Fiat in trouble

[Swordsoffreedom]

But tell me one thing it isn't that this is happening for the very first time we have seen in past recessions as well that the economy has collapsed due to increased inflation and ultimately leading to a spiral situation but eventually after a recession the economy stabilizes itself somehow or the other. Never have I ever seen the economy completely getting ruined or fiat coming into question on such a crash. Why do you think this time is different? why are people thinking that this time fiat would end?

Exactly, the most recent economic crisis was in 2008 and it somehow recovered, and the world economy continued to grow and boom after that without the collapse of fiat or the need for a alternative solution. Bitcoin is really good but don't exaggerate it too much.
What role Bitcoin will play in the economy in the future is unpredictable but with the current economic crisis I think we will recover soon without the help of bitcoin and bitcoin is the one who needs the help of this economy. Bitcoin will not be able to recover if we continue to fall into crisis and inflation.

[Bitcoin2009]

Fiat will always be a problem because it is impossible for the central bank to monitor the circulation of real money, sometimes somewhere there is too much money so the price is very expensive, but in rural areas with small money circulation the price is cheaper, and on the other hand, there is none. guarantee that keeping fiat will be profitable so that people prefer to keep assets such as property, gold or something else.

[Maidak]

Inflation is a term virtually everyone is associated with and in one case or the other, is battling with in their economy as the cost of living a comfortable life is now looking like an illusion. According to statistics, a total of 95 countries are battling this scourge and with government policies not helping and the fiat failing woefully, it would be common sense to turn to Bitcoin.

Yes, that's right, this FIAT currency will continue to experience inflation from year to year, why is that?
The more the population in a country, the greater the need to finance their lives, the need for commodities from year to year will increase, while the commodities used will decrease, so that the scarcity of raw materials causes a company to have to spend more. This is what causes the price of goods to rise due to increased operational costs and high demand. the last one is the government's fault, which prints too much money so that the circulation of money is too large, the circulation of money and goods in circulation must be balanced.
while for Bitcoin, I think it should be pegged to gold so that its volatility is not too volatile and helps maintain its value if it is to be used as a global currency.

Can you explain more? as you say the growing population and increasing demand while the raw material is scarce makes companies have to spend more money to produce thereby pushing up the price and it is understandable that the government continues to print money to balance population density and costs, why to blame them so much. I think all governments are aware that printing too much money is not good but do you have a better solution?
In 2020, the outbreak of the pandemic brought the economy to a near standstill. If the government hadn't pumped the money, we would probably have starved to death before we died of the disease.

Economic crisis also has a cycle, once money is pumped out too much, it will cause crisis and inflation. That was also the time when the Fed stepped up to raise interest rates to control inflation and bring the economy will recover. This cycle will always happen and repeat, that is how the world economy works.

[bestcoins1]

Fiat will always be a problem because it is impossible for the central bank to monitor the circulation of real money, sometimes somewhere there is too much money so the price is very expensive, but in rural areas with small money circulation the price is cheaper, and on the other hand, there is none. guarantee that keeping fiat will be profitable so that people prefer to keep assets such as property, gold or something else.

Now the price of goods in rural areas with the price of goods in urban areas no longer has too much price difference, so the expensive or cheap of an item is also difficult to measure if only through the circulation of money around it. And for the problem of saving money or owning other assets such as property and gold, it is only about how to invest in slightly different ways with the aim of making profits and being safer from the risk of loss.

[imamusma]

Fiat has lost its value, it is a fact that actually represents how we feel all along. Inflation has obviously taken on many fiat values ​​with varying degrees of severity in each country. So one might be right about one opinion, bitcoin is a very good hedge against fiat in this kind of situation, but of course the risks will cause most people out there to be reluctant to choose it even though staying in fiat is hard.

This year I think it's not as bad as 2020 regarding the value of fiat against the dollar for my country, but of course the current inflation has had a big impact on the people's economy. We complain, they complain and most of us complain, but the solutions won't be the same for everyone.

[RealMalatesta]

At present, Europe is the most hit by this storm and although, there are countries who are Bitcoin tolerant, its not enough. Fiat money looks to be the primary cause of inflation and countries who introduce CBDCs in my opinion are only worsening the situation. It's in times like this Bitcoin is needed as it has proven severally to be a hedge against inflation.
"Digital Assets will replace govt issued currencies within a decade or at least present a solid alternative to them"- Business Insider, Aug 2021.

Yes, It would also allow them to enter into budgeting deficits without creating hyperinflation as they tend to borrow in financial markets when they spend more than they collect in taxes.

