Why does fiat have an unlimited amount of supply if resources are finite?

USD is unironically the biggest shitcoin out there

Download the khan academy app and start from scratch

>please spoonfeed me on how money works
Just open a fucking textbook you fucking autist. Or even a wikipedia article.

central banks can do whatever they want and are basically doing everything in their might to fuck you over.
fiat isn't backed by anything these days, they are indeed the world's biggest shitcoins

>mfw it took the coming of crypto for me to realize most fiat are shitcoins
I hope it's because I'm young and naive and not because I'm a brainlet

You're a brainlet, aren't you?

It didn't until the government went bankrupt, left the gold standard and printed their way out of it.

At this point it's only a piece of paper with a gigantic free advertising. Honestly think of the shittiest shitcoin you can, imagine that shitcoin being talked and shown and heard all around the world as much as the USD, that shitcoin would be worth more than the USD. That's how bad it is.

...

Printing money keeps the gears of society spinning.

A deflationary system would make people hoard the cash instead of investing, that is terrible for the economy and would ultimatelly end badly.

The other reason is because there is a point where power doesen't even depend on money anymore. (((Gov))) will allways be the most powerful entity, and money is power. Those 2 trillion spent on military yearly are just "funny money", they would get the weapons anyway, but they need a way to reward the producers, so they just print the money and let the people pay for it indirectly (inflation).

technically any currency with the amount of inflation the us dollar has is worthless, but because the US invades or subverts any country that threaten to say trade oil in something else or make their own gold-backed currency somehow the wheels turn anyway.

And correct me if I'm wrong, but the real value of crypto comes from the long term ability to strip these joos of their power, or would come, if they didn't already control most of bitcoin anyway. (you really think neets and "investors" dumped those 40 bil on the market?)

>A deflationary system would make people hoard the cash
I see your point but the current system is definitely not the solution
Billions of people working hard for a piece of paper some powerful entity can and does print at no cost, thus devaluing the work of the productive people? How is that not slavery with extra steps?

Japan made a deflationary system work, you don't actually horde cash but invest in things with as little as 1-2% return.

Credit.

you can print money but not wealth

NEET detected

People aren't working for that paper, they're working for the resources and services they can use to exchange that paper. Fuck you

Fiat is a shitcoin fork of the gold standard.
>pre-mined
>only a single miner allowed, any others are jailed
>no hard cap
>no fixed inflation
>no halving
Fiat is the shitest coin out there, at least other shitcoins let anyone mine.

Back when coins where made of gold, silver and copper everyone with a monetary system made deflation work. Under the gold standard deflation was still working.
As far as I can tell anyone studying economics gets told that it wouldn't work without any mention of the fact it worked for centuries.

Don't forget that plebs are only allowed to obtain it by taking out a loan with a marked up interest rate.

Exactly right, todays world is just that, slavery sans chains and whips.

fed doesnt print money dumbass

>Implying the Fed is a government institution

the treasury is responsible for printing money.

and they are a government institution.

The Treasury just prints the money they make from the Fed buying Treasury securities at interest. Essentially, the government can only print money that it borrows from the Fed, which doesn't exist until they print it.

Hoarding cash would cause the value of currency circulating to rise, eventually prompting the hoarders to spend it... if they were stuffing dollars into their mattress. If the wealthy kept their money in the bank, like they would... like they do... then banks would loan it out, also invalidating your retarded notion.

a) resources aren't finite, consider outer space

b) services are infinite (things people can do to serve others)

>why does anybody ask questions, ever?

We all have different ways of absorbing information, user

Debt. The whole economy is based on debt and enslaving you to it through work and desire.

this. it's even in the word "fiat"

That's unnerving

>Trading USD on leverage
Disgusting

It's not an "unlimited supply". It's an "ever-increasing supply". That's what inflation means. One of the main purposes of a central bank is to control the rate at which money supply is inflated.

As for why some low levels of inflation is a good thing, there's many reasons. One is that the purpose of currency is for exchanging value, not a store of value in itself. An inflating currency encourages spending, which stimulates economic growth.

There has never been a true 'deflationary' currency. Gold itself is somewhat inflationary (new gold mined increases supply in circulation.) Bitcoin is currently inflationary because there's still a block reward.

If a currency deflates, it becomes more valuable/scarce with time, and it won't be used for exchange. It will be hoarded. Not invested or spent.

Would you rather spend money that loses value over time, or gains value over time?

That's a crock of shit, mate. This is why our economy is fucked up, and all the data gets hidden by crafty statistics.

Deflationary currency has never been tried. Bitcoin is inflationary as well as deflationary, but over time it will become more deflationary than inflationary, and eventually it will cease to have any inflation. Bitcoin is the first currency to do this.

We live in such a consumerist society because money loses value and is created by debt. We're brainwashed to believe that debt is good.

All the cryptonewfags think this is just a get rich quick scheme and they don't understand what Satoshi was really trying to say. They have to go back and read his shit, even if it's a bit confusing due to all the out of date terminology.

only a small percent of treasury securities are bought by the fed

Loses value.

Its one fo the main reason why people arent using BTC for purchases , can you imagine going to a restaurant and paying 5 dollars in bitcoinfor a burger , drive home and those 5 bucks is now worth 10?Its not worth the risk

Well maybe your fat arse shouldn't have bought that burger anyway. Keep your money for a rainier day.

I think we all know why.

>resources are finite

Wrong. How is the ideas "well" looking? Dried up?

It is a way to prevent hoarding - that a person could sit on a pile of money and do nothing but still gaining weath (litterally what coiners do now).
Government is litterally screaming you to invest money in production, so you will not lose weath. But everyone is still investing in stock and other bubble, kek.

deflation is the reward for productivity

the reason things cost less is generally because technology improves

inflation is a way for the power structures to steal your productivity, that's why all these central bankers always bring up the deflationary bogeyman

fuck them

Correct, and they drill it into us in public schools, as if it's undisputed fact. That's no coincidence.

