Will Bitcoin Morph into Another Fiat Currency?

One of the unjustified criticisms of bitcoin is the statement that it’s just another fiat currency.  Bitcoin is indeed an illusory currency with no intrinsic value, but at this moment in time it cannot be defined as a fiat currency.

The dictionary definition of fiat is as follows:

1. An arbitrary order or decree.

2. Authorization or sanction: government fiat.

The $US, euro, £sterling and other government-backed currencies are indeed fiat and are supported by legal tender laws.  Bitcoin, at present, is a P2P currency that is not under the control of any government, nor is it supported by any legal tender laws – at least that I’m aware of.

However, there are movements being made by local authorities to provide services, bill taxes or fines, and giving citizen Kane the option of to pay such bills with bitcoin. Think I’m joking?  Click the link below to verify for yourself.  It is dated 28.03.13.

http://www2.egovlink.com/press-release-bitcoin.cfm

Now, this would still circumvent the banking clearing houses, and therefore the disliked and maligned banking industry.  However, and this I must stress this is theoretical; if people started sending their bitcoins to their government, wouldn’t the government then have a monopoly over such currency and could eventually morph it into a fiat?

It’s a question you need to ask yourself, as I don’t have the answer and nor do I have a crystal ball that sees into the future.

One thing is for sure though.  The governments are making their moves to control bitcoin through collecting it in through fines, taxation, and paying bills.  It could just develop into citizen Kane only being able to pay in bitcoin…..who knows????

Post Script

In a recent article I believed I explained quite clearly that silver has intrinsic value, but apparently not as some folk still commented that “value is in the mind” yah-da-yah.  Shit, I even received such bullshit that only emotions have intrinsic properties LOL.

Let’s look again at it using the dictionary:

Intrinsic is defined as, “belonging to a thing by its very nature”

Nature has a few definitions:
“1. the material world, especially as surrounding humankind and existing independently of human activities.
2. the natural world as it exists without human beings or civilization.
3.the elements of the natural world, as mountains, trees, animals, or rivers.
4.natural scenery.
5.the universe, with all its phenomena.”

So silver has intrinsic properties as it has “things belonging to it” by “nature”, right?  Nature is “independent of human activities”, just to be clear Mr ‘common sense’ ;-).

Value like many nouns has a variety of definitions and ‘relative worth, merit, or importance’ is one of them.

Silver, like many other elements, has important intrinsic properties that exist by their very nature and are outside of the human consciousness.  Oxygen, for example, has intrinsic properties/value/importance and did so before humans were here on the earth, and also before the human mind was aware that oxygen existed.  Silver, has many health properties associated with it that would exist independent of human consciousness.

Am I clear?

Hey, I understand if someone is stating that silver only has value as currency if the market place chooses that to be so, and also that humans place a variety of values on many items, including abstract illusory ones such as bitcoin and the spirit world.

However:  Silver has intrinsic value.  As defined by dictionary definitions.

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