"It's Not Really About Bitcoin Price Surging, It's Fiat Currencies In Free Fall"

Authored by Joseph Young via CoinTelegraph.com,

According to Stefan Molyneux, a highly regarded Canadian podcast host, it is more important to recognize the free fall of fiat currencies, more so than to acknowledge the exponential growth rate of Bitcoin.

Molyneux says:

“It's not so much that Bitcoin is going through the roof - it's that fiat currencies are in free fall, but only Bitcoin is noticing.”

The decline of fiat currencies

For many decades, governments have had absolute control over the global finance sector and monetary policy through the fiat currency system. Through it, central banks such as the US Federal Reserve have obtained the ability to inflate the supply of reserve currencies and to manipulate the world’s most widely utilized form of money.

In an interview with Fox Business, major electronics retailer Overstock CEO Patrick Byrne stated that fiat currencies will continue to fall over the next few years, as investors and the market move onto separate money and state.

As fiat currencies decline, the only form of decentralized currency that is Bitcoin and other cryptocurrencies in the market, will eventually overtake reserve currencies.

“You think that’s a bubble? What do you think that fiat currency you carry around in your purse is? This dollar stuff, it’s just some fiat currency based on … the surplus taxing authority of the US Treasury of which I assert there is zero ... It’s about time the world switches to real money. Either gold or Bitcoin,” said Byrne.

Currently, the two forms of money or assets that are not subjected to the control and manipulation of governments are Bitcoin and gold. But, as demonstrated by the Indian government in late 2016, because of its physical attributes, gold can be confiscated and repossessed by the authorities at their will.

With Bitcoin, confiscation of user funds and assets is not possible, if users store their Bitcoin on a non-custodial platform in which they have full control over their private keys and funds.

One major advantage Bitcoin has over gold is its transportability. Gold is a viable store of value given that investors can store large amounts of money in the asset. But, it is difficult to transfer gold, especially through borders.

Bitcoin will continue to prosper as fiat currencies decline

Considering that Bitcoin remains as the only viable alternative to fiat currencies, the decline of government-issued money will continue to lead more investors and general consumers into the Bitcoin market.

As such, Byrne noted that Bitcoin price could reach $1 mln in the long-term if Bitcoin begins to take over reserve currencies and challenge the gold market.

“We have all these currencies since Bretton Woods, fluctuating against each other, and maybe the dollar hasn’t gone to zero against these currencies but all of them have gone down 95 percent ... versus something that they can’t control like … gold and Bitcoin. So Bitcoin may be on its way to a million for all we know,” adds Byrne.

 

Comments

Dabooda Fizzy Head Mon, 12/04/2017 - 14:13 Permalink

The only thing wrong with  Molyneux's thinking here is the idea that Bitcoin will remain the dominant cryptocurrency.  Right now there's a herd-mentality stampede into BTC simply because people want in on a hot new investment that's going up like a rocket.   But for day-to-day utility as a currency -- BTC is probably  a long-term loser because of high transaction costs & slow settlement speeds.  Probably  more potential utility  in BCH, Litecoin or Ether -- I'm not a crypto-guru, maybe tmosley will enlighten us. 

In reply to by Fizzy Head

Fizzy Head Dabooda Mon, 12/04/2017 - 14:18 Permalink

not arguing that fiats are an epic failure for the bottom 90%, however bitcoin has many other facets that fit may ppl (so to pin the tail on failing fiats isnt accurate)...well unitl the .gov gets their grimey hands on the transaction data. the failing fiat argumanet only stands when PM's and oil get spensive along with BTC. Most buyers arent the stuggling middle class, they are institions and speculators. and the rest are the ones that got in early... p.s. agree with your thoughts on the heard mantality.

In reply to by Dabooda

OverTheHedge nope-1004 Mon, 12/04/2017 - 14:46 Permalink

I love the way Tyler puts these articles up with no indication of whether they are good or bad, truth or fiction. Let Fight Club sort it out.My opinion is that this is complete bollocks. "Magical thinking" is the new buzzword for "making up shit in the hopes that people believe it and give me money". There is hyperinflation around the globe, as all currencies tank, and yet the only good, commodity or service that has noticed, is an obscure,  hardly-used cryptocurrency stuck in the margins of the more esoteric investment world, but well-known purely because of its impossibly fast price-rise. Either the pricing of every single thing in the world is wrong or the pricing of bitcoin is wrong. NB I don't entirely discount the idea that every single thing in the world is mispriced. But I would definitely include bitcoin in that list.

In reply to by nope-1004

pods OverTheHedge Mon, 12/04/2017 - 15:06 Permalink

Sorry, this is NOT about all fiat currencies going to shit.  It is merely about rent seekers all piling into one investment that they all think will give them some kind of return.Sorry, the joobucks from heaven dries up and so does bitcoin.  Can't wait until everyone tries to run for the exits to sell their $10k bitcoins. Their net worth will stay where it is until the music stops.  After that, look out below.I guess people forgot about Pets.com?Look at all the hot names now. Almost all of them make ZERO money. Their value stems from being able to sell it to someone for more than you bought it.Amazon, NFLX, TSLA, BTC.  All gonna go up in a poof of smoke if the free money stops.Sorry, bitcoin might be some great revolutionary thing, it's still being polluted with too much fiat sloshing around.pods

In reply to by OverTheHedge

Gap Admirer Jtrillian Mon, 12/04/2017 - 16:21 Permalink

The difference between a wise man and a fool is that the fool will call people closed minded haters instead of agreeing to disagree. "What?!?!? I'm a closed minded hater you say??? OK, then. That makes me see that you are correct in your analysis." LOL!

