Why we need bitcoin...

[Darker45]

This goes to show that the control system of fiat is actually a double-edged sword. On the one hand, there may be some good in the fiat mechanism that allows it to be controlled by the government. The effect of an economic depression or any economic crisis brought about by natural and man-made disasters, such as what we're currently experiencing with COVID-19, could somehow be eased with certain government steps. On the other hand, however, a bad monetary and economic decision could easily make this control system the cause of a much larger economic problem in the future.

[Jawhead999]

Yep we're need Bitcoin, but don't ignore the fact we still need fiat too because not all merchants will accept Bitcoin... even more if you live in countries where Bitcoin still in grey area, you won't see any merchants will accept Bitcoin.

Average Joe will think fiat is more safer than Bitcoin in terms physically and wouldn't loss since most bank offer insurance if the bank bankrupt, unlike Bitcoin it's non physical and will loss if the exchanges got hacked or compromised. This is why people should educate yourself to understand Bitcoin is and using exchanges only to trade, not to hold.

[traderethereum]

Yep we're need Bitcoin, but don't ignore the fact we still need fiat too because not all merchants will accept Bitcoin... even more if you live in countries where Bitcoin still in grey area, you won't see any merchants will accept Bitcoin.

Average Joe will think fiat is more safer than Bitcoin in terms physically and wouldn't loss since most bank offer insurance if the bank bankrupt, unlike Bitcoin it's non physical and will loss if the exchanges got hacked or compromised. This is why people should educate yourself to understand Bitcoin is and using exchanges only to trade, not to hold.

I agree with this because at least when people still use fiat and if something bad happens, they can ask the government to help them fix the problem.
But when something bad happens to bitcoin, they can not ask anyone except themselves why they put their money in bitcoin.
Yes, not many local merchants accept bitcoin but fortunately, we can use bitcoin and convert it into fiat so we can still buy something using that fiat.
Those people will still use fiat because there is a guarantee from their government but if they can open their minds and know bitcoin, they should invest in bitcoin, just in case, bitcoin can help them when they need money in the future.

[tygeade]

The same is situation with almost every currency and that's why we need bitcoin as the main source to protect us from coming inflation or say super inflation situations that could be more worse than they might seem to you.Bitcoin is the exit policy from all such worries.

For the worst consequence of inflation, deflationary currency might be a solution but practically I am seeing bitcoin is slowly turning as an asset rather than being a currency (I agree an asset is still capable of serving as currency and cannot be an alternate to fiats).

Limited supply obviously makes a currency into asset class which again leads to high volatile nature. A highly fluctuating entity may not remain as a preferred payment method as people may need to hold them even for short period of time for any reason (monthly salary is common practice worldwide which means we need to hold/save fiats at least for 30 days and if we lose even 5% value in 30 days of time that might again impact negatively). 

[Rufsilf]

This goes to show that the control system of fiat is actually a double-edged sword. On the one hand, there may be some good in the fiat mechanism that allows it to be controlled by the government. The effect of an economic depression or any economic crisis brought about by natural and man-made disasters, such as what we're currently experiencing with COVID-19, could somehow be eased with certain government steps. On the other hand, however, a bad monetary and economic decision could easily make this control system the cause of a much larger economic problem in the future.

The people who actually works in such Federal Banks where fiats is printed and produced doesn't really know what it feels to be a regular citizen because they're in the higher position of the economy. But for the normal citizens who only just got enough money to put food on the table and for other bills certainly do felt what the government did and how deep they have dug just to pay the debt by producing more fiats.
Actually, government knew that already that at some point economy will collapse, they have just neglected it and just cared to fix the problem on their time while they have the job and then transfer the responsibilities to pay the debts again by the incoming government officials. That's why it's a never ending cycle.

[globalpain]

Yep we're need Bitcoin, but don't ignore the fact we still need fiat too because not all merchants will accept Bitcoin... even more if you live in countries where Bitcoin still in grey area, you won't see any merchants will accept Bitcoin.

