So is Bitcoin how to flee fiat money?



Bitcoin is also Fiat money, but the difference is that it's a true open market currency with fixed inflation rates. This means everyone knows the money supply years in advance, so the current financial crisis could never have happened. It also can't be taxed since it's anonymous. I don't know if Bitcoin in it's current version can attract enough mass attention, but the idea of open source anonymous currency has the potential to be a major world changer if it succeeds for the aforementioned reasons. It is currency and trade outside the control of governments.
 
rusvik said:
Bitcoin is also Fiat money
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no.

from wiki:

Fiat money is money that derives its value from government regulation or law: the initial value of fiat money is established by government decree.

bitcoin doesn't derive it's value from gov regulation or is a national currency.
 
I think the definition of fiat money is something like "Inconvertible paper money made legal tender by a government decree." or "Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value." Bitcoin doesn't fit that definition.
 
momchil9 said:
no.

from wiki:

Fiat money is money that derives its value from government regulation or law: the initial value of fiat money is established by government decree.

bitcoin doesn't derive it's value from gov regulation or is a national currency.
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The major thing to take away is that it isn't backed by any commodity and like other Fiat money only holds value because others agree to it. That can be said for even gold backed money of course, but you get the idea.
 
geomark said:
I guess a lot of Euro types think so. According to this article, Euro fears boost virtual currency Bitcoin | FP Street | News | Financial Post, there's been a big increase in orders through Bitcoin exchanges coming from people trying to dump their Euros.

But I don't understand the concept.
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So you are thinking of getting Bitcoins instead of going for real-world investment options like other currencies, bonds, stocks, gold, etc.....well played !!!!.

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Sunday Squakbox: What are your thoughts on Bitcoin? | Justin Dupre | Internet Marketer and Consulant

http://www.wickedfire.com/shooting-shit/126501-justin-dupre-ballin-all-angles.html
 
Jeeta said:
So what's bitcoin backed by again?
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Fiat's, duh

fiat-500-abarth-ferrari-1.jpg
 
momchil9 said:
no.

from wiki:

Fiat money is money that derives its value from government regulation or law: the initial value of fiat money is established by government decree.

bitcoin doesn't derive it's value from gov regulation or is a national currency.
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If you would have read the ENTIRE article and not just copied the headline you would have read :

The term fiat money has been defined variously as:

  • any money declared by a government to be legal tender.[4]
  • state-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard.[5]
  • money without intrinsic value.[6][7]


I would also like to note that at one point in the last year my ENTIRE wallet was stolen without any possible way to recover it.
 
Holy shit. Yeah, there's no way I'm investing in bitcoin man, lose your access keys by whatever reason, your fucked with no recovery process.
 
Jeeta said:
But doesn't it work on the same principles of supply and demand?
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It does, but it's everyone's demand and needs.

Not a handful of bankers, looking to control as much of the world, as they can can.

Also, there are limits(currently) on how it is issued.It is issued through computing power, until all of the bitcoins are generated.


ScottDaMan said:
Holy shit. Yeah, there's no way I'm investing in bitcoin man, lose your access keys by whatever reason, your fucked with no recovery process.
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backups lol. or server side wallet, if you trust them.
 
momchil9 said:
It does, but it's everyone's demand and needs.

Not a handful of bankers, looking to control as much of the world, as they can can.

Also, there are limits(currently) on how it is issued.It is issued through computing power, until all of the bitcoins are generated.
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So then this leads me to my final question, what's stopping someone or a group of people manipulating it's price just like they did in the gold bullion markets?
 
Jeeta said:
So then this leads me to my final question, what's stopping someone or a group of people manipulating it's price just like they did in the gold bullion markets?
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I knew this where you are going. :D

I don't have an answer on this question, i'm not a bitcoin lover/expert, just read about it a while back as it is an interesting concept.

I guess no one can stop smart people with lots of money and powers(for now), but I think they had a solution for this. Not sure though.
 
Most people like the concept of Bitcoin, but aren't adapting because it's not tangible to their everyday life. The appeal of fiat money is that it's real. They can pull it out and hold it. A physical presence of wealth is something that's been around since man first traded with one another by shells, metals, gems, etc. Something of perceived value pushed the currency.

The problem with Bitcoin is that it's electronic. People can't touch it, they can't pull it out of banks and hoard it if they felt their wealth threatened, nothing. The closest they can get is pulling their encryption out of an exchange somewhere and downloading it onto their computer. Where's the secure feeling in knowing that you can physically touch it? Plus, even that little satisfaction requires some serious effort for a lot of "meh" feeling when it's done.

It just goes against millions of years of ingrained expectations of how to take care of wealth.


ScottDaMan said:
Holy shit. Yeah, there's no way I'm investing in bitcoin man, lose your access keys by whatever reason, your fucked with no recovery process.
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There are exchanges and keyrings for this kind of thing. Just store your password in a software like KeePass and you don't have to worry about being locked out.
 
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