Fiat currency value and Economy debt

[Silberman]

Fiat money will eventually crash and become worthless, If people will use Bitcoin to transact in their daily lives then I believe fiat money will soon disappear. If later all countries would adopt Bitcoin and they would repay state debt using Bitcoin, I think it could happen in the future then fiat money will be worthless.

We know that fiat will eventually crash since it is a trust game that no currency has ever won, but it is difficult to believe that all fiat currencies of the world will crash at the same time and even if they do they will not disappear, governments will not give up the huge power fiat currencies give them, I am sure that if things get that bad cryptocurrencies will be banned all over the world and people will keep using fiat, but the amount of persons using cryptocurrencies will be many times higher than what we have now.

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[tambok]

Fiat money will eventually crash and become worthless, If people will use Bitcoin to transact in their daily lives then I believe fiat money will soon disappear. If later all countries would adopt Bitcoin and they would repay state debt using Bitcoin, I think it could happen in the future then fiat money will be worthless.

We know that fiat will eventually crash since it is a trust game that no currency has ever won, but it is difficult to believe that all fiat currencies of the world will crash at the same time and even if they do they will not disappear, governments will not give up the huge power fiat currencies give them, I am sure that if things get that bad cryptocurrencies will be banned all over the world and people will keep using fiat, but the amount of persons using cryptocurrencies will be many times higher than what we have now.

Once we adopted the crypto world, then Fiat currenty will eventually crashed, still it will come in few more years or more decades. Statistics shows that only 1% of the total population are into cryptocurrency so we still have more years to enjoy the fiat before it will be totally worthless. For now, we should support crypto all throughout so that our government can see its advantage and will eventually adopt and legalize it.

[Memminger]

Fiat money will eventually crash and become worthless, If people will use Bitcoin to transact in their daily lives then I believe fiat money will soon disappear. If later all countries would adopt Bitcoin and they would repay state debt using Bitcoin, I think it could happen in the future then fiat money will be worthless.

We know that fiat will eventually crash since it is a trust game that no currency has ever won, but it is difficult to believe that all fiat currencies of the world will crash at the same time and even if they do they will not disappear, governments will not give up the huge power fiat currencies give them, I am sure that if things get that bad cryptocurrencies will be banned all over the world and people will keep using fiat, but the amount of persons using cryptocurrencies will be many times higher than what we have now.

Once we adopted the crypto world, then Fiat currenty will eventually crashed, still it will come in few more years or more decades. Statistics shows that only 1% of the total population are into cryptocurrency so we still have more years to enjoy the fiat before it will be totally worthless. For now, we should support crypto all throughout so that our government can see its advantage and will eventually adopt and legalize it.

I seriously think that fiat would still be present along with the cryptocurrencies since it would stand for its respective uses since it would come down to a matter of convenience. If we are talking about our day to day lives where we would come to a coffee shop and buy a drink then it would be better to use cash than Bitcoin which would take several minutes to process in addition to the transaction fees that needs to be paid. I think Bitcoin or cryptocurrencies are better suited to be used in conducting international transactions which would immensely cut the transaction time and would offer more convenience.

[jrrsparkles]

OP you need to understand that when value of something crashed then it will be hard for it to recover to the original price,so your claim of fiat will gain more purchasing power from now doesn't make sense.When you said bitcoin price will go like 100K means people started using it so what could be the reason to leave that and then come back to old crashed system if it happens?

[Hippocrypto]

Fiat money will eventually crash and become worthless, If people will use Bitcoin to transact in their daily lives then I believe fiat money will soon disappear. If later all countries would adopt Bitcoin and they would repay state debt using Bitcoin, I think it could happen in the future then fiat money will be worthless.

We know that fiat will eventually crash since it is a trust game that no currency has ever won, but it is difficult to believe that all fiat currencies of the world will crash at the same time and even if they do they will not disappear, governments will not give up the huge power fiat currencies give them, I am sure that if things get that bad cryptocurrencies will be banned all over the world and people will keep using fiat, but the amount of persons using cryptocurrencies will be many times higher than what we have now.

Once we adopted the crypto world, then Fiat currenty will eventually crashed, still it will come in few more years or more decades. Statistics shows that only 1% of the total population are into cryptocurrency so we still have more years to enjoy the fiat before it will be totally worthless. For now, we should support crypto all throughout so that our government can see its advantage and will eventually adopt and legalize it.

