Let's follow the logic. Fiat money is anything without intrinsic value. A strawberry has intrinsic value because I can eat it. Wood has intrinsic value because I can use it to make a fire. Water and salt have intrinsic value because I need them to stay alive. Plenty of things have intrinsic value because they can be used independently of people's beliefs. Makes sense so far yes?
What is the intrinsic value of hashes generated by Bitcoin miners? That's what fiat means. It means it is a fiction that only has value if other people agree. Bitcoin miners have agreed to a set of rules for generating some numbers. There is no intrinsic value associated with the Bitcoin mining process.
Something has value if it checks these two characteristics: scarcity & utility.
Bitcoin is scarce because there will ever be only 21 million Bitcoins. Not more.
What about utility? Bitcoin could become global reserve currency, capable of being transferred around the world in minutes (not days) and capable of being unconfiscable while holding its value.
It has nothing to do with fiat.
Well, that's the trick, your argument about utility is that "Bitcoin could become a global reserve currency". Right now it isn't and thus has no utility and consequently has no value. And the thing is that Bitcoin can't become a global reserve currency, because State agents (and their sovereign people) won't allow that.
Bitcoin has utility. Ask people in Venezuela that buy Bitcoin everyday to save some money because their currency is worthless and more worthless everyday. Even now, when I want to send money to anyone on the other continent, I would choose Bitxoin because it's faster and uncensorable.
How will states ban Bitcoin? They need to ban internet first. Hard to imagine.
21 million is ridiculous to me. Bitcoin isn’t the only one, there are thousands. Bitcoin Cash, now two different coins, and all the others show that 21 mill is a fallacy. By creating other coins no inflation is also a fallacy. Every new coin reduces the value of Bitcoin because the money would have been used to buy bitcoin not the coin they bought this diluting the pool. All I have to do is write a “Whitepaper” saying I’m going to save the world from the oppressors and I can create millions out of thin air and they cry about Fiat?!?
Those are just shitcoins which will eventually die anyway. And anyone willing to buy these worthless token will learn the hard way. Shitcoins are no competition to Bitcoin, nor do they share any values. All are just scams.
We're a place where coders share, stay up-to-date and grow their careers.
We strive for transparency and don't collect excess data.