"Fiat is hopeless"

[Futurexxx]

In terms of storing value, we can all agree that fiat currencies offer absolutely no certainty, and that's in line with what's happened so far. Governments have a responsibility to address the issue of the idea of fiat currencies, which must continue to thrive and grow among the public, as they cannot allow this to happen especially concerning chaos. I also don't see Bitcoin being created to replace fiat currencies; the two can coexist when governments are truly open. However, sometimes legitimate concerns create problems that make them seem like competitors trying to undermine each other.

Both of them can definitely coexist without troubles, just that most people in key area in our society are making it looks like they are competing with each other. I agree with the fact that Bitcoin has it own key features, but since most people sees investment potential in it more than a tool use as medium of exchange, I see it remaining that way in  20years to come or more, but with our fiat, since it's an asset that got easily eaten by inflation, people will prefer spending it than their Bitcoin, because Bitcoin has that potential of appreciating in value overtime, unlike fiat that reduces in value due to inflation.

[Cryptmuster]

In terms of storing value, we can all agree that fiat currencies offer absolutely no certainty, and that's in line with what's happened so far. Governments have a responsibility to address the issue of the idea of fiat currencies, which must continue to thrive and grow among the public, as they cannot allow this to happen especially concerning chaos. I also don't see Bitcoin being created to replace fiat currencies; the two can coexist when governments are truly open. However, sometimes legitimate concerns create problems that make them seem like competitors trying to undermine each other.

Governments solve their problems with fiat money. If they face any difficulties, they turn on the machines and print more money, and this causes inflation to grow. This cannot happen with bitcoin because its emission is limited from the beginning, and that is why many companies see bitcoin not as a currency but as an investment asset. Fiat currencies will always be subject to inflation because more and more money will always be printed. This is the model governments are used to and it suits them.

[MarjorieZimmermanGinger]

Both of them can definitely coexist without troubles, just that most people in key area in our society are making it looks like they are competing with each other. I agree with the fact that Bitcoin has it own key features, but since most people sees investment potential in it more than a tool use as medium of exchange, I see it remaining that way in  20years to come or more, but with our fiat, since it's an asset that got easily eaten by inflation, people will prefer spending it than their Bitcoin, because Bitcoin has that potential of appreciating in value overtime, unlike fiat that reduces in value due to inflation.

Maybe it's time not to compare the two so that the premise of the two as competitors in utilization does not arise even though we agree that fiat is hopeless over time because it is susceptible to depreciation. Bitcoin is considered to have the best ability to protect value and perhaps most of us are interested in investing for reasons of hedging and maximum returns even though this asset is quite speculative because it changes so quickly. But when it comes to the long term anyone would probably agree that bitcoin is much better but does not necessarily create competition with fiat currencies.

Governments solve their problems with fiat money. If they face any difficulties, they turn on the machines and print more money, and this causes inflation to grow. This cannot happen with bitcoin because its emission is limited from the beginning, and that is why many companies see bitcoin not as a currency but as an investment asset. Fiat currencies will always be subject to inflation because more and more money will always be printed. This is the model governments are used to and it suits them.

The government has certain rules and mechanisms for running the government system, so it is natural that fiat currency is used as a standard for solving problems because I am sure that the mechanisms that regulate these problems certainly have a basis. Fiat currency is also printed based on rules, and perhaps governments cannot print more outside of these rules. However, fiat currencies are vulnerable to depreciation and are quite problematic when a recession occurs, so various problems arise. Bitcoin is indeed limited in quantity and may have different characteristics from fiat currencies in general, because we see that Bitcoin is much more able to maintain its value in the long term.

[Bigjoe158]

Fiat can't be helpless as long as it is still in circulation, it is just a temporary situation if fiat is not stable. Bitcoin will someday be relegated to nothing because it is not generally accepted in international trade. Fiat will always be fiat and Bitcoin will always be Bitcoin. Fiat is known by the educated and the illiterate, Fiat is known althrough nook and crannies of every nation.

[Abiky]

Fiat can't be helpless as long as it is still in circulation, it is just a temporary situation if fiat is not stable. Bitcoin will someday be relegated to nothing because it is not generally accepted in international trade. Fiat will always be fiat and Bitcoin will always be Bitcoin. Fiat is known by the educated and the illiterate, Fiat is known althrough nook and crannies of every nation.