Average Joe will think fiat is more safer than Bitcoin in terms physically and wouldn't loss since most bank offer insurance if the bank bankrupt, unlike Bitcoin it's non physical and will loss if the exchanges got hacked or compromised. This is why people should educate yourself to understand Bitcoin is and using exchanges only to trade, not to hold.

It is important to understand that not all countries legalize Bitcoin as a means of payment,
so Fiat is still very much needed in every country,
Hacking is indeed still a scourge or anxiety for those of us who use crypto, so we need to be careful and improve the security of our wallets.

[aysg76]

And, I might add, taxes are or will be going up under Biden's reign of senility.  The government has more hands than any alien creature you could imagine, and they're all in our pockets fishing for what little money we have--and on top of the money printing you mentioned, there's the undeclared tax of inflation which is a direct consequence of irresponsible fiscal policies (like handing out money in the form of stimulus/COVID relief as if it were Halloween candy).

Paying taxes is okay and must be paid because it's essential for the development of the country infrastructure and to make progress but what Governments are doing at this time is unbearable like always have an eye over you making transactions and each and every record and later on they simply give the excuse of AML policy.The tax slabs should be set according to different set of rules and this biden reign will also end up on the same political agenda like wars,covid and some other useless topics but they will never say the inflation has increased in their time and will keep on blaming each other and carry on same political drama.They simply print money and give out as stimulus check and people believe they are helping them but they never know the indirect burden is going to be shifted on them eventually in form of inflation and taxes.

Yeah, you better believe bitcoin is a sounder form of money than the USD is.  The dollar might not be hyperinflated and carted around in wheelbarrows yet, but we're getting there.  What's frustrating is that no one I know in real life seems to see this or care much about it if they do.  I don't know what everyone is staring at on their smartphones all the time, but I'm guessing it doesn't have anything to do with economics.

Yeah at this moment USD might sound stronger than most of the currencies as world trade is carried out in it despite the fact that some other currencies like dinar and Pound are stronger in value but the government has full rehearsal of taking it towards zero levels with their fiscal policies and creating a hyperinflation in the country not too ahead but this scene can be seen soon and then the debt limits would be raised to $50 trillion also or even more.Sometimes i wonder which will happen first US raising debt limits beyond any levels or btc crossing $100k? Talking about youth only a handful of them are interested in these topics these days and most of them are busy in making reels on insta and sharing memes over the internet.Few days back i was shocked to see teenager becoming social media influencers with huge followers and waste their whole time on this useless stuff which won't help them in the long run.These days it's hard to find someone at young age talking about economics or real world problems.

Yep we're need Bitcoin, but don't ignore the fact we still need fiat too because not all merchants will accept Bitcoin... even more if you live in countries where Bitcoin still in grey area, you won't see any merchants will accept Bitcoin.

Average Joe will think fiat is more safer than Bitcoin in terms physically and wouldn't loss since most bank offer insurance if the bank bankrupt, unlike Bitcoin it's non physical and will loss if the exchanges got hacked or compromised. This is why people should educate yourself to understand Bitcoin is and using exchanges only to trade, not to hold.

Actually what i am trying to explain is future problems because i also know you can't use bitcoin to make payments unless you are El Salvador resident which i am not like many of you.At this time bitcoin is more frequently popular as an asset rather than mode of payment but that will turn out soon because the true use case of btc was alternate mode of decentralised payment system to evade the Central control and provide you freedom of funds but slowly when it will be accepted by all or say most you will automatically see people spending it on usual stuff.You must have seen people paying in Bitcoin to merchants you are referring to in El Salvador through LN on strike wallet or any other wallet supporting LN and same will happen with time.But you should have bitcoin till that time to safeguard you against inflation.For me it's best and it could not be for you.

[jaberwock]

For all these reasons i have invested in Bitcoin after so much research and that's why dips also don't matter in the end and have shared about the same here : Reasons why I prefer Bitcoin over any other assets and dips don't panic me....

The same is situation with almost every currency and that's why we need bitcoin as the main source to protect us from coming inflation or say super inflation situations that could be more worse than they might seem to you.Bitcoin is the exit policy from all such worries.

