Fiat currency based economy Question

[cryptoboss2020]

So how come this fiat based debt based system have not Collapsed yet?

There is a lot debt all over the World wich means also a lot money!!
A lot money means value can go down.
The inflation was really high before the covid 19
Covid saved fiat currency value!
Less transactions means less economic actvity less economic activity means less inflation...

So the fiat currency is the biggest winner in this covid situation !!

Now... This just temporary once the economy is going to be re opened the inflation will hit again.
And there is nothing that can back up fiat.

Loans and debts cant back up becouse people are all ready in situation they cant pay back the debt never!
So.....  What is the Solution?  Stable currency cant be becouse its a same old fiat based currency
Bitcoin could be the solution to be honest
I dont see any better ways then Bitcoin it is...
Btc have the most techical capability for that.

Only obstacle is slow confirmations.

But yea... The fiat system looking really bad...
And covid saved fiat currency against inflation 
Once they re open economy its bad for fiat currency value.

The ammount of money they been printing it means they must start extermly high taxes...

I guess they start to go after cryptocurrency traders and give high taxes...

But those high taxes is only Short time tools to save economy..
.....  What's next?

[ashmodeus]

I guess they start to go after cryptocurrency traders and give high taxes...
But those high taxes is only Short time tools to save economy..
.....  What's next?

fully verify yourself for crypto trading, such as syncing with your bank account etc. LMAO .
btw, u must take it too serious, about why fiat debt system still not collapse its because there is no better solution than that.
~
Based on my understanding, sorry if I was wrong before, the current economic system is designed to make us diligent at work, the value of a fiat currency can drop at any time, but well, that happens if the country experiences an economic collapse, the solution so that is reducing unemployment but it can cause inflation because the more the salary comes out, the more currency is printed, more tax must be payed, how do they avoid inflation, at least by buying assets like gold, just a few percent from their salary i guess its good enough for future, so that their wealth is safe from inflation.
that economic system has been running for a long time, I'm not sure it can be changed, Covid does save fiat value, but it also creates mass recessions in certain countries.
when u talking bitcoin as a solution for that, nah , there are still many shortcomings of bitcoin, low speed transaction, high electricity cost. some survey has told 1 bitcoin transaction is equal to 100,000 visa transaction ,about electricity usage, i cant imagine how much it will cost if everyone uses bitcoin as payment, and how long it will be processed.

[Buttermellow]

So how they will go after crypto taxes? We should be fair of course when one was deducted a tax then it should be fair to all that should be deducted but how could it be done?

Anyway, I do not like that crypto can get taxes and that the decentralization and no third party service feature will be defeated. Satoshi Nakamoto created bitcoin because of this tax thing which centralized system implemented like in those banks are greatly the reason why cryptocurrency mainly the bitcoin was created.

[zasad@]

Experts say that in 2022 in the United States, payments on US obligations will exceed the amount of taxes collected, and it will be necessary to turn on the printing press for money again.
https://bitnovosti.com/2020/06/14/kogda-fiatnaya-valyuta-umiraet/
This will cause hyperinflation and depreciation of the dollar as a world currency. The world will need a new currency that is not subject to inflation.

What will it be? Maybe BTC 

[Smartprofit]

Experts say that in 2022 in the United States, payments on US obligations will exceed the amount of taxes collected, and it will be necessary to turn on the printing press for money again.
https://bitnovosti.com/2020/06/14/kogda-fiatnaya-valyuta-umiraet/
This will cause hyperinflation and depreciation of the dollar as a world currency. The world will need a new currency that is not subject to inflation.

What will it be? Maybe BTC 

I try to be realistic. 

Bitcoin probably won't replace the US dollar, yuan, and euro.  In the middle of the next decade, central bank currencies (CBDCs) will dominate. 

Until then, however, we will see bitcoin prices rise.  The rise in the value of bitcoins is a signal of an impending transformation of the global financial system. 

This will bring about one of the greatest redistributions of capital in the history of mankind.  At the same time, the current financial elites will retain their wealth and influence.  Cypherpunks won't be able to come to power...

I'm a skeptic.  I don't think the world will be better or freer in the future.

[sheenshane]

At some point OP, I tend to agree that inflation has decreased because of the pandemic and it will kick again once the economy started to reopen.  However, in some places like in my country, we have started reopening the economy, and prices of commodities and services are really painful in the wallet considering that most of the citizens are still in the search of a new job after losing it because of the pandemic but no one shall be blamed if everyone knows how to adapt in the current situation.

The mere fact that fiat would crash again due to inflation after the reopening of the economy it can be reasonable if the economy would adopt decentralized finances or cryptocurrencies such as Bitcoin.  Though IMO it is the best resolution I must admit that citizens in my country are not yet ready for it due to a lot of reasons like the technology and familiarization about it.  In fact, if you would go out here and ask anyone outside if they know bitcoin or any cryptocurrency they will answer you promptly that they haven't heard of it before.

