Bitcoin vs Fiat : A war between Scarcity and infinite printing

[samadam007]

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 ?

[Aanuoluwatofunmi]

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.

[Oshosondy]

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

This is not something that is new to us on this forum, bitcoin value is increasing while fiat value is decreasing after a long time has passed. That is what they are, tthe government manipulate the fiat to decrease its value over time but bitcoin is the opposite of that.

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.

I will not say the inflation affects the masses, I will say the inflation affects those that keeps money in bank without using it for anything like investment or business. Knowledge is required to know the business or investment that will make you more money.

[cryptomaniac_xxx]

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 ?

It's very obvious that everyone here will choose Bitcoin.

But we all know that fiat system has been year since the beginning, not defending it, but it is what it is. There are one of the pillars of the society and so we are used to it. And we also acknowledge that government just keeps on printing money. The good thing right now is that we have Bitcoin that we can used as our hedge.

Nevertheless fiat is still needed for society to exist.

[Ambatman]

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

The one that loses value
Obviously joking but you made it too easy.
Maybe you could try which would you choose between One that's widely implemented /used or one many don't even know how it works.


On the Bitcoin vs fiat, I have come to understand that they cater for the need of different market
Control, accountability and self reliance Bitcoin
Convenient, Free from responsibility Fiat
They both have their strengths and weaknesses.

[Patikno]

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 ?

Bitcoin isn't just about scarcity, it is also about the technology it provides, and simple technology aims to simplify things. That is the purpose of Bitcoin, whether it is as an alternative currency solution, a solution for global transfers, a solution to the problem of double spending, or a solution as a store of value through its scarcity compared to fiat, which has many shortcomings. Besides that, the use of fiat is limited, and we have to convert currencies if we move to another country. So, I think Bitcoin has many advantages over fiat. Other than that, if we compare Bitcoin to gold, Bitcoin still excels in scarcity, portability, accessibility, and cross-border transactions. Bitcoin makes it much easier for anyone than even fiat or gold. Cmiiw.

[betswift]

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

The one that loses value
Obviously joking but you made it too easy.
Maybe you could try which would you choose between One that's widely implemented /used or one many don't even know how it works.


On the Bitcoin vs fiat, I have come to understand that they cater for the need of different market
Control, accountability and self reliance Bitcoin
Convenient, Free from responsibility Fiat
They both have their strengths and weaknesses.

Both would also exist in any world, imo, but have different use cases.. We basically see first-hand how BTC becomes more relevant and more used for different services.

And it will become even bigger alterantive for services in banks, buying new stuff (which would be all regulated.... probably), and so on.

But fiat won't be gone.

[Mia Chloe]

~snip

To start with paper money is a scam. The initial concept of money was something that was seen generally as valuable and cash just doesn't fit in that category but instead the government has imposed value on it hence the general compliance. One part of the Satoshi movement for the creation of bitcoin was actually to create something that was free of fiat flaws.

The inflation you see fiat suffer daily comes from over circulation which causes a steady value loss. It's just elementary economics of scarcity and value.

[Asiska02]

Bitcoin is a technology that when you’ve embraced it and know the value of what you’ve invested into or have shown interest into, you wouldn’t want to leave it again and will want to be a part and parcel of it forever. Bitcoin core advantages, the decentralization, limited supply has already made it won over the fiat currency and shouldn’t bring about any more room for comparison. As we have it now, the many disadvantages of the fiat currency has being overwhelmed that it can never be considered as a better option to the fiat. If not for centralization and ownership from the government, the introduction of Bitcoin will quickly wipe the existence of fiat and Bitcoin will be embraced to the fullest.

[Alphakilo]

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

The one that loses value
Obviously joking but you made it too easy.
Maybe you could try which would you choose between One that's widely implemented /used or one many don't even know how it works.


On the Bitcoin vs fiat, I have come to understand that they cater for the need of different market
Control, accountability and self reliance Bitcoin
Convenient, Free from responsibility Fiat
They both have their strengths and weaknesses.

Both options between fiat and Bitcoin have their strengths and weaknesses and it is known how that Bitcoin is a good store of value as compared to fiat which may depreciate over time in savings.
We also know how the fiat currency is used mostly for daily transactional payment exchange between the banked and the unbanked, between buyers, services and sellers, while Bitcoin may involve some digital sense and adoption and other processes for a business or individual user to use it for this same daily expenses. The main issue for using Bitcoin these days happen to be regulatory policies by the government of any country either willing to accept BTC and cryptocurrency or not.

[OcTradism]

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 ?

Scarcity is not the only factor makes Bitcoin value, and you need to know that there are Bitcoin forks with 21 million coins in their total supplies, and other altcoins have even smaller total supplies than 21M. These altcoins don't have high value and 6-figure price like Bitcoin has, and think about the diffference, and figure out why.

Bitcoin has its high value, not only because of limited 21M coins in total supply but more important by its technical design, and its decentralization in Bitcoin blockchain operations since 2009.

Failures of altcoins with same or smaller than 21M total supply of Bitcoin are great examples to debunk the myth of limited total supply can create value of a project and a cryptocurrency.

[pooya87]

The idea behind unlimited supply fiat was to print more of it to match the growing economy and provide liquidity for that. In fact when fiat supply is increased and that fiat goes into production, it doesn't cause inflation. The time when it causes inflation is when the governments print more fiat to cover their own budget deficit, which is theft in broad daylight. This is causing inflation.