Yes that is true, and Bitcoin is like a solution to all these problems. But, sometimes I do wonder why the government never care about situations like this. I wonder whether this kind of situation bothers them at all, because if it really bothers them then they would have shown concern and start looking for a solution on how to solve this issue of inflation.

It just looks like as if they do not care about it at all, and all they care about is just to keep on printing money, every year we are seeing more and more being printed. And at the end of the day it all leads to inflation. This goes to show how important it is for us to keep on investing, especially in Bitcoin, if we would like to save our value in time to come.

[DooMAD]

While bitcoin halves US dollar doubles

Similar story in the UK.  The total M1 GBP money supply has doubled within the space of a decade:


source: https://tradingeconomics.com/united-kingdom/money-supply-m1 -> 10 year chart

Chances are, it'll probably double again, or worse, in the next 10 years.  It can't be sustainable.

HODL HODL and such.

[kryptqnick]

I agree with the general sentiment that overprinting isn't new and that is can lead to hyperinflation, but there's a big difference between countries that suffered from it and the USA. The difference, of course, is not in the type of action, but it's in the trust (both within the country and internationally) towards a currency. With the US being a #1 economy, the USD is in very high demand and is valued as an example of stability and reliability. And while dollar lost a lot of value over decades, the majority is okay with this rate of inflation, so unless something changes drastically, it's probably not going to be a problem. I don't think the US can get away with ANY rate of overprinting money, but it can afford more than probably any other country.

[SquallLeonhart]

Bitcoin is like a solution to all these problems. But, sometimes I do wonder why the government never care about situations like this. I wonder whether this kind of situation bothers them at all, because if it really bothers them then they would have shown concern and start looking for a solution on how to solve this issue of inflation.

It just looks like as if they do not care about it at all, and all they care about is just to keep on printing money, every year we are seeing more and more being printed. And at the end of the day it all leads to inflation. This goes to show how important it is for us to keep on investing, especially in Bitcoin, if we would like to save our value in time to come.

Because they control the law, and when you control the law then you control everything else. Sure bitcoin is decentralized and governments can't print more bitcoin, but that doesn't mean they can't tax your bitcoin trading. I have seen plenty of people who had to pay more taxes than the whole bitcoin amounts they were holding because of the trading they did. So, you buy at 1 and sell at 2 and buy back at 3?

You just made a profit from your 1 to 2 trade and government may not see you got back in at 3, and it may have dropped back to 1 as well and as long as you didn't sell it in time for the taxing happens at certain dates of the year, that means you now have a profit for that year, a loss for the next year, but in reality you only have a loss. So, governments could literally make you go broke with the laws they have in their hand from all of your crypto trading.

[Darker45]

I agree with the general sentiment that overprinting isn't new and that is can lead to hyperinflation, but there's a big difference between countries that suffered from it and the USA. The difference, of course, is not in the type of action, but it's in the trust (both within the country and internationally) towards a currency. With the US being a #1 economy, the USD is in very high demand and is valued as an example of stability and reliability. And while dollar lost a lot of value over decades, the majority is okay with this rate of inflation, so unless something changes drastically, it's probably not going to be a problem. I don't think the US can get away with ANY rate of overprinting money, but it can afford more than probably any other country.

Definitely. But it is not just a matter of trust. It is a matter of power. The US is a very powerful and influential country despite how it is oftentimes being painted by the media, their very own more than others. But the truth is that it still has a lot of leverage, which poor countries don't have.

However, things are, of course, not okay with the current rate of inflation. The rate has gone through the roof and there is indeed a rise of homeless individuals even inside the largest economy of the world. At the top, there may seem to have not much problem. But at the receiving end, the rising prices of basic goods and services is already very painful.

[southerngentuk]

Because of development in a way, matters are right/wrong... from our point of view, and it also brings other development.
I think about the 'why?' but indeed when everyone can see the reason but can't find the end of the relationship, so the skepticism will not stop, and not only bitcoin but for everything that we are using tools in life.

[Shasha80]

Their are so many good reasons why we need bitcoin,  we need bitcoin to be financially stable while doing our jobs or business. Bitcoin is a good investment anyone who have vision for the future to need. One thing I love bitcoin when you are into it, bitcoin will make you think properly how to manage investment well.

