Bitcoin vs Fiat : A war between Scarcity and infinite printing

[tread93]

Fiat money loses value over time because governments can keep printing more of it. That’s why we see inflation and rising prices. Bitcoin is different because it has a fixed supply of approximately 21 million coins and no one can create more. This scarcity makes it strong and valuable over time, While fiat rewards spending and debt. In a world full of printing and financial instability, Bitcoin offers a simple but powerful alternative: money that can’t be diluted.

One loses value and one protects it. Which would you choose ?

I choose bitcoin and real assets every single day! Fiat is garbage and unfortunately it is a necessity and necessary evil but we must try to take as much of that fiat as we can and turn it into bitcoin

[malekbaba]

Fiat money loses value over time because governments can keep printing more of it. That’s why we see inflation and rising prices. Bitcoin is different because it has a fixed supply of approximately 21 million coins and no one can create more. This scarcity makes it strong and valuable over time, While fiat rewards spending and debt. In a world full of printing and financial instability, Bitcoin offers a simple but powerful alternative: money that can’t be diluted.

One loses value and one protects it. Which would you choose ?

Both are scams. I have strong points.
Rich people are diverifying their portfolio into fiat, crypto, physical assets like land, gold. BTC (crypto) are still infant. Those who are investing into crypto are mostly rich people. Though BTC will have fixed supply,  among 21M max supply, the circulating supply is already 19.96M. So like fiat, small group of people will hold big chunk of BTC. So the underlying tech is block chain but almost all BTC will be held by very few people, those few parties will control BTC as well.
Fiats are scam. Centralized authorities, unlimited printing will increase the gap between rich and poor

[pooya87]

Rich people are diverifying their portfolio into fiat, crypto, physical assets like land, gold. BTC (crypto) are still infant. Those who are investing into crypto are mostly rich people.

I'm sure some rich people have bought bitcoin but I don't think in general the rich people are investing in bitcoin. What majority of them are doing is investing in bitcoin related businesses. For example we have the billionaire Saylor who runs Microstrategy (the business, not exactly investing in bitcoin) or the billionaire Armstrong who owns Coinbase (another business, not exactly investing in bitcoin).

You see, when you say "rich people" you are still saying "fiat rich". These people are still in the centralized system because they control that system themselves. In fact this is why majority of them hate bitcoin, because they cannot control it. Like Warren Buffet who despite all the nonsense he has said about bitcoin, his company has investment in some crypto related businesses.

[Lida93]

Rich people are diverifying their portfolio into fiat, crypto, physical assets like land, gold. BTC (crypto) are still infant. Those who are investing into crypto are mostly rich people.

I'm sure some rich people have bought bitcoin but I don't think in general the rich people are investing in bitcoin. What majority of them are doing is investing in bitcoin related businesses. For example we have the billionaire Saylor who runs Microstrategy (the business, not exactly investing in bitcoin) or the billionaire Armstrong who owns Coinbase (another business, not exactly investing in bitcoin).

You see, when you say "rich people" you are still saying "fiat rich". These people are still in the centralized system because they control that system themselves. In fact this is why majority of them hate bitcoin, because they cannot control it. Like Warren Buffet who despite all the nonsense he has said about bitcoin, his company has investment in some crypto related businesses.

Of course there are rich guys who have bought bitcoin directly to a self custody wallet and others who had to buy not directly but through third-party digital asset company just to cushion some security risk. However, bitcoin has proven to be a class asset that wouldn't disappear into thing air like what we have with many shit altcoins rugs. Hence, having a direct buy and being in custody of your seed phrases is the real way to own bitcoin and not the former. Furthermore, much of what has made the so-called rich people not to have interest in buying bitcoin is due to the concrete fact that they can't control the asset as they do with all the fiat stuff.

[Hispo]

...

One loses value and one protects it. Which would you choose ?

Pretty much all forum users here are aware of the scarcity which is implicit of Bitcoin and how it affects the price of this asset in the long term. Actually, many people hold Bitcoin for the future, because they all know the law of Supply and Demand will inevitably help the value of Bitcoin to get to new record heights.

I assume you are pretty new on this forum and you have not taken your time to luck more on what we discuss on here, I would recommend you to do so, so you won't annoy people around here posting or opening threads about topics which have already been discussed hundreds of times.

Have a good day.

[Chinesebaby]

I'm sure some rich people have bought bitcoin but I don't think in general the rich people are investing in bitcoin. What majority of them are doing is investing in bitcoin related businesses. For example we have the billionaire Saylor who runs Microstrategy (the business, not exactly investing in bitcoin).