Not at all, we can't expect fiat to crash after adoption dominates the entire economy, if government won't allow it. There's still cash spending because most people still used the traditional paper money, and it cannot be removed from their daily spending needs. It will take a lot of times before cashless society will be associated with cryptocurrency, which soon solve the country's problem particular with financial matters.

[abhiseshakana]

Once we adopted the crypto world, then Fiat currenty will eventually crashed, still it will come in few more years or more decades. Statistics shows that only 1% of the total population are into cryptocurrency so we still have more years to enjoy the fiat before it will be totally worthless. For now, we should support crypto all throughout so that our government can see its advantage and will eventually adopt and legalize it.

Usually, crypto is fully adopted by a country when its currency loses value because there is no alternative but to adopt crypto, as is the case with Venezuela.

I am a crypto user but I doubt that the world economic system will be replaced by crypto because there are many complete paperwork transactions that cannot be accommodated by the blockchain. Besides the biggest obstacle is the majority of a country's government considers the adoption of crypto is to open wide potential problems in a country.

I truly hope that the government will find a win-win solution between openness to crypto and the interests of maintaining economic stability, domestic politics. Because all agree that financial technology is inevitable and will be a loss for the government if refuse the invitation.

[GideonGono]

Fiat money will eventually crash and become worthless, If people will use Bitcoin to transact in their daily lives then I believe fiat money will soon disappear. If later all countries would adopt Bitcoin and they would repay state debt using Bitcoin, I think it could happen in the future then fiat money will be worthless.

It will never because fiat was need of the person who can't afford technologies so there are some country who suffer from poverty need to use fiat to transact from their needs.  I think when the future generation comes, the fiat will never disappeared because it was hard from some country who do not favor from crypto.

[Polo7]

In other words... If the fiat currency is used to borrow money.
It Will increase the debt  to pay back the debt... You need money.


Indeed that will increase even bigger demand to have fiat currency than before! 

I can undestood only one thing here!! 

That cash is king and HODLE Fiat at the end of bull markets!!! 


And That's Logical conclusion and objective way of thinking!

Final conclusion:  invest assets now but sell later the End goal is to Get Fiat currency!!

[barabarian1]

I never thought bitcoin could crash due to the huge debt impact. and in my opinion when bitcoin can reach a price of $ 500k it is unlikely that bitcoin will fall down and crash.
and when the country has a large debt I think they will still use fiat money to pay. I think it's very risky if we pay off debt using bitcoin, which has high volatility.

[NathanJB]

I think after economy  boom and the end of huge debt wich will be never repayed there will be Economy slow down and fiat currency Will have huge value!!
During the boom assets Prices going up... So More money Will Go the asset owners Once boom is over the most of the money Will be hands of the rich... Everybody Will be debted... Simply everybody is looking for money but simply there Will be significant smaller ammount of the money.

So in my opinion Bitcoin Can Go up like 100k to 500k.  Even 1 milj.... But at the end it will crash. 
And after crash the fiat currency Will have biggest purache power.  Crypto Will be zero. 


The point is that  debt and quantive easing will Give at the End More value to fiat currency!

So those who talking about fiat currency devaluatiion or so You are all wrong.

I cannot see the necessary connections you are trying to imply. The debt problem involving fiat is not going to make its value higher. I think the opposite is true. If the debt problem will persist in the level of individuals, companies, states, and nations for a long time, there will come a point when they would think that this fiat system is making everything hard. That has been the case involving over-printing of fiat to support a need, whatever it is.

[Webetcoins]

Once we adopted the crypto world, then Fiat currenty will eventually crashed, still it will come in few more years or more decades. Statistics shows that only 1% of the total population are into cryptocurrency so we still have more years to enjoy the fiat before it will be totally worthless. For now, we should support crypto all throughout so that our government can see its advantage and will eventually adopt and legalize it.

Usually, crypto is fully adopted by a country when its currency loses value because there is no alternative but to adopt crypto, as is the case with Venezuela.

I am a crypto user but I doubt that the world economic system will be replaced by crypto because there are many complete paperwork transactions that cannot be accommodated by the blockchain. Besides the biggest obstacle is the majority of a country's government considers the adoption of crypto is to open wide potential problems in a country.

