee of uncertainty but is selling well in the market.  In investing, don't we know each other's portfolio theory as a risk solver?  If we recognize what risks we will accept, then we will easily find ways to reduce the risks we will accept.

Saving money in the bank and saving money in crypto have different purposes. Saving money in the bank is done so that the money we have is safe, while saving money in crypto is used as an investment. the comparison of the two is clearly not the same. you should compare an investment with an investment, investment in gold with bitcoin investment for example.

Bitcoin is indeed the digital gold. Aside from being a utility one, BTC is now becoming one of the best asset anyone could have. Many people are now seeing it as an store of value asset and likewise as an investment. Saving money in your piggy bank or typical banks will definitely lose its value and that's where BTC comes in. However, I doubt your 400% increase in value. Btc however pumps up for over 300% since last year and that's good enough.

Yes but the pump will come to an end and why people consider it a store of value or a great investment vehicle, one shouldn't forget that hardly any asset can also drop as fast as Bitcoin. If Bitcoin is once worth $10 trillion in total market capitalization and it gets hacked, well, gold can't be hacked at least. That is a risk that doesn't exist. Could it be produced synthetically? So far it sounds unrealistic and we probably would find out about it in a more timely manner than we would find out about Bitcoin being hacked and crushed. I am absolutely pro Bitcoin by the way, this is just some food for thought.

I do not even think it is that daring, or risky at all. What do you have with banks, yearly 1%? 3% at best? I mean they are usually horrible, so if you want to take risks you basically end up buying stocks and hope to make 10-20% with that. Do you really think that in the long run you will not make over 20% with bitcoin?

If I buy the top 10 coins (except usdt) and put it aside, I am 99% sure that I will make more than 20% yearly on average, of course there could be years like 2018, and there could be a bad moment to buy into it, but in the long run, I will definitely make more than that. Like if I buy right now, I can see bitcoin reaching 1 million dollars and even more in 10 years, which means over 50% on average. So this is not even risky, putting your money into bank instead of putting it into crypto is just a fools move that do not know any better.

Many cryptocurrency coins are more valuable than the Fiat making is very easy to make money even without working in the bank. The cryptocurrency market is never stable like the current market that has few volatility when compared with the cryptocurrency market.

The crypto market has ways of compensating investors that invest in a project. One can stake, farm, and mine cryptocurrency whereby making good profits not like Fiat that only the bank and the government could make certain amount of money by tasking citizens for transaction fee and other medium where funds can be generated. In cryptocurrency, everybody can win at the same time.

it's clearly very different if we save money in the bank and save money as crypto, because crypto's main purpose is for short and long term investment purposes with the aim of increasing prices and making profits.
While the alternative to saving money in a bank only consists of saving and depositing, the interest is clearly determined and certain. but if our funds are stored in crypto, the funds may fall when we are about to release, therefore it must take patience and wait for a definite time so that funds in crypto can be profitable.

but if you compare fiat and crypto, it is clear that they are very different, in fact both are equally important to make transactions where crypto may not and has not been recognized as a transaction, so fiat can do it, so actually they cannot be compared, it is more appropriate to fill in each other's void where fiat can't and crypto can do and vice versa. let it continue to walk together for the purpose of complementing each other.

Lol, how do you hack bitcoin? You can't hack bitcoin or the network. The hacks that you are hearing about are security flaws on different exchanges. It's the exchange that gets hacked and all coins stolen. As long as you are storing your coins in a safe place and make sure you are taking all security measures, no one can hack your coins. Just like bitcoins which can be stolen, gold can also be stolen too. Read the history. You will know how the government snatched/stole golds from their citizen. At least they can't do that with bitcoin.

I don't understand what you mean by hacking bitcoins.
okay indeed for now the times are very sophisticated to do something but for hacking myself especially bitcoin I still haven't seen someone can hack bitcoin directly.
I don't know if I'm a person who doesn't know information or what but I really don't know it can happen because we know that bitcoin has a very high security system even though it can be stolen it doesn't mean that bitcoin can be stolen but moved for example from one wallet to another and that does not mean the weakness of bitcoin but the weakness of the person who has the wallet who is careless

I have to admit and have to agree with the writing at the end of your topic, this is a fact.

I once compared in two months, crypto and saving in the bank, what I did was deliberately to prove, it turns out that it's 100% true that crypto can beat saving in a bank in terms of the benefits provided by the bank and the results of buying crypto.