I agree there are many reasons why we all need Bitcoin, for me Bitcoin can be a very good retirement plan. That's a strong reason right now I need
Bitcoin, investing in Bitcoin in the long term can allow me to have savings in the future and it is a good retirement plan. Since I'm comparing Bitcoin
to other assets, what's interesting is that Bitcoin performs better than other assets. So most likely if we long-term investment in Bitcoin will generate
large amounts of money. Moreover, for fiat inflation occurs almost every year, especially during a pandemic that forces all countries to print money
in large quantities, this is a strong reason why we need Bitcoin. Imagine if we have large amounts of savings in the bank, it will only make the value of
our savings continue to decline. That's why we really need Bitcoin, and for those who refuse Bitcoin, I'm sure they will regret it in the future.

[aysg76]

wow! That was a lot of knowledge on the place. You have done some good research on this topic. Actually, I also do not like how govt has control over our money. They can do as they want like printing more money or banning certain amounts of paper bills that are totally ridiculous. It's like we are not the owner of our wealth because with one action from the govt our have nothing.

Btc gave us the freedom to store or move our value as we want to. There is no one to ask nor forbid it to happen. BTC gives us the freedom financially.

This is what central owned funds means and you are just using them till they want you all to do and then will render some policies like restricting you to transfer funds without any proper documentation to clear how you earn them,how much you earned and then taxation purpose.The transactions are settled with third party and at the end when they find it suitable to put restrictions they can but the case with bitcoin is entirely different and you have all the responsibility of your funds and only need to be careful to secure them on hardware wallets with good returns but banks provide annual interest of very low rates and people are not anymore convenienced to put money in banks.

Similar story in the UK.  The total M1 GBP money supply has doubled within the space of a decade:


source: https://tradingeconomics.com/united-kingdom/money-supply-m1 -> 10 year chart

Chances are, it'll probably double again, or worse, in the next 10 years.  It can't be sustainable.

HODL HODL and such.

The most of countries have the similar situations but still the first world countries have better conditions but the third world country face lot of other problems and money printing also won't help them even to survive the current scenario because US and UK could be facing such conditions late but these countries are mostly dominated by US dollar and they should recognise the importance of Bitcoin and then this could help them at some point otherwise they are going down the inflation road which will end up burning the fiat one's.

[redsun114]

I agree there are many reasons why we all need Bitcoin, for me Bitcoin can be a very good retirement plan. That's a strong reason right now I need Bitcoin, investing in Bitcoin in the long term can allow me to have savings in the future and it is a good retirement plan. Since I'm comparing Bitcoin to other assets, what's interesting is that Bitcoin performs better than other assets. So most likely if we long-term investment in Bitcoin will generate large amounts of money. Moreover, for fiat inflation occurs almost every year, especially during a pandemic that forces all countries to print money in large quantities, this is a strong reason why we need Bitcoin. Imagine if we have large amounts of savings in the bank, it will only make the value of our savings continue to decline. That's why we really need Bitcoin, and for those who refuse Bitcoin, I'm sure they will regret it in the future.

I am doing it both for right now and also for the future at the same time. What people haven't figured out too much just yet that there are a ton of work to be done in crypto. There are more companies starting up and more projects and instead of just putting your money into it, you could work for them as well. I do not have the time right now and I have my hands full with life and work but if I ever wanted to I am 100% sure that I could find a job in a month and get paid for at least a year on that job.

I remember I had to find some extra money a few years ago, it has been a while but I remember I just found translations to my own language (from English) and there were like a few each month, so I would make a good amount of money that way. I also put some money aside every month in crypto, I just cashed out my Avax unfortunately for paying some medicine I needed to get for my mother-in-law (just 800 bucks, not a life changer) but these are all the great things that crypto help you with, I spent about 50 bucks on that Avax, made a great profit, and used it to get a life saving drug.

[aysg76]

I agree with this because at least when people still use fiat and if something bad happens, they can ask the government to help them fix the problem.
But when something bad happens to bitcoin, they can not ask anyone except themselves why they put their money in bitcoin.

