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Author Topic: Fiat Money is a Bubble  (Read 1780 times)
HarmonyA
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December 15, 2019, 11:55:24 PM
Last edit: December 16, 2019, 09:33:43 AM by HarmonyA
 #181

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.

If bitcoin is a bubble, then anything used as a medium of exchange is a bubble. Because they both have deflationary attributes. 
The term bubble is used to quantify irregularities and anything with vanishing tendency. 
The value of a currency is in it worth at usage, so if someone used 1 bitcoin to buy a pizza when the value of bitcoin doesn't equal the present value,  that doesn't make the spender senseless because it matched it value at the time of usage.
Therefore, the speculative nature of currency exudes bubbles.
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mamahdedeh
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December 16, 2019, 03:32:27 AM
 #182

Fiat money is a bubble but the probability of bursting and bubble bursting rate is very low. Money FIAT is a unit representing the economy of a country. The country's economic sectors and the type of assets it owns are guaranteed for the currency they issue. It could be called that. If the economy develops stably, the political situation is stable and they have good monetary management measures, the bubble market will not break. They may be timeless but regulated. Like some ICO projects that sell airdrops. At first the airdrop will be diluted into the market but then they will rise again.
Crypto currencies are mined or released more fragile because the individuals behind them are a group of people, a startup company. They may cancel the project or they will resell the project to another individual or company. And the FIAT money represents a nation and they seek a way for their country to exist.
Fiat money does represent a country, I think it is impossible to become a global bubble, except if the big bubble occurs only in one country, for example the economic crisis that occurred in Venezuela which resulted in their fiat currency being worthless anymore


xen1oph
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December 16, 2019, 03:56:42 AM
 #183

I want to say that any money, even cryptocurrency, is also not a reliable thing. It is safest to invest in real estate with your own plot of land. Or invest in some good business that will be useful to everyone.
AniviaBtc
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December 16, 2019, 03:50:00 PM
 #184

Fiat money is a bubble but the probability of bursting and bubble bursting rate is very low. Money FIAT is a unit representing the economy of a country. The country's economic sectors and the type of assets it owns are guaranteed for the currency they issue. It could be called that. If the economy develops stably, the political situation is stable and they have good monetary management measures, the bubble market will not break. They may be timeless but regulated. Like some ICO projects that sell airdrops. At first the airdrop will be diluted into the market but then they will rise again.
Crypto currencies are mined or released more fragile because the individuals behind them are a group of people, a startup company. They may cancel the project or they will resell the project to another individual or company. And the FIAT money represents a nation and they seek a way for their country to exist.
Fiat money does represent a country, I think it is impossible to become a global bubble, except if the big bubble occurs only in one country, for example the economic crisis that occurred in Venezuela which resulted in their fiat currency being worthless anymore



Fiat currency reflects on what money they symbolized. It is very important for a country because economic state will see through this measures. Fiat currency bubble is more likely to not to explode or burst and can be handled and control. They are regulated properly without issues related to the management.

imstillthebest
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December 16, 2019, 04:15:47 PM
 #185

first of all btc is not a real bubble becuase btc has a purpose and wont pop and disapear whatsoever  same on fiat money  . its just the volatilie thingy that makes btc go down but i dont consider it as a bubble still   .

not all people loose money in btc but the ones that loose are not smart enough to know on what they have entered  . money is to useful so it is valueable but i dont get why call it zero value   . we dont take money from others but we earned it thru our hardwork and other people dont take it from us not unless if they are forcing you   .
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