Fiat is a Digital currency without Value

[Petryakov]

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.

You cannot actually cash out of all bank accounts, because there is much less cash that the entire money supply. Modern credit money are purely digital indeed.

[verita1]

The banking system is already obsolete, even in the most important banks in the world. JPM was bold when creating his coin, because it was already evident that bitcoin and cryptography was showing him that managing fiat was already difficult for its users. Only I see that the world's governments are implementing very high taxes to manage bitcoin.

[oleg8791]

Well, Bitcoin has no intrinsic value too. What makes Bitcoin valuable is our desire to use and accept it.

[Janation]

Well, Bitcoin has no intrinsic value too. What makes Bitcoin valuable is our desire to use and accept it.

It is the same as the fiat currenccy since, without the trust of the people, it will have no value. I guess this statement really answered this thread and we don't really need to discuss it further.

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.

[Reid]

Worse fear is the imitation of bitcoin rather than them creating their own digital currencies.

They could do all they can to create more but there is one truth about it.
Control. Centralized.
Unlike bitcoin, they want to monitor everything that will be bought and sold.
It's freaking scarier than having a fiat. You can save money without anyone noticing it.

Attacks with bitcoin will happen more as years goes by.
Fiat though will always have its value as long as there is a soul believing it. 

[CHENIEN]

On my own opinion previously many of us has started using with a different kinds of coins before paper money was probably discovered as fiat currency but it doesn't mean that it is a digital so actually on trading standards people used this vice versa until now during this new generation and usually to the market, I think as respect to our mentor no need to eliminate paper money from the list because it is also have a good value and center of attraction like Bitcoin .

[palle11]

Who will be an umpire of a decentralized system of blockchain when used as an election technology?

This is really a deep reasoning. But the issue is we can still relate it to btc transaction or transfers incase anything goes wrong with it or if anything has gone wrong with it if the fees are taken care of, addresses are proper and coin sent to wallet destination ? Therefore, all things going smooth, blockchain is likely not to fail. It delivers as expected.

[imstillthebest]

On my own opinion previously many of us has started using with a different kinds of coins before paper money was probably discovered as fiat currency but it doesn't mean that it is a digital so actually on trading standards people used this vice versa until now during this new generation and usually to the market, I think as respect to our mentor no need to eliminate paper money from the list because it is also have a good value and center of attraction like Bitcoin .

coins started right after fiat money or banks were discovered because they are the ones that issued those but before these things exist , people use barter .

 its like trading using useful items  . paper or fiat money have a different value  . it can be a good value or not depending on how rich the country but the value cant really be high enough as we seen on bitcoin and cryptos    . they arent also the center of attraction because they arent new but bitcoin is  .

[coinfinger]

It does have a value, but the value is not data backed or anything spesific, it has a value the amount we put on it. How many dollars is 1 kg of apple? Well the thing you are giving is something made up and not real, it is paper money and yes you hold the paper in your hands so it feels real but it is in our minds, we give that paper money a value and we did say that apples should worth x amount of paper money.

Normally almost everything in life has a value, that apple has a value, you can eat it and both not starve to death thanks to it, but also it has vitamins in it as well so it helps you, what can you do with money if you are not spending it, money in itself worths zero. So as you know, we just gave it a value, we said this should worth something, instead of doing barter like crazy for everything, how about we have these credit items that would mean that we worked and worth something and we did this thousands of years ago when it wasn't even really needed, now it is needed more than ever.

[MCobian]

I am confused as to why fiat as a digital currency is mentioned without value, when in fact the whole country almost uses fiat as digital
currency. Even some large countries including China want to make their own country's digital currency, this proves fiat as a digital currency
has value. Everything including gold and bitcoin as long as many people believe it will have value.

[mu_enrico]

I didn't think about the topic being misleading what kind of topic do you suggest for this article maybe I can change them.

Fiat can be digital or paper, look at my title.

Before you make a claim about value, first, you should define what value is? What makes something valuable?

[romeojasmin13]

No, fiat is fiat, digital currency is completely different thing. Both types of money have no intrinsic value. Maybe it's their only common feature.

[AniviaBtc]

Well, Bitcoin has no intrinsic value too. What makes Bitcoin valuable is our desire to use and accept it.

There's something more about bitcoin and we should understand how it works and what is its value in the market for us to learn how to use it properly. Using bitcoin is not just as a store of value and making huge profits. Bitcoin probably have a unique effect in our economy and we need to find out what is it. People are improving and getting more wise as people are getting into the cryptocurrency than in FIAT. We should practice using both currency because they have different importance in the market. They are both valuable and that's the reason why people who use cryptocurrency are still increasing in population because of the reputation that it gets whenever we use it in any transactions that we do.