Okay i understand your point also but there are two scenario case for it also as if you are seeing bitcoin as an asset class or mode of payment.If we are making comparisons among fiat and btc then take both as mode of payment and take all the cases in that respect.But what bad can happen to fiat about which you are saying? Suppose there are funds loss or some kind of scam then does it happen due to any natural loss but it happened because we were careless and ignorant enough that made us suffer such loss but if say about Bitcoin the same could happen in that also like people getting scammed of funds because they're ignorant and fool not to safely backup their funds and it that's simple man.You just take care of your funds as many are doing then use them when needed.But if say it's not widely accepted at this moment then it is fine excuse but government can help you if you help yourself first.So be sure in first place.

I remember I had to find some extra money a few years ago, it has been a while but I remember I just found translations to my own language (from English) and there were like a few each month, so I would make a good amount of money that way. I also put some money aside every month in crypto, I just cashed out my Avax unfortunately for paying some medicine I needed to get for my mother-in-law (just 800 bucks, not a life changer) but these are all the great things that crypto help you with, I spent about 50 bucks on that Avax, made a great profit, and used it to get a life saving drug.

That's good that you earned good amount of profits from these crypto projects but don't blindly trust them as most of them coming to the market these days with their token offering through different visions turn out to be scam and you don't want to be part of them as it could ruin your image as well not getting you paid.In 2017 I also was involved in some projects in social media promotion and done some translations like you but in the end the story was same like other's of not getting paid and then leave them all.For me investing in bitcoin could only be sufficient evidence that can solve your lot of problems.

[Hydrogen]

Recently bank of England also issued some statement like btc could go to zero ignoring the fact the value British pound has lost over time :

I do not understand why they publish these statements.

1. Those who actively read and educate themselves would never fall for this news headline. They comprehend what the term inflation protected asset means (even if a bank of england publicist does not).

2.  The demographic that does not read or educate themselves, might believe this headline. But those people never read, and in never reading, would never see it.

[electronicash]

Nice topic, though the US assured that they'll be able to pay their debt but it's always better for us to get ready if they will default as we already know what would happen to USD. Having bitcoin in our wallet is truly a hedge for an inflation and since it's not controlled by any government, people will have a liberty to invest and consider bitcoin as a hedge which would result to increase its value due to that particular demand.

printing more is the way to go to pay the debts and the USD has so much leverage for that because it's the reserve. the more they print the lesser the debts will be but it's the people that will suffer from the inflation due to, however.

this is why a country like El Salvador will probably be the one that has the advantage in the coming years. or will we ever see another currency because a country like Myanmar shifted to Yuan (Renminbi) recently?

[aysg76]

I do not understand why they publish these statements.

1. Those who actively read and educate themselves would never fall for this news headline. They comprehend what the term inflation protected asset means (even if a bank of england publicist does not).

2.  The demographic that does not read or educate themselves, might believe this headline. But those people never read, and in never reading, would never see it.

That's the problem that still vast majority of people have gone in flow to believe that their currency is becoming strong in world market.For instance people living in US,UK, Canada and some developed nations tend to believe they can spend more in other countries as the third world countries and underdeveloped countries have very low rates because of many reasons but in actual they never see that their legal fiat has lost so much in value overtime and the inflation rates have killed them slowly.But the problem they see is when the conditions go out of hands and the government imposes emergency declaration and then they curse them but it's all in vain.

BOA and other who have built their fiat bubble across the society couldn't see it burst by the Bitcoin and people knowing the reality of their currency that how much it has depreciated over time.The people who are educated about bitcoin will gain knowledge about how it could help them a lot in coming time as hedge guard against inflation due to it's deflationary Nature.There is nice comparison which shows that $1 USD could buy you complete loaf of bread and other items in the past but now it could not buy you daily items with few dollars also because of inflation but on the other side one bitcoin in the past was equal to loaf of bread but now see you could even buy Tesla with it so tells what is best investment?

This is difference which Bank of America and other government officials will hinder you to see it but if you are educated enough to put light on it then you will believe in bitcoin.