The fiat-money bubble!

[Jewell]

There is not such bad thing when it comes to believing and dreaming of a thing specially bitcoins price rocketing to a million dollars.It may really happen though it will take a seriously long time to achieved or it may not happen.No one can see future

Several news has come regarding the price rocketing. Recently too one among the large scale bitcoin firm operator and an enthusiast put forth the statement that bitcoin goes half a million in value in a short or too without any time scale.

i think that is such a big big price to reach to that level but still i will like to say that still there is too much potential in the price of bitcoin, as we can see that the demand of bitcoin is continuously increasing which is making the price of bitcoin to increase more and more.

[Yuuto]

Saying that fiat money is some kind of a bubble is not a right thing, because in fact it is not. That bubble would have been popped years ago, and as we can see, it still holds for now.
The regular cash is something that too many people rely on, to think that there is any chance (for now) that we will have something different instead of paper money.

After all, what do you want to see as a replacement for fiat, do you have any suggestions? If you are wondering that bitcoin has any chance to overcome the fiat, then you are wrong. Blockchain network is not ready at all to maintain under such a massive traffic, and the another issue is that the fees currently are exceeding the reasonable amount of money spend for commison. You cannot buy some cheap things ( e.g matchsticks or cans with drinks ) because the price would increase dramatically, because of a insanely high fee payed on every transaction.

[Vyki00]

There is not such bad thing when it comes to believing and dreaming of a thing specially bitcoins price rocketing to a million dollars.It may really happen though it will take a seriously long time to achieved or it may not happen.No one can see future

Several news has come regarding the price rocketing. Recently too one among the large scale bitcoin firm operator and an enthusiast put forth the statement that bitcoin goes half a million in value in a short or too without any time scale.

i think that is such a big big price to reach to that level but still i will like to say that still there is too much potential in the price of bitcoin, as we can see that the demand of bitcoin is continuously increasing which is making the price of bitcoin to increase more and more.

Yes, demand is growing every day.
But this does not make fiat useless and cheap. This indicates that the government artificially supports Fiat. Hence the fiat-bubble will never disappear and will not burst

[ethereumhunter]

There is not such bad thing when it comes to believing and dreaming of a thing specially bitcoins price rocketing to a million dollars.It may really happen though it will take a seriously long time to achieved or it may not happen.No one can see future

Several news has come regarding the price rocketing. Recently too one among the large scale bitcoin firm operator and an enthusiast put forth the statement that bitcoin goes half a million in value in a short or too without any time scale.

i think that is such a big big price to reach to that level but still i will like to say that still there is too much potential in the price of bitcoin, as we can see that the demand of bitcoin is continuously increasing which is making the price of bitcoin to increase more and more.

many new people come around into bitcoin world so this is why bitcoin have big potential with the price like you said, although sometimes we can see the price is down, but i think the increase of price is significant and this will trigger to traders for selling their bitcoin to make profit. if its true that bitcoin goes into half a million, then i think there is many people will keep their bitcoin and waiting until they see that price and sell it right away.

[posternat]

There is not such bad thing when it comes to believing and dreaming of a thing specially bitcoins price rocketing to a million dollars.It may really happen though it will take a seriously long time to achieved or it may not happen.No one can see future

Several news has come regarding the price rocketing. Recently too one among the large scale bitcoin firm operator and an enthusiast put forth the statement that bitcoin goes half a million in value in a short or too without any time scale.

i think that is such a big big price to reach to that level but still i will like to say that still there is too much potential in the price of bitcoin, as we can see that the demand of bitcoin is continuously increasing which is making the price of bitcoin to increase more and more.

Consider the fact that how many people who are using Fiat know and use bitcoins. So if all the people start using bitcoins too, we can see high demand of bitcoins and it will surely increase the price very high.

[ApplePanPine]

There is not such bad thing when it comes to believing and dreaming of a thing specially bitcoins price rocketing to a million dollars.It may really happen though it will take a seriously long time to achieved or it may not happen.No one can see future

Several news has come regarding the price rocketing. Recently too one among the large scale bitcoin firm operator and an enthusiast put forth the statement that bitcoin goes half a million in value in a short or too without any time scale.

i think that is such a big big price to reach to that level but still i will like to say that still there is too much potential in the price of bitcoin, as we can see that the demand of bitcoin is continuously increasing which is making the price of bitcoin to increase more and more.

Consider the fact that how many people who are using Fiat know and use bitcoins. So if all the people start using bitcoins too, we can see high demand of bitcoins and it will surely increase the price very high.

All people will never use bitcoins. Some do not do this from the prince. Therefore, Fiat will always exist. And it does not matter whether it's a bubble or not. It is used by all people in all countries of the world

[cellard]

This graphic is very significant:



If the life expectancy of fiat currencies in the past still translate to the dollar, then the dollars has its days numbered. The dollar is 97 years old, which is on the average of other fiat currencies of the past. Will it surpass 105 years? Right in 2025, the dollar will be 105 years old, so if that graph is correct, we should be seeing the fall of the dollar within the next decade, then I can see BTC skyrocketing to 6 to 7 figures a coin.