And that's a wise strategy to go about it rather than only investing in Bitcoin alone, because that's actually what differentiates between the poor and the rich, because just as an average or poor individual invests his assets that doesn't generate daily profits, the rich invests in assets that generates daily profits, just as Michael Saylor did in his Microstrategy investment, as it relates with Bitcoin activities. So on the contrary, they are still holders of Bitcoin, but with a smart approach.

[justinlamode]

Bitcoin is the ultimate and should not be compared to fiat because both operate in different levels and instances. Beside being medium of exchange, Bitcoin offer some level of freedom which is not found in fiat. We already know that the infinite printing that is associated with fiat is killing it because there is excess supply and unlike fiat, Bitcoin has fixed supply and a growing population and interest. Therefore it is natural to see more demand than supply in Bitcoin which will make it a good store of value.

[uchegod-21]

No matter the differences between these two currencies or the assumed war, a good majority will choose fiat for everyday spending and choose bitcoin for investment purposes. Without saying much, we already know why...

The logic here is that people will spend fiat because it loses value over time and save bitcoin because it preserves value.

It is evident in how people raise money to accumulate bitcoins and are reluctant to spend them afterwards. For now, this is how it is, maybe things will get better later in the future.

[hyudien]

One loses value and one protects it. Which would you choose ?

I choose Bitcoin as a hedge against the annual erosion of Fiat currency, as its value will continue to grow. However, I still need Fiat as my daily currency, at least until the government makes Bitcoin legal tender. However, that may seem unlikely given Bitcoin's uncontrollable nature. Rather than endlessly debating which is better, as both have their respective functions, let Fiat and Bitcoin complement each other's weaknesses and work hand in hand.

[SilverCryptoBullet]

I choose Bitcoin as a hedge against the annual erosion of Fiat currency, as its value will continue to grow. However, I still need Fiat as my daily currency, at least until the government makes Bitcoin legal tender. However, that may seem unlikely given Bitcoin's uncontrollable nature. Rather than endlessly debating which is better, as both have their respective functions, let Fiat and Bitcoin complement each other's weaknesses and work hand in hand.

Fiat currencies with governance by governments and central banks have very similar problems: money printing, and loss of purchasing power. Because of their similarity, reading this article about the US. dollar is quite enough for getting insights about fiat currencies.

Purchasing power of the US dollar over time.

Linking fiat currencies and Bitcoin, their opposite purchasing power changes over time with this Satoshi per dollar chart. With time, fiat currencies lose their puprchasing power by inflation issues while Bitcoin has its parabolic increase of purchasing power.

https://charts.bitbo.io/satoshi-per-dollar/

[SilverCryptoBullet]

I'm sure some rich people have bought bitcoin but I don't think in general the rich people are investing in bitcoin. What majority of them are doing is investing in bitcoin related businesses. For example we have the billionaire Saylor who runs Microstrategy (the business, not exactly investing in bitcoin) or the billionaire Armstrong who owns Coinbase (another business, not exactly investing in bitcoin).

The rich have quite more comfortable financial status than the middle and the poor so they can more easily make strategic plans for their lives and finance including investment. With a lot of money and with their knowledge of financial management, magic power of diversification capital for controlling risk, they will not invest their money in any single asset.

The rich very likely invest their money in real estates, gold, silver, stock index, stocks, Bitcoin and others including Bitcoin-related businesses like you said. It's only fact about how the rich are similarly in their financial management and investment. What they do is theirs, while with Bitcoin market even the rich only invest money into Bitcoin-related business, it's still good for Bitcoin adoption and market.

More money, more demands even indirectly, will be helpful forces for Bitcoin market to grow in liquidity and price support.

[X-ray]

Each serve its own purpose, fiat if you just want to spend it later and bitcoin if you want to spend it but also to get capital gain from the deflationary characteristic so basically you get two benefit in one which is saving and currency.

You can't deny that fiat existed before bitcoin and people are accustomed to it so there will be a transition phase where people still going to use fiat and don't ditch it for bitcoin altogether. It's always better to have alternative after all.

Like others have said, comparison is pointless because people are free to use whatever they want to use.

