Comment: Bitcoin is partially fiat.

(See in situ)

Bitcoin is partially fiat.

Bitcoin is partially fiat. People just don't get that you can't put BC in the same basket as the fiat currencies like the dollar, because it eliminates most of the weaknesses that fiat have.

Regarding the last bit that makes it fiat (having no inherent intrinsic value), there's some debate regarding that as well. Some argue that BC DOES have intrinsic value, cause it enables to send money overseas with less disadvantages and this ability would give BC intrinsic value. If this argument is true, then BC would not even qualify as a partial fiat currency, but would be completely NON fiat.

And even if the above argument is false, there has been no currency in the world that had the characteristics that BC has. There's no definite data to see how important the intrinsic value of a currency is, when all other weaknesses are elimnated. As far as I know, most fiat currencies failed because of printing, something that's not possible with BC. To say that BC will fail, because of it having no intrinsic value, is IMO making a statement without the scientific data to back it up.

This is my main problem with most attitudes of Austrian economists. A true scientist would see this as an opportunity to find out if the intrinsic value of a currency is enough of a factor to make a currency fail. But they don't think like scientists. They make judgements when there's no hard data to do so.

Anyways, not to say that there's not a risk to BC besides the above. If quantum computing takes off, bye bye BC. I don't believe traditional methods of hacking will work, besides that method.