Paper Money - The Greatest Scam

[teosanru]

I would say that paper currency is the greatest scam ever to enslave mankind.

Bankers charge interest for a thing which has been created out of thin air.

The paper currency gradually decreases in its value due to inflation over time.

So naturally people tend to move towards cryptos which are free from inflation and the bankers and big economists once again want to pull back people to the traditional enslaving system.

Now the choice is yours.

Enslavery or Financial Freedom?

Think Wise and Twice.

I think money is money even if someone lends you monopoly notes and its dear to them they would charge you interest on that too. Talking about making of thin air I don't think it's that easy to print after all. I mean if we compare per satoshi cost of production with cost of production of 1 cent then I think there won't be much difference between that. So it's only gold which actually is not made out of thin air rest all the things can be easily created. it may be financial slavery but I am curious to hear you idea about how Bitcoin will give you financial freedom?.

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[senin]

The fact that some governments abuse their rights and print more paper money on the basis of the state’s economic growth does not give rise to consider them a scam. Paper money has existed for several centuries and has proven its worth. There is still no alternative to paper money as a physical form of money.
I think that paper money will be the main and most common form of payment medium for a long time to come.

[SaShiRaJaVu]

I've read theories like this before. it is true that the government can print as much money as and can cause paper money to become worthless.
but I believe there is a good reason in that matter, the government must have calculated the economic impact if it prints a large amount of money, otherwise the country will be affected by the economic crisis.

If the government is not taking any precaution when they print the money then it will doom their economy and historically we have evidence how a government could destroy their own economic situation if they are not careful on how they deal and control their finances. Even in recent times we know what happened to Venezuela where the government completely destroyed the economy because of inflation and they tried to counter that by printing more currency.

[airdnasxela]

Well actually money is a great creation. In the earliest days, bartering were already there in order to trade with others what they have to what they don't have.  Then it evolves to different means of trading. Paper Money was created to lessen the hassle bringing heavy golds which later were being regulated by central banks. I believe that inflation is normal that's why banks need to monitor the printing of money in order to avoid higher inflation.
Crypto is an other form created to fill what is lacking with paper money. But I don't see paper money as a scam because it's the people who scam others not the money. They're just scamming others for money but it's not money's fault.

[DevilSlayer]

The bankers are the richest persons because they are just printing money whenever they want. It is the reaosn why there is a inflation because the supply is keep increasing and the value of the most fiat currency are decreasing. We are aware that bitcoin is experiencing deflation and not inflation.

[zenhu]

I think its general problem for us since fiats are created. That always be nighmare for people who just collect fiat money and ignore it without using it for get more income. You said that crypto has no inflation, i'm disagree for this statement, remember crypto nowaday are different if we compared in end of 2017. That mean crypto has inflation, the value can be less than before or maybe its has decrease more than 50% like ethereum.

[qwertyup23]

Enslavery or Financial Freedom?

Think Wise and Twice.

There are a few points that I disagree with your contention.

First, paper money was introduced in order to have an internationally recognized currency which can be use as the main medium on a respective country for reasons of trading, investing, and lending. If we were still to adapt the barter system of payments, there would be no means of knowing the actual value of a thing since everything revolves around trading goods.

Second, interest rates are created by the banks in order to take opportunity of the time. While the rates may be relatively low, the chances are guaranteed since the security that most banks give are based on the fiduciary relationship created between the depositor and the bank.

Third and final point, without the fiat system, the world would be in chaos with regard to trading and investing.

[Vishnu.Reang]

The biggest problem with fiat currency is inflation. In my country, the national currency is losing its purchasing power, even faster than the rate of interest that we get on long term bank deposits. So keeping fiat in bank accounts is a loss making exercise. Another option is to go for gold, but the government has implemented a 12% tax on the purchase of the yellow metal recently.

[AicecreaME]

Have to agree with the OP here. Fiat currency is a tool being used by the bankers and the politicians whom they sponsor, to get themselves rich. Remember the 2008-09 recession? The government poured in trillions of USD to save the banks. From where the government got this much money? They just printed out from thin air and added that amount to the federal debt. In the end, the bankers were saved, but the common people had more and more of the federal debt pushed through their throats.

