I'm going to keep this somewhat brief and simple so as to make sure the point is understood.
What is fiat, and why is it important to understand?
"Fiat" refers to a certain top level monetary basis whereby the value of currency is based around for lack of a better word, confidence. Also know as speculation.
First, let's look at what fiat ISN'T.
In ye olden days currency was backed by physical or specific quantities. It varied from gold and silver, to gunpowder, even so abstract as physical labor hours. Whatever it was backed by, it was backed by some specific and quantifiable asset.
The simplest version was of course the gold standard.
1$ = 1oz of gold. (Not a real exchange, just an example.)
What this meant was that the government acted as a guarantor for the mercantilism of its citizens. Money is issued into circulation as backed by proportional physical assets of a nation or state. The wealth of a nation was decided quite literally by the projection of their economic might.
It's not quite so simple, but that's the basic idea.
So what's that whole fiat thing then? What does this matter? Wtf are you talking about?
The reason WSB is called Wall Street Bets is right in the name. Our financial markets have become glorified casinos. However, it's so, so much worse. Those in charge of the markets: The Federal Reserve, Wall Street, deep rooted pseudonational conglomerates; they are the House, and the House always wins.
Value is created or destroyed out of thin air as it benefits those in control of the system.
When the FED prints a trillion dollars to feed and inflate the market, where do you think that that value comes from?
They're betting against the common folk. They're betting against your potential. Shaving away an ounce of flesh to indulge their excess.
I say it so flamboyantly because there is no value there. It's all fake. An illusion. It's a house of cards that stands only as long it's safely tucked away out of sight.
Every dollar you own is only as valuable as the confidence in the system that issues it.
That statement is the reason why the Great Depression happened.
The problem of Bitcoin
So Bitcoin. What does that have to do with anything?
Bitcoin is a fiat currency.
The value is entirely codependent on a system of confidence in the system itself having value.
If that sounds like a tautology that's because it is a tautology.
Bitcoin has been shooting up in value over the past few years. "Bitcoin is the future!" people say. Sure. Maybe. But what do you think changes?
That it has grown so fast and continues to grow to excessive proportions should terrify you. What that means is that it's taking the confidence that was once given to other fiat currency. It's not some cycle of infinite growth.
Should Bitcoin grow to eclipse other currencies it will become a captured asset under a centralized system. It was created entirely to replace national fiat for an international fiat. Those who control the exchanges will control the financial foundation.
How many bitcoins are there total? How many are held out of circulation? Who do you think is buying them to support such a massive growth of valuation? What happens in 20 years when the global banking apparatus owns the majority of bitcoin as well as the major exchanges?
Be warned.
You hear about things like the "Great Reset" a lot these days. Be aware that these plans have been underway since before most of your were born. Bitcoin is not something outside of that plan.
We either end fiat-based policy or we continue to live as slaves.
I'm definitely with you in I don't see how Bitcoin is anything but fiat currency. So much of the crypto talk says it's not and paper money is, but in the end it's still just something of no intrinsic value that is only as good as others want it. If we're in a total world of shit where barter value is all that's left, then well paper money has whatever value an ass wipe or 2 seconds of burning fuel is, or use as cloth, etc. Crypto has nothing at all. You'd have more value spending 10 minutes gathering logs off the forest floor. Precious metals, stones, etc. have shown to be good currency for pretty much all of eternity, but again in the end they can be used for something, whether it's for the valuable properties they have or because the king wants a shiny bauble. I've got in my head if the SHTF situation ever came around and I had to pack up what I could and ride off into the sunset essentially, my tools and guns would be the priority, because if it's that bad those are what I'll need to survive.
I like crypto more as a modern day transactional method. I bought a couple hundred bucks of Ethereum last year just to screw around with how it all works and then let it sit. It's valued at something like $1300 now. Pretty much decided I'm going to leave that alone and just see what happens. It's a couple hundred bucks I pretty much wrote off as an expense last year. Otherwise, I have been buying up Bitcoin lately in small amounts. I've used it to pay for a couple things, but as I mentioned on another thread I'm torn on it. I'll probably hang on to a little bit of it, but since I'm more interested in a diversification from USD than as a growth engine.
I'm thinking instead of taking the small amounts of just general $ I was saving monthly in cash and buying silver coins. Maybe a combination of Silver Eagles, Britannias, and junk silver. I've been researching and think I've settled on coins. I might even use some of the Bitcoin I have to get started. I'm just at the point where I don't want to continue adding more cash to the bank balance to deflate away, and I've already got plans for other types of investments.