Fiat Money Losing Worth, Bitcoin and Gold Getting Important

[abhiseshakana]

The world is slowly becoming cashless, with a majority of the people out there paying for basic services or goods without fiat currency. Cash is becoming a thing of the past with people opting for the much easier option of electronic payment methods, which are much more faster and convenient. However, cash may not become obsolete because of some significant reasons, such as the fact that cash is still the primary medium of exchange among the financially disadvantaged as well as it being the best solution to identity theft. We cannot also ignore the fact that cash offers more privacy than electronic payment methods.

If banks provide digital banking methods, I think everyone will feel happy and safe. Until now, banks provide guarantees for customer refunds in the event of a loss caused by a bank SOP.

The fate of fiat money will end if money is not guaranteed or backed up with valuable commodities such as gold or silver. If printing money is only based on government law, the risk of inflation and the legitimacy of fiat money becomes unstable. If the political and economic stability of a country is disrupted it will affect the level of confidence in its currency as well. In addition, the cost of producing paper currency is especially cheap and the raw materials do not represent the face value of the printed currency.

Making money without converting gold is suicide. because sooner or later the economy will crumble, because the printing of money that will never stop triggering inflation, inflation will make the value of the currency plummet.

[Wysi]

I wouldn't say it's 'losing value'. Inflation is a very normal thing to happen and just because it's occuring doesn't necessarily mean our dollar is worthless.

For example, some countries have the lowest inflation rates occuring right now and just because there are more bills in the economy, doesn't mean the economy is worth less or more.

I reckon we'll see cash being obsolete in a couple years and fiat and mobile payments quickly replace everything for several years.

I think OP is using the wrong words, not losing value or losing worth, because that is also experienced by every commodity or currency. Fiat losing of usage will be far more real. I myself the most anti person to save fiat for the long term, we know how prices of "goods" will getting more expensive in the future while fiat rates will always go down. while gold has a much more stable rate, and is safer as a long-term deposit, Also for bitcoin are getting more popular, in my opinion fiat will lose its usage over time.

Let's respect what the op said, it was just an opinion and that should be considered. Though bitcoin has more potentials to reach the best price, it doesn't mean we will neglect fiat currency's usability. Bitcoin indeed got so popular to people who has the mindset of cryptocurrency, but for those who don't have it I think it was tok hard and unbelievable for fiat to become obsolete.

What he said was true as the OP has used wrong word which does not makes any sense as gold and fiat will never lose it's value yes there are regions or a set of people who used to invest in gold in the past might have turned towards the crypto but that does not mean that the fiat or gold has lost it's value in front of crypto currency.

[Ucy]

Still to early to speak about FIAT vs CRYPTOCURRENCIES but one thing is for sure,  cryptos are getting more and more attention and fiat is not necessary loosing value and most likely the inflation is too big and it started to feel in every domain. Gold is fine, it will always be fine so I wouldn't worry a bit about gold as its place in economy cannot be damaged no matter what.

About recession , the global charts indicate we are at the start on a new one ...so we'll have to wait and see what will happen...

If a serious global collapse happens, things like gold, silver will likely lose value unless their prices are artificially controlled.
Imagine a global collapse in a very isolated area , go to that area and trying giving them some metals like gold or silver. If  they like the gold/silver, they could price it way below the real international price. This things are not what they need in such situation. Guess what they will value and price very high? Things they desperately need to relieve themselves from their condition.

Gold will only do well if the collapse is isolated and if the community where a collapse happens have zero access to to the rest of the world.

[deisik]

Inflation is increasing but not necessarily means that fiat is losing worth

Inflation is synonymous with fiat losing value and purchasing power (read, its worth)

Unless by inflation you mean something other than price inflation, of course. But even if you in fact mean inflation of money supply (i.e. increase in the amount of money in circulation), in most cases it is still followed by price inflation. Either way, any fiat currency is losing its worth over time. It is kind of set in stone, though the degree of its intensity varies widely among countries, from small inflation (e.g. US or EU) to hyperinflation (e.g. Venezuela)

[Triffin]

I wouldn't say it's 'losing value'. Inflation is a very normal thing to happen and just because it's occuring doesn't necessarily mean our dollar is worthless.

For example, some countries have the lowest inflation rates occuring right now and just because there are more bills in the economy, doesn't mean the economy is worth less or more.

I reckon we'll see cash being obsolete in a couple years and fiat and mobile payments quickly replace everything for several years.

