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Author Topic: Fiat Money is a Bubble  (Read 474 times)
JunoCoin
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October 23, 2017, 05:37:09 PM
 #1

Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.

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October 23, 2017, 07:06:23 PM
 #2

Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.

It is obviously a bubble, but is a bubble that is sustained by a monopoly in violence. You are forced to accept fiat money and you are forced to work for it, therefore the flow of such money is never ending.

People all over the world accept dollars no matter how much they print, and this will be the case as long as it is accepted.

Bitcoin attempts to create an asset that is of limited supply and global, and optionally accepted, which is the opposite of fiat. Sooner or later, all fiat currencies fail due their government's failing, and bitcoin since it has no government or country attached to it, with reap the benefits and reign as ideal (or the most ideal thus far) money.

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dinoloverpete
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October 23, 2017, 07:09:17 PM
 #3

Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.

It is the most inherent problem with money is that it has zero physical value, it's why there can be such problems when confidence goes and there is a run on a currency.

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October 23, 2017, 07:11:56 PM
 #4

Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.
All money is created out of thin air these days. It has no tangible resource backing up its value. That makes monetary value purely fictional, yet everybody uses it. So yes, fiat is de facto a bubble.

It's hilarious to think about how the world actually works, it's complete nonsense and everybody believes that it isn't.

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October 23, 2017, 07:21:25 PM
 #5

Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.

It is the most inherent problem with money is that it has zero physical value, it's why there can be such problems when confidence goes and there is a run on a currency.
Value based exchange is backed by commodities. When that standard (similar to being removed from the gold standard) is removed from the equation, inflation and lack of control happens.

¯  ¯   LET'S THINK ABOUT THE FUTURE   ¯  ¯
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October 23, 2017, 07:21:32 PM
 #6

I came to this topic to laugh, but suddenly realized that I have to agree.
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October 23, 2017, 07:32:18 PM
 #7

Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.

Not at all! Fiat money is not a bubble because they are mostly backed up by a physical asset like gold. Any country can't print unlimited amount of money to circulate in their economy. They can only print according to the value of their gold deposits. So the value of money is directly co-related with the price of gold and that's why Gold has been used as a safe investment vehicle since decades. One investor may not make much profit from holding gold, but it can certainly protect the capital investment.

On the other hand, bitcoin is not backed up by any physical asset. It is just backed up by the public trust which doesn't have any monetary value. It's just an emotional quotient. Bitcoin is riding high on positivity and that's why it's price is also increasing. So bitcoin can be called as a bubble, but not fiat.

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Selmor
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October 23, 2017, 07:36:07 PM
 #8

If we look back into the past there was the .net bubble and also the Tulpen bubble. Before this happened then was probably thinking : "This is not a bubble". So stay and wait what will happen.


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October 23, 2017, 07:57:15 PM
 #9

Except that the fiat bubble is controlled by the State. Whenever abnormal deviations occur in terms of currency exchange rates due to some event, the Government steps in to either restore confidence in the economy so as to stabilize the currency or will artificially devalue/increase the value of the currency. Btc doesnt have such a backing and works on thw whims of only market forces.

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October 23, 2017, 08:00:35 PM
 #10

Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.

Not at all! Fiat money is not a bubble because they are mostly backed up by a physical asset like gold. Any country can't print unlimited amount of money to circulate in their economy. They can only print according to the value of their gold deposits. So the value of money is directly co-related with the price of gold and that's why Gold has been used as a safe investment vehicle since decades. One investor may not make much profit from holding gold, but it can certainly protect the capital investment.

On the other hand, bitcoin is not backed up by any physical asset. It is just backed up by the public trust which doesn't have any monetary value. It's just an emotional quotient. Bitcoin is riding high on positivity and that's why it's price is also increasing. So bitcoin can be called as a bubble, but not fiat.

Fiat money at present are not backed by gold or anything. In 1971 Richard Nixon ended any remaining link between the dollar and gold. Today less than 5% of US dollars in circulation are ‘backed’ by gold, the rest backed by false promises and goodwill. It is same with the rest of the countries.

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October 23, 2017, 08:03:00 PM
 #11

Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.

Not at all! Fiat money is not a bubble because they are mostly backed up by a physical asset like gold. Any country can't print unlimited amount of money to circulate in their economy. They can only print according to the value of their gold deposits. So the value of money is directly co-related with the price of gold and that's why Gold has been used as a safe investment vehicle since decades. One investor may not make much profit from holding gold, but it can certainly protect the capital investment.

