A fiat currency is any intermediary of barter that has no intrinsic value. No intrinsic value means it can't be used to produce anything that anyone wants outside of its capacity as an intermediary of barter.
The intrinsic value comes from the usage of energy and computational power to create a new type of scarce resource.
That is equivalent to saying that silver has value because it takes time and energy to mine it.
That is completely false.
Silver has value because it has been used in adornment for thousands of years. It has value because it is arguably the most important material in all of our electronic technology. It is used to produce many, many things. It is a tangible item that other people want, and it has been such a desirable for all of human history.
There is nothing produced in energy devouring cryptos. There is no value in lost energy that can no longer be used to produce anything.
It's value will be a ratio of physical mediums unless no physical medium satisfies the needs of the commerce ecosystem.
This is a benefit to crypto, this is not a "value". This same benefit can be achieved by every crypto that is backed by something.
Let me give you an example of what I think we will have in the future (if we win the war for We The People).
If a stock in a company is put on a blockchain, that stock becomes a cryptocurrency of sorts (an easily tradable commodity). It is backed by the production and value of the company. I think all companies will have such backing, making them easy to invest in, and difficult to destroy for nefarious purposes (i.e. short out of existence).
Or take a crypto backed by gold or silver for example. Such things exist but they aren't desired because its only as valuable as the precious metal itself (which is my point). It doesn't have the "gold rush" (pun intended) quality of all the fiat crypto's that are backed by belief.
If going forward we were to have a crypto backed by gold as a standard intermediary of barter then we would have an economy that is completely stable baring some sudden influx of massive quantities of gold.
Protests of such a PM backed crypto are usually hypothetical asteroid mining of gold. But such a hypothetical would never be "sudden" by any measure. Even if our gold supply tripled in a couple decades under such a system it wouldn't even come close to having the economic volatility impact of your average fiat crypto used for the same purpose. It would be an easy transition that we could work out in such a system.
I insist its fiat unless its backed by something that can be used toPRODUCEa tangible asset.
How much is an instant speed, 100% secure, currency unlocked, global finance system worth to you? What if I said the fee per transaction was less than a penny?
Once again, these are benefits of cryptocurrencies. They are not values. A backed crypto has these same benefits.
The value associated with the coin is the ownership in the system.
This is a belief backed crypto. You are saying it yourself.
I get you are invested. When a person is invested they don't want to believe their investment was bad. I don't think it is bad. I think in the short term it could be great. But because it is only backed by belief, it is ephemeral and that nature will prove itself in the future. At that point it will be a very bad investment, and a lot of those invested will lose a great deal.
That being said silver is/was manipulated by the banking families...we'll expect it to boom.
Yes, but I'm not talking about that. I'm talking about the fundamental principle of currency and what properties an intermediary to barter must have to create a stable economy.
A fiat currency is any intermediary of barter that has no intrinsic value. No intrinsic value means it can't be used to produce anything that anyone wants outside of its capacity as an intermediary of barter.
What intrinsic value do any of those have?
That is equivalent to saying that silver has value because it takes time and energy to mine it.
That is completely false.
Silver has value because it has been used in adornment for thousands of years. It has value because it is arguably the most important material in all of our electronic technology. It is used to produce many, many things. It is a tangible item that other people want, and it has been such a desirable for all of human history.
There is nothing produced in energy devouring cryptos. There is no value in lost energy that can no longer be used to produce anything.
This is a benefit to crypto, this is not a "value". This same benefit can be achieved by every crypto that is backed by something.
Let me give you an example of what I think we will have in the future (if we win the war for We The People).
If a stock in a company is put on a blockchain, that stock becomes a cryptocurrency of sorts (an easily tradable commodity). It is backed by the production and value of the company. I think all companies will have such backing, making them easy to invest in, and difficult to destroy for nefarious purposes (i.e. short out of existence).
Or take a crypto backed by gold or silver for example. Such things exist but they aren't desired because its only as valuable as the precious metal itself (which is my point). It doesn't have the "gold rush" (pun intended) quality of all the fiat crypto's that are backed by belief.
If going forward we were to have a crypto backed by gold as a standard intermediary of barter then we would have an economy that is completely stable baring some sudden influx of massive quantities of gold.
Protests of such a PM backed crypto are usually hypothetical asteroid mining of gold. But such a hypothetical would never be "sudden" by any measure. Even if our gold supply tripled in a couple decades under such a system it wouldn't even come close to having the economic volatility impact of your average fiat crypto used for the same purpose. It would be an easy transition that we could work out in such a system.
I insist its fiat unless its backed by something that can be used to PRODUCE a tangible asset.
Once again, these are benefits of cryptocurrencies. They are not values. A backed crypto has these same benefits.
This is a belief backed crypto. You are saying it yourself.
I get you are invested. When a person is invested they don't want to believe their investment was bad. I don't think it is bad. I think in the short term it could be great. But because it is only backed by belief, it is ephemeral and that nature will prove itself in the future. At that point it will be a very bad investment, and a lot of those invested will lose a great deal.
Yes, but I'm not talking about that. I'm talking about the fundamental principle of currency and what properties an intermediary to barter must have to create a stable economy.