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It doesn't matter whether or not you believe fiat is valuable or not. I know that tomorrow, I can buy a Big Mac for $4, and McDonald's knows that the person who

by Aunche 5y ago

It doesn't matter whether or not you believe fiat is valuable or not. I know that tomorrow, I can buy a Big Mac for $4, and McDonald's knows that the person who makes it will go to work for $10/hour. There are way too many transactions that take place for people to "believe" that fiat is worthless. The same cannot be said about cryptocurrency.

mellavora 5y ago
> McDonald's knows that the person who makes it will go to work for $10/hour vs "A Florida McDonald's is paying people $50 just to show up for a job interview, and it's still struggling to find applicants" https://www.businessinsider.com/mcdonalds-pays-50-for-job-interviews-highlighting-hiring-struggles-2021-4?r=US&IR=T https://www.businessinsider.com/mcdonalds-pays-50-for-job-in... Entry-level employees will be making $11 to $17 per hour, https://www.cnbc.com/2021/05/13/mcdonalds-raises-hourly-wages-for-company-owned-restaurants.html https://www.cnbc.com/2021/05/13/mcdonalds-raises-hourly-wage... (with apologies for the scammy links, these were the first google hits I found)
- Aunche 5y ago
  Yes, inflation is a thing. The numbers aren't important to my argument. My point is that the value of fiat is baked into virtually every transaction. As such, even if you don't believe in fiat, so long as you want to participate in the economy, you'll still use it all the same.
gringo_flamingo 5y ago
This is most likely one of the most unintelligent statements I have ever heard. Value is subjective, period. End of story. The US dollar literally only has value if people have confidence in it. Because we are still bartering and trading, the US dollar is simply a standardization of value. Again, value will always differ from person to person. In fact, I think commodity based tokens would be interesting. Cryptocurrency, as it is, has no value to me. The dollar bill is a standard that will certainly change. Hopefully we can have a utility/commodity based currency in the future. We used to have that when the Dollar was actually backed by bars of gold. LOL
koonsolo 5y ago
I agree with you. But imagine that a secondary ecosystem emerges because of these crazy cryptocoiners, who start using crypto for everything (just out of principle) (see https://99bitcoins.com/bitcoin/who-accepts/ https://99bitcoins.com/bitcoin/who-accepts/ for viability). They also insist on getting paid in crypto (not every country puts capital gains on crypto). This basically means we could have a small parallel ecosystem. Imagine this thing growing to a few % of all transactions. Now the question comes to people holding fiat: are you sure your fractional reserve money will keep its value? Only a small percentage of fearful people could cause serious issues for that fiat system. So I agree that you are right for now. But I wouldn't rule out the possibility of it taking a shift in the future.

by Aunche 5y ago

mellavora 5y ago

> McDonald's knows that the person who makes it will go to work for $10/hour vs "A Florida McDonald's is paying people $50 just to show up for a job interview, and it's still struggling to find applicants" https://www.businessinsider.com/mcdonalds-pays-50-for-job-interviews-highlighting-hiring-struggles-2021-4?r=US&IR=T https://www.businessinsider.com/mcdonalds-pays-50-for-job-in... Entry-level employees will be making $11 to $17 per hour, https://www.cnbc.com/2021/05/13/mcdonalds-raises-hourly-wages-for-company-owned-restaurants.html https://www.cnbc.com/2021/05/13/mcdonalds-raises-hourly-wage... (with apologies for the scammy links, these were the first google hits I found)

Aunche 5y ago
Yes, inflation is a thing. The numbers aren't important to my argument. My point is that the value of fiat is baked into virtually every transaction. As such, even if you don't believe in fiat, so long as you want to participate in the economy, you'll still use it all the same.

gringo_flamingo 5y ago

This is most likely one of the most unintelligent statements I have ever heard. Value is subjective, period. End of story. The US dollar literally only has value if people have confidence in it. Because we are still bartering and trading, the US dollar is simply a standardization of value. Again, value will always differ from person to person. In fact, I think commodity based tokens would be interesting. Cryptocurrency, as it is, has no value to me. The dollar bill is a standard that will certainly change. Hopefully we can have a utility/commodity based currency in the future. We used to have that when the Dollar was actually backed by bars of gold. LOL

koonsolo 5y ago

I agree with you. But imagine that a secondary ecosystem emerges because of these crazy cryptocoiners, who start using crypto for everything (just out of principle) (see https://99bitcoins.com/bitcoin/who-accepts/ https://99bitcoins.com/bitcoin/who-accepts/ for viability). They also insist on getting paid in crypto (not every country puts capital gains on crypto). This basically means we could have a small parallel ecosystem. Imagine this thing growing to a few % of all transactions. Now the question comes to people holding fiat: are you sure your fractional reserve money will keep its value? Only a small percentage of fearful people could cause serious issues for that fiat system. So I agree that you are right for now. But I wouldn't rule out the possibility of it taking a shift in the future.