Fiat Money is a Bubble

[spike420211]

If you think about it, almost all the financial systems of the world are bubbles, with more or less high stability. The more active the bubble, the more resources it requires, the more difficult it is to supply it, which means that sooner or later it must burst. And as a rule, after this, a new bubble appears, and so on in a circle.

[cizatext]

Iny own personal view every currency is a bubble as long as it can be traded on the stock exchange and the ability to go against other currency which can result in it losing it value at every point in time. So not only bitcoin that can be term a bubble all currency can also be refer to as a bubble.

[Duzter]

Fiat money is not a bubble, because there is a central authority that takes decision according to the money circulation required. Always there will be reserve maintained in every country's central banking authority to stay away from recessions. The fiat money gets to be a bubble when there is more fiat into circulation than required. In specific this happens when there is surplus in the printing of currencies without proper monetary policies. At present USA and China have engaged in these kind of activities.

[veleten]

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 , but only since the gold standard was abolished
the banks are printing as much money as the governments are willing to buy from them and that could be any figure , really
fiat money have as much value as we are willing to pay for it , if you take Venezuela's bolivar , for example
it does have value , yet its inflation rate almost broke the zimbabvian record , reaching 1,000,000% by the end of the year according to IMF
same goes for the US dollar , as long as it is accepted across the globe it has some value , in reality the country has 21 trillion debt which i more than the total money supply

[maianh09]

FIAT is not a bubble because the price of FIAT does not fluctuate too large, and it is always stable with low volatility. Everything will become a bubble if their prices rise too quickly in a short time. Failure to control the price movement will make everything a bubble.

[atjiat]

Why raise this hype, which is aimed at informational propaganda against fiat currencies?  With such success, you can blame cryptocurrency, but you must understand that not all members of our society are able to use cryptocurrency in everyday life.  I believe that the adaptation of humanity to cryptocurrency will take quite a long time.

[Orino Suimuri]

The fiat money is certainly a bubble, as has been demonstrated over and over again in the course of our civilization.
But we forget that it is our very existence that is a bubble: everything is born, lives, ages and dies.
The important thing is to take advantage of what we have right now.
If it's a bubble, that's ok...

[Police Indo]

When a country collapses, the pile of paper money that they keep will only be equivalent in value to the pile of used newspapers, due to the economic bubble that breaks into recession and a prolonged monetary crisis. the safest is gold, because we buy crypto with money, and we sell crypto to get money. crypto and  fiat money are interrelated

[reality18]

The ideology behind the creation of fiat money was created by man and the same man decided to work for it. The value it has is because man has decided to accept it in every way and this makes it a big bubble which never burst. Its supply and demand is never ending as long as man long for physical things.

[xpinvest]

Yes fiat money has its problems no doubt, but even Bitcoin which was created for something which is truly novel is manipulated through pumps and dumps. Gradually more and more control is going into the hands of a smaller group of people. No matter how altruistic one person might be in their endevours to solve the worlds problems, greed will always win in this world. It is the sad truth, humans are just designed that way. Our biological instinct is to always try and win (be alpha, or survive)

[fullhdpixel]

However, it is a bubble that is backed by the government. You can't call something like fiat currency a bubble, bubble is something that gets super expensive for no reason at all and than it goes down and I mean goes down like A LOT. For example, the most known bubble was tulipmania and in that the price of one tulip bulb went as high as houses and than it dropped to so low that you could buy a whole basket of it for couple dollars.

Now, fiat can't be like that, what do you think will happen, buy a house for 10 dollars but than house worths a billion dollars one day? No, 100 years ago houses were cheap and you could get one for couple hundred bucks but now it worths millions of dollars thats true, but it took 100 years, thats called inflation not a bubble.

[sirminesalot]

FIAT is not a bubble because the price of FIAT does not fluctuate too large, and it is always stable with low volatility. Everything will become a bubble if their prices rise too quickly in a short time. Failure to control the price movement will make everything a bubble.

anything can happen fiat currency with bubbles but the government will quickly break the bubble and of course the government has prepared anticipation with the system used in a country's economy because fiat currency is definitely legal and there is protection against everything that happens with the eye fiat money

[finzyoj]

thats called inflation not a bubble.