Only a Jew would see a problem with savings stored outside a bank increasing in value.

because inflation

Yes but he's right in the sense that deflation discourages consumption and investments with a low enough yield (lower than the appreciation rate of the currency).

The concern is valid because we are in a world economy where the money supply is growing but there's little inflation and little real economic growth.

That being said if BTC gain as much value as we hope it will and it evolves into something hat facilitates trade and remittances, it will free up resources and give people more confidence to invest even if they know their coins are probably going to appreciate in the future.

That's the point, there's little reason to invest in production when wealthy people get free money from the Fed indirectly and the only source of population growth (new consumers) in the long term are Africa and India

Every post in this thread that says the Fed is currently printing is wrong. The Fed has been hawkish for years now, where have you been? But the other central banks haven't yet caught up to the Fed in the cycle.

LOL file name

Why does that matter? If BTC doubles in value you lost that money anyway buy buying the burger instead of buying BTC with it

>yfw fiat is the original shitcoin

>blowjobs
>finite
shiggy

Because it's the shittiest of all shitcoins

This user is correct. Private banks create 95% of the money in circulation

The government really can't do much to control the money supply

Technically they don't create them. They just say it exist.

Printed money makes up very little of the total money supply. 95% of money is made by private banks when they create loans

Debt.

When you take out a loan, it creates new money for circulation. Loans can be given out infinitely.

Fiatcoin is horrible

>shitty tech
>unlimited supply
>clueless dev team
>centralized
>not private

>he thinks producers would produce without demand
>he thinks the value of a trading token doesen't depend on it actually being used to trade
>he thinks no one would call out his lack of highschool completion

It worked when a king stated that 1 silver coin buys bread and wine

Today prices are set by supply and demand equilibrium, nothing more nothing less.

i thought that prices are set by walmart,amazon,costco,whole foods and other fuck loads of corps not supply and demand.

They're set mostly by the consumer. The end user is the one that decides at what cost something is worth purchasing. Companies attempt to make things at lower and lower prices to meet the demands of the consumer.

Because phisical resources are finite.

But it's not phisical, it's mostly data.

fiat works on aggressive revolutions of fate, guverner of national bank does everything in his power to convince people cash has some value, let me give you an example: they give so much worthless money to China for services and products(I'm talking trucks of paper )now, China has shitload of that paper on their hands, if they call USA bluff, they will fuck them up short-term, but, they'll end up with tonnes of worthless paper so they have suffer huge loss.
At this point ,best USA bet is to make as much money possible and just spread it around, to a point where money owner has no choice but to play along. Saddam called USA bluff and wanted to entice oil price to Euro,instead to $, that was an sole reason why USA attacked Iraq so aggressively (if you believe US gov cared for wellbeing of Iraqi people, then you are naive),that is also a reason why USA plays long game in where they want to destabilize EU, Great Depression was child's play compared to what wouldl happen to US if oil,gold,steel and other high value commodities get etieced for some other monet.

Because banks can literally create money and do so every time they lend money. Which is why every 20 years the dollar is worth half of what it was.

> China is bagholding lots of USD and hence they had to playball and continue shilling USD.

300% woke

china is bagholding a decent amount of us debt not dollars.

they would want anything but potentially inflationary policy because that makes all their us bonds worthless

Do you think those points apply to my post? If we were removing currency from circulation, and there was a fixed supply of currency, what would happen to the currency in circulation? The value would increase and prices would decrease - why do you think production would be affected?

founding fathers literally made their own currency and printed it to hell

thats not how it works you retarded bitch you are still fuckint hungry and you still need to eat

>eventually prompting the hoarders to spend it..
Wrong. The incentive to hoard is still there, nobody is going to take on investments or other risky endeavours when they know they can just sit on the cash and let its value grow

No, the Treasury does...and then we pay interest for money which we were never really loaned in the first place, and every new dollar is part debt as well, so it's an endless cycle. Private bank tells us they'll """loan""" us """money""" at interest, government Treasury issues it, repeat ad nauseum until the currency is inflated into worthlessness as the private bank engineers carefully timed crashes which it told you it would prevent. Meanwhile your debt grows. Most dollars aren't even physical.

Even worse: there's no reason for it to be so. The State can issue its own sovereign currency, debt free. No bank is needed.

Fake money, fake debt. Notice that every nation that has, or tries to have, an independent "in house" money system without the involvement of International Banking Cartels ends up destroyed under dubious pretexts.

>mfw our currency is literally counterfeit according to the Founding Fathers
>you could print out shitty MS Paint versions of note and it's basically as legit as a (((Federal Reserve))) note

Labor is infinite

because the stuff to make fiat grows on trees.

>One of the main purposes of a central bank is to control the rate at which money supply is inflated.

And they've done a great job, haven't they? Inflation, detaching from gold, etc have smashed the middle class and poor with inflation tax.

>One is that the purpose of currency is for exchanging value, not a store of value in itself

why not both, cumshitter?

>An inflating currency encourages spending, which stimulates economic growth.

Who's to say the ability to decide this should be centralized? The market will decide for itself what to do. There will always be ebbs and flows, booms and busts, yet not of the severity which we have seen under the Federal Reserve.

>Bitcoin is inflationary as well as deflationary, but over time it will become more deflationary than inflationary, and eventually it will cease to have any inflation. Bitcoin is the first currency to do this.

Is this what Hitler was trying to do with the Reichsmark?

it has backing from the government

Are you asking like if they run out of paper to print billz on? They'll just make it digital. I guess then technically there are a finite number of electrons in the universe too so that would be limited as well.