I wouldn't say Bitcoin isn't generally accepted in international trade. As far as I know, Bitcoin's decentralized nature allows anyone to use it anywhere in the world. It's said that sanctioned countries such as Russia and North Korea are secretly using Bitcoin to do business with other countries. This wouldn't be possible if Bitcoin was completely centralized. If it was centralized, the West could simply sanction Bitcoin and restrict/prevent sanctioned countries from using it.

Meanwhile, institutional investors and governments are continuing to add BTC to their reserves. Fiat, on the other hand, is hopeless due to endless inflation that often diminishes its value over time. For instance, some countries are beginning to move away from the USD (a process known as de-dollarization). Trust in the USD is quickly eroding. Persistent inflation and unpredictable trade policies are the main culprit. Bitcoin continues to rise in price (although it took a short dip recently) regardless of what happens with Fiat. In fact, the less-valuable Fiat becomes, the more purchasing power you'll get by holding Bitcoin long-term. Fiat will survive as long as governments exist. It will be reset multiple times for the government's own convenience. As long as Bitcoin maintains its decentralized nature, nothing else matters.

[goro_chief]

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.

Interesting post, OP. But I’m wondering—if governments really hate losing control, wouldn’t they just make crypto illegal or heavily regulated? I mean, Bitcoin sounds great, but are there examples of countries letting it completely replace fiat? Kinda curious what others think about adoption odds.

[Fiasem20]

Fiat can't be helpless as long as it is still in circulation, it is just a temporary situation if fiat is not stable. Bitcoin will someday be relegated to nothing because it is not generally accepted in international trade. Fiat will always be fiat and Bitcoin will always be Bitcoin. Fiat is known by the educated and the illiterate, Fiat is known althrough nook and crannies of every nation.

Likewise bitcoin,bitcoin’s awareness has increased in such a way that it’s known althrough nook and cranny of the world.I’m not in full support of the ideology that fiat would become hopeless despite the high rate of inflation.Bitcoin won’t relegate so soon as you think and it’s not under your jurisdiction to give such conclusion on this matter.The reason why fiat wouldn’t be obsolete or hopeless in the future is because it is widely and generally most accepted currency that’s used for daily transactions,just like you said both literate and illiterate can make use of it conveniently unlike bitcoin and cryptocurrencies that requires one to be digitally inclined before using it.Bitcoin is also known to be the currency of the future because it serves as an alternative to traditional currencies.

[TinkerWatson]

Just as silver lost its status as money, the obsolescence of government-issued fiat will also be a process of "voting with one's feet."

[Abiky]

Interesting post, OP. But I’m wondering—if governments really hate losing control, wouldn’t they just make crypto illegal or heavily regulated? I mean, Bitcoin sounds great, but are there examples of countries letting it completely replace fiat? Kinda curious what others think about adoption odds.

Of course, they would. But instead of "banning" crypto or making it "illegal", governments would prefer to regulate it with an "iron fist". Strong regulations will keep crypto in-check, while preserving Fiat's dominance. Governments will still be able to collect money from the craze (taxes), without worrying about losing control. If they outright ban crypto, they will lose a huge opportunity for taxation. That's they way this works.

I'm not aware of any country letting crypto completely replace Fiat. The only one I can think of is El Salvador. But it recently changed its stance, as it made negotiations with the IMF. So, we're back to "square one". As for Fiat, don't expect it to go anywhere soon. Even though it's "hopeless", that doesn't mean it's destined to die. Central banks and governments will keep supporting it no matter what. It's our responsibility to protect our purchasing power by beating down inflation whenever possible. BTC and Gold are all you need to do achieve this. You'll thank me later.

[Rubuchi]

Governments solve their problems with fiat money. If they face any difficulties, they turn on the machines and print more money, and this causes inflation to grow. This cannot happen with bitcoin because its emission is limited from the beginning, and that is why many companies see bitcoin not as a currency but as an investment asset. Fiat currencies will always be subject to inflation because more and more money will always be printed. This is the model governments are used to and it suits them.

in this context, it is true to say that fiat is hopeless at this level because the government have used the fiat as their instrument of determining the direction of the economy of the country and the world and as a tool to enrich themselves. If the government wants to sell a narrative out there, they use the fiat, if the government wants to deal with the citizens, they use fiat, if the government wants to enter any form of international trades and transactions, they use the fiat, if the government wants to loot the public funds , they make use of the fiat and so on.

As a result, it has seriously been used to carry out so many other things they wish to accomplish and that’s the fundamental problem they continue to face with the coming of the Bitcoin technology and how they can discontinue it because by the time the people will turn their back on the fiat currencies, they will be able to fall back on something more powerful, people centric and decentralized which is the Bitcoin and other cryptocurrencies we are talking about.