Very well explained dude . The title of this is very ironic to be honest. How come the fiat is a bubble when in it is less volatile in the first place. If OP said crypto is a bubble then I'll be more likely to believe it. Fiat currencies' price do not make sudden fluctuations and not also not as big as what crypto did. When I was watching news, I noticed that rate exchange usually updates every couple of weeks or month.

[Stedsm]

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.

Yeah, it is a bubble, but a very sophisticated highly qualified and decent bubble that will not burst for centuries or until a new mode of payment is accepted against whatever we trade in the world.

There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value.

That's because it is recognized among people whether nationally or globally. It is pegged and has limited fluctuations in comparison to each until some extremely bad conditions occur and make the currency fall badly against the other worldwide currencies.

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.

Come on, in today's world, it's all about show-off and following what others do. You won't even purchase a detergent or soap or anything high-end or low-end whatsoever till you see someone else doing it and then coming to you telling you that, "Hey, that soap's awesome, ya need to try it out". That's the case with money but, money has got Reserve Banks to save their back and keep their values stable apart from the fluctuations because they've got the right to print them no matter what.

[ufaiz50]

In its concept, Fiat can be said to be a bubble where the concept is higher than the fundamental value. It's just that the fiat value depends on the country's economic sector and is an investment of assets. Whereas cryptocurrency like bitcoin is of high value and very different from the fundemental value and the determinant of value is demand, bitcoin is a bubble.

[horrifiedx1]

FIAT is not a bubble because the price of FIAT does not fluctuate too large, and it is always stable with low volatility. Everything will become a bubble if their prices rise too quickly in a short time. Failure to control the price movement will make everything a bubble.

anything can happen fiat currency with bubbles but the government will quickly break the bubble and of course the government has prepared anticipation with the system used in a country's economy because fiat currency is definitely legal and there is protection against everything that happens with the eye fiat money

because we know fiat currency is a centralized currency in which the government holds control. as long as the government is still able to overcome its economic problems, then I think it will be fine and there is nothing to worry about

[alexsandria]

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.

Of course fiat money is a bubble and it is bound to burst as well. We cannot just fullfil recent experienced to future. We cannot as well assure that the government have the potential to maintain the economic resources while producing loads of money and besides it will run dry in the end as the payments, funds and transactions has to be made digitally.

[teosanru]

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.

I think worth of anything is derived either from the utility provided by it or due to the demand created by that thing. Actually having intrinsic value is merely for shares and not for other securities. I mean look at gold it has no intrinsic value and as of in this century has no utility too. But it's costly due to it's demand. Moreover, if we look at fiat that too has value due to it's demand which is created by the trust of people. It won't end until the trust of people end. Similarly bitcoin too is in the same league. It has no intrinsic value to be very blunt. It's deriving it's value due to the demand it is creating around. It's utility do has some contributions it's price but 9300$ for this sort of utility is damn too expensive and we all know that so most of the price is due the demand.

[doomistake]

All money is created out of thin air these days. It has no tangible resource backing up its value.

Government says "Hi"

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.

It is the only trick they have in their hands to control the whole country. They are making people's head go round with it, even if it is nonsense, it makes us live and survive in this society which is survival of the fittest, and I admit it, it is completely nonsense, we're on a nested loop.

[agentx44]

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.

I can agree to your statement because if we are going to carefully analyze it, we can see fiat money as just a social construct made by people thousand of years ago. It can be meant for peace but most likely, I can see it as a mean to show power. Up until today, we are still unaware of the fact that earning fiat makes us slaves of those in the higher positions, specially in the government. We keep on working hard just to pay our survival everyday while those in the position are earning from us as they raise the prices and expenses of everyone so better think twice if it's right to stick to fiat still when we have an option, the cryptocurrency.