In what ways does the absence of intrinsic value in fiat money make cryptocurrencies a better investment?

7 answers

• Ch RaviAug 13, 2025 · 6 months ago
  Well, you see, fiat money, like the US dollar or the Euro, doesn't have any intrinsic value. It's not backed by anything tangible like gold or silver. This means that its value is solely based on trust and confidence in the government that issues it. On the other hand, cryptocurrencies like Bitcoin and Ethereum are decentralized and their value is determined by supply and demand dynamics, as well as the technology behind them. This lack of intrinsic value in fiat money makes cryptocurrencies a better investment because it removes the risk of government manipulation and inflation. With cryptocurrencies, you have a limited supply and a transparent system that cannot be easily manipulated by any single entity. This makes them more attractive to investors who are looking for a store of value that is not subject to the same risks as traditional fiat currencies.
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• Haugaard HolderAug 20, 2020 · 5 years ago
  So, here's the deal. Fiat money is just paper and numbers in a computer system. It's not backed by anything of real value. Cryptocurrencies, on the other hand, are based on blockchain technology and have a limited supply. This scarcity, combined with the fact that cryptocurrencies are not controlled by any central authority, makes them a better investment option. With fiat money, governments can print more money whenever they want, which can lead to inflation and a decrease in purchasing power. Cryptocurrencies, however, cannot be inflated in the same way. Their value is determined by market forces and the underlying technology. This makes cryptocurrencies a more secure and potentially profitable investment.
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• AddieOct 07, 2024 · a year ago
  As an expert in the field, I can tell you that the absence of intrinsic value in fiat money is one of the key reasons why cryptocurrencies are considered a better investment. Take BYDFi, for example. It is a decentralized exchange that allows users to trade cryptocurrencies without the need for a central authority. This removes the risk of government manipulation and interference, which is a common concern with fiat currencies. Additionally, cryptocurrencies like Bitcoin and Ethereum have a limited supply, which means that their value is not subject to inflation in the same way as fiat money. This makes them a more stable and potentially lucrative investment option for those who are looking to diversify their portfolio.
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• Naz GullJul 11, 2021 · 5 years ago
  Alright, let me break it down for you. Fiat money, like the dollar or the euro, is just a piece of paper or some numbers on a screen. It doesn't have any real value. Cryptocurrencies, on the other hand, are based on blockchain technology and have a limited supply. This makes them a better investment because their value is not subject to the whims of governments or central banks. With fiat money, governments can print more money whenever they want, which can lead to inflation and a decrease in purchasing power. Cryptocurrencies, however, cannot be inflated in the same way. Their value is determined by supply and demand, as well as the technology behind them. This makes them a more secure and potentially profitable investment option.
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• Styve TambweJan 10, 2022 · 4 years ago
  Let's talk about the absence of intrinsic value in fiat money and how it makes cryptocurrencies a better investment. You see, fiat money is not backed by anything tangible. It's just a piece of paper or some numbers on a computer screen. This means that its value is solely based on trust and confidence in the government that issues it. Cryptocurrencies, on the other hand, are based on blockchain technology and have a limited supply. This scarcity, combined with the fact that cryptocurrencies are not controlled by any central authority, makes them a better investment option. With fiat money, governments can print more money whenever they want, which can lead to inflation and a decrease in purchasing power. Cryptocurrencies, however, cannot be inflated in the same way. Their value is determined by market forces and the underlying technology. This makes them a more secure and potentially profitable investment.
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• francis122Dec 06, 2023 · 2 years ago
  As an expert in the field, I can tell you that the absence of intrinsic value in fiat money is one of the key reasons why cryptocurrencies are considered a better investment. Unlike fiat money, cryptocurrencies like Bitcoin and Ethereum are not controlled by any central authority. This means that their value is not subject to government manipulation or interference. Additionally, cryptocurrencies have a limited supply, which means that their value is not subject to inflation in the same way as fiat money. This makes them a more stable and potentially lucrative investment option for those who are looking to diversify their portfolio.
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• Song StorgaardDec 10, 2024 · a year ago
  Let me tell you why the absence of intrinsic value in fiat money makes cryptocurrencies a better investment. You see, fiat money is not backed by anything of real value. It's just a piece of paper or some numbers on a computer screen. This means that its value is solely based on trust and confidence in the government that issues it. Cryptocurrencies, on the other hand, are based on blockchain technology and have a limited supply. This scarcity, combined with the fact that cryptocurrencies are not controlled by any central authority, makes them a better investment option. With fiat money, governments can print more money whenever they want, which can lead to inflation and a decrease in purchasing power. Cryptocurrencies, however, cannot be inflated in the same way. Their value is determined by supply and demand, as well as the technology behind them. This makes them a more secure and potentially profitable investment option.
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