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I don't understand how bitcoin is different from a fiat currency. Both only has value because we say it has value. Obviously a fiat currency generally has the b
by SimbaOnSteroids 9y ago
I don't understand how bitcoin is different from a fiat currency. Both only has value because we say it has value. Obviously a fiat currency generally has the backing of a central government. However a government is only viable as long as the constituents tolerate it, meaning whatever currency it issues, backed by the credit of such government, again only has value because people say it does.
- jstanley 9y agoYou can't transfer fiat currency to an anonymous person on the other side of the world without asking for permission and without trusting a third party. That's how bitcoin is different to fiat.
- milcron 9y agoBitcoin has a hard cap of 21 million BTC. Fiat can be printed.
- SimbaOnSteroids 9y agoBitcoin's hard cap can be lifted should the right consortium of people decide to.
- jstanley 9y agoIf by "consortium of people" you mean "overwhelming consensus among bitcoin users", then sure.
- droopyEyelids 9y agoFiat currency is controlled centrally, bitcoin is decentralized. A central bank can print more money at its whim. Bitcoin follows a set of rules that can't change. Make of it what you will, but it's a fundamentally different approach