"Fiat is hopeless"

[Antotena]

Back when Elon Musk started expressing his disappointment with Donald Trump's "One Big Beautiful Bill", he posted a message on X that "Fiat is hopeless". With inflation spiraling out of control, and excessive government spending, the tech mogul might be right. So if all Fiat currencies are "hopeless", does this mean Bitcoin will take over the world in the future? I know the odds are slim (governments want control/power), but abolishing central banks could be the first step towards making this a reality.

What's your opinion? Your input would be greatly appreciated.

Why do we make comparison of fiat and Bitcoin, I don't think they are close but they share some similarities. The fiat system is hopeless because that was how it was meant to be, it's a government tool to explore and do whatever they so wish but why don't we make the comparison with Gold that has some similarities with Bitcoin. Fiat system is corrupted with government policy bugs, it's even a disrespectful when we compare Bitcoin to fiat, it's not close to what Bitcoin have done and can do.

It was during this same Donald Trump government last 2 regime that his government printed money during the covid 19 time, everyone hated the fact that money were printed which resulted in low purchasing power, they had to fight inflation till Donald Trump government left the office and Biden inherited the catastrophe Donald did but when it was time for election, guess who Elon Musk voted for? That means we all know what we are doing but nepotism wouldn't let us speak when it's necessary.

[r_victory]

The economy has always had ups and downs, and fiat currency remains active. Of course, in some countries its value is more devalued than in others, but it remains alive and relevant. Will Bitcoin one day replace it? I believe more in mutual coexistence, the advancement of financial technology, the possibility of countries creating their own digital currencies, it will bring a new level in the global economy, a new game.

[Abiky]

Maybe if you look at the current unstable world economy, fiat money exchange rates are uncertain, as well as rampant inflation, prices of goods are soaring, fiat is almost worthless, especially in weak countries.
except for the dollar, on that basis, perhaps Elon Musk is starting to think that the only thing that is surviving at the moment is the dollar, if the dollar collapses like fiat in other countries, of course and certainty Bitcoin is one of the indisputable assets in maintaining the exchange rate against the bad global economy.

Yes, I agree with Elon's thoughts, Fiat has no hope in the future, we can take fiat with one truck and only get one sack of wheat, Bitcoin has hope in maintaining its value when the market collapses.

The Dollar (USD) may be stronger than some other currencies. But recently, it has been showing signs of weakness. Since the beginning of the year, the USD has been performing terribly, losing a considerable amount of its value. Donald Trump's uncertain trade policies (tariffs), the FED lowering interest rates, and the federal government shutdown will only exaberbate the issue. It's no wonder why Elon Musk lost hope in Fiat. Inflation is uncontrollable, no matter where you live in. If only geopolitical tensions and wars came to an end, we would have a slight of hope. There doesn't seem to be any indication things will get better, so prepare yourself for more pain to the economy.

Bitcoin fixes this. If governments made it their official currency, things would've changed for the better. But they won't do it, because they want to keep power/control over the economy. Perhaps, CBDCs will reset the global economy? Only time will tell...

[Oluwa-btc]

"Fiat is hopeless," it's more of a strong opinion than an objective fact.Believe it or not it depends on Elon Musk's perspective,experience and it's just a reflection of his own results.Stating his fears and vulnerabilities in the monetary systems.
Mindfully,on a scale of 1 to 10,Fiat has fallen and failed many times,without a total collapse.And it still holds a chance to still function reasonably even for decades.

[JiiBs]

I know the odds are slim (governments want control/power), but abolishing central banks could be the first step towards making this a reality.

What's your opinion? Your input would be greatly appreciated.

Abolishing the central banks is widely impossible as, either we like it or not, these banks play an enormous role to the growth of the economy. They don’t just ensure control for the government but, the bills in itself is a national symbol and they are a resource unto the government given that, these bills could be used in transaction from prints at the central banks. Taking that away from them would be taking away the opportunity to develop from what costs them nothing.

Fiat currencies are very useful in and has proven this in many places where Bitcoin proves deficient. So, nope, we aren’t going to see that world.

[m2017]

Back when Elon Musk started expressing his disappointment with Donald Trump's "One Big Beautiful Bill", he posted a message on X that "Fiat is hopeless". With inflation spiraling out of control, and excessive government spending, the tech mogul might be right. So if all Fiat currencies are "hopeless", does this mean Bitcoin will take over the world in the future? I know the odds are slim (governments want control/power), but abolishing central banks could be the first step towards making this a reality.

What's your opinion? Your input would be greatly appreciated.

