what matters is if it's voluntary or forced by government. Nobody can force you to use bitcoin, but government can and it will force you to use their money. It's as easy as that.
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Is that the definition of fiat?
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pretty much it is https://en.wikipedia.org/wiki/Fiat_money
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Why does bitcoin have intrinsic value?
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Intrinsic value is not important attribute of bitcoin. Bitcoin value is established by market forces, supply and demand. Voluntary demand - again, no government regulation. It's written in the article.
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why are market forces of supply and demand a good attribute for a currency to have?
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Market forces are general mechanism to spread out and maximize utility between members of one/or many social groups. By taking part in market transaction everyone benefits otherwise it would make no sense to participate. It's essential economics principle, isn't it?
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Is it possible for people to participate in a market without benefiting? Is it possible for markets to introduce coercive or irrational behavior even in the absence of a government?
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Because the supply is limited and more can't simply be printed?
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The value was established by "fiat" and more can be "printed" as part of its core technical design.
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Because it's not a currency, it's a speculative asset.
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You could argue that it's not even a fiat currency, since no government is requiring you to use it. But it has value because people think it has value. In that respect it's no different from any widely used currency.
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But everything has value because people think it has value. If something has essentially no value apart from trade value, and if more of it can be created at (someone’s) will, then it’s fiat. The former is true of btc, but not the latter.
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So, government (let's drop that loaded f-word) currencies are valuable as long as you trust the central bank not to debase them, and cryptocurrencies are valuable as long as you trust the software infrastructure to make using them reliable and safe. 1/2
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I gotta tell you, I have more faith in the Federal Reserve right now than I do in Bitcoin infrastructure. 2/2
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Any cryptocurrency is by definition a fiat currency, but maybe people don't know the definition of "fiat" which is sad, but shouldn't be surprising
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There's no governing body or agent who can decide to issue more whenever they want. The term "fiat currency" is a goldbug dogwhistle, people mad that their material conditions are economically interrelated with other people that they don't like.
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Easy: because it’s a digital asset like gold but absolutely worthless when it all crashes. At least you can make art with physical bills.
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Labeling things in boxes like “fiat” is not always helpful. Bitcoin has features of both commodity assets and fiat currencies. It’s something new, and instead of labeling, we should focus instead on it’s utility.
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No FIAT is inherently deflationary. If it is, a Bitcoin is by design I believe, the it is not suited for FIAT.
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Add to that, that there is no gov behind, just an abstract idea that this amount of bits will have some value in the future & last but not least, BTC has already failed as a currency. It works as a digital asset for speculative purposes
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