Fiat is a Digital currency without Value

[Yourhomeboy]

Money works as a medium of exchange the currency started 69,000 years ago, people used things of value to trade goods and services. Such as Gold and silver, After the second world war, they were a gathering by the world power to tag the US dollar to the Gold value, countries around the world had their currency trade at the United States dollar value.  

What the Government mean by Fiat currency

In the 20th century, President Nixon initiated the fiat currency, a currency that doesn't have its value tagged to Gold or anything of value. So fiat currency means anything that circulates by force, they have the right to call anything of no value money.

Why fiat is a digital currency

Bitcoin is a digital currency, just like the fiat currency has digits all over the bank. When the visa card was established people didn't understand it's usefulness when the Government wanted a cashless community the same as bitcoin just that we need fiat to get bitcoin unless we earn it like other money, today people now use cards to book flights, hotels, etc

Features Fiat share with bitcoin

Irretrievable: Fiat has this feature when you think of fiat outside the bank, For instance, you bought a phone that doesn't work and need your money back, the bank cannot do anything concerning this transaction because you didn't use it digitally.

Fraudulent: Before bitcoin, fiat has been used to perform different kinds of businesses, a few times ago JP Morgan called bitcoin a fraud currency knowing that anything money can be used for fraud too. They are a few reasons why a banker won't like bitcoin those reasons why the Kings don't like democracy.

Truth about bitcoin

Just like in this forum. People whose purpose is learning new knowledge have great benefits. As a beginner that wants to use bitcoin, forget the past of bitcoin were you know that a lot of people made profits from trading bitcoin but focus on the ecosystem of how money works. A world where we can have control over money and activities like elections using the blockchain to have a free and fair election in places like Africa, Asia, America, etc

Challenges of bitcoin

Bitcoin is suffering from being too popular because of the power we have over our money it handles 7 to 10 transactions per second with high transaction fees especially during the bull run like what we see today bitcoin transaction fees are too high. But the lightning network technology will reduce the cost of bitcoin transactions and enable fast transaction time.

The greatest fear of bitcoin users

As we know the interest of our governments on having a cashless community, the same JP morgan called bitcoin fraud is building a digital currency on blockchain JPM coin that will be used in the future with other fiat currencies So my fear is the government taking over the blockchain technology

In conclusion, what will happen if the government takes over the blockchain technology and also the future of the lightning network to bitcoin?

I want to ask at what value is bitcoin attached to just like in this article dollar was tagged to gold and things of value before the Fiat came into existence?

Thanks.

Source:

https://www.thoughtco.com/history-of-money-1992150

https://www.youtube.com/watch?v=LszOt51OjXU

[hd49728]

The topic title is seriously misleading "Fiat is a Digital currency without Value".

First of all, digital currency was iniatiated not by any government-controlled central banks so it was not fiat at the begining of digital currency history.
Second, we should talk about stable coins before moving to digital government-controlled currencies (like what Chinese government want to do recently). Stable coins have their weaknesses because of unclear evidence on how they are backed by solid assets. Governments can freeze stable coins even they are in your own wallets.

On the other hand, they take advantage of stable coin to try launching their centrally controlled digital currencies. Such currencies launched, and controlled by central governments and banks are not truly what the crypto world is looking for. They serve for the benefits of governments only.

[Yourhomeboy]

The topic title is seriously misleading "Fiat is a Digital currency without Value".

First of, digital currency was initiated not by any government-controlled central banks so it was not fiat at the beginning of digital currency history.
Second, we should talk about stable coins before moving to digital government-controlled currencies (like what Chinese government want to do recently). Stable coins have their weaknesses because of unclear evidence on how they are backed by solid assets. Governments can freeze stable coins even they are in your own wallets.

On the other hand, they take advantage of stable coin to try launching their centrally controlled digital currencies. Such currencies launched, and controlled by central governments and banks are not truly what the crypto world is looking for. They serve for the benefits of governments only.

I didn't think about the topic being misleading what kind of topic do you suggest for this article maybe I can change them. I have low weight concerning stable coins but I know that they are attached to some assets (Can I also know what the Chinese government is unto?)

Ps: Made some corrections on mis-spelling of words

[minairia3]

The greatest fear of bitcoin users

As we know the interest of our governments on having a cashless community, the same JP morgan called bitcoin fraud is building a digital currency on blockchain JPM coin that will be used in the future with other fiat currencies So my fear is the government taking over the blockchain technology

Thats hypocrite move, calling bitcoin a fraud that runs through blockchain. They are building this coin on blockchain network right? They can use it connecting to fiat but crypto society will find this obscure to bitcoin community. Trust me even he launched this coin of them, many crypto enthusiast will support bitcoin all the way.