I truly hope that the government will find a win-win solution between openness to crypto and the interests of maintaining economic stability, domestic politics. Because all agree that financial technology is inevitable and will be a loss for the government if refuse the invitation.

Not really. I mean the currency of Venezuela lost its worth due to its own government and it is not like it has totally shifted to crypto currencies. The replacement of fiat with digital currencies is just a matter of time. We are moving towards an age of pure technology. Digital coins are the future of money and no one can stop it from happening. Governments and companies will be introducing their own projects. Just wait and watch.

[abhiseshakana]

Not really. I mean the currency of Venezuela lost its worth due to its own government and it is not like it has totally shifted to crypto currencies. The replacement of fiat with digital currencies is just a matter of time. We are moving towards an age of pure technology. Digital coins are the future of money and no one can stop it from happening. Governments and companies will be introducing their own projects. Just wait and watch.

Venezuela is an example of a country that has no alternatives (TINA) but to adopt crypto, especially bitcoin. The unskilled government is indeed one of the factors that caused the economic crisis and hyperinflation but, there are also external problems that have caused crises including:

- Drop-in world oil prices, Venezuela is a country that relies on crude oil exports for it's country's income. Nearly 90% of the country's income comes from oil exports. Can you imagine the effect of falling oil prices for Venezuela?

- Unstable domestic conditions triggered by high unemployment, causing a wave of demonstrations even to the extent that many Venezuelans have fled and left Venezuela.

- Due to high inflation, the monetary value continues to fall even if it does not have a price, a fall in the value of the currency causes the price of primary needs to skyrocket.

- The final reason is the main reason why Venezuela is experiencing a crisis is the economic sanctions and the total economic embargo of the United States against Venezuela.

After several times a new currency was issued to replace Bolivar and the government even issued a new Petro stable coin, in fact, it could not be a solution. The adoption of Bitcoin was carried out in Venezuela at the request of the state-owned gas company (PDVSA) because the suppliers of crude oil needed funds for operations. PDVSA saves Bitcoin in a Venezuelan bank and the issue that President Venezuela has several methods for collecting bitcoin (launching Petro was also used as a tool to collect bitcoin).

From the explanation above, we can understand that the Government of Venezuela has no other alternative than the adoption of bitcoin to roll back the wheels of its economy, which is 90% dependent on crude oil sales.

[Mometaskers]

I've also seen predictions of around $100k but more in the light of the halving. It's hard to predict a coming economic collapse (even though many people predict it'll be around 2020).

Best thing to do is just have some crypto just in case. I think this is what's good with the development of crypto, even people who can't afford assets like gold have an alternative way of storing their money.

[Silberman]

In other words... If the fiat currency is used to borrow money.
It Will increase the debt  to pay back the debt... You need money.


Indeed that will increase even bigger demand to have fiat currency than before!  

I can undestood only one thing here!!  

That cash is king and HODLE Fiat at the end of bull markets!!!  


And That's Logical conclusion and objective way of thinking!

Final conclusion:  invest assets now but sell later the End goal is to Get Fiat currency!!

Not really, the end goal is to get wealth in any form possible, those that invest in gold do it because they expect its value compared to fiat goes very high and the same is true for many bitcoin holders and when the bubble crashes you do not want to be the one that keeps holding an asset that is crashing regardless of its name, but cashing out in fiat is just an alternative, you could buy real estate, jewelry, gold, stocks or anything not crashing at the time, if you repeat this process eventually you will get to your goal of being wealthy.

[EdvinZ]

If bitcoins are accepted in increasing numbers countries as legal tender or a valuable asset, Their value may gradually stabilize and people will be more willing to use them as payment. And given the deflationary model of bitcoin, people will willingly store their money in It, because the supply of bitcoins is limited. Bitcoin in the future can compete with fiat currencies, if it continues to spread in the world.

[alyssa85]

Usually, crypto is fully adopted by a country when its currency loses value because there is no alternative but to adopt crypto, as is the case with Venezuela.

Yes. And it is a chicken and egg situation. After your currency has crashed by 50%, it's 50% more expensive to buy crypto. In a currency crash situation people won't even have enough to pay for food and rent let alone a bit of spare money to buy crypto.