The only real solution for this is to bring back the gold standard. As of now, I couldn't think of any other remedy. The governments won't be able to print out as many banknotes as they want, if the gold standard is implemented again. Else, we could go for a decentralized currency that is outside the control of the central banks. I am talking about Bitcoin here.

Fiat was never a valuable thing, it is a dependent and a mere tool of the Government spreading their power throughout the globe, they have this monetary policy that makes them untouchable and inevitable by printing and burning fiat whenever they want to, it is a childish play for me. Fiat can't exist without the government and that's what makes it an outcast when it is being compare to Cryptocurrency (I prefer bitcoin)

But we can't do anything about it, the Government is the boss, and many puppets are following them because of fiat itself, being obesse elephants and alligators.

[fiulpro]

Well the paper money isn't created out of thin air , the more money a country prints the lesser the value of their money goes , it's all connected , it is not a scam but the government who are behind all the corruption makes it so.
I do think that paper money is very essential for the economy to go actually but unfortunately the governmental bodies makes it corrupted and dirty .

[agentx44]

I would say that paper currency is the greatest scam ever to enslave mankind.

Bankers charge interest for a thing which has been created out of thin air.

The paper currency gradually decreases in its value due to inflation over time.

So naturally people tend to move towards cryptos which are free from inflation and the bankers and big economists once again want to pull back people to the traditional enslaving system.

Now the choice is yours.

Enslavery or Financial Freedom?

Think Wise and Twice.

Paper money was made to maintain order and peace all over the world before but now it is all about greed and corruption promoted by the government. They have all the control to increase or decrease the value of the money and what has been happening now was all about decreasing the value as the resources in our planets grows lower and lower each year. In the end, we are all slaves of the government, adjusting and working hard not for ourselves anymore but for them already so we must make decisions and start moving into crypto.

[Wysi]

The fact that some governments abuse their rights and print more paper money on the basis of the state’s economic growth does not give rise to consider them a scam. Paper money has existed for several centuries and has proven its worth. There is still no alternative to paper money as a physical form of money.
I think that paper money will be the main and most common form of payment medium for a long time to come.

That's the bitter truth which some of the people over here refuses to accept it as they have no idea about the importance of fiat currency or they are just saying something without a proper research. We do understand that there are corruption and the central government abuses it's power by printing more currency but if they don't print new paper currencies then world will come to a standstill and we cannot withdraw our own hard earned money due to shortage of fiat currency. People need to understand that crypto can be alternative for fiat but not the replacement.

[Kwame21]

I fully support the creator of this article! By itself, bitcoin appeared after people were tired of enduring! In all countries, a machine is turned on and new money is printed, thereby inflation takes place, thereby becoming more expensive, thereby depriving people of their money! already there are few countries where paper money is equal to the amount of gold! Bitcoin will never be a classic paper money system!

an era of progress which, when progress can be accepted among the community means that old habits are considered hunting, but it is not like that crypto is better than paper currency but crypto can happen because of paper currency so that from few years ahead it is expected easier transaction implemented does not mean paper money is bad...

Great input. I think paper currency was very necessary at the time it was invented. Now, a new era has come. The era of cryptocurrency. However, paper currency shouldnt be made to look like it was a waste of time.

[the rise]

I agree, but without paper money with all of its policies, we also cannot run the economy in the real world smoothly, this is only a system to suppress uncertainty to be a useful link for humans so far. Imagine if the crypto becomes very large and fully decentralized, it will become a hot ball with a larger induction scam. The banker will also think to intensely enter the crypto and get worse. so far nothing will be really good.

[whyrqa]

It is very strange to believe that paper money is a scam.  When paper money was created, no one had suggested anything better to replace gold and silver when using it as a means of payment.  History shows how people and rulers manipulated gold and silver coins, reducing their weight, although their equivalent value did not change.  This problem was resolved with the release of paper money.  But today, non-cash payments occupy a special part of all financial transactions in the world, but we must also take into account the fact that a special layer of the world's population still uses paper money and will not refuse them, at least in the near future.