This topic or debate could somehow be positive if you understand first the historical and conceptualize application of bitcoin.

Also this should be on Bitcoin discussion section as I found topic more relevant there.

[Wenbing]

~~~
Just like in this forum. People whose purpose is learning new knowledge have great benefits. As a beginner that wants to use bitcoin, forget the past of bitcoin were you know that a lot of people made profits from trading bitcoin but focus on the ecosystem of how money works. A world where we can have control over money and activities like elections using the blockchain to have a free and fair election in places like Africa, Asia, America, etc

If you've been following discussion on this platform you would noticed that using blockchain for election will springs up problems.
Who will be an umpire of a decentralized system of blockchain when used as an election technology?

[sunsilk]

The title you indicated and the description that was said for fiat contradicts. Your title says that there's no value but the description that's being said on fiat is this.

Why fiat is a digital currency

Bitcoin is a digital currency, just like the fiat currency has digits all over the bank. When the visa card was established people didn't understand it's usefulness when the Government wanted a cashless community the same as bitcoin just that we need fiat to get bitcoin unless we earn it like other money, today people now use cards to book flights, hotels, etc

Bitcoin was even compared to fiat which means to say that bitcoin doesn't have a value. I don't understand that description or the author is playing blind about the current value of bitcoin. And it's not suffering if bitcoin doesn't get popular, it's starting to become popular and we don't actually have to think about its popularity because it's already published and covered by mainstream medias.

[mlmdaily]

Actually every currency in our days dont have real value. It all based by trust and reputation

[skarais]

The title you indicated and the description that was said for fiat contradicts.

We would love to call this a misleading title.

~~~
So my fear is the government taking over the blockchain technology.
In conclusion, what will happen if the government takes over the blockchain technology and also the future of the lightning network to bitcoin?

Can we identify that the government really wants to do it ?

Blockchain is a decentralized, distributed and public digital ledger that is used to record transactions on many computers so that these records cant be changed retroactively without changing all subsequent blocks and consensus in the network. ¹. Basically, I dont think that the government can take over this decentralized technology but they can still adopt technology based on needs.

[Upgrade00]

Actually every currency in our days dont have real value. It all based by trust and reputation

I would argue that a product can have value by virtue of it's cost of production, this is the cost-of-production theory of value. Bitcoin is not just minted at a bank, rather it is mined through work done.
It is also built on the blockchain technology, which gives it other desirable features like, immutability, trustless transactions, anonymity, decentralization which gives the currency value.

[sunsilk]

The title you indicated and the description that was said for fiat contradicts.

We would love to call this a misleading title.

Yeah, definitely.

Actually every currency in our days dont have real value. It all based by trust and reputation

And that says for the fiat because we trust the government and the reputation they have can't be stained in terms of monetary system. They declare whichever have the value and how much it will be. But bitcoin is a different thing from the traditional cash that we have which the value was made by them.

Upgrade00's explanation said it clear how's bitcoin value/cost is made.

[bits4books]

Again there is confusion between the field and the arable land.
BTC is not super-popular but it is mainstream in the crypto community and this is a fact. But the crypto community is not as big as you would like.
Yes, Fiat money in our time is not baked by gold but this does not mean that Fiat can be compared with btc in the sense that both of them are worth nothing.
As Fiat is secured by the power and influence of the state so btc is secured by the belief in it and the fact that this coin can be used to bypass the state. There is no other "security" and it is unlikely to be any more.

[DoublerHunter]

^ It is really possible for the government to take the blockchain technology and lightning network especially if this is the only way for the government to have full control in cryptocurrency or bitcoin. If the government will divert or at least adopt the usage of bitcoin as another medium for exchanges then surely they will do that but with at least a minimal up to the full control on it because the economy's growth still relies on the exchanges that every citizen do on a daily basis. Nevertheless, the value that will be attached to bitcoin will no longer be gold or silver but instead it will be the USD that will identify its' value.

[Sanugarid]

The title you indicated and the description that was said for fiat contradicts.

We would love to call this a misleading title.

~~~
So my fear is the government taking over the blockchain technology.
In conclusion, what will happen if the government takes over the blockchain technology and also the future of the lightning network to bitcoin?

Can we identify that the government really wants to do it ?

I thing what he means is that, the government are already stepping into blockchain technology these days and he's worried that they would start introducing new centralize coins that will counter the bitcoin.

Blockchain is a decentralized, distributed and public digital ledger that is used to record transactions on many computers so that these records cant be changed retroactively without changing all subsequent blocks and consensus in the network. ¹. Basically, I dont think that the government can take over this decentralized technology but they can still adopt technology based on needs.

I know we are all aware of what blockchain is, but what we must understand is that blockchain is applicable to every field and the government knows about it so they are reaching it now. There have been countries that is already having a test with central banking digital currency which might be out in the next 2 to 3 years. If we are looking for a digitalization then don't need to argue about it with bitcoin, coz bitcoin is different.

[plast555]

The title you indicated and the description that was said for fiat contradicts.

We would love to call this a misleading title.

