Bitcoin Is Fiat

[yhiaali3]

So you're saying the bolivar value or the Zimbabwe paper toilet value was determined by the government? They wanted it that low?
Both the USD and bitcoin have the same price determination method, are you willing to sell a bitcoin for $95 000 or $5000, the moment you're pricing your bItcoin you're also pricing the $. It's a misconception when somebody selling something doesn't realize that he is not just setting the price for what he sells he is also setting a price for what he gets back.

Of course they didn't want it that low but as a result of wrong economic policies and printing more and more currency it eventually turned into a pile of garbage.

Any government in the world wants their national currency to have a good value so when they first create their currency they give it a good value and over time the value of the national currency can decrease or increase depending on the economic policies of the government which lead to either the prosperity of the economy or its destruction.

[Stompix]

Any government in the world wants their national currency to have a good value so when they first create their currency they give it a good value and over time the value of the national currency can decrease or increase depending on the economic policies of the government which lead to either the prosperity of the economy or its destruction.

Not really.
China is consistently devaluating the yuan just as Japan is doing with the yen to help exports and encourage internal consumption.
Germany was also trying hard to bring the Deutsche markdown, and Italy was trying hard to prop up the Lira despite being export-orientated, a weak currency doesn't mean the end of a country.
The Turkish lira is down the drain would you say that Zambia is doing better because their currency is outperforming the lira?

It's still supply and demand, just with crypto.
What is the difference between the USD and the Zimbabwe dollar and Bitcoin and Bitcoin cash?

[yhiaali3]

Any government in the world wants their national currency to have a good value so when they first create their currency they give it a good value and over time the value of the national currency can decrease or increase depending on the economic policies of the government which lead to either the prosperity of the economy or its destruction.

Not really.
China is consistently devaluating the yuan just as Japan is doing with the yen to help exports and encourage internal consumption.
Germany was also trying hard to bring the Deutsche markdown, and Italy was trying hard to prop up the Lira despite being export-orientated, a weak currency doesn't mean the end of a country.
The Turkish lira is down the drain would you say that Zambia is doing better because their currency is outperforming the lira?

It's still supply and demand, just with crypto.
What is the difference between the USD and the Zimbabwe dollar and Bitcoin and Bitcoin cash?

I really don't understand why some countries want to devalue their local currency?

From what I know (here in my country at least) the government is always trying to increase the value of the local currency against the dollar, for example 1 dollar was equal to 15,000 in the local currency and now we have a new government that managed to make 1 dollar equal to 10,000 in the local currency, meaning the value of the local currency increased against the dollar and they considered this a great achievement for the government.

I am not an economist so I apologize if I do not understand what you mean exactly.

[Stompix]

~

I really don't understand why some countries want to devalue their local currency?

From what I know (here in my country at least) the government is always trying to increase the value of the local currency against the dollar, for example 1 dollar was equal to 15,000 in the local currency and now we have a new government that managed to make 1 dollar equal to 10,000 in the local currency, meaning the value of the local currency increased against the dollar and they considered this a great achievement for the government.

I am not an economist so I apologize if I do not understand what you mean exactly.

If you're an export-orientated country you want to keep the prices of your goods competitive.

Let's assume you export a 50k euro BMW to Nigeria and the naira goes down by 5 times, the car is suddenly 5 times more expensive for them and you can't sell it anymore, by devaluating the euro to half of the value you make it twice as cheap and some can still afford it.
Of course, imports will be costlier too but that would make demand for locally produced goods grow and if you export twice as much as you import it's better to have a weak currency.

[yhiaali3]

If you're an export-orientated country you want to keep the prices of your goods competitive.

Let's assume you export a 50k euro BMW to Nigeria and the naira goes down by 5 times, the car is suddenly 5 times more expensive for them and you can't sell it anymore, by devaluating the euro to half of the value you make it twice as cheap and some can still afford it.
Of course, imports will be costlier too but that would make demand for locally produced goods grow and if you export twice as much as you import it's better to have a weak currency.

Thank you, I think I understand you now
But what about the citizens who live in those countries that devalue their local currency, won't that make their lives harder? I mean they will have to pay double the cost of buying their things?

In the example you gave, the price of a car will become 100,000 euros for the citizens of that country, so how can such a problem be solved? By raising wages and salaries for example, or is the price of a car intended for export different from the local price?

[Stompix]

~

Thank you, I think I understand you now
But what about the citizens who live in those countries that devalue their local currency, won't that make their lives harder? I mean they will have to pay double the cost of buying their things?