On the other hand, bitcoin is not backed up by any physical asset. It is just backed up by the public trust which doesn't have any monetary value. It's just an emotional quotient. Bitcoin is riding high on positivity and that's why it's price is also increasing. So bitcoin can be called as a bubble, but not fiat.
Ummm, Fiat = a formal authorization or proposition; a decree. That means fake because there there would not to be a decree if true value existed and demanded.

¯  ¯   LET'S THINK ABOUT THE FUTURE   ¯  ¯
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October 23, 2017, 08:20:25 PM
 #12

You're right, it's a bubble, but only in theory, why? Everything in the world is happening around it, it is money that determines the value of goods or services, without which we would not be able to control ourselves or know the value of products, and all these are set within the norm.

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October 23, 2017, 08:24:04 PM
 #13

You're right, it's a bubble, but only in theory, why? Everything in the world is happening around it, it is money that determines the value of goods or services, without which we would not be able to control ourselves or know the value of products, and all these are set within the norm.
Money does not determine value. Value is perceived and relative. If money determined value (i.e. Gold) we'd all be using gold. And we were, but that changed. It's happening because of human emotion and hype.

¯  ¯   LET'S THINK ABOUT THE FUTURE   ¯  ¯
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October 23, 2017, 08:25:23 PM
 #14

You're right, it's a bubble, but only in theory, why? Everything in the world is happening around it, it is money that determines the value of goods or services, without which we would not be able to control ourselves or know the value of products, and all these are set within the norm.
Money does not determine value. Value is perceived and relative. If money determined value (i.e. Gold) we'd all be using gold. And we were, but that changed. It's happening because of human emotion and hype.
We stopped using Gold because it's inconvenient and can't keep up with the demand for money.

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October 23, 2017, 08:32:39 PM
 #15

You're right, it's a bubble, but only in theory, why? Everything in the world is happening around it, it is money that determines the value of goods or services, without which we would not be able to control ourselves or know the value of products, and all these are set within the norm.
Money does not determine value. Value is perceived and relative. If money determined value (i.e. Gold) we'd all be using gold. And we were, but that changed. It's happening because of human emotion and hype.
We stopped using Gold because it's inconvenient and can't keep up with the demand for money.
I'm sure the FED, the US Gov't and the Bankers had nothing to do with taking us off the gold standard. It's not like it created any benefit's for them when that happened? Ever read creature from Jekyll Island?  Roll Eyes

¯  ¯   LET'S THINK ABOUT THE FUTURE   ¯  ¯
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October 23, 2017, 08:35:57 PM
 #16

In theory - everything is a bubble.  The question is whether it is deflating, or inflating.  Credit card debt, housing, student loans, USD/EUR/GBP.

We just have to figure out at what point does that bubble burst.  Much easier said than done Wink


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October 23, 2017, 08:44:01 PM
 #17

In theory - everything is a bubble.  The question is whether it is deflating, or inflating.  Credit card debt, housing, student loans, USD/EUR/GBP.

We just have to figure out at what point does that bubble burst.  Much easier said than done Wink


It's not just one bubble. The US will never let that happen. It will be widespread panic, The thing to figure out is what will you do when your $ wont buy bread. That's what happens in communist countries that fall. Where will you go and what will you trade? Will the grocer accept BTC? Will he accept GOLD? Silver?

¯  ¯   LET'S THINK ABOUT THE FUTURE   ¯  ¯
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October 23, 2017, 08:52:26 PM
 #18

Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.

Fiat money is really a bubble, backing up by the government and declares the value of it. It's actually a paper that was mixed with some other ingredients to make it worthy and has it's value.

Especially those countries that are "leading" this world and making their economies on an innovative progress, tells the world that their economy should be followed.

And that makes their fiat money more valuable than others, it's a way to make them reliable than other countries.. The sad truth.

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October 23, 2017, 09:36:52 PM
 #19

If it is a bubble, it's unlikely to be bursting anytime soon. Too many countries are still cash-focused, going to be hard to convince everyone in the world to drop years of transactionary habits because it's not real.
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October 23, 2017, 09:39:57 PM
 #20

If it is a bubble, it's unlikely to be bursting anytime soon. Too many countries are still cash-focused, going to be hard to convince everyone in the world to drop years of transactionary habits because it's not real.
Actually, it's not that hard. All the IMF and FED banks outside the US have to do is to agree to exclude the $ as a reserve currency. War starts. Trouble starts. $ declines in value, everyone holding debt via $ lose their shirt.

¯  ¯   LET'S THINK ABOUT THE FUTURE   ¯  ¯
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