SARGE on Nostr: Why Is Fiat Still So Valuable? (For the sake of this post) 1️⃣ it is the most ...
Why Is Fiat Still So Valuable? (For the sake of this post)
1️⃣ it is the most cost-efficient currency to produce especially compared to a currency directly tied to a commodity (they print it for free).
2️⃣ it is extremely elastic (AKA manipulatable) and the supply can easily be adjusted/manipulated by central bankers, along with the interest rates to borrow said currency
3️⃣ Fiat is highly portable and can be easily exchanged for goods and services due to its established reputation and existing relationships with government, tech and exchange rates making it an ideal medium of exchange.
💡However, the biggest reason it’s still so valuable is because the average joe either doesn’t know a better alternative exists yet and/or they are too lazy to put in the time to figure it out/switch over. Also, they can’t see through the foggy mirror of the existing system because of the illusion of time and recency bias, inflation slowly erodes wealth so the average person up to now doesn’t notice it, though it will get faster and more noticeable the closer we get to hyperinflation.
🔥All it takes is for the trust in the existing (dishonest/infinite) ledger to switch over to an honest, immutable, equitable and globally distributed one. Once the scale tips in the direction of #Bitcoin there will be no going back.
1️⃣ it is the most cost-efficient currency to produce especially compared to a currency directly tied to a commodity (they print it for free).
2️⃣ it is extremely elastic (AKA manipulatable) and the supply can easily be adjusted/manipulated by central bankers, along with the interest rates to borrow said currency
3️⃣ Fiat is highly portable and can be easily exchanged for goods and services due to its established reputation and existing relationships with government, tech and exchange rates making it an ideal medium of exchange.
💡However, the biggest reason it’s still so valuable is because the average joe either doesn’t know a better alternative exists yet and/or they are too lazy to put in the time to figure it out/switch over. Also, they can’t see through the foggy mirror of the existing system because of the illusion of time and recency bias, inflation slowly erodes wealth so the average person up to now doesn’t notice it, though it will get faster and more noticeable the closer we get to hyperinflation.
🔥All it takes is for the trust in the existing (dishonest/infinite) ledger to switch over to an honest, immutable, equitable and globally distributed one. Once the scale tips in the direction of #Bitcoin there will be no going back.