In the example you gave, the price of a car will become 100,000 euros for the citizens of that country, so how can such a problem be solved? By raising wages and salaries for example, or is the price of a car intended for export different from the local price?

Well, first they will top buying those expensive goods, so less money coming out and less devaluation as fewer nairas are turning into euros.
Then goods made in the country become more competitive as imports grow more expensive.

A matter of keeping the balance, allowing just as many exports to prosper but at the same time keeping imports like energy and food affordable, and since it's a tricky thing no surprise that managed to do it are countries like Japan and China and previously Germany before the euro and not Zimbabwe or Venezuela with their stupid dictators.

[JISAN]

Bitcoin is fiat. Now go ahead, take the time you need to get it out of your system. Breath deeply. Blood pressure still up? Okay, let’s try this then.

Bitcoin is a currency and a very strong currency it is true but it is not yet a fiat currency but it can be believed that it will happen in the future.  Fiat currency can only be called when Bitcoin can be used in all fields.  How we use our money.  So far the use of Bitcoin has not been introduced at all levels.  When Bitcoin is legalized in every country in the world and Bitcoin is accepted as payment in every case, Bitcoin can be called an alternative to Fiat currency or directly Digital Fiat.  While I agree with the logic you have shown, I cannot fully agree

[Mr. Magkaisa]

           -     We all know here that it can never be a fiat, and it is too far for bitcoin to be in this situation. It's just that Bitcoin has volatility that Fiat doesn't, because the price is stable in fiat while in bitcoin there is no fixed price and that's what makes bitcoin great compared to Fiat.

Then Bitcoin can even be sent anywhere in the world where we have friends, family who want to send fiat via bitcoin to exchanges that have p2p features
and things that fiat can't do with cheap transaction fees.

[rby]

Now, what do you think about it?
I guess I am confused and don't know what to think about it.

There is really no need for us to complicate things for ourselves. Fiat currencies are backed and issued by the government, and this is the major thing that distinguishes them from Bitcoin. Let's not confuse ourselves further by saying we are the kings who rule over Bitcoin. Bitcoin has several people controlling it, while fiat has only one entity (the government) controlling it. Bitcoin is not fiat.

[Bobcrypto]

Bitcoin is fiat. Now go ahead, take the time you need to get it out of your system. Breath deeply. Blood pressure still up? Okay, let’s try this then.

What does fiat mean? An arbitrary order or decree. Fiat currencies are given value by the authority of governments. They have value because the State decides they have value, and will accept them in payment of taxes. So how is Bitcoin fiat?

A king waives his hand and gives fiat value. But there is no King of Bitcoin. Right? Wrong. It’s us.

We collectively give value to Bitcoin through our decision to use it. We bring it into existence through our collective arbitrary decision. Despite all the memes and descriptions of Bitcoin as digital gold, it is by no means a commodity. Bitcoin has no distinct use-value and exchange-value. It is not a physical raw material that can be converted into something else. It’s a database that sits on your computer. And mine. And everyone else's.

Read more here; https://bitcoinmagazine.com/takes/bitcoin-is-fiat

Now, what do you think about it?
I guess I am confused and don't know what to think about it.

In a nutshell, Bitcoin is a community driven ecosystem and it's values are based on consistent demand and supply rules plus other factors, unfortunately, it is not on any man's control. As we know, Bitcoin is a decentralized blockchain network, it does not work like the faits, can't be printed continuously, but has a fixed supply that will exist.
In addition, fiat are government own currency that are liable to be influenced by individuals or politicians at anytime etc.

[Mate2237]

Fiat currency is unlimited but bitcoin is limited to only 21 million and that make it more value because it is scarce and the excess printing of fiat currency make it unvalued. Bitcoin would have been a World currency if all stores accepted it a their legal tender currency. And the cost of  things would have reduced. And they are some factors that classified a currency to be fiat and bitcoin has not met those criteria. Bitcoin is only on internet and it is not stable.

The imagination world of bitcoin to be fiat is still on the dream world.

[NotATether]

That does not make much sense unfortunately. Fiat is a paper currency issued b governments. Bitcoin is not paper money (there were attempts to mint physical Bitcoin coins but - you guessed it - the government said that's illegal so they stopped), and no government issues bitcoins to the central bank.

The blockchain issues bitcoins to miners though. So in a way, the blockchain is like a government, governed by developers and industry pioneers, and the miners are like the central bank, who then sell their coins to exchanges who resemble other banks, and so on.