Firstly, the phrase "Fiat is hopeless" can be interpreted differently by everyone, as there's no specificity in this formulation. Fiat is hopeless in what sense? It's still being used successfully. What alternatives are there? What alternatives will the regulator use? There are too many different interpretations.

Secondly, we shouldn't perceive the statements of public figures as the pronouncements of an "all-knowing prophet". They're just people like everyone else and don't know much more than we do about what will happen in the future. And if they know more, they probably won't publish it in the X.

Bitcoin (or CBDC) won't solve the problem of excessive government spending. To do that, officials need to "moderate their appetites".

How do you think bitcoin will solve the inflation problem? The problem isn't that the physical money supply itself is increasing, but that businesses (and governments) are being financed with money they don't currently have (from future profits). Do you think that even if the government officially adopts bitcoin (let's assume this happens), the economy will stop crediting? Of course not. I think the idea that bitcoin will eliminate inflation is utopian (yes, bitcoin is becoming more expensive, which allows us to "outpace" inflation, but bitcoin doesn't eliminate inflation. Goods and services continue to rise in price). To eliminate inflation, the entire current global economic model must be radically changed.

Perhaps something similar will happen in the near future, with the full implementation of the CBDC, when governments will be able to influence the economy using "levers" (forced stimulation of spending\non-spending by citizens in order to influence the economy-to speed it up\slow it down).

[liasbaa]

The economy has always had ups and downs, and fiat currency remains active. Of course, in some countries its value is more devalued than in others, but it remains alive and relevant. Will Bitcoin one day replace it? I believe more in mutual coexistence, the advancement of financial technology, the possibility of countries creating their own digital currencies, it will bring a new level in the global economy, a new game.

Regarding replacement, even if fiat is depleted, it will exist forever and Bitcoin will only coexist. I do not think it is a replacement asset. Gold has always been a valuable commodity, it has become more valuable at the moment and has crossed ATH. Bitcoin is compared to gold and is a digital asset. Increasing Bitcoin holdings through gradually accumulation, increasing decentralized digital assets along with centralized fiat assets will open up new sky line for you in the economy.

From personal savings to institutional savings and the adoption of Bitcoin through legal tender and the approval of bills for strategic Bitcoin reserves in many states, the underlying depth of each event is to coexist with the traditional economies of countries in the future and create a stronger financial system. It would be logical to do it independently.

[dezoel]

It's basically cause of the regulations in your country so it's your government's fault that people can't change their cryptocurrencies freely for fiat, maybe if the people over there speak up through protest or whatever why that the shake the government and make them see the need to retrace their steps, then using crypto in your country would be very much welcomed, similar situation happend in my country when the government began to place unnecessary bans and frustrate citizens from seeing a need to use crypto but I'm glad we've passed that phase and the use of digital currency is much welcomed in my country.

With better regulations, fiat could do a lot better, but it's the taxes that are the problem. If you keep taxing the middle income and poor people to brim, while doing tax cuts on rich people, what do you expect it to do? If you rich the tax people and big companies, while taxing poor people and regular citizens less, you make more money and for some reason people decline that.

It's simple, we have to see how this could impact the price a lot better and we could see this being the way people could improve. I have to say that we are going to end up with that type of improvement soon enough, because people are sick and tired of rich people avoiding taxes, while we carry the load, and when a crash happens, government protects the companies, more than it does the public.

[Ziskinberg]

And how can we abolish central bank when we all know the government’s high protection and support are into it. Being hopeless doesn’t mean there’s no longer hope anymore with fiat. The government will do everything to retain fiat, and if ever it won’t work anymore, well they can resort into using their own digital currency, so there’s no way that bitcoin will be allowed to replace fiat.

Let’s just settle on the idea that bitcoin is here to co-exist with fiat, nothing more nothing less. It’s even an advantage for us because we can chose between fiat and bitcoin, on which we can be more convenient to.

[Zoomic]

Fiat is hopeless but do we have options. Yes, we have, bitcoin is the alternative to fiat. But then, the government fought bitcoin at it early stage, but now that the battle is over, we have started seeing bitcoin as a store of value instead of as a currency. So, the problem continues and we continue to swim in the ocean of the greatly manipulated fiat.

Fiat is the house boy of inflation. Fiat has no fate of its own, no mind and no value of it's own and it's worth in some countries. Sometimes when US citizens who have strong fiat complain, I'll just chuckle 

[Abiky]

With better regulations, fiat could do a lot better, but it's the taxes that are the problem. If you keep taxing the middle income and poor people to brim, while doing tax cuts on rich people, what do you expect it to do? If you rich the tax people and big companies, while taxing poor people and regular citizens less, you make more money and for some reason people decline that.