Bernie Madoff was the awesomest in the world for "investors" that got in early with that "opportunity" and got out at the right time. The non-Madoff investors were obviously closed minded haters...

In reply to by Jtrillian

Peak Finance OverTheHedge Mon, 12/04/2017 - 16:34 Permalink

This is pretty radical but:Either the pricing of every single thing in the world is wrong or the pricing of bitcoin is wrong. Yes, if the free market does not exist anymore, and Gold / Oil / Paper / all depend on riggings, then, the pricing of every single asset in the world IS WRONGThis:the pricing of bitcoin is wrong.I am not saying the price of bitcoin is "right" but, generally speaking, The freer the individual market is, the closer the prices are to reality. 

In reply to by OverTheHedge

affirmed_78 OverTheHedge Mon, 12/04/2017 - 15:38 Permalink

You have to understand bitcoin is still in the early adoption phase.  The price cannot possibly stabilize until it is mainstream and all investors who want to own it have some allocation.  That cannot occur at $11k bitcoin (< $200B market cap).  The price will have to go up many more multiples.  I believe the total value of all gold is $7-$8T. What if you got to buy gold before it caught on?  It would be nice to ride the wave, would it not?

In reply to by OverTheHedge

MonetaryApostate Dabooda Mon, 12/04/2017 - 15:06 Permalink

The wealthy money printers are going cashless, after hyper printing the sh!t out of their own fake money, they are turning towards digital fake money so they don't have to print anymore, & so they can have utter digital totalitarian control.  Venezuela is NOT a unique instance, it will go global along with cashless societies being forced globally either through hyper inflation or demonetisation.But of course I've been warning about this since 2008, as you saw the beginning of the system collapse & moving of all assets online.Fake everything painted to you by the ultra wealthy money printers.https://plus.google.com/collection/QorNbB

In reply to by Dabooda

joshnyce BullyBearish Mon, 12/04/2017 - 14:07 Permalink

Government can't confiscate BTC? REALLY? Guess this guy knows a lot more than I do, because they can certainly take it, they can stop you from spending it, and they can even make it illegal. The idea that BTC is safe is absolutely moronic. Fiat is not better, and I'm not a goldbug, but at least pyhsical gold can be buried in the ground. Assuming you bury it someplace safe, there is nothing else that comes close to that level of security.

In reply to by BullyBearish

38BWD22 joshnyce Mon, 12/04/2017 - 14:33 Permalink

  I'm getting antsy about my BTC holdings.  It's had a HUGE price spike, and while it could go much higher, I am thinking of "just taking the gift" (very decent gains), and be done with it.Contributing to this is my email conversation with our tax accountant, who today informed that it will be much more complicated to do the Capital Gains calculations, especially with no good documentation on my part (for 2015).  This is going to be a mess.  And I am trying (and have been) to document all of this the best I can.I may just make one more big SELL of BTC for gold, perhaps by year end, sell all of it other than a small "WTF amount" to keep me interested enough to keep in touch with cryptos.  Then do the 2017 reporting (which, happily, will be easier than earlier years as I have all papers in order). Bottom Line:.gov is much more powerful than many think re cryptos.  Don't mess with the IRS if you have big gains.  And I am actually TRYING HARD to comply!  If you try to hide, unless you are extremely smart & tricky (I am not), you are risking BIG TROUBLE from .gov.  Their regulations are in place, and they use advanced software tracking blockchain transactions of interest to them.

In reply to by joshnyce

38BWD22 hedgeless_horseman Mon, 12/04/2017 - 14:41 Permalink

  h_hI already HAVE sold enough BTC so that I have made my money back and more (cumulative, 2015 - 2017, selling BTC for gold).  Everything I now have is pure frosting on that yummy cake.  I think I just want out, and will Take The Gift (of more gain).  But, I will carefully decide what small amount to HODL in case the IRS in the future gets more aggressive (ie, demands to see ALL of your BTC hodlings -- which I think they can do), well then it would be simple to comply.Hear ya about your variation on "selling too soon".

In reply to by hedgeless_horseman

John Kerry-Heinz 38BWD22 Mon, 12/04/2017 - 15:04 Permalink

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"Essentially the game is to flow the excess fiat into Cryptos where it’s not used to buy anything. So the hyperinflation doesn’t effect the general economy. It’s all about buying time … The excess money needs to flow into Cryptos so it won’t pump up the Gold price. And the money flow is capitalizing the emerging financial system that may save parts of the West"
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https://beforethecollapse.com/2017/11/04/conversation-with-warburb/

In reply to by 38BWD22

Winston Churchill 38BWD22 Mon, 12/04/2017 - 15:01 Permalink

Very wise.Why they haven't already cracked down on it is the interesting question.They can anytime they like,whatever the pumpers say.I have several ideas that range from greed to outright fiendish.One of the reasons slavery went out of fashion was the difficulty in "perfecting" the security(slaves)as colateral.Think about that and titles on a blockchain.

In reply to by 38BWD22