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Author Topic: Fiat VS. Crypto, which is a more stable currency?  (Read 335 times)
ck343
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June 12, 2019, 11:59:28 AM
 #21

Fiat is stable but it would not be for so long. Its value has an amazing volatility especially when economic events happen and in most of the cases this events are bad and not positive ones.
There is no point in talking about stability if you don't define the term of comparison: stable compared to what?

It is the sun turning around the earth or the opposite?
It depends on the perspective.
From my point of view, the sun turns around the earth. I see it rising on the left and setting on the right.
From the point of view of another galaxy, it's the opposite.

If you take the $ as term of comparison and you compare all other currencies to the $, than the $ will be by definition stable, and all other currencies won't.
If you take the € as term of comparison and you compare all other currencies to the €, that the € etc.
It's a matter of definition, and definitions can be arbitrary.

For example, they say gold is volatile.
When they say that, they are comparing gold to $.
But they say also, in the last century, since the FED exists, the $ has lost 98% of his value compared to gold.

So, which one is more volatile?
Gold or the $?

It's a fake question.
Something is volatile or not, depending on which perspective you choose.

When we talk about currencies, the term of comparison shouldn't be another currency but purchasing power.
Gold is less volatile than the $ because it saves the purchasing power of its owner.

1g of Gold in 1900 could buy the same goods as 1g of gold can buy today.
No volatility
1 $ in 1900 could fill the shopping cart.
High volatility

The same principle is true with shorter time periods. I used long time periods (1 century) to make the point clearer
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June 13, 2019, 01:26:44 AM
 #22

Fiat is stable but it would not be for so long. Its value has an amazing volatility especially when economic events happen and in most of the cases this events are bad and not positive ones.
There is no point in talking about stability if you don't define the term of comparison: stable compared to what?

It is the sun turning around the earth or the opposite?
It depends on the perspective.
From my point of view, the sun turns around the earth. I see it rising on the left and setting on the right.
From the point of view of another galaxy, it's the opposite.

If you take the $ as term of comparison and you compare all other currencies to the $, than the $ will be by definition stable, and all other currencies won't.
If you take the € as term of comparison and you compare all other currencies to the €, that the € etc.
It's a matter of definition, and definitions can be arbitrary.

For example, they say gold is volatile.
When they say that, they are comparing gold to $.
But they say also, in the last century, since the FED exists, the $ has lost 98% of his value compared to gold.

So, which one is more volatile?
Gold or the $?

It's a fake question.
Something is volatile or not, depending on which perspective you choose.

When we talk about currencies, the term of comparison shouldn't be another currency but purchasing power.
Gold is less volatile than the $ because it saves the purchasing power of its owner.

1g of Gold in 1900 could buy the same goods as 1g of gold can buy today.
No volatility
1 $ in 1900 could fill the shopping cart.
High volatility

The same principle is true with shorter time periods. I used long time periods (1 century) to make the point clearer

You may not like it, but what is unreal and unrealistic is any A to B comparison. It's necessary to compare one to all and all to one.
kotajikikox
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June 15, 2019, 10:56:49 AM
 #23

Fiat because controlled by the government or big banks. unlike crypto no ones control can run freely. Fiaat can print the more they want unlike crypto processing digital decentralized.

Fiat is stable because money will use all over the world and will never be obsolete but crypto or bitcoin will be dies if a technologies will run forever.but what if will happens that suddenly shutdown all kinds of electronics gadget all over the world? If ever this will happen how will you still use crypto?this is just my opinion if ever happens this?
although I know also this never gonna happen because we are in new generation and smart people developing a new high tech technologies that we never expect because they always discover an unbelievable things like developing technologies.Like crypto,who will knows that this kind of crypto has been done.

I know crypto is stable but there a chance to lost of power electricity that chances also to stop crypto unlike fiat we know that this will never ever be obsolete.thats why fiat will be stable forever.

coolcoinz
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June 16, 2019, 10:43:21 AM
 #24

@ coolcoinz,
Your comparison with fiat currencies is flawed, because you consider the fiat currencies you mentioned, only while they were collapsing.
I wouldn't talk about volatility in that case

Compared to the major currencies since Bitcoin exists, Bitcoin is volatile.
For example, as far as I know, in this period it has been more volatile than any commodity.



Here's the problem. All fiat currencies will collapse at some point and history shows that most of them need less than 50 years for it to happen. Some countries already went through hyperinflation and that includes some giants of the economy like USA and Germany. What makes you think any modern fiat currency will survive until the end of the century? Also, it might have been more volatile than commodities, but commodities are not currencies. It's a fiat vs crypto thread.

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June 16, 2019, 08:45:23 PM
 #25

If somebody developed an altcoin backed by horses, we really might get a stable currency.

 Cheesy

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rodel caling
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June 16, 2019, 09:50:30 PM
 #26

I am a crypto ethusiasm and I am the one believes crypto have future as new form of money that can make help for the economic growth in the near future, but we need to accept fiat is very stable because they control by the world government how it works, therefore we need to support crypto currency to become stable coin un the future because I believe crypto improves itself if the new technology continue to progress.

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June 16, 2019, 11:54:15 PM
 #27

Bitcoin went up, like, $600 over the weekend... Forex time. Or did the $dollar go down?

Cool

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ck343
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June 17, 2019, 11:38:52 AM
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 #28

@ coolcoinz,
Your comparison with fiat currencies is flawed, because you consider the fiat currencies you mentioned, only while they were collapsing.
I wouldn't talk about volatility in that case

Compared to the major currencies since Bitcoin exists, Bitcoin is volatile.
For example, as far as I know, in this period it has been more volatile than any commodity.