This is what I actually did, with a small capital of $200 I divided in two parts, $100 I kept in certain cryptos and another $100 I kept in the Bank, fact, $100 in crypto can be $150 in two weeks, while in the Bank it only adds $102, the comparison is very far from what I thought.

It is true, Crypto has an advantage over fiat, namely in price.  The price of Crypto can go up very high in a short time, therefore most people who save money in Crypto are for profit (Investment). And only people who understand Crypto will save money here. And saving money in the Bank and in Bitcoin, if I think it is clear that saving money in Crypto has a higher advantage.

I supposed we should stop comparing this over Fiat as we all know crypto is just backed by this as well as the current trend, without it crypto will still be devalued. We should just say Crypto vs Banks.

Indeed. Investing in crypto is much better because we can double our capital (depends on the coins that we invest in) for a short period. Its a fact that we cant deny though it has risk due to many scams but if you're a kind of investor who always conduct a research before investing then huge gains are not impossible. While storing our money in banks are the old way of saving, but you cant gain huge from it even it take years. Thus its obvious which is more beneficial.

It is known fact that the interest you can gain from bank savings is really small. Actually, you need to treat it as just securely storing your funds, you should never count the interest that you will get. Unless, you put it into other bank services like time deposit or other form of investment plans. The advantage here in bank savings is you are just securing the safety of your funds. But if you want to take high risk, you can really go into crypto. But one should know how to handle his finances in crypto or else he can easily wipe out his funds.

follow my thoughts on the picture you are referring to and compare the future profitability of crypto as well as fiat money on savings, this is if true what you are trying to send to people then in my opinion you are right about the current cryptocurrency if we hold it for a long time such as 5 years, now the number is x many times and the fiat money they make is quite low and almost if 5 years later then that profit will be 0. why because 5 years later money loses value and the bank refund rate is very low and we also refund zero.

In my country if we save money in banks then we only get bank interest of about 10% per year, of course this is a very small value if we invest in crypto, since 2016 I only filled my savings for daily and monthly needs, the rest I immediately bought crypto, This is a move that will make me a big profit one day.

Of course investing in crypto is much more profitable than saving money in a bank because saving money in a bank is not an investment. when you save in the bank the money is used for capital and the 10% interest per year you get is only a small part of the profits the bank gets.

what we talking about is invest in something, and you cant compare between bank and crypto, because they are totally different.
and thats true if money cant make great move like crypto, because we know what is money.
bank, just for store your money. keep it save, to make transaction on real life, and other thing you need.

When we save money in the bank of course we will not get a very small increase in value or bank interest, the function of banks and crypto is different, we can't fully rely on crypto to meet and spend daily needs, of course we can't be separated from the bank.

If you're just looking for a fast double, gambling is what you're doing.  Nothing returns such high gains without a corresponding high risk of loss.  Expecting any asset to double in short order shows just how warped your expectations are. 

Cryptocurrency and fiat currency are two distinct entities that display their importance and worth in various ways. Fiat money held in banks has the capacity to increase based on the agreement you have with the banking system regarding the interest rate specified on the banking contract you signed when you opened the account and deposited your funds.

Saving money in cryptocurrency is certainly more profitable than keeping money in a bank, but all of that is based on market movements too, if the price movement goes up of course we get double profits, but if the market movement goes down of course we will soon experience problems in our finances, my advice don't invest crypto with money that is used to fulfill your basic needs, because it will make you feel uncomfortable

Considering a long-term investment, I think that Bitcoin is absolutely a better choice than fiat money. Because the volatility helps you a lot in the long run. The price increases like hell and your investment also rises a lot. It is not guaranteed of course. Bitcoin is not always rising in the end. But as long as the investor stays patient, the day will come.

On the other hand, I don't mean that you should invest all of your money into Bitcoin. Because you can get hit by Bitcoin movements really seriously. You should invest an amount which you can fill its place even if you lose it all.

I prefer to store my Fiat money in crypto and not in any of the banks that give you a percentage of profits that are not enough for you, I am one of the people who invest what they want to lose, so my money I put in crypto I don't need it and I hold it for the long term until I get good profits, Crypto is really volatile unlike fiat but if you study the market well and know when to buy and when to sell, your money will be safe.

No matter how much the price of Bitcoins move you will almost be guaranteed to earn more than the interest you earn from the banks on your money. In fact, people earning interest on their savings in the bank will be a victim of inflation in the coming years while the one who invests in assets like Bitcoins will never face such difficulties.

