it is a fiat since it isnt backed by a commodity. traditional fiat is backed by the state that issues it but crypto is issued by an algorithm without the backing of a military. all fiats' values are maintained through market activity, but btc doesnt have a military to enforce trade, so its subject to more volatility. no regulations mean no armed people will enforce the nonexistent regulations, meaning the value of a crypto coin is subject only to markets which change daily. this will mean bull markets are insane while crashes are historically devastating. currently we're staring down the edge of a cliff, waiting for that final push. once crypto crashes so many other markets will follow, and the more crypto grows, the worse the crash will be. the "crash" we have seen recently in the crypto market was significant but its shockwaves are still reverberating, get ready for other markets to dip, as many already have begun. i wouldnt be surprised if btc is brought down to $1k in a year
good point! when i wrote my comment i couldnt think of a commodity crypto is tied to so i described it as fiat. but ur right that its manufactured scarcity makes it more like traditional money than fiat. but the commodity its tied to is so abstracted that its hard to pin, id say its energy. "gas" prices represent the price for mining (computer components are overhead and insignificant in the long-term). so crypto is a commodity currency tied to oil and gas.
brb creating my own crypto that I issue instead of mining or whatever other chicanery. idk why it would be cryptographic or on the blockchain, it would just be a ledger of debt.
it is a fiat since it isnt backed by a commodity. traditional fiat is backed by the state that issues it but crypto is issued by an algorithm without the backing of a military. all fiats' values are maintained through market activity, but btc doesnt have a military to enforce trade, so its subject to more volatility. no regulations mean no armed people will enforce the nonexistent regulations, meaning the value of a crypto coin is subject only to markets which change daily. this will mean bull markets are insane while crashes are historically devastating. currently we're staring down the edge of a cliff, waiting for that final push. once crypto crashes so many other markets will follow, and the more crypto grows, the worse the crash will be. the "crash" we have seen recently in the crypto market was significant but its shockwaves are still reverberating, get ready for other markets to dip, as many already have begun. i wouldnt be surprised if btc is brought down to $1k in a year
:sicko-speeeeen:
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good point! when i wrote my comment i couldnt think of a commodity crypto is tied to so i described it as fiat. but ur right that its manufactured scarcity makes it more like traditional money than fiat. but the commodity its tied to is so abstracted that its hard to pin, id say its energy. "gas" prices represent the price for mining (computer components are overhead and insignificant in the long-term). so crypto is a commodity currency tied to oil and gas.
brb creating my own crypto that I issue instead of mining or whatever other chicanery. idk why it would be cryptographic or on the blockchain, it would just be a ledger of debt.
it’s based on nothing so it’s fiat :theory-gary: