Comment: Fiat

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Fiat

That's all bitcoin is, yet another fiat currency. It's really not that different from the USD when you consider that the Fed doesn't print every dollar, but instead creates a large number of them using nothing but a computer. The only difference with bitcoin is that there's no single entity inflating and deflating the money supply.

At the end of the day, bitcoin is only worth as much as what it's backed by - which is precisely nothing. Should the unlikely event occur where the power grid gets interrupted or Internet traffic is restricted, then what good is a bitcoin (or does it simply cease to exist at that point)?

I still don't understand why people refuse to accept or understand that in order for something to be considered money, it must act as 1) a unit of measurement for exchange, 2) a medium of exchange, and 3) a store of value. Bitcoin might satisfy the first two requirements and can act as a currency, but it certainly does not satisfy all three requirements and therefore, is not money. The only thing that has consistently satisfied all three requirements over the past few millennia is gold (and silver to a large extent).

Bitcoin is poised to be the next scam perpetrated on the ignorant public by the same Keynesians that advocate the current fiat systems in place around the world. In fact, bitcoin might be a dream come true for those in power considering they can turn it into a global fiat currency. And then they'll find a way of controlling its use.