~~~
So my fear is the government taking over the blockchain technology.
In conclusion, what will happen if the government takes over the blockchain technology and also the future of the lightning network to bitcoin?

Can we identify that the government really wants to do it ?

I thing what he means is that, the government are already stepping into blockchain technology these days and he's worried that they would start introducing new centralize coins that will counter the bitcoin.

Blockchain is a decentralized, distributed and public digital ledger that is used to record transactions on many computers so that these records cant be changed retroactively without changing all subsequent blocks and consensus in the network. ¹. Basically, I dont think that the government can take over this decentralized technology but they can still adopt technology based on needs.

I know we are all aware of what blockchain is, but what we must understand is that blockchain is applicable to every field and the government knows about it so they are reaching it now. There have been countries that is already having a test with central banking digital currency which might be out in the next 2 to 3 years. If we are looking for a digitalization then don't need to argue about it with bitcoin, coz bitcoin is different.

The government launching crypto will also a fiat currency controlled by the government which is similar to paper fiat those of need a decentralized currency will always stick to the BTC and other cryptos. BTC has become a universal currency whereas each government will push for there own crypto again the same issue of crypto-forex plays a vital role

[davis196]

I would rate this article 4 out of 10.Nothing new to learn,just a bunch of old cliches about fiat currencies and Bitcoin.Fiat currencies clearly HAVE value.If they were worthless,nobody would use them and we could just burn them like ordinary paper.Anyway,I've said this many times before and I'll say it again:
-Gold is just a shiny metal
-Bitcoin is just a piece of programming code.
-Fiat money are just pieces of paper with pictures and symbols on them.
What gives value to those three worthless things is the TRUST people have in them as a store of value and medium of exchange.If the trust of the people is gone,all the value of those three things would be gone as well.

[Febo]

Fiat is a Digital currency without Value

Everything has a value. Some things have so low value that is close to zero. Value gets set on the market by supply and demand. Things with low value have big supply and low demand for it. Things with high value have low supply and demand for it. 

Fiat have value as anything else.

[Latviand]

Fiat is a Digital currency without Value

Everything has a value. Some things have so low value that is close to zero. Value gets set on the market by supply and demand. Things with low value have big supply and low demand for it. Things with high value have low supply and demand for it. 

That's right, even a certain trash can have a value once you recycle them or sell it to the junk shop. Don't underestimate things if it has a value or not, there are things in the world that you think it don't have any value at first but it have. Just like fiat, many people are using this in many transactions, many people are engaging in using fiat and also with cryptocurrency because they know that both of it have value in the market.

Fiat have value as anything else.

If you think that fiat don't have value, then don't use paper money, don't use physical money in your transaction and use it as a mode of payment. If you don't believe on fiat, then stop using also cryptocurrency because other cryptocurrency only depends on the price in terms of fiat. Fiat is one of the most essential currency before bitcoin, there are things that the fiat can do and not the bitcoin.

[danherbias07]

I understand he want to promote bitcoin which is lovely.

But we cannot deny the truth that fiat is still the number 1 used all over the world.
As to why? It is the easiest path to buy something out of just a piece of paper.

Fiat has a value, we cannot say it doesn't have or we will lose the capability to use it.
Even if there is nothing backing it up.
Can you buy Snickers for a piece of leaf? or a simple blank paper?
The value is the creation of it which is (should be) limited.

[Lizzylove1]

It's wrong to classify fiat as a digital currency without value. Fiat is never a digital currency, it's available as a physical substance that can be touched exchange and stored physically. Technology has made it possible to be exchanged online.

[SquallLeonhart]

Fiat is not really a "digital" currency as much as we think, there is paper trail for almost all fiat currency, sure not derivatives or anything of sorts, but regular money that you and I spend is usually paper trailed and even if you are mostly using banks and so forth and digitally thanks to your card you spend it somewhere and that money in your bank account moves to someone elses bank account and that is how most transactions are these days.

Hence I understand why you might think its digital, but in reality you could also withdraw that money in paper form and you could pay that way, which means its not purely digital. Stablecoins are a different breed, if one day governments decide to create their own digital currencies (stable coins) that would change soooo many things in world.