I strongly believe that Bitcoin and other cryptocurrencies only represent a viable option for governments to adopt. Although crypto is facing some issues such as scalability and regulation, I firmly believe that these problems can be solved in due time.

I believe they could just buy and hold it as well and they are not doing that. Most governments are richer than the richest person in the world, not only they could get taxes like insane levels, but they could also just print money if they ever want to, we have seen them all do it in the past 2 years. Which means they could afford to buy tens of billions of dollars worth of bitcoin.

Any nation that spends just a 50 billion dollar on bitcoin would not only make a huge profit later on, turn that into 500+ billion when it does 10x (and 180k is not impossible in the next 5 years) and they would also be able to start the bull run as well all by themselves for that much money. It is just such a simple idea.

[BRINIRHA]

Fiat has lost its value, it is a fact that actually represents how we feel all along. Inflation has obviously taken on many fiat values ​​with varying degrees of severity in each country. So one might be right about one opinion, bitcoin is a very good hedge against fiat in this kind of situation, but of course the risks will cause most people out there to be reluctant to choose it even though staying in fiat is hard.

This year I think it's not as bad as 2020 regarding the value of fiat against the dollar for my country, but of course the current inflation has had a big impact on the people's economy. We complain, they complain and most of us complain, but the solutions won't be the same for everyone.

in fact even before the uncontrolled inflation that is still happening today which has an effect on the decline in the value of currencies in several countries. it turns out that even when inflation is under control, the decline in the value of the currency has slowly been and continues every year in several countries. The indicator is seen in the increase in the prices of property, goods and services every year. and the difference now is that inflation is already at a higher and faster rate which makes the rate of currency decline faster. and indeed everyone now has almost the same complaint but with different problems. and the solution for each person will be different.

[Mauser]

At present, Europe is the most hit by this storm and although, there are countries who are Bitcoin tolerant, its not enough. Fiat money looks to be the primary cause of inflation and countries who introduce CBDCs in my opinion are only worsening the situation. It's in times like this Bitcoin is needed as it has proven severally to be a hedge against inflation.
"Digital Assets will replace govt issued currencies within a decade or at least present a solid alternative to them"- Business Insider, Aug 2021.

I fully agree with you that Europe is doomed, the Euro is going to lose a lot of more value in 2023 and whoever has the chance to diversify out of Euro denominated assets should be doing so. Crisis management has always been a bad thing in Europe, politicians over here talk too much and need way too long to react and get anything done. Together with the double digit inflation rates which will likely stay high next year, there is not much we can expect from the Euro. Gold doesn't seem like a good alternative right now which leaves crypto currencies as the main inflation hedge together with real estate investments. The problem is that people are afraid of inflation, but don't react to it. So far most people sold any risky assets in 2022 and didn't reinvest. The cash levels are very high in Europe right now, among my friends most of them have 50-70% cash levels in their portfolio. Which is insane to be honest, because you lose so much value with cash during high inflation times.  

[Majestic-milf]

So far, it seems the Fed reserves original mission to solve economic issues is becoming blindsided; since they have tried to combat the inflationary situation by raising interest rates. And it looks to exacerbate the whole thing because instead of tightening the economy, as was it's initial aims, it has all but had a ripple effect since demand of goods and services by both consumers and business alike have slowed down.

 All these can help reduce the value of a country's Fiat.

[South Park]

But tell me one thing it isn't that this is happening for the very first time we have seen in past recessions as well that the economy has collapsed due to increased inflation and ultimately leading to a spiral situation but eventually after a recession the economy stabilizes itself somehow or the other. Never have I ever seen the economy completely getting ruined or fiat coming into question on such a crash. Why do you think this time is different? why are people thinking that this time fiat would end?

Exactly, the most recent economic crisis was in 2008 and it somehow recovered, and the world economy continued to grow and boom after that without the collapse of fiat or the need for a alternative solution. Bitcoin is really good but don't exaggerate it too much.
What role Bitcoin will play in the economy in the future is unpredictable but with the current economic crisis I think we will recover soon without the help of bitcoin and bitcoin is the one who needs the help of this economy. Bitcoin will not be able to recover if we continue to fall into crisis and inflation.

The problem with the 2008 crisis is that it was never really resolved, governments knew the cause but instead of trying to legislate and create a set of laws so it did not happen again what they did was simply to throw a gigantic amount of money to the problem hoping it went away, and it worked but only for a time, now the pandemic and the war at Ukraine have brought back the fears of a new crisis with the huge disadvantage that now governments cannot play that card again as they are heavily indebted already.