Bitcoin vs Fiat - the Difference That no One Talks About

[BitDane]

“Decentralization”, “security” and “scarcity” cannot help members to get resources back. These are just pointless features of the system and its units.

This was the point where the entire text completely derailed. If you feel that these are pointless features, you shouldn't be interested in bicoin at all, or be on a forum to discuss about it.

@OP just trash the most important feature why Bitcoin has value in order to make his argument about Fiat System being the better system between the two.  It is @OP's opinion and each person has their own.  Anyone of us can say exactly the opposite things about fiat system and may present that Bitcoin is the future.

Regardless, I still think that @OP understand how Bitcoin works and why it has its value but sadly he is trying to twist facts just to make his stands looks convincing.  Lucky that we know Bitcoin and Fiat, the difference between them and how long of a discussion it has been from different created topics that compares the two.  @OP, we are well aware enough about the advantages and disadvantage of Bitcoin and how Bitcoin disrupts the financial sector.  And those you stated worthless are the main reason why the financial sector is having an innovation right now.

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[Smartvirus]

Why is securing the return of resources the most important thing in payment systems? Well, suppose you gave up your house and in return, you got membership in the fiat system by receiving banknotes or a deposit account with some numbers. Those numbers cannot satisfy your needs. They are not resources. So, you gave up a house that can satisfy a lot of needs, and in return, you got something that cannot satisfy any need. That is why, if the system is legit, it must have a built-in mechanism so that in the future you can return resources that are roughly worth the same as your house. The fiat payment system has such a mechanism. Let’s see how it functions.

Let’s now turn to the Bitcoin system. This system boils down to a network of computing devices linked together to manage a database. How do people become members of this system? Well initially, they give up electricity in the process of the so-called Bitcoin mining. This gets them the membership units, known as electronic coins or bitcoins(₿). As these units are not resources capable of satisfying human needs, members are in the same situation as members of the fiat system – they need resources back.

You presented yor arguments in ways that has no truth in it.
Like you not seeing value in the transfer of wealth through several forms. Wealth are not all stored in a single form. You bought a house, a car, a pet dog and what ever property you own by using some notes with numbers on them and backed by the government. That's the value in it, it's by some authority and has a backing. You as well own an account number and see digits on it to value as an exchange power.

Bitcoin makes no difference.  That it's electronic doesn't dispose it of its validity or value. Bitcoin is of the people and that's the most backing it needs.
Good enough OP your in the right place go learn. Open yourself up to new ideas and correct the ill ideas you might have of the system. That's what I say to you.

[Baofeng]

It seems to me the OP really don't understand why Bitcoin was created in the first place. I'm just seeing "banks", "banknotes" in his long post, but we have to remember that this is coded in the genesis block,

“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”

So there you go you got your answer there. And this is the classic textbook lessons in school that the OP is trying to infuse in his argument and that is why majority of us are in debt in banks and loans up above our head.

If others want to live on that kind of space, then be enslave to fiat system. But if you want to get out of it, then I would suggest to the OP to try Bitcoin because his arguments is flaw in the beginning. Getting something out of a resources? That is traditional fiat system for you.

And perhaps this argument is not for Bitcoin, it could be in other altcoins as well.

[davis196]

“Decentralization”, “security” and “scarcity” cannot help members to get resources back.

Those are the three pillars, that have turned Bitcoin into a store of value and a medium of exchange.
I see that you are another one of the BTC haters, who keep saying "Bitcoin sucks, because you can't buy bread and meat at the grocery store with BTC!". If you wanted to say that, just write it down. There's no point of writing big walls of text, in order to say something simple.
You are not very original, many BTC haters have had the same thesis in the past. And guess what. I don't care that I can't buy bread and meat at the grocery store by using BTC. We have fiat money, let's use them to buy bread and meat, before they lose their value and become even more worthless. BTC should be kept and hoarded, in order to preserve our wealth from long term inflation or from the governments, that want to confiscate it.

[JamesNZ]

It seems that people here are focused on Bitcoin and me. Let me repeat. This is not topic about Bitcoin per se. At the end of the day Bitcoin is  just a database with some data in it. The topic here is about the lack of mechanism in the Bitcoin system to turn system units into resources(goods and services). The fiat system has such a mechanism. That mechanism is the only thing that gives value to the units.

I posted this here because a lot of small people is here and this info can help them to learn the truth and, consequently, to dump worthless units on whales. Namely, in all previous pyramid schemes small people were the one left holding the bag. This pyramid scheme is the first time in history that a lot of big money joined in. Now small people can dump pyramid units on them and left them holding the bag. Because, let's be honest, Bitcoin is a modern day decentralized and self-governing pyramid scheme as only outsiders to the system can make existing members to return their investments.

