Bitcoin Is Fiat

[God Of Thunder]

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.

[MrSpasybo]

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?

Well, I don't think BTC is fiat because we don't have a government to determine the value of BTC in the market. I trade BTC but I am not a government member, I only agree with the market price, I don't create that price myself.

The government is a finite and very small organization compared to the entire community. I think comparing BTC to fiat is inappropriate, we can compare BTC to Gold: they are both valued by everyone on a global scale, gaining popularity and widespread acceptance. I consider BTC a valuable commodity on the internet, a new asset class for investment.

[TomPluz]

In my opinion, there can be some correlation between a fiat and Bitcoin in the sense of assigning value but this time around instead of the government or any financial institution doing it the power comes from the people. Beyond that aspect, there are a lot of Bitcoin's features that differ it from a fiat currency and on top of that is the limited supply of Bitcoin something that fiat money could not claim as governments in the past and yes into the present continued to increase the supply of the currency used by the people that usually resulted into great inflation. Fiat money is all about control while Bitcoin is empowering the people, that is according to the very vision of Nakamoto Satoshi. Being decentralized, no authority can take the seat and decide on anything related to it while fiat is at the hands of the government. Here is one vital danger of the fiat money: "One danger of fiat money is that governments can print too much of it, resulting in hyperinflation." Bitcoin is, of course, deflationary.

[ZAINmalik75]

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

I was going to say gold is a commodity and it also has no distinct value, but the raw material difference that gold can have a physical use case while BTC cannot have any is the most accurate one. Bitcoin is not a fiat because fiat like currency or notes is pegged with gold or other reserves.

There is no confusion I am seeing here because the experts from FED and SEC organization if have declared BTC a commodity while they have more information than me so I am going to follow them and take it as a commodity. Speaking of physical existence I hope with time a solution to that will also come.

[God Of Thunder]

If you guys ask for my opinion since I created this thread, I would say I was confused reading it. I do not think Bitcoin is fiat, but the way they explained it, some parts actually made sense. Regardless of what I think, I am looking for the opinion of this community to understand it better. Bitcoin was invented with a purpose, but the purpose has been changing now, and I feel like we use it differently.

[Stompix]

Well, I don't think BTC is fiat because we don't have a government to determine the value of BTC in the market.

No government is capable of controlling the value of their on the market, if they could do such a thing we would have no inflation and we would have no Zimbabwe dollars, Iranian Rials, or whatever the currency in Syria is that is worse than toilet paper.

The USD is strong because people trust it, just as they trust BTC.
One could argue that the only non-fiat crypto is the ones that claim to be pegged to some gold reserves.

Bitcoin was invented with a purpose, but the purpose has been changing now, and I feel like we use it differently.

This is about definitions, not the purpose, people have a hard time understanding that
- blockchain can exist without tokens
- cryptocurrencies can be centralized
- market cap doesn't mean money invested in crypto
- just because coin is decentralized, in finite supply doesn't guarantee it has any kind of value

The reasoning for the comparison simple, fiat gets its value from the perceived value, Bitcoin does the same, and there is no mountain of gold or pile of money backing every satoshi.  Of course, it triggers the hell from bitcoin maxi, but that's the thing, the definition word by word is true, and other aspects can't be further away from the truth.

Also, that's a level 1000 rage-farming article 

[God Of Thunder]

No government is capable of controlling the value of their on the market, if they could do such a thing we would have no inflation and we would have no Zimbabwe dollars, Iranian Rials, or whatever the currency in Syria is that is worse than toilet paper.

I agree with this. While the entire world is moving forward, my country's government believes it is moving forward because it has done some structural development, such as building big highways, bridges, and ICT centers. But if I had seen the value of our currency, we could have bought a USD for 74 BDT back in 2015. After 9 years, we have to buy each USD for almost 130 BDT. If the government could control the value, they would do it. The inflation has been increasing as hell for the last five years as the central banks print billions of BDT every year to save some corrupted banks that are about to collapse. The people of my country paying for those governments corruption.

[Stompix]

But if I had seen the value of our currency, we could have bought a USD for 74 BDT back in 2015. After 9 years, we have to buy each USD for almost 130 BDT.

And this is the thing, why is the USD which is also FIAT gaining value and why are people buying USD to protect their savings? Because of the perceived value they think the USD has, which is as strange as it might seem the same as with every other crypto, people buy meme coins because they think they will go up in value people based just on their perception of value.

[philipma1957]

But if I had seen the value of our currency, we could have bought a USD for 74 BDT back in 2015. After 9 years, we have to buy each USD for almost 130 BDT.

And this is the thing, why is the USD which is also FIAT gaining value and why are people buying USD to protect their savings? Because of the perceived value they think the USD has, which is as strange as it might seem the same as with every other crypto, people buy meme coins because they think they will go up in value people based just on their perception of value.

Yeah a hundred dollar is just a piece paper.

ITS worth what the people of the world believe it's worth.
SAME for 1 btc it's wroth what the people of the world believe it's worth.

Essentially i would argue air the most valuable thing there is for me. Yet I am lucky it is fairing easy to get.

[Stompix]

Yeah a hundred dollar is just a piece paper.

ITS worth what the people of the world believe it's worth.
SAME for 1 btc it's wroth what the people of the world believe it's worth.

It's some sort of defense mechanism when people try to argue that Bitcoin has some value because of...other reasons.
But yeah, it's the same one dollar bill is worth more than 100 rubles, and one BTC is worth more than 10 LTC, not because some mumbo jumbo but because people really believe that's their value.

[philipma1957]

Yeah a hundred dollar is just a piece paper.

ITS worth what the people of the world believe it's worth.
SAME for 1 btc it's wroth what the people of the world believe it's worth.

It's some sort of defense mechanism when people try to argue that Bitcoin has some value because of...other reasons.
But yeah, it's the same one dollar bill is worth more than 100 rubles, and one BTC is worth more than 10 LTC, not because some mumbo jumbo but because people really believe that's their value.

and it looks like btc dropped as low as 91.2k today

[yhiaali3]

There are some fallacies in the post, we cannot compare Bitcoin to Fiat because there is a big difference in principle and concept, it is true that there may be a slight similarity in one aspect but there are big differences in several aspects.

Even if we give Bitcoin this value as you say, but no one can determine this value because it depends on the law of supply and demand, unlike fiat whose value is determined by the government, in addition to that there is a fundamental difference which is that society is decentralized unlike the central government and this is a fundamental difference.

[philipma1957]

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.

Don't be hit me with any lightning bolts if I disagree. Thor may I call you Thor?


You completely ignore that POW supports BTC along with users that agree on a value for that power being burned.

BTC should have a value of zero if all mining ceased since all coins are trapped. Which makes them essentially worthless.

Just saying.

[bitterguy28]

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

but we don't exactly decide the price of bitcoin there is no one single entity that does it for us the price of bitcoin is its value based on its demand and supply no one exactly can manipulate bitcoin it's not like fiat that can be printed more to manipulate its value

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

i think you are over complicating it lol to me fiat is money that is issued by a centralized government or bank and crypto is not hence it is not fiat it is just that simple i do not think we need to be making bitcoin any more confusing

[Stompix]

Even if we give Bitcoin this value as you say, but no one can determine this value because it depends on the law of supply and demand, unlike fiat whose value is determined by the government, in addition to that there is a fundamental difference which is that society is decentralized unlike the central government and this is a fundamental difference.

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.

You completely ignore that POW supports BTC along with users that agree on a value for that power being burned.

But if everyone would point their mining gear at BCH, would BCH suddenly be worth $100k instead of $300?