Quote from: Hydrogen on May 17, 2018, 11:27:39 PM

Quote from: Jacques_Bittard on March 21, 2018, 08:43:43 AM

The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.

Inflation describes a condition where money is printed at increasingly higher volumes. The supply of money inflates causing the individual value of the currency to decline. These inflationary circumstances carry a number of known and documented implications and if it becomes enough of a problem can achieve the opposite of injecting wealth into an economy over the long term. Examples of inflation achieving the opposite of "injecting wealth into an economy" are current era venezuela, hyperinflation of the zimbabwe dollar years ago and germany post world war II.

Occupying foreign nations via military force also typically does not "inject wealth into economies". An example of this is the united states spending more than $6.5 trillion on war in the middle east. Debt and cost liabilities associated with war are typically far higher than any purported value the US economy gained in return. War can often have a negative side effect of destroying markets, infrastructure, economies, jobs and other things which cause economic decline on a global scale. Loose regulations in derivatives markets can have negative side effects. An example of this are leveraged derivatives attached to subprime mortgage assets which played a role in economic issues in 2008.

I for one wouldn't mind if crypto were utilized in a role of helping economies, families and nations stay afloat. It wouldn't matter where it came from if it exerted a positive influence on the world, that would be great.

Yes, somehow Bitcoin is helping economy of one country were the number of Bitcoin user is significant in numbers, but, the financial institution or business institution is the one controlling the Economy, the supply and demand of FIAT money is controlled by monetary board of every country, i see no relation that Bitcoin is protecting the FIAT in the trading market, but instead itwas introduce as to possible replacement of FIAT into the Digital transaction.