Post
Topic
Board Economics
Re: If bitcoin price is $10.000, will fiat be worthless?
by
hendra1988
on 17/06/2017, 06:33:08 UTC
Actually I believe between there and do not believe if we see in terms of government regulation does not seem to be realized if we use bitcoin, but if we review the economic side of chaos as now bitcoin can boost economic value because the price is so volatile and continue to rise with The opinion that when bitcoin prices rise then the fiat currency is no longer valid. On the other hand there is a point too. This can lead to the government of a country feeling threatened by the increasingly popular bitcoin and used for daily needs for the community.
Fiat Currency has been declared a valid payment instrument in a State, but it is not supported by physical commodities. The value of fiat money comes from the relationship between supply and demand rather than the value of material money created. Historically, most currencies around the world are based on physical commodities such as gold or silver. But fiat money is actually based solely on the belief in the value of a piece of paper.
Since fiat money is not associated with physical reserves like gold and silver, the risk of a piece of paper becomes worthless because of hyperinflation. If people lose confidence in the value of a country's paper currency.
When the state regulation no longer requires fiat currency it will be replaced with the reserve currency of bitcoin