Trillions of Dollars---Fiat
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Trillions of Fiat dollars exist in currencies. Around our world.
Interestingly some people think that crypto currencies, since they are not a hold in your hand currency,
is somehow risky.
Yet, we all know that even the fiat is not all paper. Just computer data numbers entered in at an authorized
location, such as mortgage generated fiat. We even create fiat when we use a credit card. It is guaranteed by
the credit card company. And of course, all they have is a line of fiat credit to back that up. Ha Ha
So, the crypto currencies, having a finite number that can be generated, is far superior to the fiat just on that basis alone.
My point is this. The exodus from fiat to crypto is just now beginning. What? Maybe up to one tenth of one percent at this point in time?
This is really a generational movement. The long established, older generation will not accept this change. And the fiat holders will suffer huge losses over the next few years in fiat value.
Considering where we are in time today, would be like thinking about our life. We are at best, a few days/months into our crypto lives. The awareness of our crypto world will increase day by day.
I can only imagine what the crypto currency landscape will look like ten to twenty years from now.
A new beginning. The new world of P2P exchange is getting brighter each day, while the fiat currency world is getting
dimmer and darker.
jmht
fkimbe -
[quote]Trillions of Fiat dollars exist in currencies. Around our world.
Interestingly some people think that crypto currencies, since they are not a hold in your hand currency,
is somehow risky.[/quote]Money is just tokens for things of value, like work from another human or a new playstation. We are buying into the system some aware there is no gold other are oblivious but it doesn’t really matter at the end of the day as long as the dude who cuts your grass or fixes your teeth accepts your notes and coins in the knowledge he can trade them for something else. Its trust that you know in the back of your mind you can without doubt use the money you have to get what you need. We don’t have anything like that trust and belief in crypto.
[quote]So, the crypto currencies, having a finite number that can be generated, is far superior to the fiat just on that basis alone.[/quote]
I think you are wrong about this, in a functioning econmony we need inflation. Its what drives things on. Also just look at the amount of new crypto currency popping up every day, if bitcoin is the one true coin limited currency does that mean feathercoin and all others are defunct? Without inflation how do the coins get distrubuted. What happens to those with non and ‘useless fiat’ do they become modern slaves? Bitcoin is an experiment there is still much work to be done if this is going to work.
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Hello gavztheouch
My thinking is that the most basic purpose or reason for crypto currencies is to eliminate the central authority that has the power to add an unlimited amount of currency. And that power to add has depreciated the US dollar from 1913, when the central bank was established to now. The value today is often quoted to be around .04 to .05 in real value for buying as compared to 1913.
Another often quoted negative about the central authorities is the fact that they use our currencies today in such a way as to be called a “Ponzi scheme”. While one could argue that the currency itself is not the problem, it would be correct to say unless major policy changes are made, (which is very unlikely), the fiat currencies will crash. That is the history of every Fiat currency that has ever been in existence since the recordings of modern man.
But, you are free to believe what you want. I, will believe what I consider to be a viable alternative.
Crypto currency for me. Especially Feathercoin.
To each his own.
Thank you
fkimbe -
2014: The year derivatives bubble bursts, spreading to Fiat, the $, £, and euro. I will stick to silver, Litecoin and Feathercoin, myself.