I have a friend who is nonchalant about cryptocurrency. Not at all impressed with bitcoin and decentralized currencies.
His basic logic is that everything we need to pay for are denominated in fiat. So one should always think in terms of fiat value.
I guess his point is that everyone has fiat at the back of their mind because this is how we human currently count financial wealth and value.
Everything goes back to fiat terms, ultimately. He said.
But what about the devaluation of fiat? The inflation? The losing of value when one holds fiat in the bank?
This has been the narrative of the crypto and bitcoin enthusiasts during the bull market. Yes, indeed the value tied to bitcoin seems to appreciate a great deal over a short time then. That made fiat a joke.
But when we are in a bear market, crypto crashes significantly and made it a joke.
Crypto isn’t that great a store of value afterall.
My friend wins his argument. At least for now.
So I had to seriously considers his point.
And I agree with him.
This is how I think the wealthy in the world plays the game of crypto:
They buy and hold some, and trade some to bring in some gains in fiat, and then decide if they will rinse and repeat
Listen. It is no good if the overall value in fiat goes lower than initially invested.
No matter how many sats or Hive one has stacked, it will be a loss if it’s value buys less than if it had remained as fiat.
So, I think I should give fiat more respect.
P/S: this is not financial advice!
P/S: This is not financial advice, and please do your own due diligence before investing.
If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.
You might be interested in this post, @jacoalberts, @young-kedar, and @hankanon!
Honestly the future is crypto, finance has the tendency to reduce in value likewise crypto but the ease of stress is found in crypto am sure that's your friend argument but the fun about crypto is liquidity despite been volatile. It takes a longer time for fiat to regain value. But it's not same for crypto. I am crypto, crypto is the future finance. It will shock you that even the banks that's supports fiat involves secretly in crypto. Thanks for sharing
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I like the idea of respecting fiat. Very few people every buy anything with crypto so the need for fiat still exists.
I like crypto but I think it is obviously a risky thing to buy with fiat. Luckily it can be had for free. One can get free Bitcoin all day every day on the free bitcoin faucet website. Sure its just a tiny dribble but it takes hardly no time and did I mention it's free? :D
We get free Hive and HBD here, if we interact and make some friends. Both then give us free crypto via inflation/yield. When the market is going down, one could sell Hive to avoid further loss, park it in HBD to get 20% APR at much lower risk, then sell for fiat if needed. In boom times, one could simply stack Hive and HBD until they reach a goal amount of each, then after that, stack less and sell some.
If a person can come here and enjoy their time, they could build a nice amount of crypto Without an investment of fiat. If they have a higher tolerance for risk, they can use some Hive or HBD to buy any token on hive-engine and hope for the best. But if you look at the results over the last several years, I think you have a better chance to lose money that way. Stick with Hive and HBD and do not get distracted by the New Shiny Thing. You are already doing the New Shiny Thing just by being here!
Not financial advice, never financial advice from me. I do not know what the heck I'm talking about! But I can give my personal opinion once in a while. :)
Thanks for sharing your thoughts!
Earning crypto “by the way” is great.
I need to start respecting faucets after reading what you wrote. I will certainly check that out.
Here’s another one, giving free NIM:
https://nimtris.com/
It is all currency. The value only occurs when another person recognizes that whatever the currency is, that it can be accepted for real world goods. All of it is fake and all of it is real at the same time. Fiat drops to nothing in some countries so it was never real? And crypto holds value in those countries, so it is real there? If you want a long term currency, stack up candles, guns, and canned goods. At some point, everyone wants at least one of those items.
For me, it’s wisdom.
Still stacking mad.
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