Post
Topic
Board Speculation
Re: The financial markets are starting to crash, abandon the fiat titanic
by
toknormal
on 12/10/2014, 18:12:48 UTC
bitcoin is the ultimate form of money because it has all the monetary properties of gold but its easier to secure and transport.
bitcoin has no use except as a monetary system and yet the free market chose to value each bitcoin 360 times more than each USD, and thats without anyone forcing people to accept it at the point of a gun.

+1. Absolutely spot on - particularly the bit about bitcoin having "no use except as a monetary system". That's what makes is valuable as a monetary medium.

Fiat: highly levered debt money
Crypto: unlevered base money

Crypto to Fiat: Hot lava to candle wax.

The two cannot be allowed to come into contact with each other otherwise one will simply "melt" into the other. (I'll leave you work out which one will be doing the "melting"). That's why there's almost no Fiat-Crypto exchanges in existence anywhere in the world having significant liquidity.