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Author Topic: Is bitcoin actually protecting fiat money?  (Read 8749 times)
spongegar
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May 24, 2018, 11:10:52 AM
 #41

The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.

this is actually a good notion. if you think about it, to buy coins you still need fiats and you actually convert crypto currencies to fiat so there is a direct correlation to the two. but then again, our goal is to have crypto currency used around the globe in exchange for goods and services. cutting off the middleman (fiat) with projects and business that accept crypto currencies will be the downfall of fiat in the future.

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May 24, 2018, 11:50:50 AM
 #42

The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.

I personally don't support those conspiracy theories implying that the whole world is controlled by an evil (capitalist?) government and that whatever is happening it's happening with their consent. What do you mean by "to keep the system afloat"? Which system? And what can you counterpose? Communism? Anarchy?

I tend to think that people either in the banks or in governments are people like me and you. They try to do what they think is better for the country and for them of course. If they think crypto is dangerous, they ban it. If they see that it is not that bad and that it's definitely here to stay, they go along with it. And if crypto can help to patch the economy, so be it, I don't see anything wrong with that.

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May 24, 2018, 12:09:42 PM
 #43

I personally don't support those conspiracy theories implying that the whole world is controlled by an evil (capitalist?) government and that whatever is happening it's happening with their consent. What do you mean by "to keep the system afloat"? Which system? And what can you counterpose? Communism? Anarchy?

I tend to think that people either in the banks or in governments are people like me and you. They try to do what they think is better for the country and for them of course. If they think crypto is dangerous, they ban it. If they see that it is not that bad and that it's definitely here to stay, they go along with it. And if crypto can help to patch the economy, so be it, I don't see anything wrong with that.
I don't think he is talking about any kind of conspiracy but talking about how the economic system works, and the "system" he meant was what I said, the economical system. He is basically questioning how the creation of wealth out of nothing (which is cryptocurrencies) can affect their economy particularly the inflation late. To my basic understanding with economics if cryptocurrencies' value is based from fiat and a lot of crypto millionaires liquidate their crypto to fiat then the creation of millionaires will in itself create inflation, it will just basically depreciate the value of fiat. But I might be wrong their are other factors that will be involve like the participation of companies into the market.

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May 25, 2018, 11:25:36 AM
 #44

I think your links and the entire process you mention is quite complex and cause and effect relationships are highly indirect. To me all of this appears quite forceful. One thing is very clear that crypto transactions are limiting or reducing the number of fiat transactions. But the crypt market has no intention of going against or replacing fiat because government will never let that happen.
This is to be understood that cryptocurrencies can neither replace fiat currency nor they can affect the performance of fiat nor they can protect them. The thing is, these two things are different and they have got different pros and cons. We have been seeing these two working with one another for 9 years and they are doing amazing. They both can do fantastic while separately they are nothing.
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May 25, 2018, 11:25:44 AM
 #45

I don't understand how bitcoin is protecting fiat currency, at all.

Bitcoin is an alternative to fiat currency, and is literally known to be that. The biggest competitor right now to fiat currency is probably BTC itself, and it doesn't make any sense that bitcoin is also protecting, instead of rivaling(which is the case) fiat currencies. Simply absurd. It may be different if bitcoin wasn't decentralized, but it is.

If a country has attractive tax rates and regulations for the crypto industry, then its economy and its total output may be positively affected. But its fiat currency, does not.

I am with you, man. The question seemed to me very odd. HOW can Bitcoin become a protector of traditional money? It is a digital currency - BTC cannot do it.
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May 25, 2018, 12:19:42 PM
 #46

Bitcoin creation is not the way that it could wipe out fiat currency or just protecting it, instead it could just an option for the community which currency we have to used in a certain transactions. May we think that due to the fast growth of bitcoin may the reason of killing fiat but it won't happen since some of us still in used of fiat currency.
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May 25, 2018, 01:53:35 PM
 #47

I don't think so. Bitcoin has no effect on fiat money I guess it is the people who will decide what will they mostly use everyday it is like partnership but it doesn't mean that if of those currency will be popular the other currency which is fiat money will just disappear or will not notice by people.

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May 25, 2018, 02:09:30 PM
 #48

I am not sure but I think that it plays its role. I have read the opinion of several experts and some of them think that bitcoin is really powerful and it protects fiat money. However, it is difficult to say for 100%
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May 25, 2018, 03:57:28 PM
 #49

The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.

I believe that the creation of crypto is not designed to protect traditional but instead to compete in the market like what happened today.
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May 25, 2018, 04:20:50 PM
 #50

As far as I know bitcoin helps money to grow and not protecting it. Bitcoin is a digital currency while money is an actual uses day by day by the people in the market place. Once bitcoin protect the money then money is more valuable than bitcoin.
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May 25, 2018, 09:13:32 PM
 #51

I think your links and the entire process you mention is quite complex and cause and effect relationships are highly indirect. To me all of this appears quite forceful. One thing is very clear that crypto transactions are limiting or reducing the number of fiat transactions. But the crypt market has no intention of going against or replacing fiat because government will never let that happen.
yes that crypto is an alternative that is used so that people have many choices in every financial transaction. in essence crypto offers the ease and speed in sending the money we want, whenever and wherever we can do it easily. theoretically that crypto will not damage the fiat system, crypto will only side by side and continue to facilitate the variation. let us use fiat and crypto as well as possible, we can find many advantages possessed by each financial media.
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May 26, 2018, 09:49:22 AM
 #52

I personally don't support those conspiracy theories implying that the whole world is controlled by an evil (capitalist?) government and that whatever is happening it's happening with their consent. What do you mean by "to keep the system afloat"? Which system? And what can you counterpose? Communism? Anarchy?