As for bitcoin, apart from its capped supply the more important characteristic in my opinion is its decentralization that has also helped it be censorship resistant. All these principles have made Bitcoin so valuable and a unique payment system that keeps growing.

[laijsica]

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 ?

Even though fiat loses value due to inflation, its need is undeniable and the driving force of a centralized financial system. Our government regulates the liquidity of fiat through the central bank and establishes the economic structure of the country. It prints fiat as needed and creates inflation.

To invest in Bitcoin, you must prioritize your fiat needs and real assets to maintain your daily financial flow. Just as you need fiat to be financially stable, you should also wisely have a buffer against inflation. In my opinion, it would be wise to invest in Bitcoin with additional funds. Fiat is a depreciating asset, so it is better to invest in Bitcoin (a store of value) to build an alternative financial system for the future. I give equal importance to both centralized and decentralized financial systems and keep real funds available to hold Bitcoin.

[Curious T]

The idea behind unlimited supply fiat was to print more of it to match the growing economy and provide liquidity for that. In fact when fiat supply is increased and that fiat goes into production, it doesn't cause inflation. The time when it causes inflation is when the governments print more fiat to cover their own budget deficit, which is theft in broad daylight. This is causing inflation.

Until the printing of currencies becomes a public thing where everybody in the country knows when they print money, we may never get rid of this problem. The public has no idea when money is printed. That's the way it is in my country; I don't know if it's the same worldwide. It's mainly just the Central banks and some members of the government. This creates a lot of room for manipulation. When humans have unchecked power, it is always misused; history has taught us this many times. That is why I feel the time when new currency notes are to be printed should be public knowledge, and they should know the amount that is printed and why that amount.

How the money is distributed, too, should be public knowledge. People deserve to know how much goes where and why. The public (those who care to know at least) should be able to tell how the money printed was distributed. This way, the government won't have the freedom to print money for its own government expenditure behind closed doors, which then causes inflation.

[m2017]

Fiat money loses value over time because governments can keep printing more of it. That’s why we see inflation and rising prices.

Yes, governments print money, but it's not because they're "bad" or want to do the world harm. It's because of the current global financial model, which, incidentally, was formed many centuries ago. This problem didn't arise "yesterday," but it must be acknowledged that this system has "outlived its usefulness" (having fulfilled its function and provided the impetus for human economic development). Now "we" are approaching the point where "it's time to start changing things".

Bitcoin is different because it has a fixed supply of approximately 21 million coins and no one can create more.

The downside of this is the resulting shortage.

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.

Thanks to this debt, the world was able to progress economically at all. Without business lending, business development would be impossible, and with it, technology and everything that surrounds us in the modern world.

The cryptocurrency market, by the way, can't be called very stable either.

But something else is being eroded - BTC's price.

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

But do we really have a choice now? The world remains completely dependent on fiat money, and the influence of bitcoin is still relatively minor. It must be acknowledged that bitcoin doesn't claim to be used as money (at the moment), only as an investment tool.

I believe that in the future, when the world completely abandons the traditional financial system (economic model), something else will take the throne, not bitcoin.

[GreatArkansas]

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.

[ruykeri]

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.

It is true that Bitcoin is not yet suitable for everyone, but with time, people will get used to it, and our future generations will be able to easily use various technological things including Bitcoin all over the world. But the fiat currency system has been running for many years and the government gives more priority to it because they have their own control here. However, in the future, even if Bitcoin is not approved by the governments of all countries in the world, ordinary people will still be interested in transacting with each other. However, I think that Bitcoin is becoming a valuable asset day by day, so it may not be used for general transactions in the future. They may see Bitcoin as a gold, land, savings asset. I myself do not think of Bitcoin as an asset that is used for general transactions, but I hope that it will give us economic security in the future.

[suzanne5223]

Fiat money loses value over time because governments can keep printing more of it. That’s why we see inflation and rising prices.

The major reason behind fiat losing value and an increase in inflation is not the printing of more currencies. It's the central banks and governments adoption of 2% inflation, which, in their naive belief, was to provide the balance of low inflation.

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,

We cant talk about what makes Bitcoin different, strong, and valuable by ignoring the functionality of the consensus mechanism, hash algo, blockchain, and other things that make it decentralized.

[asriloni]

It will be never end to discuss about Bitcoin vs Fiat. Bitcoin is a commodity, which being measured in fiat form to determine its value. Talking about Bitcoin vs Fiat means you're comparing commodity with the thing being used as its medium of exchange.

Almost all of people are paying in fiat to acquire Bitcoin. So it makes no sense when you keep compare both these two different things.

[BlackBoss_]

It will be never end to discuss about Bitcoin vs Fiat. Bitcoin is a commodity, which being measured in fiat form to determine its value. Talking about Bitcoin vs Fiat means you're comparing commodity with the thing being used as its medium of exchange.

Almost all of people are paying in fiat to acquire Bitcoin. So it makes no sense when you keep compare both these two different things.

Discussions about fiat currencies and Bitcoin, their advantages, disadvantages and which one is better, are endless and if you understand about it, let it be. If you understood about it well, and recognized how bad fiat currencies are, how good Bitcoin is, you already finished most important steps. Then, you will no longer wan to store your wealth in fiat currencies, but will store it in bitcoin.

Fiat currencies have very high inflation, hence their purchasing power declined deeply with time and with money printing.
Bitcoin oppositely has less inflation with time by halving of Bitcoin block subsidy every 210,000 blocks and together with other things to have increasing purchasing power with time.