The best answer is to buy some crypto BEFORE the currency crash. Also, try not to elect idiots - you can prevent currency crashes in the first place by not electing the Maduro's of the world to power.

[LUCKMCFLY]

Based on some readings I have made on the subject, first of all the economy is made on debt, since 100USD does not have the same value today as in 1980, this is due to the inflation that has suffered, every time the money supply Cash is running out, it's simple to print.

But the world economy has been responsible for its falls worldwide, as in the 2008 crisis, all the fault lies with the banks, and the next fall will be their responsibility. The debt has always been but it is focused on countries where its local economy is not the US dollar, impossible rates are generated to pay off its debts in countries that owe the US, The hegemony of the dollar is becoming stronger.

Now the way to start not seeing this debt is through the Fed when it gives statements that the system has liquidity, and its negative interests are less and less, here comes the low correlation of Bitcoin with respect to other actions, where the best Diversification is with Bitcoin.

In a world economy where what governs is debt, and part of inflation, it is best to protect yourself with Bitcoin, some give options better known as gold, it is valid, but an economy where it is managed by debt and fraction of inflation the best It is a deflationary economy.

[abhiseshakana]

Yes. And it is a chicken and egg situation. After your currency has crashed by 50%, it's 50% more expensive to buy crypto. In a currency crash situation people won't even have enough to pay for food and rent let alone a bit of spare money to buy crypto.

The best answer is to buy some crypto BEFORE the currency crash. Also, try not to elect idiots - you can prevent currency crashes in the first place by not electing the Maduro's of the world to power.

I am not a supporter of Maduro, but the economic crisis in Venezuela is caused by serious illness complications if explored deeper.

- The nature of Venezuela is its economic dependence on crude oil exports and, unfortunately, America is the only Venezuelan export market

- The legacy of the previous government. Namely the president Hugo Chavez with socialist government policies creating a large financing burden when oil prices plummet, for example, is a social program of housing construction. In addition, under the pretext of reducing the gap, the government pegged the prices of basic necessities such as flour, cooking oil and bath necessities. This makes many companies not get profit and go bankrupt.

- Power struggles that are not in accordance with the constitution & elections with participants below 50% of citizens who have the right to vote. if the people are more active in elections such incidents can be prevented.

- The custom of the Venezuela government prints money which causes higher inflation.

Not all crypto applications can solve the problems of inflation or a country's economic crisis. Petro's adoption cannot overcome the economic problems faced by Venezuela even though Petro is a cryptocurrency. Now the Venezuelan government has instead adopted bitcoin.

Why the PVSDA choose bitcoin, not another cryptocurrency because bitcoin is the only crypto that is purely decentralized, permissionless, fair launched & bitcoin is used as a benchmark for altcoins.

[Webetcoins]

Usually, crypto is fully adopted by a country when its currency loses value because there is no alternative but to adopt crypto, as is the case with Venezuela.

Yes. And it is a chicken and egg situation. After your currency has crashed by 50%, it's 50% more expensive to buy crypto. In a currency crash situation people won't even have enough to pay for food and rent let alone a bit of spare money to buy crypto.

The best answer is to buy some crypto BEFORE the currency crash. Also, try not to elect idiots - you can prevent currency crashes in the first place by not electing the Maduro's of the world to power.

Every time is the right time to invest in crypto currencies. It is not exactly that the value of digital assets change after the crash but the fiat loses its worth and becomes a way too cheap. Ultimately, making the other stuff expensive. People should not wait for crisis to hit them first and then take help from digital coins to save themselves. The earlier someone invests in these coin, the safer
becomes his financial health.

[Silberman]

In a world economy where what governs is debt, and part of inflation, it is best to protect yourself with Bitcoin, some give options better known as gold, it is valid, but an economy where it is managed by debt and fraction of inflation the best It is a deflationary economy.

And that is the opposite of what they want, governments cannot tax your wealth directly, they have tried in the past and people have always been strongly opposed to this, so they had to figure out how to tax what you have saved in fiat and they found their solution in inflation, if they print 3% more money then there is a 3% inflation and your money will lose as much purchasing power, they are effectively stealing your wealth and the only way to protect you from this is by not holding fiat and hold something else.