I think OP is using the wrong words, not losing value or losing worth, because that is also experienced by every commodity or currency. Fiat losing of usage will be far more real. I myself the most anti person to save fiat for the long term, we know how prices of "goods" will getting more expensive in the future while fiat rates will always go down. while gold has a much more stable rate, and is safer as a long-term deposit, Also for bitcoin are getting more popular, in my opinion fiat will lose its usage over time.

Let's respect what the op said, it was just an opinion and that should be considered. Though bitcoin has more potentials to reach the best price, it doesn't mean we will neglect fiat currency's usability. Bitcoin indeed got so popular to people who has the mindset of cryptocurrency, but for those who don't have it I think it was tok hard and unbelievable for fiat to become obsolete.

What he said was true as the OP has used wrong word which does not makes any sense as gold and fiat will never lose it's value yes there are regions or a set of people who used to invest in gold in the past might have turned towards the crypto but that does not mean that the fiat or gold has lost it's value in front of crypto currency.

Still today Fiat currency is used in almost all countries, and in those countries where internet is not present nobody there knows about crypto or even they do not have enough money to invest them in gold or crypto thus they are using fiat currency but I think with the passage of time these countries will also get into crypto if their government try to develop them and then surely I would say that crypto will gain much worth at that time.

[Best Dreams]

At the moment fiat currency has decreased, it is likely that many people have started using digital cryptocurrency to make payments simpler and faster. Hopefully there is no economic crisis due to the weakening of Fiat.

The fiat money are decreasing its value not because there is a lot of people that using digital cryptocurrency to make payments. The fiat currency is decreasing its value because of the inflation and it is unstoppable. The best thing that can do to deal with the inflation is to invest into something that is higher than the inflation rate so we can maintain the value of our money.

Inflation is something that is unstoppable so we can do nothing about it but to divert and focus our mind into something that will be more profitable like investing into gold or bitcoin. While fiat currency may lessen its worth value because of the continuous inflation that particularly affects our goods and services, but gold and bitcoin will continue to be  more expensive and with higher appraisal in the following years to come which will create more attachment between people and bitcoin.

They are not burned at all they only have to hold more and invest I am sure again price Will come to the track so better keep investing. People should keep one thing in mind which is volatility so if price today is low means tomorrow will be high. Fiat money lost value people found an advanced way of payment which is bitcoin so it’s the best.

[supercanada1]

The world market is suffering big crash, which means there is not much of spending ability with the common people. The circulation is getting slowed down causing accumulation. This is where the inflation happens, for this some countries have taken initiative to supply money to the low bottom through different schemes to enrich the circulation.

Apart from this countries have stopped printing of the high denomination currencies to limit the accumulation done. Through these process the fiat money inflation gets controlled to a very small margin. This is why the people's eye were towards gold, bitcoin and other valuables that is valued high and has the increased probability for growth through its limited supply.

We have been through these things for long now. Such problems rather crisis have been with us since the birth of fiat and now the time has come when we get a permanent solution for such things. Fiat and printing of money being controlled by government has only cause problems for common people. Therefore, it is best for us to go with bitcoin and free ourselves from anyone’s control and all such crisis.

[SaShiRaJaVu]

Fiat and printing of money being controlled by government has only cause problems for common people. Therefore, it is best for us to go with bitcoin and free ourselves from anyone’s control and all such crisis.

For centuries fiat money is controlled by the authorites either the king who ruled the country, the dictator or the elected government and financial crises has been there for a long time and it is a cyclic process and all of them are caused by the stupid policies by the authorities controlling the market and it can affect the bitcoin market too.

[jrrsparkles]

I wouldn't say it's 'losing value'. Inflation is a very normal thing to happen and just because it's occuring doesn't necessarily mean our dollar is worthless.

For example, some countries have the lowest inflation rates occuring right now and just because there are more bills in the economy, doesn't mean the economy is worth less or more.

I reckon we'll see cash being obsolete in a couple years and fiat and mobile payments quickly replace everything for several years.

I think OP is using the wrong words, not losing value or losing worth, because that is also experienced by every commodity or currency. Fiat losing of usage will be far more real. I myself the most anti person to save fiat for the long term, we know how prices of "goods" will getting more expensive in the future while fiat rates will always go down. while gold has a much more stable rate, and is safer as a long-term deposit, Also for bitcoin are getting more popular, in my opinion fiat will lose its usage over time.