Here's the problem. All fiat currencies will collapse at some point and history shows that most of them need less than 50 years for it to happen. Some countries already went through hyperinflation and that includes some giants of the economy like USA and Germany. What makes you think any modern fiat currency will survive until the end of the century? Also, it might have been more volatile than commodities, but commodities are not currencies. It's a fiat vs crypto thread.
@coolcoinz,
I don't know where you read me suggesting that fiat currencies will survive until the end of the century.
Try to read my messages and you will see that nowhere I suggested something link that.

Commodities can become currencies if they are put on the blockchain, so to speak, i.e. if they are used to back cryptos.
In fact, something like that exists already. They call them x-backed Stablecoins, where x is a commodity.

Certain commodities were currencies, for example gold. They called it Gold Standard and it worked well until the Central Banks took control of the financial system and imposed their fake money.
Gold can be a currency again as a gold-backed Stablecoin.

Commodity-backed Stablecoins are cryptos, I guess, that's why we can talk about them in a fiat vs. crypto thread.
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June 17, 2019, 07:00:37 PM
 #29

If a stable coin does not have an 1:1 all-cash reserve, do you think this means it fails to keep its value on par with USD?

As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, I found a data analysis of fiat currencies pegged to USD and comparison to stable coins.

https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56

I think in future we may not need fiats currency because blockchain and bitcoin has opened our eyes on how we can transact online without needing banks and the centralized financial system we have. This new cryptocurrency system enables us to transfer value without legal implications that we do face in our days today business. To me we would not need fiat if bitcoin becomes fully functional and adopt by government as money.
coolcoinz
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June 18, 2019, 06:06:09 PM
 #30

@coolcoinz,
I don't know where you read me suggesting that fiat currencies will survive until the end of the century.
Try to read my messages and you will see that nowhere I suggested something link that.

Commodities can become currencies if they are put on the blockchain, so to speak, i.e. if they are used to back cryptos.
In fact, something like that exists already. They call them x-backed Stablecoins, where x is a commodity.

Certain commodities were currencies, for example gold. They called it Gold Standard and it worked well until the Central Banks took control of the financial system and imposed their fake money.
Gold can be a currency again as a gold-backed Stablecoin.

Commodity-backed Stablecoins are cryptos, I guess, that's why we can talk about them in a fiat vs. crypto thread.


It seems we didn't understand each other. You said that I'm considering fiat currencies at the point of collapse, my response was that they all have a point of collapse as they all had it in the past. If we compare it to bitcoin we'll see that many of them went through hyperinflation and died in less than 10 years from being released, which makes them much more volatile in general terms.

Even if a commodity becomes a currency it still won't be fiat currency. In your own words, a commodity backed stablecoin is a cryptocurrency (which is something the community has yet to agree on), but if we talk about them here what are we going to compare them to in a crypto vs fiat thread? They aren't very volatile, so in these terms cryptos score even better.

Anyway, like you said it's a tricky question. As a fiat hater I took the obvious stance. The stability of fiat is fake, superficial, like that house that looks good on the outside but is ready to collapse and when it happens it's going to be quick and sudden.

ck343
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July 01, 2019, 11:02:29 AM
 #31

@coolcoinz,
I don't know where you read me suggesting that fiat currencies will survive until the end of the century.
Try to read my messages and you will see that nowhere I suggested something link that.

Commodities can become currencies if they are put on the blockchain, so to speak, i.e. if they are used to back cryptos.
In fact, something like that exists already. They call them x-backed Stablecoins, where x is a commodity.

Certain commodities were currencies, for example gold. They called it Gold Standard and it worked well until the Central Banks took control of the financial system and imposed their fake money.
Gold can be a currency again as a gold-backed Stablecoin.

Commodity-backed Stablecoins are cryptos, I guess, that's why we can talk about them in a fiat vs. crypto thread.


It seems we didn't understand each other. You said that I'm considering fiat currencies at the point of collapse, my response was that they all have a point of collapse as they all had it in the past. If we compare it to bitcoin we'll see that many of them went through hyperinflation and died in less than 10 years from being released, which makes them much more volatile in general terms.
Ok.
We agree about fiat currency collapsing some day.
We disagree about which period we have to look at in order to consider the volatility of fiat currency: you look at the collapsing-period, I look at the normal-period.



Even if a commodity becomes a currency it still won't be fiat currency. In your own words, a commodity backed stablecoin is a cryptocurrency (which is something the community has yet to agree on), but if we talk about them here what are we going to compare them to in a crypto vs fiat thread? They aren't very volatile, so in these terms cryptos score even better.
You are right.
It is not clear what cryptocurrencies means.
There are those who don't think commodities-backed Stablecoins should be considered cryptocurrencies.
There are those who don't even think that Stablecoins altogether should be considered cryptocurrencies.
For me, cryptocurrencies are currencies (means of payment) that use blockchain, blockchain-based currencies.

"They aren't very volatile, so in these terms cryptos score even better."
EXACTLY!!!  Smiley
That's the point!

"Fiat VS. Crypto, which is a more stable currency?"
As far as volatility is concerned... Cryptos!
Just use some commodity and back them up.
We don't need to look at collapsing scenarios, even in normal times cryptos are more stable than fiat.
Do you want to make cryptos win vs. fake money?
Back them up with gold.
Problem solved.
Cryptos win.
Smiley



Anyway, like you said it's a tricky question. As a fiat hater I took the obvious stance. The stability of fiat is fake, superficial, like that house that looks good on the outside but is ready to collapse and when it happens it's going to be quick and sudden.
I 100% agree.
The stability of fiat is fake.
People believe that fiat is stable because of those manipulated statistics about inflation rates.
This is fiat's true stability

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