In my idea, we can definitely go and shift to cryptocurrency however the government should first take an action towards these issues for global awareness and technology that is the necessity for it.

[ashmodeus]

So how they will go after crypto taxes? We should be fair of course when one was deducted a tax then it should be fair to all that should be deducted but how could it be done?

it depending on your income tax level , like US have 0-20% a year , since they has classifiing crypto is  as property and taxed in the same way that stocks are. btw , this is for more info about crypto tax

Anyway, I do not like that crypto can get taxes and that the decentralization and no third party service feature will be defeated. Satoshi Nakamoto created bitcoin because of this tax thing which centralized system implemented like in those banks are greatly the reason why cryptocurrency mainly the bitcoin was created.

me too actually, in the beginning everything going well , but as the time goes, bitcoin become popular, and also price become totally "WoW" , so what i thought now, goverment try to make a regulation for people who want or who have bitcoin. i cant imagine someday btc will became centralized which only certain people can have  due to tight regulations at a later date.

[Ucy]

So how come this fiat based debt based system have not Collapsed yet?

There is a lot debt all over the World wich means also a lot money!!
A lot money means value can go down.
The inflation was really high before the covid 19
Covid saved fiat currency value!
Less transactions means less economic actvity less economic activity means less inflation...

One of the reasons fiats didn't collapse was due to  governments not over printing and channeling them to non-productive and consumption based sector of economy . If that had happened, goods and services would have inflated alot if they were not produced quickly enough.


The less economic activity has to correspond with the goods/services produced otherwise there could still be inflation... unless goods and services are produced in high quantities while demand is low

[Husires]

A lot of money does not mean that its value can decline, but the depth of countries financial policies and the fundamental reasons that pushed them to print money. And if it does not have a clear plan for that, then it means devaluation and more disastrous effects for the citizens of those countries.

Many countries printed a lot of money for decades, but fragile states will see the impact of inflation faster.

[jossiel]

Slow confirmation is no longer a problem. Getting at least 1 confirmation is quicker this time despite bitcoin's price is high. Everyone is expecting to have a congested network because of it but it seems that we're seeing a different version of it.

I guess they start to go after cryptocurrency traders and give high taxes...

Why would they? because it's profitable and they see a lot of people making money from it? We will see that happen anytime soon because they can't disregard it anymore. Cryptos are being recognized so it's really going to happen.

[usekevin]

So how come this fiat based debt based system have not Collapsed yet?

There is a lot debt all over the World wich means also a lot money!!
A lot money means value can go down.
The inflation was really high before the covid 19
Covid saved fiat currency value!
Less transactions means less economic actvity less economic activity means less inflation...

So the fiat currency is the biggest winner in this covid situation !!

Now... This just temporary once the economy is going to be re opened the inflation will hit again.
And there is nothing that can back up fiat.

Loans and debts cant back up becouse people are all ready in situation they cant pay back the debt never!
So.....  What is the Solution?  Stable currency cant be becouse its a same old fiat based currency
Bitcoin could be the solution to be honest
I dont see any better ways then Bitcoin it is...
Btc have the most techical capability for that.

Only obstacle is slow confirmations.

But yea... The fiat system looking really bad...
And covid saved fiat currency against inflation 
Once they re open economy its bad for fiat currency value.

The ammount of money they been printing it means they must start extermly high taxes...

I guess they start to go after cryptocurrency traders and give high taxes...

But those high taxes is only Short time tools to save economy..
.....  What's next?

Inflation was not saved by the Covid-19.Covid -19 had created a new inflation due to the uncontrollable economic activity.Many street vendors had earned a lot by securing the social distancing and fear of people.Even price of vegetable was sell at double and triple of original price.In a same time,the farmers get the money less than a margin value .The middle man had gained a lot from Covid -19.

[Salauddin1994]

Covid-19 has hurt the economy and led to inflation when inflation occurs the value of the fiat currency declines as the economy declines it depends on the country's economy and controls the government development of the economy is not possible without fiat currency. From farmers to the poor they depend on fiat to meet their basic needs many do not have any knowledge of btc in terms of technology farmers and pharmacies are much more profitable in maintaining a fiat currency based economy.

[error08]

~
The inflation was really high before the covid 19
Covid saved fiat currency value!
Less transactions means less economic actvity less economic activity means less inflation...

So the fiat currency is the biggest winner in this covid situation !!
~

Actually not, quite the opposite because the government must provide incentive funds to the community and stimulate the economy during covid-19, especially during the lockdown in several regions of the country. For example, the Treasury Department's Bureau of Engraving and Printing (BEP) has printed a massive amount of money during the Pandemic more than in the first two centuries which can lead to inflation.

https://cointelegraph.com/news/us-printed-more-money-in-one-month-than-in-two-centuries

https://news.bitcoin.com/9-trillion-in-stimulus-injections-the-feds-2020-pump-eclipses-two-centuries-of-usd-creation/

[Durgesh728]

Fiat currency have taken a route from poor people to reach, rich people in-turn have inflated property prices, the retail inflation as you said will rise and it will surely rise but not going to convert into hyper inflation.

