Fiat Money Losing Worth, Bitcoin and Gold Getting Important

[yulionoo]

If you see, we might be heading towards a global recession. Trade war has lead to economic slow down in many countries. If that's the case people are likely to shift towards a safe investment asset which won't be much affected by the slowdown in economy. Gold has always been a safest option in such situations. But now since cryptocurrencies have gained enough marketcap and are popular enough, they can provide a better alternative investment as you must have seen that it isn't much affected by price movement of other financial assets.

yes I agree with you now the world economy is weakening due to the trade war that occurred between America and China. As a result of this trade war China weakened the yuan exchange rate against the dollar. this caused the stock market to decline. the fall of the stock market will make investors look for alternative investments, namely gold and bitcoin. bitcoin and gold are good choices for investing because they are good storage devices. I am optimistic that the price of gold and bitcoin in the future will be even higher.

[TrevorS]

Maybe Fiat money is losing its value globally, but I do not think that cryptocurrency will soon become a replacement for them. Financial institutions have entered our life very tightly, the infrastructure is very well developed. Even with a complete collapse, the fiat money engine will fight back with all its might, and Bitcoin, likely against the backdrop of this agony, may fall in price due to various manipulations in the news background. The reverse option is not excluded, but to be honest, I can’t imagine a scenario where the state so easily allows its national currencies to sink into oblivion

[BitHodler]

Other than that since cryptocurrency is decentralized system then we can't use them in our daily lives.  

IMHO, crypto being centralized or decentralized makes no real difference when it comes to usage in our daily lives.... you can choose to use it at any time of the day if it fits your needs.

The only major disadvantage of something like Bitcoin that's decentralized, is the fact that it won't likely scale to a level where hundreds of millions of people can use it simultaneously.

Overall, we don't need Bitcoin to scale big as long as most people only use it as store of value. How often do people look at their gold they use as store of value? Probably once a year? All because it's stored inside a bank vault.

Something being a store of value attracts more value than any other characteristic of an asset.

[elda34b]

the fall of the stock market will make investors look for alternative investments, namely gold and bitcoin. bitcoin and gold are good choices for investing because they are good storage devices. I am optimistic that the price of gold and bitcoin in the future will be even higher.

IIRC there is a study that said most people still believe that Bitcoin is a speculative asset. This means, if economics crumbles, then they won't store their wealth in Bitcoin. Gold is still the choice for a store of value, and the next one is land.

This might change with time but I don't think it can change that easily.

[GreenStox]

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.

[meliodas]

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.

[alyssa85]

the fall of the stock market will make investors look for alternative investments, namely gold and bitcoin. bitcoin and gold are good choices for investing because they are good storage devices. I am optimistic that the price of gold and bitcoin in the future will be even higher.

IIRC there is a study that said most people still believe that Bitcoin is a speculative asset. This means, if economics crumbles, then they won't store their wealth in Bitcoin. Gold is still the choice for a store of value, and the next one is land.

This might change with time but I don't think it can change that easily.

It's because it's so volatile. People want to put their money into something that will hold it's value, and all those who bought near the $20,000 top got very badly burned.

[Genemind]

As for me, fiat isn't losing its value despite the increase of people who are using digital currency. Cryptocurrency still has to go through before it surpasses fiat. In our country, people who are using our local wallet still convert their crypto into fiat to spend it with their necessities so I guess we're still far from replacing fiat. Both bitcoin and gold still rely on fiat at some point.

[mersal]

As for me, fiat isn't losing its value despite the increase of people who are using digital currency. Cryptocurrency still has to go through before it surpasses fiat. In our country, people who are using our local wallet still convert their crypto into fiat to spend it with their necessities so I guess we're still far from replacing fiat. Both bitcoin and gold still rely on fiat at some point.

Fiat is losing its purchase value,the things we bought with one dollar few years back need 5 dollars for the same things but its unlike in cryptos the value just keep increasing and the gold is just maintaining its value for very long time.

[Apaxy]

As for me, fiat isn't losing its value despite the increase of people who are using digital currency. Cryptocurrency still has to go through before it surpasses fiat. In our country, people who are using our local wallet still convert their crypto into fiat to spend it with their necessities so I guess we're still far from replacing fiat. Both bitcoin and gold still rely on fiat at some point.

Fiat is losing its purchase value,the things we bought with one dollar few years back need 5 dollars for the same things but its unlike in cryptos the value just keep increasing and the gold is just maintaining its value for very long time.

The fact is that today mankind is not yet ready to get rid of fiat currencies.  I believe that a rather long time will pass before the world will massively use cryptocurrency as a means of payment.  But I would not talk about the purchasing power of fiat funds, since the same situation with cryptocurrency.  If at the end of 2017 for one Bitcoin I could afford to buy a car, at the end of 2018 for the same Bitcoin I could only carry out maintenance of the same car.

[desticy]

Fiat money secured by gold, as a rule. Gold is one of the oldest assets on the planet; it has its own physical referent.
In fact, when we exchange Fiat for anything, we exchange gold. Bitcoin does not have a physical referent in the real world.
Its value is determined by people's belief that Bitcoin can be exchanged for goods and services, including fiat or gold.
But if this faith disappears, there is a risk that the price of bitcoin will sink very sharply.

[Theb]

I have a strong feeling that the Bitcoin and Gold part is only added by the author of the article itself and it's not one of the main points being talked about Gruebel. If you look at the news it's all about the low interests rates and inflation and there are no particulars about any kind of solution whatsoever. So this just means that this is another one of those crypto news article sites trying to create a story of their own and fail to deliver any kind of connection, the point being that the article itself only added "Bitcoin and Gold" as the last sentence of the article without really adding any kind of reason why it will be a solution for any kind of problem in the economy.

[Mumbeeptind1963]

As for me, fiat isn't losing its value despite the increase of people who are using digital currency. Cryptocurrency still has to go through before it surpasses fiat. In our country, people who are using our local wallet still convert their crypto into fiat to spend it with their necessities so I guess we're still far from replacing fiat. Both bitcoin and gold still rely on fiat at some point.

Bitcoin and gold are both and investment in which grows year by year. But as for fiat is still be there, we exchange gold and bitcoin into cash, we are not yet using bitcoin directly to purchase ang thing that we want but also there are some stores who accepts it but they are few. Maybe in fiat it decreases its value but it is not losing it worth.

[alexsandria]

If you see, we might be heading towards a global recession. Trade war has lead to economic slow down in many countries. If that's the case people are likely to shift towards a safe investment asset which won't be much affected by the slowdown in economy. Gold has always been a safest option in such situations.

Due to sudden changes bitcoin and cryptocurrencies hasn't yet been a sufficient a so-called safe investment like gold. Nevertheless, cryptocurrency got to be an option for an abrupt growth of investment. Lowkey investor are all looking for an opportunity of bull-run before investing.

Besides fiat money is the place for commoner's investment although it has small interest but it has a minimum balance requirement for everyone to get the interest. Slowly, if bitcoin or the whole cryptocurrency market got intact it would definitely be for everyone's investment.

[ReiMomo]

Absolutely! Since bitcoin and gold prices are now so big and being valuable in the market. I think that's the reason why it is now more popular all over the world and fiat currency are starting to lost it's worth due to bitcoin and gold and I think in a long run bitcoin and gold might replace fiat and become the most in-demand on the market soon.

But I guess it will take a longer time that will happen. As of now, not all countries that have an internet that can use bitcoin. Let's just accept what we are now and let the time will tell what will happen in the future.

[jamesndungu1]

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.

[hello_good_sir]

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.

[romero121]

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.

[iMark]

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.

[Bustart]

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.