[Somegory]

What Elon musk said is just like reminding us how hopeless Fiat really Is, right from day one fiat has never gotten better, the only difference is that some country's fiat is more reliable than others but in general they are all the same when it comes to inflation.

I also believe that it's beneficial to the government of the country, Fiat needs to be hopeless for debts to pile up, fiat needs to be hopeless for control over the public to really feel more like control, just like I used to say, poverty is a political tool on its own.

If everything is in balanced state in this world the government and leaders will become less powerful as time goes on, for people to look up to their leaders for problem solving and solutions more problems need to be occurring.

[Crakryptvest]

Both of them can definitely coexist without troubles, just that most people in key area in our society are making it looks like they are competing with each other. I agree with the fact that Bitcoin has it own key features, but since most people sees investment potential in it more than a tool use as medium of exchange, I see it remaining that way in  20years to come or more, but with our fiat, since it's an asset that got easily eaten by inflation, people will prefer spending it than their Bitcoin, because Bitcoin has that potential of appreciating in value overtime, unlike fiat that reduces in value due to inflation.

Many people are now grounded in Bitcoin investment than when it was first introduced so their understanding about the financial market increased a lot, fiat and Bitcoin serves different purposes and they are important in their own different ways but since Bitcoin set in and people now have a good understanding that inflation doesn't have any effect on it, fiat became nothing infact people now prefer having more of it in Bitcoin than just keeping it in their bank accounts, of course nothing is changing about Bitcoin very soon, if fiat face a little of what bitcon has faced without the backing of the government, it would've not been in existence till now

[Pablo-wood]

Fiat can't be helpless as long as it is still in circulation, it is just a temporary situation if fiat is not stable. Bitcoin will someday be relegated to nothing because it is not generally accepted in international trade. Fiat will always be fiat and Bitcoin will always be Bitcoin. Fiat is known by the educated and the illiterate, Fiat is known althrough nook and crannies of every nation.

Don't forget fiat is only legal because a regulatory agency gave it that right. Fiat is in circulation because it has a paper equivalent. Fiat can never be stable because they are inherently inflationary mostly those that aren't backed by a physical commodity like Gold. Bitcoin reducing to nothing is like a dead wish. Bitcoin has come to stay. It will interest you to know that most illiterates have bitcoin stored in their various wallets. In today's world it's difficult to find adults who haven't heard of bitcoin even though they might be skeptical to venture into it. Bitcoin is global and it's bringing back the safety of online transactions.

[EarnOnVictor]

Fiat can't be helpless as long as it is still in circulation, it is just a temporary situation if fiat is not stable. Bitcoin will someday be relegated to nothing because it is not generally accepted in international trade. Fiat will always be fiat and Bitcoin will always be Bitcoin. Fiat is known by the educated and the illiterate, Fiat is known althrough nook and crannies of every nation.

How could fiat even be hopeless when anything financial cannot do without it with the current economic settings? Name what is happening in terms of transactions that will not pass through Fiat, aside from the fact that it's government's preference and they will not yield to what they can't control?

[Pi-network314159]

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.

Although Fiat of many counties  are already beaconing weak due to  inflation but that does no mean Fiat will go completely, Fiat is Fiat, and Bitcoin is Bitcoin, Like I have said this before Bitcoin didn't come to replace Fiat but only come in as a help mate to work side by side with fiat, and  it's the oldest form local currency, Bitcoin will be recognized and popular around the world even more than it is now.

[Adiljutt156]

In global economic politics, I believe fiat currencies are deeply unfair and provide no certainty for any country. Large countries can secretly print their own currency, with only their governments knowing about it, and this is deeply unfair to smaller countries with poor economies. If Elon Musk were to say this, he would have conducted an analysis with his team to justify his statement academically. Elon isn't just saying it; he fully understands that fiat currencies have created a wave of uncertainty today. However, in the future, decentralized technology will record all assets, and cryptocurrencies will be handled transparently by every country, and no country will be able to secretly print its own money.

People are very much frustrated with the modern monetary system and inflation. It depends on us that how we view flat currencies then we can say that either they are truly hopeless or not. Bitcoin was first introduced as an alternative for the system and because it was offering fix supply which was not manipulatable table by the government or any Central Bank I personally do not think that flat currencies will disappear in any near time. governments are relying on flat currencies to pay public workers to collect their taxes and to manage their economics .flat and Bitcoin can coexist instead of completely replacing it .Bitcoin is giving more financial freedom and alternative to the people outside the traditional monetary system.