[deisik]

After all, what do you want to see as a replacement for fiat, do you have any suggestions? If you are wondering that bitcoin has any chance to overcome the fiat, then you are wrong. Blockchain network is not ready at all to maintain under such a massive traffic, and the another issue is that the fees currently are exceeding the reasonable amount of money spend for commison. You cannot buy some cheap things ( e.g matchsticks or cans with drinks ) because the price would increase dramatically, because of a insanely high fee payed on every transaction

Things may change in the future

And they may change fast at that. The measures which would fix the scalability (as well as high fee) issues are already here, they just need to get implemented. Bitcoin is different from fiat, and it is a difference of kind, not of degree, and after these measures are taken, Bitcoin future adoption would only make it more fit and suitable for even wider adoption (since it is decentralized and supported by network itself). And this is where theory meets with practice, since money works better as money if it gets more universal acceptance. In this sense, Bitcoin is absolute money since its adoption facilitates further adoption in a chain reaction manner making its transactions faster and cheaper

[BobK71]

It should be pretty obvious by now that all these features don't suffice

For something to become money it should be used as money, i.e. to be accepted as a universal means of payment or account. Therefore, until Bitcoin starts being used as money (in any meaningful degree), it cannot be considered as money even if it has all the required qualities and prerequisites money should possess. So there is not a big difference between tulips and Bitcoin primarily because its monetary qualities have been mostly neglected so far

The only problem with this view is that everything that is deemed 'money' is issued by the state.  And money that is issued by the state has the incentives built in to eventually self-destruct, since the elites get to receive unearned power and wealth by issuing too much of it.

This has pretty much been modern human history.  Among the strongest and longest lasting state issued currencies are the pound sterling and the dollar.  Both are worth a small fraction in purchasing power of what they were, say, 100 years ago.

[lazyturtle]

Hello everyone.

There is much discussion around the price of bitcoins. Some seem to believe it could fly to a million, while some believe its just a big speculation bubble ready to burst.

My personal theory is that cryptocurrency is not the bubble, but rather the needle that will burst the fiat money bubble. Trough history we have always had an easy way to attribute value to things without it. Those who believe that fiat money is the only true way often attribute their opinion to the fact that fiat money is substainsable because of its centralized nature and its history of being used as a represantation of value.

The fact that bitcoin was created in the aftermath of the 2008 financial crises clearly shows it's intent. I believe Satoshi saw how a centralized regulated market can't be substainable thanks to the egotistical and evil sides we humans all posses.

Decentralized currencies will IMO be the future. I can't peg bitcoin to a certain price it will reach in the future as i usually don't speculate that way, but rather i just develop a bias on a subject and try to indentify the crowds bias as this is what acctualy IS the trend.
The trend for decentralized currencies is bullish overall, with some currencies being more exciting then others. Invest in the cryptocurrency you believe in and do your homework, lets bring the fiat-money world down once and for all!! 

Please share your opinion on the subject, this is my first post and just wanted to share my thoughts, thank you =)

LazyTurtle

I agree "cryptocurrency is not the bubble, but rather the needle that will burst the fiat money bubble."
http://www.aljazeera.com/indepth/opinion/2012/05/20125309437931677.html
http://www.aljazeera.com/indepth/opinion/2012/04/20124395428374962.html
It's basically how I started learning about Bitcoin as well and a frame of view I have used.

The egotistical side is an interpretation but I lean towards the idea of debt and loans being the real fundamental issue that this resolves but greed is greed and it is a human attribute.

Where crypto is going and has gone since then to now I can really feel we are near mainstream usage and at the threshold I look forward to that trend continuing. Behead the fiat ^^. And Cheers

Thanks for the response and the links

Debt and loans are extreme the last years... witch unfortunatly is a product of the banks often enticing people to borrow without taking risk to account. I think you make a really good point, greed certainly is connected to debt and debt almost always eventually lead to some form of bankruptcy. I agree that debt do, as you say, make out a big portion of the problem, thanks my view changed alittle from your post and got me thinking =)

[lazyturtle]

After all, what do you want to see as a replacement for fiat, do you have any suggestions? If you are wondering that bitcoin has any chance to overcome the fiat, then you are wrong. Blockchain network is not ready at all to maintain under such a massive traffic, and the another issue is that the fees currently are exceeding the reasonable amount of money spend for commison. You cannot buy some cheap things ( e.g matchsticks or cans with drinks ) because the price would increase dramatically, because of a insanely high fee payed on every transaction

Things may change in the future

And they may change fast at that. The measures which would fix the scalability (as well as high fee) issues are already here, they just need to get implemented. Bitcoin is different from fiat, and it is a difference of kind, not of degree, and after these measures are taken, Bitcoin future adoption would only make it more fit and suitable for even wider adoption (since it is decentralized and supported by network itself). And this is where theory meets with practice, since money works better as money if it get more universal acceptance. In this sense, Bitcoin is absolute money since its adoption facilitates further adoption in a chain reaction manner making its transactions faster and cheaper