I tend to think that people either in the banks or in governments are people like me and you. They try to do what they think is better for the country and for them of course. If they think crypto is dangerous, they ban it. If they see that it is not that bad and that it's definitely here to stay, they go along with it. And if crypto can help to patch the economy, so be it, I don't see anything wrong with that.
I don't think he is talking about any kind of conspiracy but talking about how the economic system works, and the "system" he meant was what I said, the economical system. He is basically questioning how the creation of wealth out of nothing (which is cryptocurrencies) can affect their economy particularly the inflation late. To my basic understanding with economics if cryptocurrencies' value is based from fiat and a lot of crypto millionaires liquidate their crypto to fiat then the creation of millionaires will in itself create inflation, it will just basically depreciate the value of fiat. But I might be wrong their are other factors that will be involve like the participation of companies into the market.

Well, I can't say that I'm 100% certain about what he meant, but from my perspective the OP's question:

Quote
Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?

implies that the old system is bad. Since we are discussing economy here, I think you are right and he meant economic system most likely, but, as we all know, economic system is in close relation to system of government (or, in other words, political system) and normally when people criticize capitalist economic system they mean that there is a better political system with better economy.

Of course I may be wrong and then we have to wait for Jacques_Bittard's elaboration on what he meant.

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May 26, 2018, 11:43:26 AM
 #53

The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.

If that mean bitcoin is protecting our asset from inflation, maybe its true. Bitcoin is like gold that more resistance on inflation and I think bitcoin can show us how bad monetary system right now.
Bitcoin show us that monetary system right now depending on inflation to boost economic growth but make peoples asset decrease
Thats just my opinion


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May 27, 2018, 07:25:10 AM
 #54

The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
I don’t really think so, there isnt such connection between them both. Just like someone here. Said, it does  remove some. Fiat transactions and it also acts to combat inflation and does the opposite too.. So if you think that the pumping of the crypto market is another way of keeping the old system afloat, I don’t think you’re right.
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May 27, 2018, 07:32:49 AM
 #55

I don't know but from what I understand, if we create more money using bitcoin and probably help others to buy things that they wanted, it would actually promote inflation. I'm not sure since I'm no economics expert.
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May 27, 2018, 07:43:19 AM
 #56

Bitcoin at the moment is never controlled by any of the government, so I doubt that it could affect fiat. However, it feels good seeing local currencies crosses over one another without their government knowing it because it went out via cryptosphere and goes to another country (well, theoretically speaking of course). That probably could affect the forex price.
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May 27, 2018, 10:02:22 AM
 #57

Excellent idea,  this concept should be explain to paranoid and ignorant nations who banned bitcoin in their country infear of crashing its fiat. Crypto is actually a great addition to every countrie's payment system.

The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.


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noah tall
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June 08, 2018, 11:35:47 AM
 #58

The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
I don’t know for sure, but it might be true. If inflation is taking place, it doesn’t happen in everywhere, just some places. It might be that Bitcoin was made to support fiat currency, but we are not really sure of that, cause based on the introduction it doesn’t state that Bitcoin was meant for such purpose, there are other purposes in which it was made than that. And also, some people seems to be misunderstanding Bitcoin and they believe that the reason it was made is to replace fiat.

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June 08, 2018, 12:36:48 PM
 #59

The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.

Inflation describes a condition where money is printed at increasingly higher volumes. The supply of money inflates causing the individual value of the currency to decline. These inflationary circumstances carry a number of known and documented implications and if it becomes enough of a problem can achieve the opposite of injecting wealth into an economy over the long term. Examples of inflation achieving the opposite of "injecting wealth into an economy" are current era venezuela, hyperinflation of the zimbabwe dollar years ago and germany post world war II.

Occupying foreign nations via military force also typically does not "inject wealth into economies". An example of this is the united states spending more than $6.5 trillion on war in the middle east. Debt and cost liabilities associated with war are typically far higher than any purported value the US economy gained in return. War can often have a negative side effect of destroying markets, infrastructure, economies, jobs and other things which cause economic decline on a global scale. Loose regulations in derivatives markets can have negative side effects. An example of this are leveraged derivatives attached to subprime mortgage assets which played a role in economic issues in 2008.

I for one wouldn't mind if crypto were utilized in a role of helping economies, families and nations stay afloat. It wouldn't matter where it came from if it exerted a positive influence on the world, that would be great.

Yes, somehow Bitcoin is helping economy of one country were the number of Bitcoin user is significant in numbers, but, the financial institution or business institution is the one controlling the Economy, the supply and demand of FIAT money is controlled by monetary board of every country, i see no relation that Bitcoin is protecting the FIAT in the trading market, but instead itwas introduce as to possible replacement of FIAT into the Digital transaction.







 
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June 08, 2018, 12:47:53 PM
 #60

I don't think it is protecting the fiat money because many people are scared about bitcoin that they will kill their fiat money.But there is something that crypto currencies are used by most of the people to make money so we need to cashout our money when we got profits so it may keep fiat from getting into inflation and if people want to save them from inflation buy crypto currencies.

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