[Abiky]

What Elon musk said is just like reminding us how hopeless Fiat really Is, right from day one fiat has never gotten better, the only difference is that some country's fiat is more reliable than others but in general they are all the same when it comes to inflation.

I also believe that it's beneficial to the government of the country, Fiat needs to be hopeless for debts to pile up, fiat needs to be hopeless for control over the public to really feel more like control, just like I used to say, poverty is a political tool on its own.

If everything is in balanced state in this world the government and leaders will become less powerful as time goes on, for people to look up to their leaders for problem solving and solutions more problems need to be occurring.

Fiat's hopelessness comes from the fact that it's "inflationary". Debt is what keeps it alive. So anyone holding Fiat for the long haul, is going to lose big time. Elon Musk is just stating the obvious. That's why nothing beats Bitcoin and Gold. They're stores of value. Makes sense to only leave a small portion of Fiat into your bank account for spending, while putting the rest into the aforementioned assets.

Governments are always seeking power, so they will continue to manipulate Fiat to their liking. Nothing we can do to stop or prevent this. I'd expect BTC (crypto) and Fiat to co-exist for generations.

[Charcol]

I will not pay attention to these nonsense words of Elon Musk. Because he himself accepts fiat currency in his company. No matter how much the value of fiat currency is devalued, it will not disappear completely and the banks will remain intact. Since the value of fiat currency is always decreasing due to inflation, it may be a good decision to invest in assets that can preserve value like gold or Bitcoin instead of saving. But I do not see the possibility of Bitcoin replacing fiat currency. No matter how good Bitcoin is, it is still a new technology for many people to be completely digital. For them, using fiat currency is much easier. And the government will not want Bitcoin to replace fiat currency. Because the government needs control.

[ultrloa]

What Elon musk said is just like reminding us how hopeless Fiat really Is, right from day one fiat has never gotten better, the only difference is that some country's fiat is more reliable than others but in general they are all the same when it comes to inflation.

I also believe that it's beneficial to the government of the country, Fiat needs to be hopeless for debts to pile up, fiat needs to be hopeless for control over the public to really feel more like control, just like I used to say, poverty is a political tool on its own.

If everything is in balanced state in this world the government and leaders will become less powerful as time goes on, for people to look up to their leaders for problem solving and solutions more problems need to be occurring.

Fiat's hopelessness comes from the fact that it's "inflationary". Debt is what keeps it alive. So anyone holding Fiat for the long haul, is going to lose big time. Elon Musk is just stating the obvious. That's why nothing beats Bitcoin and Gold. They're stores of value. Makes sense to only leave a small portion of Fiat into your bank account for spending, while putting the rest into the aforementioned assets.

Governments are always seeking power, so they will continue to manipulate Fiat to their liking. Nothing we can do to stop or prevent this. I'd expect BTC (crypto) and Fiat to co-exist for generations.

Fiat is always in losing game, because inflation make it as loser and people holding it for long term is always at losing side because its purchasing power declines over time.

Yeah Musk states obvious matters because he know the real score about those assets, he's businessman and know what are those things that can give him more advantage or benefits. But we should not fully trust his words because who knows he continue using the fame of Bitcoin and other asset to gain good benefit of his company. Expect government to always rule using fiat because they are always want to take advantage on situations that they can always control.

[WatChe]

I will not pay attention to these nonsense words of Elon Musk. Because he himself accepts fiat currency in his company. No matter how much the value of fiat currency is devalued, it will not disappear completely and the banks will remain intact. Since the value of fiat currency is always decreasing due to inflation, it may be a good decision to invest in assets that can preserve value like gold or Bitcoin instead of saving. But I do not see the possibility of Bitcoin replacing fiat currency. No matter how good Bitcoin is, it is still a new technology for many people to be completely digital. For them, using fiat currency is much easier. And the government will not want Bitcoin to replace fiat currency. Because the government needs control.

No matter what we say about fiat, the reality is that we need fiat for our daily living like paying our utility bills, grocery and more. This is true that fiat loses its value over period of time that is why we must refrain ourselves from investing in fiat like saving fiat in bank saving accounts. If we talk about Bitcoin then it is a digital asset that increases its value over period of time and its an excellent choice for someone who wants to increase value of its fiat over period of time. Bitcoin and fiat are two separate financial systems that have their own importance in our lives.