Why Bit Coin Doesn't Work As A Hedge If Fiat Currencies Collapse

[lm2f]

Bit coiners always be like:

"Bruh, fiat money is worthless and gonna collapse. Get bit coin bruh"

Okay, so what will bit coin be worth when fiat is worthless?

Can any coiner honestly answer how your shitcoin has value if the fiat money it's valued on is worthless?

It's hilarious because no bit coiner can ever answer this question.

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[lm2f]

Imagine the following scenario:

-world economy crashes
-ALL FIAT dollars are worth ZERO. 0
-bit coin is worth literally nothing because the money that gave it value is gone
-coiner walks into gun dealer and says "I want a gun, I got my bit coins"
-Gun Dealer LOLZ in his face cause bit coin is worth 0
-coiner goes home and kills himself.

[BurtW]

It is Bitcoin, not Bit coin.  Noob.  You know nothing.  Stick around and READ.  Maybe in a few months you might be able to contribute something of value.

[Bin-spain]

Ahora he estado operando en mxc durante el aumento de bitcoin. Seguro y eficiente.

[Darker45]

I'd rather stick to the subjective theory of value which basically says things got their value out of people's need or desire for it. Man, Bitcoin may be a worthless piece of shit to you. But tell that to the millions of unbanked people, to millionaires and billionaires around the world trying to keep their wealth's worth, and to the richest man on this planet who finds Bitcoin a sort of a refuge in the face of a fiat currency which offers nothing but negative real interest.^[1] If you say Bitcoin is worthless without fiat, then perhaps you need to go back to the start and try to get the tiniest of inkling about it.

[1] https://twitter.com/elonmusk/status/1362600676174557186

[ChronoGN]

Imagine the following scenario:

-world economy crashes
-ALL FIAT dollars are worth ZERO. 0
-bit coin is worth literally nothing because the money that gave it value is gone
-coiner walks into gun dealer and says "I want a gun, I got my bit coins"
-Gun Dealer LOLZ in his face cause bit coin is worth 0
-coiner goes home and kills himself.

That's a possibility. But, that's why you should hold other hedge like gold and silver.

[odolvlobo]

Okay, so what will bit coin be worth when fiat is worthless?
Can any coiner honestly answer how your shitcoin has value if the fiat money it's valued on is worthless?
It's hilarious because no bit coiner can ever answer this question.

I can answer that question.

The answer is that you are confused. The value of a bitcoin is measured by fiat. It is not based on fiat.

If fiat collapses, what will the value of a gun be? According to you, a gun would be worthless because "the fiat money it's valued on is worthless". But it is not.

Bitcoin is the same as the gun. One of the main features of Bitcoin is that it is a currency whose value is independent of other currencies.

[lm2f]

Okay, so what will bit coin be worth when fiat is worthless?
Can any coiner honestly answer how your shitcoin has value if the fiat money it's valued on is worthless?
It's hilarious because no bit coiner can ever answer this question.

I can answer that question.

The answer is that you are confused. The value of a bitcoin is measured by fiat. It is not based on fiat.

If fiat collapses, what will the value of a gun be? According to you, a gun would be worthless because "the fiat money it's valued on is worthless". But it is not.

Bitcoin is the same as the gun. One of the main features of Bitcoin is that it is a currency whose value is independent of other currencies.

Bit coin has no intrinsic value. It's only valuable right now because people are willing to pay fiat for it. If fiat goes to 0, so will bit coin.

[milesfull]

Bitcoin is possible option for hedge and not the only one. It may work, may not, thats simple. People are here for easy money and not for hedging

[odolvlobo]

Bit coin has no intrinsic value. It's only valuable right now because people are willing to pay fiat for it. If fiat goes to 0, so will bit coin.

So, if fiat collapses, then what will be used to pay for a gun? According to you, it couldn't be precious metals because they are also only valuable right now because people are willing to pay fiat for them.

Also, the Venezuelan bolívar has basically gone to 0, but the value of a bitcoin in Venezuela has not gone to 0. So, how do you know that if fiat goes to 0, so will bitcoin?

[oktana]

So, I wanted to give my own direct answer but it seems the owner of Binance answered this recently. The only people who think crytpo can't stand without fiat are those who change their crypto to fiat. The more there's adoption, the more you'd see how independent Bitcoin is / can be.

[DannyHamilton]

Bitcoin has no intrinsic value.

I don't think you know what that word means.

The bitcoin protocol provides many things that we humans value, therefore it can be said that it has "intrinsic value" to humans.

Although, all value is subjective. In the end, if humans didn't exist, NOTHING would have value, therefore nothing actually has "intrinsic value".

So, regardless of which concept of "intrinsic" you want to use, your statement carries no meaning.

It's only valuable right now because people are willing to pay fiat for it.

You've got that one backward.  People are only willing to pay fiat for it BECAUSE it is valuable.  People don't pay FIAT for things that don't have value.

You'll find that many people are willing to exchange products or services in exchange for bitcoin. This will continue regardless of whether or not they are willing to exchange their local government currency for it.

If fiat goes to 0, so will bitcoin.

Which fiat?  U.S. Dollar? Euro? Peso? Yen? Bolivar?

If one fiat currency collapses, and others don't, then wouldn't Bitcoin still have value in those other currencies?  If it still has value in those other currencies, and the local currency does not, then can't it be used for international trade? If it can be used for international trade, then won't it be valuable to anyone that imports (or exports) products or services?  If it is valuable to anyone that imports (or exports) products or services, then won't it be valuable to anyone that engages in any business with someone that imports (or exports) products or services? If it is valuable to anyone that engages in business with someone that imports (or exports) products or services, then won't it be valuable to anyone that engages in any business with that person?  Doesn't this mean that it will carry value in the local community? Doesn't that mean that it will continue to carry value regardless of what happens to the local currency?