It's simple, we have to see how this could impact the price a lot better and we could see this being the way people could improve. I have to say that we are going to end up with that type of improvement soon enough, because people are sick and tired of rich people avoiding taxes, while we carry the load, and when a crash happens, government protects the companies, more than it does the public.

The fact that rich people are benefited the most, tells us the system is nothing but rigged. Fiat currencies, although centralized, are the world's standard unit of account. Mainstream governments and central banks encourage the use of them. Without Fiat, there will be no way to manipulate the economy. This means, governments and banks won't have a way to keep our society under control. So hoping that BTC will fix all of our problems by replacing Fiat and abolishing central banks, would be only a pipe dream. It's a good idea, though.

Elon Musk may be disappointed with Fiat (particularly the USD), but it's the only thing that "makes the world go round". If inflation is a concern, saving and investing your money would be the ideal solution. Just play your cards right, and there should be nothing to worry about.

[Japinat]

Just because fiat is hopeless, does it mean that bitcoin will definitely cover up its position? For me, it has very slim chances to happen because no centralized government would ever want a decentralized currency to replace its failing currency. That’s why we have CBDCs, these are government-backed digital currencies so they have their own digital currency, enough reason why they won’t see bitcoin as an option for fiat.

And there’s no way a centralized institution will put their trust into a decentralized coin, as it’s full of volatility that creates barrier here and there.

[ShowOff]

-

The fact that rich people are benefited the most, tells us the system is nothing but rigged. Fiat currencies, although centralized, are the world's standard unit of account. Mainstream governments and central banks encourage the use of them. Without Fiat, there will be no way to manipulate the economy. This means, governments and banks won't have a way to keep our society under control. So hoping that BTC will fix all of our problems by replacing Fiat and abolishing central banks, would be only a pipe dream. It's a good idea, though.

Elon Musk may be disappointed with Fiat (particularly the USD), but it's the only thing that "makes the world go round". If inflation is a concern, saving and investing your money would be the ideal solution. Just play your cards right, and there should be nothing to worry about.

That's true, and it is impossible to build a system that truly benefits all social classes. The wealthy often have easy access to a country's economic system. In reality, many countries still give space to capitalist practices, which provides an easy way for capital owners to continue to accumulate and maintain their wealth in the long term.

Bitcoin is one alternative solution, and I agree that Bitcoin may never succeed in fully replacing fiat money, so the role of central banks will still be necessary in the future. In the end, everyone must adapt to the system implemented by the government. Sometimes I think the government never truly sides with the middle and lower classes.

[Cossyblack]

Fiat will always be here but Bitcoin will eventually be the rescuer of Fiat and once a country do it successfully others will follow, like now that Trump want to use Bitcoin to settle the debt of America, it is very possible that this will become a historical move and until the end of time Bitcoin will be look upon differently.

FIAT will be here but not for long because it's already collapsing and the government knows this. Bitcoin is the only safe Haven against inflation. FIAT can't protect our funds against inflation but Bitcoin Can. I can agree with you that there's no other better ways for the US to settle it's Debts other than through Bitcoin,not just the US alone, but other advanced countries are already holding Bitcoin as a store value while their gradually dumping FIAT. Bitcoin is gradually becoming an acceptable global currency,a better alternative that one day will replace the failing FIAT system. If not that Bitcoin is Decentralized,the Banks through the support of the government would have destroyed it along time ago. Funny enough,since they cannot control it, they just have to embrace because it's the only Hedge against inflation.

[Smartvirus]

The economy has always had ups and downs, and fiat currency remains active. Of course, in some countries its value is more devalued than in others, but it remains alive and relevant. Will Bitcoin one day replace it? I believe more in mutual coexistence, the advancement of financial technology, the possibility of countries creating their own digital currencies, it will bring a new level in the global economy, a new game.

I admire the initiative you took towards this thread. I don’t know why the OP would choose such a title for the thread. The singular idea that we could be Bitcoin fanatics and not see the usefulness of other means to finance and investments, proven through several generations is just bad.

Fiat is very useful in our everyday society. Though, it’s devalued as time progresses, it’s the one currency that could be used by just anyone, any place and anytime. Bitcoin is limited to certain conditions like, electronic devices and the internet.

