The need to count wealth in fiat?

I have a friend who is nonchalant about cryptocurrency. Not at all impressed with bitcoin and decentralized currencies.

His basic logic is that everything we need to pay for are denominated in fiat. So one should always think in terms of fiat value.

I guess his point is that everyone has fiat at the back of their mind because this is how we human currently count financial wealth and value.

Everything goes back to fiat terms, ultimately. He said.

But what about the devaluation of fiat? The inflation? The losing of value when one holds fiat in the bank?

This has been the narrative of the crypto and bitcoin enthusiasts during the bull market. Yes, indeed the value tied to bitcoin seems to appreciate a great deal over a short time then. That made fiat a joke.

But when we are in a bear market, crypto crashes significantly and made it a joke.

Crypto isn’t that great a store of value afterall.

My friend wins his argument. At least for now.

So I had to seriously considers his point.

And I agree with him.

This is how I think the wealthy in the world plays the game of crypto:

They buy and hold some, and trade some to bring in some gains in fiat, and then decide if they will rinse and repeat

Listen. It is no good if the overall value in fiat goes lower than initially invested.

No matter how many sats or Hive one has stacked, it will be a loss if it’s value buys less than if it had remained as fiat.

So, I think I should give fiat more respect.

P/S: this is not financial advice!

P/S: This is not financial advice, and please do your own due diligence before investing.

If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.

You might be interested in this post, @jacoalberts, @young-kedar, and @hankanon!