[Nhazwrath]

Bit coiners always be like:

"Bruh, fiat money is worthless and gonna collapse. Get bit coin bruh"

Okay, so what will bit coin be worth when fiat is worthless?

Can any coiner honestly answer how your shitcoin has value if the fiat money it's valued on is worthless?

It's hilarious because no bit coiner can ever answer this question.

The reason you don't understand whats going on here is due to the fact you are confusing value with price.    Example.   Does the air you breath have value?  What does it cost in fiat?   Price and value are Not related.  Price is An Attempt to Value something.   So if fiat hits zero does bitcoin have value still?   

Why yes it would due to the fact that while its price may Move around,  its Value is intrinsic to its nature as decentralized, fairly anonymous, and currently unhackable and of limited amount so you can't keep printing it more of it when ever you decide to.  If anything its value would probably go up.

When will bitcoin be valueless? is a better question.   I can attempt that one.   When the internet goes down for good that includes all forms of LAN Bluetooth and WIFI Laser and radio communications.

[Wexnident]

Bit coin has no intrinsic value. It's only valuable right now because people are willing to pay fiat for it. If fiat goes to 0, so will bit coin.

Again, Bitcoin isn't based on fiat, it's measured against fiat. The fact that people are willing to pay for it simply means that it's valuable as others have said. And even if Fiat goes to 0, the trust built up on the system of fiat is completely different from the trust built up by Bitcoin, and that's what makes it valuable, compared to those that have intrinsic value themselves. The only situation where Bitcoin would have no intrinsic value is when the people using it deemed it to be useless.

[franky1]

consider the bread loaf value(cost of living)

currently $2.50. 0.00004630 (1btc = 2160 loafs)

if a loaf hyper inflated to $250. then bitcoin buying 2160 loaves still = 1btc for $5,400,000

[Khaos77]

consider the bread loaf value(cost of living)

currently $2.50. 0.00004630 (1btc = 2160 loafs)

if a loaf hyper inflated to $250. then bitcoin buying 2160 loaves still = 1btc for $5,400,000

Slight problem, if hyper inflation occurs, this also inflates the price of electricity.

HYPER INFLATED ELECTRICITY IS A BITCOIN KILLER.

Bitcoin Miners in Texas all quit mining during the cold snap that hit Texas.

With the Power Off, bitcoin users in Texas admitted bitcoin was worthless to them during the power outages.
No power, No bitcoin. Heat & electricity & water & food was more valuable.

[Nhazwrath]

consider the bread loaf value(cost of living)

currently $2.50. 0.00004630 (1btc = 2160 loafs)

if a loaf hyper inflated to $250. then bitcoin buying 2160 loaves still = 1btc for $5,400,000

Slight problem, if hyper inflation occurs, this also inflates the price of electricity.

HYPER INFLATED ELECTRICITY IS A BITCOIN KILLER.

Bitcoin Miners in Texas all quit mining during the cold snap that hit Texas.

With the Power Off, bitcoin users in Texas admitted bitcoin was worthless to them during the power outages.
No power, No bitcoin. Heat & electricity & water & food was more valuable.

I completely agree.  But I would like to point out something in this case.   Did they "lose" their bitcoins?  No they did not.   They made a local decision that heat food and water had more value then the crypto.   Was it the right decision? Yes.  Did it Prove that bitcoin was better worst neutral then fiat?  yes no maybe?   Value equations like this do not prove or disprove the value of trade or representations of trade.   

Its situational, always will be .  Bitcoin offers AN option.  Its Not the do all end all.  Its a modern tech solution for problems that are Not snow storm related. 

Hyper inflation of electricity Does present a real problem.  Miners tend to move where its cheaper.  To me the solution is more and cheaper electricity.  That's a separate problem though.

[androyster]

Okay, so what will bit coin be worth when fiat is worthless?
Can any coiner honestly answer how your shitcoin has value if the fiat money it's valued on is worthless?
It's hilarious because no bit coiner can ever answer this question.

I can answer that question.

The answer is that you are confused. The value of a bitcoin is measured by fiat. It is not based on fiat.

If fiat collapses, what will the value of a gun be? According to you, a gun would be worthless because "the fiat money it's valued on is worthless". But it is not.

Bitcoin is the same as the gun. One of the main features of Bitcoin is that it is a currency whose value is independent of other currencies.

Bit coin has no intrinsic value. It's only valuable right now because people are willing to pay fiat for it. If fiat goes to 0, so will bit coin.

What makes you think that bitcoin can't work for tulips or gold if fiat goes away?

[chaoscoinz]

I know exactly what you mean. Cryptocurrency thrives off of the fact that it is easily convertible into fiat based currency's (depending on where you live). I fear if banks ever decided that they were no longer able accept cryptocurrency transactions through their medium, then a lot of people would be stuck holding worthless bags. If you had $1 million worth of cryptocurrency, and the banks within your country stop dealing in cryptocurrency exchanges OUTRIGHT, what would you do?

[androyster]

I know exactly what you mean. Cryptocurrency thrives off of the fact that it is easily convertible into fiat based currency's (depending on where you live). I fear if banks ever decided that they were no longer able accept cryptocurrency transactions through their medium, then a lot of people would be stuck holding worthless bags. If you had $1 million worth of cryptocurrency, and the banks within your country stop dealing in cryptocurrency exchanges OUTRIGHT, what would you do?

Trade it for gold and then exchange that for cash.