[FaMouS8828]

The biggest problem with fiat currency is inflation. In my country, the national currency is losing its purchasing power, even faster than the rate of interest that we get on long term bank deposits. So keeping fiat in bank accounts is a loss making exercise. Another option is to go for gold, but the government has implemented a 12% tax on the purchase of the yellow metal recently.

I've got the same problem in my country with a national fiat currency. Sometimes I buy dollars, but it's also a bad way. What about the stock market? It's a pretty good way to invest money, not so risky way and good growth rate of your money.

[wxa7115]

Have to agree with the OP here. Fiat currency is a tool being used by the bankers and the politicians whom they sponsor, to get themselves rich. Remember the 2008-09 recession? The government poured in trillions of USD to save the banks. From where the government got this much money? They just printed out from thin air and added that amount to the federal debt. In the end, the bankers were saved, but the common people had more and more of the federal debt pushed through their throats.

The only real solution for this is to bring back the gold standard. As of now, I couldn't think of any other remedy. The governments won't be able to print out as many banknotes as they want, if the gold standard is implemented again. Else, we could go for a decentralized currency that is outside the control of the central banks. I am talking about Bitcoin here.

A gold standard will be many times better than what we have now but I will prefer if we skipped that step and used gold directly, first of all governments will never adopt the gold standard unless they are forced by the dire circumstances and even if they do you can be sure they will find an excuse in the future to leave the gold standard behind and have once again a fiat currency.

The only way to stop this is to use gold directly and not paper currency which represents gold, and if this is not possible because everyone is so used to use an electronic form of payment then we could use bitcoin instead of gold.

[STT]

We are still using gold indirectly, the difference being now there is no fixed ratio between currency used and gold demandable.  The Swiss bankers were the last to leave a gold standard about 20 years ago but all central banks have some gold that in some part is the asset they leverage for the FIAT notes they issue.
   Thats how I read it, some banks increase their gold holdings every year and possibly the ratio of their gold to currency issued also.   So those countries are improving the quality of their money and its possible the market respects that and may raise the effective value.   Some countries hold a wealth fund of assets but not gold so much but most countries are operating some kind of debt store hence currency now is a promise to pay from the yield on this debt.    Value could collapse if the debt were to decline in value like the housing market of ten years ago, apparently Bitcoin was setup in response to that crisis or at least in orbit of those events.
   I dont think anyone will be forced to switch to gold except by a need to find solid value, the debt backing value now could become very uncertain.   If money is of uncertain value it may obstruct trade globally which makes us all poorer and some countries cannot provide for themselves without trade, Japan for example lacks processed water apparently and China lacks oil and needs to continue trade.  Russia and China have both been large buyers of gold in the last ten years and globally central banks have been net buyers of gold for a decade and I think that trend will continue because debt markets will likely reset or become illiquid.

[deisik]

Thats how I read it, some banks increase their gold holdings every year and possibly the ratio of their gold to currency issued also.   So those countries are improving the quality of their money and its possible the market respects that and may raise the effective value

Personally, I don't see a lot of connection here

As long as you can't convert your paper money to physical gold in accordance with the ratio of gold reserves to amount of money in circulation (what you seem to be trying to convey in your post), it makes no difference. I mean, the government can pile up gold like there's no tomorrow, and the currency can still be weak, unstable, and highly inflationary due to insane monetary policies of the same government. If you could in fact redeem paper money for gold, that would technically mean a variety of gold standard implemented (which is prohibited by the IMF rules)

Russia and China have both been large buyers of gold in the last ten years and globally central banks have been net buyers of gold for a decade and I think that trend will continue because debt markets will likely reset or become illiquid

Because they know they don't stand a damn chance in the modern world on their own. Their economies will collapse if they lose their foreign markets

[Broly46]

I think paper money has better reputation than digital fiat paper backed money. The entire financial is based of blatant lies, scams, abuse in the entire human history.