fiat vs crypto Why fiat has high demand than crypto but has low price to crypto?

[setifien 1016]

Because fiat currencies are recognized and accepted everywhere, they have a stable value, unlike crypto currencies that are not worldwide adopted, they are fluctuative and many people/businesses/countries do not accept them; that's why people are using fiat more than crypto

[yonkii 3205]

I've seen cryptocurrencies having inflation and not a fixed supply. Ethereum, Dogecoin, Waves all are coins that don't have a total supply that is finite but they are inflating. 

Meanwhile most cryptocurrencies seem to have a fixed total like Bitcoin and Litecoin. Although since this is code it can always change but a change like that will probably be high risk.

[Brushless4500KV 4214]

The higher demand is due to higher adoption of fiat in global societies. You can buy anything with fiat but using crypto for shopping or paying for bills is still not as common as fiat. The lower value of fiat is because it is printed in large and almost unlimited amounts by authorities but most crypto coins have limited supply which will increase their value. In general, crypto is the volatile and fiat is the stable currency. This stability of fiat makes it a better choice for ordinary people to satisfy their needs.

[zhoutong 2188]

Fiat is what the government prints and legally it is the only asset you can use, unless the laws allow the use of cryptocurrencies. In most countries crypto is not adopted yet as it is still young and in development. Some cryptocurrencies like Bitcoin have gained wider adoption and recognition because of the similarities to gold in the attributes it holds.

[Mella 3680]

My dear you are make a mistake here and you are need correctness beause you are think that crypto is something that has the same rules for all. It is a mistake many beginners do, first of all calling everything crypto like it is the same with Bitcoin and Dogecoin. Then you are not know anything since this is what you believe. There are cryptocurrencies that have fixed supply and others don't. So what you are say calling everything crypto and that everything has the same features is a big noob mistake.

[bogdanoff 3173]

Bitcoin has a fixed supply so it is better to write about Bitcoin instead of others. There are some coins that have infinite supply too and Ethereum is one of them. The inflation won't matter a lot if it is small as 1% will mean it will be stable but higher can create many problems.

[cryptovlek 2597]

Fiat is used in 99% and cryptocurrencies in less than 1% of the transcations. This is the system and cryptocurrencies are still very early. If there is adoption in this money system then it will rise but adoption requires regulation and gain the trust of the populations. The programmed money that is Bitcoin, Ethereum and the rest they are offering a trustless system that is better from having to put trust in a government or institutions like banks or PayPal.

Edited December 3, 2020 by cryptovlek

[Sykkuno 2887]

Fiat is how business is done traditionally. What you are saying is why there isn't a change to crypto yet and that it has to do with inflation is not exactly correct. The fiat system runs for centuries so we can' switch to cryptocurrencies in days, it will need decades of planning.

[Fixfin 2569]

It is possible that you don't understand that in each country we have fiat currency which is the national currency and we use this as the basis for prices for anything else, including other currencies. For example in the US they say the euro costs today 1.19 usd. This is the foreign exchange rate and you can say the price or cost too. Foreign exchange or forex is trading done with trillions of dollars. The fiat currencies drop in value or price when they print excessively. This can help Bitcoin price rise but only a little. The rest cryptocurrencies are not affected by this as they are not seen as store of value.

[annayks 2314]

Bitcoin has limited supply at 21 million coins. This is the important one. When you say crypto it is not looking good and you should separate these two words from your vocabulary. When you discuss crypto you just made Bitcoin similar to bitconnect. Crypto is a word used in movies and means nothing.

[percare 3192]

You are right in the fact that most crypto have a fixed supply and very low inflation, this gives an asset some value but the most part is that there is demand that drives prices higher. The demand can be for adoption reasons or for speculation,

[kryptonick 2659]

On 11/13/2020 at 10:54 AM, guatazoo said:

but fiat currencies has no limited supply they are just maded day by day, this is my views, what's are your thoughts on that?

You are correct friend. It is something that we don't learn early and what we are been told is to work to make money and thats that. Make money and do what then? Pay taxes, pay bills, pay our shopping and groceries, and then they tell us what is left to deposit in a bank. But banks won't pay interest and this money stay at bank as we are told to keep some for old age, or for later 10-20 years. And late this money will be half of what it was worth before.

Store 1000 euro today and tell me what you can buy 20 years later with that. Money as fiat is not good money. We need to invest them otherwise it is wasted our work and effort to make them.

[Calvinpriva 17296]

I think the main reason for fiat to have high demand than crypto is because fiat are controlled by the government and are the official currencies for countries. Every citizen in each countries uses fiat currencies in their daily activities, those are the most reasons that i know. But cryptocurrencies have high price than fiat because many crypto which are having highest prices are not stable, one cryptocurrency can worth $1 today and tomorrow can worth $100 and that is why many cryptocurrencies can have high price than fiat currencies.

[Cleaner 2549]

Fiat currency so its supply is increasing day by day.  Fiat's money supply increases as the country improves and as a result its price decreases.  However, the demand and supply of the crypto world is good.  However, there is a limitation in the supply of crypto coins, so the price of crypto coins is higher.  However, in the future, the price of crypto coins will increase further because then the supply will decrease further.

[Red-Jones 1150]

Fiat is a currency that embraces the history and sovereignty of governments and are currencies that everyone is obliged to use, obviously it would have a lot of demand because people have no other choice. or use FIAT or starve to death. bitcoin and altcoins are recent things under the age of 15 and still have a long way to go as coins, even today bitcoin is used as an investment and not as a currency

[Dorjoy12 8962]

22 hours ago, Red-Jones said:

Fiat is a currency that embraces the history and sovereignty of governments and are currencies that everyone is obliged to use,

True @Red-Jones..  Fiat currency  is necessary  to lead a country because every  country has an economic  system  which get  Control  by fiat currency  not by crypto currency ..  As crypto currency  still new so its must that it will take long time to get adopted  as Fiat ..  But its normal thing fiat Won't  get enough  attract in crypto.. 

[UsmanMehmood 374]

I do not know about this fiat and I do not even know whose demand is high because I am just working on the cryptotalk platform and I know just crypto currency.

Even in cryptocurrency nowadays, the currency which has gained the most value is bitcoin, its value is very high nowadays. 

[Abdulrahman3 1252]

There is a simple solution to this, which is by spreading the idea of cryptocurrencies more among people, which is a very desirable idea, but there are many people who did not reach the idea, and there are many companies and banks that spread false news about cryptocurrencies to distort their reputation for their own personal interests.

[Obliv0n 333]

Fiat currencies are in demand basically because they are the representatives of the different economies and are seen as the (non-military) force that can have a certain weight or effect outside the borders of each country, as is the case of the dollar as it is a reserve of value oe euro in europe being the most valuable currency.

[selfmade 7]

The answer to that question is simple, that is became fiat has big demand yes, but have you checked the supply??? The supply of fiat is real huge that is why despite the demand it is of low price and you may ask why the inflation is small it is because governments makes their coins stable on purpose they create the only supply available for the demand.

[huyaji 1]

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[joemcgwa 3227]

Fiat must be having high demand because fiat are local currencies thats must have demand for their citizens because all citizens they must be using their local currencies.

[Whited35 15285]

Not all fiat currencies are produced everyday as the new currencies will be issued based on the demands as well. Just after issuing the new currencies to add into the circulation, they create the  inflation in the markets however so many cryptocurrencies like Bitcoin are looking powerful as they can be also used as the hedge against inflation. Some coins like ETH has infinite supply but it is still one of the most expensive altcoin.