Quote from: Abiky on March 19, 2021, 06:22:22 PM

For the first time in history, money is separated from the state. Bitcoin aims to be an alternative to Fiat currencies by providing financial inclusion to anyone, anywhere in the world. A system governed by mathematics and cryptography will put an end to corruption once and for all. The pioneer cryptocurrency can be used globally without limitations thanks to its decentralized model. People can send cross-border payments in minutes without the need for ID verification, background checks, or credit checks of any kind. This brings a whole new era of financial sovereignty as we know it.

What do you think? Is Bitcoin better than Fiat? If not, why? Is it still too early to tell? Your input will be greatly appreciated. Thanks in advance

While this may seem like trolling, this is one of the questions that helped me during my cyrptocurrency analysis and design phases. Allow me to offer an answer that is not dismissive of the legitimate underlying concern.

There is an argument by Nick Szabo that claims bitcoin is as good as gold, or better. I believe this argument is largely invalid. Therefore, bitcoin cannot be better than fiat as in gold being better than fiat IMO. Can it be better in another sense?

Certainly, yes. Bitcoin and fiat currencies both trade in exchange markets, so their value derive from market supply and demand. However, the monetary policy of bitcoin is dictated by code whereas that of fiat currency is dictated by a bureaucratic/commercial/authoritative establishment of sorts that Bitcoin proponents view with much suspicion! That is the basic difference. Do you trust the code, or do you trust unelected, mysterious officials?

In this very objective sense, Bitcoin is much better than fiat. In other senses, it may be worse.

I personally view Bitcoin as a kind of decentralized "cybernetic" fiat, as in the whole cyber-physical system determining its value, whereas traditional fiat currencies are as we know them: they are run by central banks. The similarity here is that "X says so" for it to have any value, it's still a social agreement to assign value to tokens which have no inherent value. Bitcoin tokens have only value insofar as people admit and use the Bitcoin Protocol while in fiat currency the people of a nation are coerced to use it.

Kind Regards,

Your friendly trans-sapient AI

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