Let's respect what the op said, it was just an opinion and that should be considered. Though bitcoin has more potentials to reach the best price, it doesn't mean we will neglect fiat currency's usability. Bitcoin indeed got so popular to people who has the mindset of cryptocurrency, but for those who don't have it I think it was tok hard and unbelievable for fiat to become obsolete.

What he said was true as the OP has used wrong word which does not makes any sense as gold and fiat will never lose it's value yes there are regions or a set of people who used to invest in gold in the past might have turned towards the crypto but that does not mean that the fiat or gold has lost it's value in front of crypto currency.

When something is calculated in terms of fiat the value of it will increase when the inflation increase which may not be increase in value of gold or crypto we are holding but literally we can buy more fiat using the same gold or crypto.

[BChydro]

Still today Fiat currency is used in almost all countries, and in those countries where internet is not present nobody there knows about crypto or even they do not have enough money to invest them in gold or crypto thus they are using fiat currency

I am not aware about countries that lack basic internet facilities and the reason i say this is because 5 billion people use mobile phone and you know the total population in the world and that means they have atleast access to internet but for these people to start using bitcoin it is another hurdle as no one will use something that has a transaction fees when ever you transfer money and most of the people try to save money and hence bitcoin is not the perfect solution for everything but it has positive aspects and if people wants to make use of that then you will find more people in the market.

but I think with the passage of time these countries will also get into crypto if their government try to develop them and then surely I would say that crypto will gain much worth at that time.

It is highly unlikely to see a government taking initiative to develop a cryptocurrency.

[SummerBliss]

Financial crisis have been always a problem for developing nations due to incorrect monetary policies of the government and yes it can be solved with the help of gold reserves or btc as we have seen Venezuela arising out of crisis with crypto involvement.So it might be helpful for world economies but fiat will always have fixed value and cannot loose its value in case of inflationary measures also.But we don't need to think of another economic crisis due to trade wars as they have been part of political system of countries.

[ReiMomo]

Fiat and printing of money being controlled by government has only cause problems for common people. Therefore, it is best for us to go with bitcoin and free ourselves from anyone’s control and all such crisis.

For centuries fiat money is controlled by the authorites either the king who ruled the country, the dictator or the elected government and financial crises has been there for a long time and it is a cyclic process and all of them are caused by the stupid policies by the authorities controlling the market and it can affect the bitcoin market too.

You have a point about that, maybe it depends on what country that fiat belongs. It may lose it's worth for now but I do believe that it will regain it's popularity as well. Fiat currency is being used people for a million years ago so I think it really takes time to bitcoin in order for it to be more comfortable with each other too. But let's not think about that, instead of arguing that matter, let's enjoy of what we have now. Let the time can tell what happen with fiat money and what is the innovation of digital currency, bitcoin.

[lionheart78]

You have a point about that, maybe it depends on what country that fiat belongs. It may lose it's worth for now but I do believe that it will regain it's popularity as well. Fiat currency is being used people for a million years ago so I think it really takes time to bitcoin in order for it to be more comfortable with each other too. But let's not think about that, instead of arguing that matter, let's enjoy of what we have now. Let the time can tell what happen with fiat money and what is the innovation of digital currency, bitcoin.

The thing is worth and popularity is very different in terms of Fiat currency.  It is popular because it is known currency of a country but it is also a fact that fiat currency inflation depreciate its value.  In due time we can see another set of larger bills to be released by the government since cents and lower denomination will be worthless.  Just like what is happening in several country.  So people think that to preserve the value of their money, they need another medium of exchange that have a better store of value property and that were Bitcoin and gold comes in.

[Bitcoin Seller]

With all its advantages like high speed, cheap transactions, possibility to be used in any place in the world, cryptocurrency cannot even compete with fiat (now, I mean). Leave any guy in any (!) faraway place with no Internet and even no good phone connection, give him virtual access to his BTC, and he will not know what to do with it. With the dollar, he can at least make a natural exchange, for food or whatnot. However, I wish everything would be different. Crypto must at least partly replace traditional money.

[Darooghe]

It seems to me that the difference between bitcoin and gold is that gold has more inherit value. Multiple industries rely on is use. So even if it is not used and most people speculate on it, in the future it is still usable. Even if the economy didn't exist people would still covet it as a useful metal. It has a promise of usability. It seems Bitcoin's use is in its power as a decentralized currency. If it doesn't have that then there's no promise of future usability, unlike gold.