[abhiseshakana]

You cannot actually cash out of all bank accounts, because there is much less cash that the entire money supply. Modern credit money are purely digital indeed.

If we save at a bank, the bank is obliged to guarantee the security of the funds we deposit at the bank and provide a guarantee that the customer can withdraw funds whenever the customer needs or wants money. When everyone withdraws their money simultaneously and leaves only a minimum amount so that savings remain active, it is certain that the banking world will collapse.

Fiat can be in the form of physical money or in digital and fiat form even though it has no intrinsic value determined as a legal instrument of payment by government regulations. Both bitcoin and Fiat have no intrinsic value, but fiat money is recognized by the government while bitcoin, has not been set as a legal payment tool globally. The nominal value of fiat money is determined by the government and the central bank. While the real value depends on the total nominal amount of money available to transact and the total real value of goods and services available transacted with that money.

[fiulpro]

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

See I would like to say certain points here :

1. Not all Fiats are without value , in many countries the value of Fiat does depend on the gold reserves a country has , at the same time in many cases it's also backed by a hard asset .

2. Around 50% of the population using banking services are using online banking. 69% of people does have an online bank account , therefore it makes approximately 35% of people in the whole world using the online Fiat services.
Which unfortunately does not make fiat an online digital currency.

3. Rest , I do think we should remember that we have Customer rights and therefore one can always go and apply with the right things in a consumer court . Bank cannot handle calls like that 24*7

4. Frauds were done in times when people used grains or even gold as a Currency , it is not dependent on the Currency itself but the people engaging in bad activities.

See I love Bitcoins but I also love Fiat . Both are indispensable part of my life and trust me none can fully replace another.

Fiat is an important tool , I do think it would be beneficial if in the upcoming years Blockchain would be used with it , this way corruption could be dealt with .

[bearexin]

Not many countries do have gold backed currencies anymore, sure some of them do but we are talking about over 200 countries not dealing with gold anymore at all. The main reason for that is there is a limited amount of gold in the world and if you are good at your job you earn more and more and more, eventually becoming very wealthy leaving less gold backed fiat to other people, as long as there is a limited amount of gold there could be limited amount of fiat as well, with more and more wealthy people the rest of us would have less and less fiat to spend.

This is why governments stopped using gold standard since they needed to print more money and give it to us so that we could spend it and make the rich people richer, and eventually we run out again and they print more and we spend it to the richer people again and again and again.

[Ladysmith]

The only thing that gives any type of currency real value is belief. People currently believe that fiat holds value, so it does.

The only form of currency that has obvious value is other products and services. (e.g. exchanging one product or service for another product or service.)

[STT]

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

Not every single currency is this way, its variable not fixed to a standard as most strong currencies of the Industrial era were definite quantities of gold or silver.   You can generally judge a country by how much debt is issued by the same government of that currency, if the debt far more then the GDP then its unlikely they will be able to repay the debt properly and so too the currency will devalue in line with that gradual debt creep and the interest payable.
   Some FIAT and the countries that back them are solid entities with a good history.   Norway is the most immediate example I can think of, it has oil wealth and choose to save this value for future generations as security that backs the countries trade with others.    No country can operate alone and every trading nation is dominated by the legacy of Dollar usage but eventually we will pass onto standards more centred around trade not debt and politics,  technology is a large part of that as its enabled great growth and efficiency to occur.

[Negotiation]

Digital currencies are called virtual currencies Even if the whole country goes digital there is no currency that can break Fiat No one can manage Fiat as they wish Fiat currency will rise a lot with the development of the digital country if it is managed legally. Bitcoin is now being used instead of Fiat Although the price of Bitcoin is low, the price of the Fiat is not low It is limited to one place However, if the demand for Bitcoin decreases the demand for Fiat may increase.

[fullhdpixel]

There is nothing of value that cannot be used for fraud, all of them can be used for fraud, whether gold, fiat, Bitcoin or anything; they can all be used for fraud. Why some scammers has been making use of Bitcoin now is because they believe hat BTC can provide them with some cover and they won’t be caught.

Bitcoin might not be fully anonymous, but there are ways that people can cover up their traces online when making use of BTC , and coin mixers are one of the ways they can do such. That’s not enough reason for anyone to dislike Bitcoin, it’s not bad, it’s just bad people that are misusing it. When people start realizing about cons of fiat then they will slowly start adopting bitcoins and I believe it is already started happening.