[freedomgo]

"Fiat is hopeless," it's more of a strong opinion than an objective fact.Believe it or not it depends on Elon Musk's perspective,experience and it's just a reflection of his own results.Stating his fears and vulnerabilities in the monetary systems.
Mindfully,on a scale of 1 to 10,Fiat has fallen and failed many times,without a total collapse.And it still holds a chance to still function reasonably even for decades.

That’s what it takes if you are backed up by the government, failure isn’t a guarantee to be wiped out or replaced, but instead it will continue to function as a currency regardless of its immeasurable mishaps because the government itself allows it too.

For Elon, fiat is hopeless because he has his own set qualities for a good currency. But we are not Elon, nor the government itself, so we stand also a different opinion based on how we perceive fiat. But in the end, the government’s opinion will always have the final say, ours are just not that quite significant.

[Yeesha]

The economy has always had ups and downs, and fiat currency remains active. Of course, in some countries its value is more devalued than in others, but it remains alive and relevant. Will Bitcoin one day replace it? I believe more in mutual coexistence, the advancement of financial technology, the possibility of countries creating their own digital currencies, it will bring a new level in the global economy, a new game.

In my country, the situation is currently getting more worse. Fiat has devalued to the extent that some has become worthless. But still the individuals or the people always find their way to stabilise their lives, because the people that are familiar with bitcoin or cryptocurrency are just limited in number.

Some are not still struggling to understand the advantages and the disadvantages of cryptocurrency. Investment has also become a big deal to some because they don't have money to start up a business or invest in any thing.

[7juju]

There will never be a time when the central banks of countries will be abolished, Bitcoin and fiat will coexist. If you abolish the fiat system don't you think that the governments around the world will fall? The government will not allow that they will rather allow inflation to keep rising than to lose their grip on power. It is now left for individuals to decide if they will continue keeping their money in fiat or switch to bitcoin. But for fiat to stop existing is impossible.

[CryptoBuds]

Fiat will always be here but Bitcoin will eventually be the rescuer of Fiat and once a country do it successfully others will follow, like now that Trump want to use Bitcoin to settle the debt of America, it is very possible that this will become a historical move and until the end of time Bitcoin will be look upon differently.

FIAT will be here but not for long because it's already collapsing and the government knows this. Bitcoin is the only safe Haven against inflation. FIAT can't protect our funds against inflation but Bitcoin Can. I can agree with you that there's no other better ways for the US to settle it's Debts other than through Bitcoin,not just the US alone, but other advanced countries are already holding Bitcoin as a store value while their gradually dumping FIAT. Bitcoin is gradually becoming an acceptable global currency,a better alternative that one day will replace the failing FIAT system. If not that Bitcoin is Decentralized,the Banks through the support of the government would have destroyed it along time ago. Funny enough,since they cannot control it, they just have to embrace because it's the only Hedge against inflation.

Bitcoin is an inflation hedge, but it is not the only or best inflation hedge. Gold, silver, real estate or blue chip stocks are also very effective anti inflation tools.

No matter how bad and flawed fiat money is, I bet it will never collapse and bitcoin will never replace it. The government will never let that happen.

By the way, how can the US pay off its debt with bitcoin? Do you know how much debt the US government has? If I remember correctly, that number is over $37 trillion while bitcoin's market cap is only 2 trillion, and they only own nearly 200kBTC. How will they use bitcoin to pay off debt? Don't be naive and believe everything Trump says without careful analysis and research.

[Abiky]

That's true, and it is impossible to build a system that truly benefits all social classes. The wealthy often have easy access to a country's economic system. In reality, many countries still give space to capitalist practices, which provides an easy way for capital owners to continue to accumulate and maintain their wealth in the long term.

Bitcoin is one alternative solution, and I agree that Bitcoin may never succeed in fully replacing fiat money, so the role of central banks will still be necessary in the future. In the end, everyone must adapt to the system implemented by the government. Sometimes I think the government never truly sides with the middle and lower classes.

The situation with Fiat may be disappointing, but there's nothing we can do about it. We just need to learn to live with this. It's likely that persistent inflation will force people to invest in Bitcoin and Gold. They will avoid Fiat whenever possible. Gold has been surging lately, so I guess this is already happening behind the scenes.

At some point, I believe governments will reset the global economy, bringing us back to "ground zero". Inflation will ease, but it won't disappear. Without inflation, Fiat will simply be hoarded like a store of value. Just like it's the case with BTC and Gold these days. Inflation is more like a feature than a bug. Only if it stays low (controlled). If it rises excessively, that's when it becomes a real problem. We can never tell what will happen in the future. So here's hoping for the best.