The only drawback of Bitcoins against fiat is the real-life use cases. You cannot spend Bitcoins at many places which is the only negative I can think of right now. That is why adoption is the real catalyst to the value of bitcoins.

Saving in the bank does not provide profit, only a sense of security that our nominal money will remain the same from time to time and even then it will lose to inflation that occurs every year. different from investing in crypto where we just wait and look for a point to sell when the price has soared

Actually, I notice a problem with your thinking.

So, basically you believe crypto is more valuable than fiat which sounds good and no problem yet.

This suggests that you don't actually trust crypto yet which is quite contradicting to your other statement.

Personally, I still prefer fiat over crypto because the legal status of crypto is always in question and if the government imposes a ban on the crypto as they are always working on some bills, I would either have to sell my coins amid a crash because of the ban or I have to hold them illegally.

This doesn't mean I am criticizing Bitcoins or cryptocurrencies, I just feel the legalization of crypto is crucial moving forward.

There's no interest holding it on your own and if you'll put that in the bank, it is the banks that will earn from it and they'll give you a share.

Yeah, a little share from your own money that has been deposited on them and used for loaning their customers. That's why if you have extra cash and you want to grow it, invest in on crypto and if possible, don't go far but buy bitcoin.

Your explanation is correct, our money in the bank will be used by banks to provide loans to their customers. And the bank will impose interest that
must be paid by the borrower of the money, a small portion of the interest earned will be given to us as investors. And that's a very small
percentage compared to what we would get from investing in crypto. Although investing in crypto is risky, but if we have good knowledge and
analytical skills, it is not too difficult to make a profit from crypto. Especially investing in Bitcoin, has been proven in 12 years is very profitable.
A very significant increase in the price of Bitcoin, can provide a very large profit if we can be patient holding Bitcoin in the long term.

It is the usual cycle that's why many of us who owns crypto are lessening our cash flow due to that fact and we've chosen to put that savings into crypto.

Because there's more sense to it and if you've been in crypto for quite a while and you've held that long, you'll have that decision that it's better than the traditional style of saving and investing.

Although saving in traditional money is the most correct, in my country that word or that action "Savings" does not exist, firstly because of the local currency, which is impossible to save there due to high inflation.

When a country has high inflation problems, particular economies tend to look for many alternatives, but there is no room for savings, when we talk about crypto, only for those traders who achieve at least 6% quarterly would be accumulating 24% per year, that is, , more annual interest would be generated than any bank in the world, then the BTC or any cryptocurrency can become the best saving method, even in countries with very prosperous economies.

In my country the biggest interest rate by a bank is 4% while the inflation rate  is 4.4%. We lose .4% of our money even if we put it in the highest paying interest rate bank here so it is wise to have an alternative. This is where BTC and Gold assets comes. They provide a protection for our hard earned income and keep us away from institutions that makes money out from our own money. Aside from that, in crypto we now have DeFi projects that offers a big return for our assets.

  Wow it's a ridiculously thing that's possible happen to us. Cryptocurrencies will be more trend an stand as our transaction nad it will be our used someday than Fiat.

That's what I've just said.

I'm thinking about Venezuela but it's more in hyper inflation so I'm taking a guess from which country you are residing but I can't think of it.

But anyway, it is true that when a country is dealing with high inflation, savings isn't going to work. You have to look for some ways to grow your money through investments because if you've got $1000 in savings on that country, the value of it by next year or so will eventually decreased. It's still $1000 but you will buy things soon lower than that value as inflation increases.

there are various reasons why we have to put our money in the crypto world, it is very easy to get promising profits and a bright future compared to banks but we also shouldn't be greedy by putting banks aside, for in my own country banks are still financial intermediaries in every transaction, Safe work and storage

what you do by converting the excess fiat money you receive from your monthly income into crypto currency is certainly very appreciated, because if you just leave fiat money in the bank you will only get very small interest, but if you save in crypto, especially on coins The best thing is that it is certain that in the future it will reach a higher value than you buy and the % is clearly greater than your fiat deposit in the bank.
your actions are very much appreciated and it is clear what you are doing, if you can do day trading again, of course you will be able to get more, but keeping silence is also a good investment.

if we want to borrow money at the bank we must provide a guarantee that has a value that is much greater than the amount of money we borrow. other than that if we borrow money and we are late to pay we are required to pay a fine. of course the bank will benefit doubled from the interest we receive every month.

Such is the system of the bank itself and the bank itself is a business,
so of course they want to benefit from the high interest we receive every month,
High interest rates are certainly a consideration for all of us before borrowing money at the bank