Also, Gold was used as a basis for currency for thousands of years. It was money. Its current value is mainly a reflection of it's past role as money. Bitcoin needs to become widely used as money. But don't get me wrong. I HODL most of my coins. I also want to see bitcoin function as digital gold and i do only see bitcoin become digital gold once it is used through 2nd layer as the backing for a payment system. Then bitcoin will become money, like gold was. 

[Edraket31]

Fiat and printing of money being controlled by government has only cause problems for common people. Therefore, it is best for us to go with bitcoin and free ourselves from anyone’s control and all such crisis.

For centuries fiat money is controlled by the authorites either the king who ruled the country, the dictator or the elected government and financial crises has been there for a long time and it is a cyclic process and all of them are caused by the stupid policies by the authorities controlling the market and it can affect the bitcoin market too.

You have a point about that, maybe it depends on what country that fiat belongs. It may lose it's worth for now but I do believe that it will regain it's popularity as well. Fiat currency is being used people for a million years ago so I think it really takes time to bitcoin in order for it to be more comfortable with each other too. But let's not think about that, instead of arguing that matter, let's enjoy of what we have now. Let the time can tell what happen with fiat money and what is the innovation of digital currency, bitcoin.

Time will come that Bitcoin will be controlled by government too, but no idea when it will happen, but once it will be regulated and legalized then we don't have anything we can do for it. For Gold, yes this is very important, so for me better to invest in gold and Bitcoin itself, as this too is a good source of investment for now especially in Bitcoin, too early to invest, not yet too late.

[diazepam666]

Fiat and printing of money being controlled by government has only cause problems for common people. Therefore, it is best for us to go with bitcoin and free ourselves from anyone’s control and all such crisis.

For centuries fiat money is controlled by the authorites either the king who ruled the country, the dictator or the elected government and financial crises has been there for a long time and it is a cyclic process and all of them are caused by the stupid policies by the authorities controlling the market and it can affect the bitcoin market too.

You have a point about that, maybe it depends on what country that fiat belongs. It may lose it's worth for now but I do believe that it will regain it's popularity as well. Fiat currency is being used people for a million years ago so I think it really takes time to bitcoin in order for it to be more comfortable with each other too. But let's not think about that, instead of arguing that matter, let's enjoy of what we have now. Let the time can tell what happen with fiat money and what is the innovation of digital currency, bitcoin.

Time will come that Bitcoin will be controlled by government too, but no idea when it will happen, but once it will be regulated and legalized then we don't have anything we can do for it. For Gold, yes this is very important, so for me better to invest in gold and Bitcoin itself, as this too is a good source of investment for now especially in Bitcoin, too early to invest, not yet too late.

There is no way to control the bitcoin, I hope you were not aware of the blockchain algorithms because decentralized being connected without the help of any government.
Even government wishes to interrupt also you will not get any hurdles for it.
So ignore this government and make your stake in Bitcoin it is always better than gold and fiat money.

[boltz]

Fiat is losing its worth because the inflation is getting over-top and it cannot be controlled anymore no wonder why even Bill Gates told that " The next money are gonna be digital money". Inflation and a new recession will make fiat loosing even more value ...and in EUROPE with Brexit on-going , EURO and LIRA will both loose value and economical value as well....

[sirminesalot]

Fiat is losing its worth because the inflation is getting over-top and it cannot be controlled anymore no wonder why even Bill Gates told that " The next money are gonna be digital money". Inflation and a new recession will make fiat loosing even more value ...and in EUROPE with Brexit on-going , EURO and LIRA will both loose value and economical value as well....

all possibilities can happen and no one can find out if with the times and technology of course cryptocurrency will be needed because the development of the digital era certainly requires a digital currency as well and the currency may be a crypto currency, hopefully bitcoin can become a recognized currency

[jmigdlc99]

As the fiat money is losing its value, more and more people will realize that it is time to get into the Bitcoin bandwagon as a way to partially protect their wealth and investments. That time is coming soon. We who are the pioneers in cryptocurrency have many things to thank for that we are involved at the right time. 

Agreed, but Bitcoin isn't just a "bandwagon" fad, it is here to stay. More and more people learn about bitcoin daily and mass adoption continues to grow. I've seen some charts directly correlating increases in gold value with economic crises and i am predicting that pretty soon bitcoin will have a similar chart as well.

We truly are lucky as "pioneers" in this cryptocurrency revolution as all we have to do now, in a simplistic sense, is buy and wait.