[Majestic-milf]

It seems that people here are focused on Bitcoin and me. Let me repeat. This is not topic about Bitcoin per se. At the end of the day Bitcoin is  just a database with some data in it. The topic here is about the lack of mechanism in the Bitcoin system to turn system units into resources(goods and services). The fiat system has such a mechanism. That mechanism is the only thing that gives value to the units.

I posted this here because a lot of small people is here and this info can help them to learn the truth and, consequently, to dump worthless units on whales. Namely, in all previous pyramid schemes small people were the one left holding the bag. This pyramid scheme is the first time in history that a lot of big money joined in. Now small people can dump pyramid units on them and left them holding the bag. Because, let's be honest, Bitcoin is a modern day decentralized and self-governing pyramid scheme as only outsiders to the system can make existing members to return their investments.

Let me summarize what I was able to deduce from this particular response; your lack of understanding of BTC is what is pushing you to come to this conclusion. Now, while I won't blame you for this[ since you are entitled to your opinion], it's better to understand what Bitcoin is.
 - Bitcoin is a decentralized digital currency that is secured by mathematical algorithms and cryptography which can be used to buy goods and render services.
 - pyramid schemes are based entirely on network marketing and requires that participants recruit new members to earn money, which to my understanding is not how Bitcoin operates.
 Although just like fiat, crypto currencies can also be used for pyramid schemes or other illegal activities, it doesn't make crypto currencies or Bitcoin in particular, a pyramid scheme.

[michellee]

It seems that people here are focused on Bitcoin and me. Let me repeat. This is not topic about Bitcoin per se. At the end of the day Bitcoin is  just a database with some data in it. The topic here is about the lack of mechanism in the Bitcoin system to turn system units into resources(goods and services). The fiat system has such a mechanism. That mechanism is the only thing that gives value to the units.

I posted this here because a lot of small people is here and this info can help them to learn the truth and, consequently, to dump worthless units on whales. Namely, in all previous pyramid schemes small people were the one left holding the bag. This pyramid scheme is the first time in history that a lot of big money joined in. Now small people can dump pyramid units on them and left them holding the bag. Because, let's be honest, Bitcoin is a modern day decentralized and self-governing pyramid scheme as only outsiders to the system can make existing members to return their investments.

Even if Bitcoin is a decentralized pyramid scheme, people still love, use, and earn from it. And the "little people" you mean can also benefit from bitcoin and altcoins because, as small players, they also know that making profits from crypto is not only from bitcoin but also from altcoins.

Fiat and Bitcoin have their advantages and disadvantages; we cannot compare them. From Bitcoin, most people can earn money. But from Fiat, only a few people can make big money while others keep trying to get more money in many ways.

And that is why more people will use Bitcoin and altcoins because they see the potential and opportunity to earn money they can get through crypto. Maybe I'm wrong on this, so forgive me.

[naira]

Don't get complicated, you only need to draw simple conclusions if you really understand correctly what and why Bitcoin is different from fiat. Don't pretend that you are going to lead Bitcoin opinion to be complicated and other people will get bored with what you have to say. On forums, people are familiar with this and there is nothing new in what you convey. To be honest, they have been around a long time and know Bitcoin has a single decentralized system, no one can catch up with its creator, and no large-scale printing results in inflation.

This image will make it clear that Bitcoin was created for a better and more rewarding world for every individual who believed in it then, now, and in the future.

As simple as that.

[SyndicateLabs]

The difference between these two systems causes a large difference in the value of each currency. However, the value of Bitcoin and fiat money is not only due to the protection structure of the system but also depends on various economic and social factors. As a result, assessing the value of Bitcoin and fiat money requires many factors to be considered, not just protection mechanisms and resource usability.

Your thoughts regarding the difference between Bitcoin and fiat money are correct. An important difference between Bitcoin and fiat money is that in the Bitcoin system, there is no protection mechanism to return resources, it is just a digital currency distributed on a distributed network. Meanwhile, under the fiat money system, the currencies are protected by the power of the government and financial institutions to ensure the stability of the currency and the functioning of the economy.

[JamesNZ]

Don't get complicated, you only need to draw simple conclusions if you really understand correctly what and why Bitcoin is different from fiat. Don't pretend that you are going to lead Bitcoin opinion to be complicated and other people will get bored with what you have to say. On forums, people are familiar with this and there is nothing new in what you convey. To be honest, they have been around a long time and know Bitcoin has a single decentralized system, no one can catch up with its creator, and no large-scale printing results in inflation.

This image will make it clear that Bitcoin was created for a better and more rewarding world for every individual who believed in it then, now, and in the future.

