Russia and China will start a gold backed crypto currency and at that point Bitcoin will look like the giant Fiat currency that it is more than ever. Your Bitcoin, that is unbacked by anything physical such as Gold, oil, wheat, farmground, will not buy a crypto currency backed by any of these things. The fortunate will buy gold backed crypto. The unfortunate sheep will have fiat unbacked crypto. Don't get caught holding a bag of monopoly money. And you will be able to buy gold backed crypto with your physical Gold.
The majority of people are using the USD to buy Bitcoin. So to put in perspective, you are using one fiat currency to buy another fiat currency. Neither is back by anything that is tangible. Such as land and precious metals.
China and Russia's plan is to recreate checks and balances. By backing their countries currency with gold will undermine a great deal of the world currency. Due to that is tethered to the US Dollar, which is only staying afloat due to that oil has to be traded with USD. Take oil out of the equation or introduce "real" money into the market and see how fast everything starts to fall apart and reset itself.
Exactly. Fiat Paper money is at least ink and paper held in your hand. Crypto is totally fiat.
Bitcoin is not fiat so your hypothesis is deeply flawed.
Hmmm.... so then if not a fiat currency what is bitcoin backed by?? if it is not backed by a tangiable object such as gold or silver then how is it not fiat?
Bitcoin is the definition of fiat. Backed by nothing physical. = FIAT.
That is NOT the definition of fiat. Look up fiat anywhere and you will find that it is currency because a government says so.
Did you get your definition from snopes?
Um, no. Look in ANY dictionary. This one happens to be from dictionary.com but others are similar:
fiat
[fee-aht, -at; fahy-uh t, -at]
noun
an authoritative decree, sanction, or order:
a royal fiat.
synonyms: authorization, directive, ruling, mandate, diktat, ukase.
a fixed form of words containing the word fiat, by which a person in authority gives sanction, or authorization.
Definition of fiat (continued)
an arbitrary decree or pronouncement, especially by a person or group of persons having absolute authority to enforce it:
The king ruled by fiat.
Origin of fiat
1625–35; < Latin: let it be done, 3rd singular present subjunctive of fierī to become
The problem most do not see is the government and the world bankers hold the biggest percentage of the top 4 crypto currencies. So they do control crypto.
The Editors of Encyclopædia Britannica. "Fiat money, in a broad sense, all kinds of money that are made legal tender by a government decree or fiat. The term is, however, usually reserved for legal-tender paper money or coins that have face values far exceeding their commodity values and are not redeemable in gold or silver.
Throughout history, paper money and banknotes had traditionally acted as promises to pay the bearer a specified amount of a precious metal, typically silver or gold. The continental currency issued during the American Revolution, the assignats issued during the French Revolution, the “greenbacks” of the American Civil War period, and the paper marks issued in Germany in the early 1920s are historical examples of fiat money. These episodes marked deviations from the gold standard or bimetallic systems that prevailed from the early 19th through the mid-20th century. Under the post-World War II Bretton Woods system, the U.S. dollar served as an international reserve currency, backed by gold at a fixed value of $35 an ounce.
By the late 20th century, it had become impossible for the United States to maintain gold at a fixed rate, and in August 1971, U.S. Pres. Richard M. Nixon announced that he would “suspend temporarily the convertibility of the dollar into gold or other reserve assets.” In fact, the move spelled the end of the Bretton Woods system and the last vestiges of the gold standard. Within two years, most major currencies “floated,” rising and falling in value against one another based on market demand. According to the quantity theory of inflation, excessive issuance of fiat money can lead to its depreciation in value."
Got a citation to back up that assertion? I've never heard anybody else make that claim.
Again though, Bitcoin simply is not fiat unless the definition of fiat has undergone a sudden change. Words have to have meaning.
As you can see it already happend ;)
http://www.goldscape.net/gold-blog/gold-backed-cryptocurrency/