[Rustam Meraj]

This comparison effectively shows why most people refer to Bitcoin as Digital Gold since, unlike regular money, Bitcoin cannot be overprinted and thus it cannot lose its value. Money that is used on regular basis is made to lose approximately 2 percent of its worth each year, which is sort of hidden tax on savers, while Bitcoin is limited in supply and thus it is hard money, which protects your wealth over time. While fiat money encourages individuals to get into debt since debt would be less expensive to repay as currency loses value, Bitcoin encourages individuals to save for future. Ultimately, it is up to you to believe governments will handle money or whether you believe mathematical rules of blockchain will keep your savings safe.

[harapan]

No one would have tasted about what bitcoin is and will prefer going back to fiat, because this is all about financial freedom in cryptocurrency and we take charge of every decision that is expected to how we run our finances in a decentralized manner, while the fiat system is well corrupt enough that we can't afford to continue in such manner, because inflation is only affecting the masses and not the elite who can afford all they wanted in the market.

A little taste of freedom and you will never want to go back to the fiat system. Fiat systems are stubborn though, they know what it means to dominate, so they do every single thing to stay relevant at all cost. The Bitcoin system can also be controlled by the upper class if the invention of Bitcoin is not properly utilised. Finally, the continuous stacking of Bitcoin should be encouraged, yes it should not be gate kept but this is the best way for the poor to gain financial freedom.

[vanesha]

Between scarcity and unlimited printing.

This feels like the gap between sky and earth. Even when Bitcoin is compared to gold, I believe Bitcoin is better at this point. The total supply of gold is still not known with certainty, while Bitcoin’s supply is clearly defined and will never change. Bitcoin seems to have been created as a solution to today’s inflation. What I mean is that those who invest in it won’t feel the impact of fiat inflation.

[btc78]

One loses value and one protects it. Which would you choose ?

if your agenda is to keep value of your money of course bitcoin is the one to go

fiat is never meant to be stored because it’s not gonna stimulate the economy all you will be doing if you save money too much too long it will only reduce in value

[davis196]

Fiat money loses value over time because governments can keep printing more of it. That’s why we see inflation and rising prices. Bitcoin is different because it has a fixed supply of approximately 21 million coins and no one can create more. This scarcity makes it strong and valuable over time, While fiat rewards spending and debt. In a world full of printing and financial instability, Bitcoin offers a simple but powerful alternative: money that can’t be diluted.

One loses value and one protects it. Which would you choose ?

There's no war between Bitcoin and fiat. Fiat money printing is what pumps the Bitcoin price. There's lots of cooperation between the crypto world and the fiat world. Fiat money means inflation, but Bitcoin has high volatility, which is also a bad thing for mass adoption. Most people won't adopt a currency(or asset), which has a fluctuating price, that does 10% up today and 20% down tomorrow. Both fiat and BTC seem kinda unstable in terms of price and value. Fiat money loses value in the long term, but the annual fiat inflation is less than 5%. Bitcoin might cost 100K this year and 50K next year. There's no guarantee that the Bitcoin price will keep increasing forever.

[vanesha]

You are in a Bitcoin forum, expect for sure Bitcoin all the way. For me, about this kind of discussion, there will be some pros and cons of using fiat and Bitcoin.

The best example is what most people comment about Bitcoin, which is hard to use, especially if you are non-techy. But I believe in the future, everything will be easy for using Bitcoin and there will be more innovation that will help it.

Those who say Bitcoin is difficult to use don’t really understand Bitcoin. They’re usually just FOMO-driven people who enter the Bitcoin space purely to chase wealth, without understanding the true meaning of investment or the technology behind it. In my view, the Bitcoin community is a combination of people who love business and those who love technology—coming together as the Bitcoin community.

[henry_of_skalitz]

You are in a Bitcoin forum, expect for sure Bitcoin all the way. For me, about this kind of discussion, there will be some pros and cons of using fiat and Bitcoin.

The best example is what most people comment about Bitcoin, which is hard to use, especially if you are non-techy. But I believe in the future, everything will be easy for using Bitcoin and there will be more innovation that will help it.

Those who say Bitcoin is difficult to use don’t really understand Bitcoin. They’re usually just FOMO-driven people who enter the Bitcoin space purely to chase wealth, without understanding the true meaning of investment or the technology behind it. In my view, the Bitcoin community is a combination of people who love business and those who love technology—coming together as the Bitcoin community.

Especially with the tools at display as of now..

Depends on what they want to do with it, of course, I wonder what's so "hard" about it.

[aysha9853]

The real war is not Bitcoin versus fiat, it’s education versus ignorance, fiat keeps working because people trust it by default, Bitcoin forces you to take responsibility for your money, fixed supply is powerful, but it also comes with volatility and discipline.