As simple as that.

https://i.ibb.co/3rC43Zg/image.png

That's storytelling needed to attract outsiders and dump them system units. Because Bitcoin lacks mechanism fot turning those units into goods and services. And now let's be serious: do you really think a piece of code and a database can make world better? Wake up people. The dream is over

[Webetcoins]

I understand what you are trying to convey here, what you mean is that if no one in the world would want to buy Bitcoins and give out fiat, Bitcoin holders will have no use for their coins since they cannot use them to buy resources that are important for someone to live or use in their lives. That is true, but you are totally ignoring one thing.

There are a lot of things that are valuable and people pay money to get them, take gold as an example. Based on your argument, if people all over the world suddenly stop buying gold, the asset will simply be useless no matter who holds how much of it, but why would that happen? The world needs gold so they will surely pay money to get it so that they can make jewelry with it or use it however they want. Similarly, Bitcoin has become valuable because of its features and scarcity, now people understand it's value and that is why they pay money to get it. We know that it is different than fiat, for now, but it obviously isn't useless.

[serjent05]

It seems that people here are focused on Bitcoin and me. Let me repeat. This is not topic about Bitcoin per se. At the end of the day Bitcoin is  just a database with some data in it. The topic here is about the lack of mechanism in the Bitcoin system to turn system units into resources(goods and services). The fiat system has such a mechanism. That mechanism is the only thing that gives value to the units.

I do not think the reply focuses on Bitcoin and you, it is on Bitcoin and your presented argument.  And when you say goods and services, isn't the boundless transaction offered by Bitcoin technology a service/oods?  This simply shows how shallow your understanding of Bitcoin is, if not I can say how you intentionally ignore important features of Bitcoin to suffice your argument.

I posted this here because a lot of small people is here and this info can help them to learn the truth and, consequently, to dump worthless units on whales. Namely, in all previous pyramid schemes small people were the one left holding the bag. This pyramid scheme is the first time in history that a lot of big money joined in. Now small people can dump pyramid units on them and left them holding the bag. Because, let's be honest, Bitcoin is a modern day decentralized and self-governing pyramid scheme as only outsiders to the system can make existing members to return their investments.[/b]

Again the use of pyramid and Ponzi schemes is thrown on Bitcoins, if that is the case then everything in the open market is a Ponzi or pyramid scheme since what the Bitcoin market is following is the universal law of supply and demand which is also applied to all items and services in the market.

[JamesNZ]

I understand what you are trying to convey here, what you mean is that if no one in the world would want to buy Bitcoins and give out fiat, Bitcoin holders will have no use for their coins since they cannot use them to buy resources that are important for someone to live or use in their lives. That is true, but you are totally ignoring one thing.

There are a lot of things that are valuable and people pay money to get them, take gold as an example. Based on your argument, if people all over the world suddenly stop buying gold, the asset will simply be useless no matter who holds how much of it, but why would that happen? The world needs gold so they will surely pay money to get it so that they can make jewelry with it or use it however they want. Similarly, Bitcoin has become valuable because of its features and scarcity, now people understand it's value and that is why they pay money to get it. We know that it is different than fiat, for now, but it obviously isn't useless.

No, what I am trying to say is that the Bitcoin network has no protective mechanism to ensure that holders of its units get back goods and services, while the fiat system has it. That's literally all I am trying to say.

It seems that people here are focused on Bitcoin and me. Let me repeat. This is not topic about Bitcoin per se. At the end of the day Bitcoin is  just a database with some data in it. The topic here is about the lack of mechanism in the Bitcoin system to turn system units into resources(goods and services). The fiat system has such a mechanism. That mechanism is the only thing that gives value to the units.

I do not think the reply focuses on Bitcoin and you, it is on Bitcoin and your presented argument.  And when you say goods and services, isn't the boundless transaction offered by Bitcoin technology a service/oods?  This simply shows how shallow your understanding of Bitcoin is, if not I can say how you intentionally ignore important features of Bitcoin to suffice your argument.

I posted this here because a lot of small people is here and this info can help them to learn the truth and, consequently, to dump worthless units on whales. Namely, in all previous pyramid schemes small people were the one left holding the bag. This pyramid scheme is the first time in history that a lot of big money joined in. Now small people can dump pyramid units on them and left them holding the bag. Because, let's be honest, Bitcoin is a modern day decentralized and self-governing pyramid scheme as only outsiders to the system can make existing members to return their investments.[/b]

Again the use of pyramid and Ponzi schemes is thrown on Bitcoins, if that is the case then everything in the open market is a Ponzi or pyramid scheme since what the Bitcoin market is following is the universal law of supply and demand which is also applied to all items and services in the market.

The Bitcoin network stores the system units and enables the change of their holders. If that's a services then it's the most useless service in human history as the units cannot help its holders in anything. The units are just something that the network protects for its own sake.

Basically, the network is a perfect example of means that gives access to a pyramid scheme given that no one can benefit from the network and its units, but only from things that old network members received from new members.