[SquallLeonhart]

The debt system is always pegged to fail but the governments of the world and central banks of the world keep printing money to pay the debt and continue life as always so nothing really happens.

There are crashes here and there time to time that makes the economy suck for a while but after that it recovers and grows bigger and bigger due to debt and then crashes again and repeats. That is why it is really not going to sustain forever but at the same time if they want to make it go on as long as possible they can until it fails so spectacularly that there is no way to blow it up and make it better all from scratch.

Debt in the world grows so fast that it caused memes like "world owns 40+ trillion debt, to who? Mars?" type of jokes and that shows how sad the situation is.

[Hydrogen]

So how come this fiat based debt based system have not Collapsed yet?

On a broader historical timeline, US debt to GDP ratios aren't far from post World War II levels. We've been here before with disaster being averted. Good decision making and policies could reduce debt over a course of decades as occurred post WWII.

Experts have warned about deficit and debt forever and people tend to assume if a crash hasn't occurred yet, it never will. Unfortunately that's not necessarily the case.

Conspiracy theorists claim debt based economies of the world must collapse simultaneously for a "great reset" and "new world order" to be adopted on a global scale. Its one potential explanation for economies of the world which may normally have collapsed, being temporarily propped up bailouts and loans.

[magneto]

It might not necessarily collapse due to government debt, because in reality central banks are able to infinitely finance governments even if they proclaim themselves to be independent entities.

It might not even collapse due to inflation, since that is tied to not only money supply but also variables such as consumer sentiment and aggregate demand.

What is certain though is that a reset will be imminent. Perhaps it'll be political, conflict, who knows. No one knows when the current fiat order will prevail until. And until a collapse does happen, I don't think that BTC is necessarily going to be an "alternative" or a "replacement" to fiat. It'll stay as a store of value that appeals to a niche.

[proTECH77]

 Crypto is a decentralized currency which is not by any government of the world.No country can control or forcing crypto to pump or reduce in the market because since we enter pandemic many cryptocurrencies where reducing every day by day in the exchange market. Government can demand for more fiat money to be print, to end inflation in the country which government cannot demand for more crypto to be print because crypto is a decentralized currency. Many countries are still experiencing what covid-19 has caused in the country over 8 months, that is making the economy of the country to reduce to zero level.  Hardship everywhere that is making the citizens think, if only fiat money can help them to survive this pandemic that is collapsing, so many things in the country.
Our government is trying to do everything possible to make sure deflation, is all over the country to enable the citizens to live well in the country. Since we came out from covid-19 many people has resume work why some have resume their business and still maintaining the law the government has put in place by wearing of facemask and washing of hands all the time to stop spreading of covid-19 in the country.

[amishmanish]

So how come this fiat based debt based system have not Collapsed yet?

On a broader historical timeline, US debt to GDP ratios aren't far from post World War II levels. We've been here before with disaster being averted. Good decision making and policies could reduce debt over a course of decades as occurred post WWII.

I wouldn't like anything better than the US to recover and get out of this train of debt. The comparison with post WWII world may not be apt though. USA was one of the few world economies with untapped potential and a largely unscathed home turf (compared to Europe). The world wasn't open enough to think of any other alternatives than the powerhouses like USSR and USA. Much of the industrial development which led to enormous prosperity was yet to be made.

In the present scenario, its mostly about who has the most factories and the most consumption in a global market. Several countries have emerged as alternatives to the US. China being the most prominent. Already, investors are banking on a Chinese resurgence and investments are flowing into China. The shitshow in USA in terms of sheer divisiveness, stupidity and Trumpism is a pale marker of its former glory. If the debt condition was to worsen, I wouldn't bank on the US economy to show a miracle turnaround.

[bits4books]

I don't see any better ways the Bitcoin it is...
Btc have the most technical capability for that.

To be honest, you offer to transfer from a high-speed train to a cart to the whole world.
What technical capabilities are we talking about? About a payment that takes 4-6 hours to complete? It just dont have enough TPS. Or about the need to infinitely split 1 BTC into 0.0000000000000001 so that everyone has enough coins for everyday use? The uncontrolled exchange rate that causes people to commit suicide when the market suddenly fell and they had leverage? Or about the inability to track the thief of your money who hacked your wallet?

BTC definitely does not have any features as payment system that would be at least something better than fiat as such. At the moment, it is heavy, inconvenient, slow and monstrous for the average consumer who just wants to buy bread in the store.
You are not suggesting a solution to the problem, you are creating another one