Great point deisik. I always love to read your posts =)

[grizman]

Fiat is the lever through which the government manages people. Therefore, this lever will always exist. And the government specifically makes conditions under which it is very difficult to obtain money. So that people do not think about the revolution, but think about work

[deisik]

It should be pretty obvious by now that all these features don't suffice

For something to become money it should be used as money, i.e. to be accepted as a universal means of payment or account. Therefore, until Bitcoin starts being used as money (in any meaningful degree), it cannot be considered as money even if it has all the required qualities and prerequisites money should possess. So there is not a big difference between tulips and Bitcoin primarily because its monetary qualities have been mostly neglected so far

The only problem with this view is that everything that is deemed 'money' is issued by the state.  And money that is issued by the state has the incentives built in to eventually self-destruct, since the elites get to receive unearned power and wealth by issuing too much of it

The reason for that was quite simple, though

But it is no longer applicable, anyway. Money was the state's privilege simply because they had the monopoly on the means of communications and could easily intercept anything you might send over, say, a phone line. With Internet reaching almost every hole out there and encryption all over the place, this is no longer the case, so this monopoly is essentially over too. Money as cash doesn't play a significant role in today's world, it is transferring value over long distances with minimal delays which is what counts nowadays

[djordjamayna]

Bitcoin wont fail with all that kids that gamble with it..

[Weatherby]

Fiat is the lever through which the government manages people. Therefore, this lever will always exist. And the government specifically makes conditions under which it is very difficult to obtain money. So that people do not think about the revolution, but think about work

The fiat will always be a lever for the government and i am not sure whether it manages and control people,the fiat bubbles used to pop once in a while and we have seen that in the past and i am sure that satoshi came up with the idea of bitcoin simply because we had a recession and that might have made him think about a revolutionary new platform.

[xypos]

Bitcoin wont fail with all that kids that gamble with it..

You actually believe in that what you just said over here?
I hope not, and you were just joking, because saying something like that is simply dumb.

Take a look at the current bitcoin market capitalization.
In that moment it is equal to 20,372,515,937 US dollars.
Now can you please tell me, how big might be the amount of bitcoins used by people who are doing gambling, or even those "kids" that you are saying about.

Bitcoin is very strong option to make settlements between big projects, and regular people. It is mostly used for that purpose, same with investing. Gambling is only the part of it.

[gollygosh]

I wonder if we need a new definition for the word money, virtual commodities is my suggestion.

[Przemax]

Bitcoin is the search to find a "true money". I don't believe that such an animal exist but its worth a try to find one. Bitcoin is for sure more pure form of money. Or less powerbased form of money or such.

Thats why because such a thing as  "true money" doesn't exist bitcoin is full of paradoxes. People want to escape the fiat bubble by making bitcoin bubbling. That is because of the economic law of bad money driving out the good money. Hows fiat chasing out the bitcoin? Fiat makes the rules of it. Bitcoin worth is measured in fiat. Its accessibility is measured in fiat. And sadly its the fiat money that is the king and will be the king because its the ultimate worst money. The ultimate watered down and devalued form of money.

Unless there will be incentives to change the economic laws like some form of a  moral or legal code, I dont see the fiat not being a king and setting the rules of economical life forever.

[deisik]

Bitcoin wont fail with all that kids that gamble with it..

You actually believe in that what you just said over here?
I hope not, and you were just joking, because saying something like that is simply dumb.

Take a look at the current bitcoin market capitalization.
In that moment it is equal to 20,372,515,937 US dollars.
Now can you please tell me, how big might be the amount of bitcoins used by people who are doing gambling, or even those "kids" that you are saying about

As to me, it's dumb to refer to market cap as any meaningful measure

That is not to say that Bitcoin is only gambling (though in its earlier days it was not far from that), but taking Bitcoin market cap as an argument is as clueless. For example, if someone sells 1 satoshi for 1 dollar, would it mean that Bitcoin price would be equal to 100M dollars per coin and thus the Bitcoin market cap equal to over 2,000T dollars? Obviously, that would be outright bullshit. But it is basically the same with current market cap (though in a lesser degree, of course). Only a small share of all issued coins is traded, i.e. used to determine the price, while the market cap is calculated by taking this price and multiplying it by the number of all coins mined to date. So you guess how misleading is this estimate

[maku]

If the life expectancy of fiat currencies in the past still translate to the dollar, then the dollars has its days numbered. The dollar is 97 years old, which is on the average of other fiat currencies of the past. Will it surpass 105 years? Right in 2025, the dollar will be 105 years old, so if that graph is correct, we should be seeing the fall of the dollar within the next decade, then I can see BTC skyrocketing to 6 to 7 figures a coin.

There is no such thing as life expectancy of fiat currencies. In the past there were many factors which contributed to shifting power to create reserve currency from country to country.
I am talking about politics, war, colonial conquers - standard history flow, where I nation suddenly claimed better position. We don't see anything like that happening right now with the USA.
True, the debt of USA is overwhelming but it is not critical yet. US industry, brands are still strong and can handle it.