Fiat means faith. The question is this:
Do you have faith in, or value or respect that given currency?
For example, I have faith in bitcoin and chain-link, which is why I own both. In terms of Fiat currency, US dollars, it is almost close to worthless to me. Granted I just need to use my credit card or whatever in order to buy groceries and meet at Costco, but besides that… the US dollar is worthless to me.
Rent money
Cindy and I have actually figured out interestingly enough, renting might be the most intelligent strategy today, even if you were a billionaire or whatever. Why? I think you just live a better life because you spend less time thinking about renovating or operating your house, buying furniture, whatever.
Also, less maintenance and unexpected cost.
Sooner or later things are gonna break
I think the first thing I have witnessed about homeownership, especially with my friends family Cindy‘s mom whatever, is that sooner or later things will break, unexpectedly. The water heater, the toilet plumbing is going to clog, the roof has a hole in it, $50,000 to fix the roof, $10,000 to fix the water heater and plumbing and electricity etc. Regardless of how rich you are, nobody likes to pay for these things.
Paying your rent in bitcoin?
Actually, if I was a landlord, I would be very very happy to except to rent money or payments in bitcoin! Why? The promise that it will go up in the future!
Faith?
Eric Kim, a notable figure in photography and entrepreneurship, shares several perspectives on fiat currency, particularly focusing on the US Dollar and its relation to other forms of currency like Bitcoin and cryptocurrency in general. Here are some key points from his discussions:
- Trust in American Currency: Kim posits that the strength of America’s military and cultural influence (including social media, technology companies like Apple, and American films and music) leads to global trust in the US Dollar. He also notes the inherent value of gold due to its scarcity and long-standing worth, suggesting it will always be considered valuable oai_citation:1,Error oai_citation:2,Error.
- Fiat Currency as Faith-Based: He describes fiat currency, particularly the US Dollar, as a faith-based system with no intrinsic worth. The value of these currencies, according to Kim, is created through trust in the state or government. This perspective highlights the social and political dimensions underpinning modern economic systems oai_citation:3,FIAT CURRENCY – ERIC KIM – EK oai_citation:4,Error oai_citation:5,Error.
- Devaluation of Fiat Currency and Bitcoin’s Potential: Kim discusses the devaluation of fiat currency due to actions like the US Federal Reserve printing more money. He suggests that using hard cash for smaller, everyday purchases might be more prudent, as fiat currency might persist for these types of transactions. For larger purchases, like homes or cars, he sees Bitcoin as a potentially better option, citing its capped upper limit as a stabilizing factor oai_citation:6,The Future of Fiat Currency – ERIC KIM oai_citation:7,Error.
- Bearish View on Fiat Currency and Emphasis on Cryptocurrency: Expressing a bearish stance on the future of fiat currency in America, Kim suggests funneling salaries into cryptocurrency if one is working a regular job, indicating his belief in the long-term value of cryptocurrencies over traditional fiat currency oai_citation:8,Error.
In summary, Eric Kim’s views on fiat currency revolve around the idea of faith and trust in government-backed currencies, the influence of a country’s global standing on its currency’s value, and the potential shift towards cryptocurrencies for major financial transactions. His opinions reflect a blend of economic, political, and social factors that influence the dynamics of modern currency systems.