FIAT is Political/Social
Even in the l case of benevolent central banks and an honest global banking system the question remains how the prices are stabilized. The main advantage of Fiat over Bitcoin, as I understand, is that someone (…) is managing price stability.
Only if the basket of goods and services, used to stabilize prices against, represent your own values and needs, you are fine.
So even in the best case scenario your money is up for public discussion and dependent on the majority vote.
Bitcoin is different (and so is gold, or firewood).
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I really dislike banks. They are just a rip off. No one in their right mind should park any cash in the bank. It's a negative return no matter how you slice it. The fees they charge for almost every transaction, with little or no return on YOUR MONEY.
I am with you on Bitcoin, gold and especially the wood.
Well, here in Venezuela the currency is super devalued, we have a higher hyperinflation throughout the history of Venezuela. and the basic basket is unattainable impossible to cover ... you can get an idea of the devaluation in this post that I published last week.
https://steemit.com/lifestyle/@blessed-girl/teachersrequestlivingwages-mhg1oni0lo
In my opinion, despite the fluctuations of Bitcoin, it remains stable compared to the Bolívar. (currency of Venezuela)
No one controls the BTC, it belongs to everyone but at the same time it does not belong to anyone. That is the great advantage and what most bankers and owners of the world economy hate, hate not being able to have total control.
Thank you, @mariusfebruary! Interesting, as I've been thinking recently about that too. Actually I made some calculations that due to the low price of STEEM, if one could invest about 3-4 million USD, that one could play and in a big extent manipulate the price of the token and gain good profits. The "stability" of any fiat perhaps comes from the increased difficulty to manipulate its value with big amounts of money? Just sharing my thoughts. 😁
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Good point.
Democracy can be a double-edge sword. As some economies have demonstrated, when the basket gets depleted by corruption or bad policies, a lot of people will not be fine
Only if the basket of goods and services, used to stabilize prices against, represent your own values and needs, you are fine.
What you say is real, very true there must be balance, so that we all benefit, so people must be very prepared for it.
It is not difficult at all, but not very easy either, to be persevering and pending because from one moment to another there are changes.
Hi @mariusfebruary
And if we go much further back also the SAL, it had a great value the times change and those who have the power to make those changes will always make the change but for the benefit of some. with great monetary power Whether in Fiat or in crypto.
and play the highest bidder.
The question is: Who is he who has control. or who will be those who have that stabilizing control.
Yeah basically the one advantage Bitcoin has is the price stability however this has taken years to establish I believe you're right. Different commodities have a range to their valuation and I believe we might not be where we want, but it's a matter of work and more of time.
The difference is abysmal, Bitcoin does not promote any particular company, so control is a little more difficult, while Fiat is limited to a project limited by its internal shareholders. the crypto currencies have a purpose and is to decentralize the economy but still remain centralized in price control.
By FIAT I was referring to FIAT currencies (USD, EUR, GBP, CHF, etc) and not the company. I could have made this clearer.
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Thanks @mariusfebruary, this Fiat project that seeks price stability. The update you bring us is good, and it is true that if firewood is a good investment in winter.