[2017-11-05]Deutsche Bank:Reign of Fiat Money Will Soon End, Will BTC Take Over?

jamids

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Quote from: Oo ako to on November 09, 2017, 12:37:42 AM

I believe that this will happen so fast after mass adoption and we will just hear that one country is already paperless and using a decentralized cryptocurrency. The governments can print money whenever they want and that is the disadvantage that bitcoin doesn't have.

I beg to disagree that it will happen so fast. It is still hard for the people to just shift to digital currency because of the problem of technology. There are still so many countries in the world that are way too behind in the technology that some don't even have internet connection so the possibility of using only digital currency is highly unlikely. It may be possible for the progressive and developed countries but for the developing countries, fiat is still hard to let go. I still believe that bitcoin would be use as store of value instead of making it as a currency totally eliminating fiat.

Oo ako to

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I believe that this will happen so fast after mass adoption and we will just hear that one country is already paperless and using a decentralized cryptocurrency. The governments can print money whenever they want and that is the disadvantage that bitcoin doesn't have.

rindo

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A very supportive statement, from the Chief of Strategy of the Deutsche Bank, to the use of Crypto-currencies. possible he is indeed one of the early investors on Altcoins/Bitcoin. Being the Deutsche Bank one of the most powerful financial institutions in the world, located in Germany, a comment of this magnitude, saying that actual financial system and the use of fiat currencies are outdated and serious in risk is very satisfying to the Crypto-community. Reid believes that one of main reasons is the lost of credibility promoted by the use of strategies to control inflation, like the continue printing of new money. Also stated that the nature of the decentralized currencies make the economy being controlled by the organic laws as offer and demand of the market and not by governments.

Wekkel

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yes

Perhaps the matter is more about definitions. In some ways, current digital fiat already has some traits of cryptocurrencies. It's much more centralised and the governing mechanism much more complicated, but in the end it is a network with digital tokens. That basic premise, I am sure, will remain the same, whether we call it a new kind of fiat, State cryptocurrency or something more decentralised taking over.

Bitcoin does not have to be 'the One'. It could be enough that it is just there, smiling down on us with its ugly face.

The Honey Badger Grin

iram1011

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I don't agree with the statement. I don't feel fiat currencies are going to end anytime soon. There is increase in inflation. But there are 10s of ways to control it leaving increase in interest rates.

Regarding cryptos taking place. I disagree a big time here. First of all not all cryptocurrencies are deflationary. Government won't make a highly deflationary and decentralized currency an international medium of exchange with unequal distribution. Plus a high volatility rate adds to the problem for global economy. Even if fiat disappears. A new digital currency will emerge which will still be in government's control.

ORCAf

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Quote from: warrior333 on November 07, 2017, 08:02:30 AM

I believe that the emergence of bitcoin will force governments to reflect on what they did with Fiat. Perhaps users of bitcoin also turn it into a kind of Fiat. I often hear that people support the legalization of bitcoin. It seems to me that this will be the beginning of the end of bitcoin.

I think one of the best way to make inpact of recognizing cryptocurrencies is to unite as much as possible "crypto believers".

warrior333

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I believe that the emergence of bitcoin will force governments to reflect on what they did with Fiat. Perhaps users of bitcoin also turn it into a kind of Fiat. I often hear that people support the legalization of bitcoin. It seems to me that this will be the beginning of the end of bitcoin.

ORCAf

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Quote from: MidKnight on November 07, 2017, 02:05:36 AM

I don't agree. I think we still need in fiat because there are certain situations that crypto does not fit. Bitcoin won't work to small time business like a small family store near a community whenever a person wants to buy a drink, shampoo or a piece of candy.

At the moment, maybe, it does not fit. But look how far it went in such short time period.

Mark Promo

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First Universal Cryptocurrency Casino

The head of Deutsche Bank bought bitcoins in 2012, and now tells what they are promising

Siren

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Quite surprising to hear that from Deutsche Bank? This is the opposite as to what we have hearing a lot lately from bankers. Are we expecting a cash less society then or will crypto currency takes over? Well if crypto takes over then it will still takes years before we can finally see it happening. But I still doubt that fiat will totally becomes obsolete for that matter, I think there will still be fiat around together with crypto currency in the future.

MidKnight

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I don't agree. I think we still need in fiat because there are certain situations that crypto does not fit. Bitcoin won't work to small time business like a small family store near a community whenever a person wants to buy a drink, shampoo or a piece of candy.

Lieldoryn

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I'm surprised to read such comments. OP are you sure this is the financier? Never cryptocurrencies will not replace Fiat. The basis of life of any state is the economy. Currency is what allows you to operate the economy. The government should regulate the economy with Fiat so that it does not become a chaos. How to regulate the cryptocurrency? We get the same mess in the economy on the market of cryptocurrencies.

xFiber

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At this point we know that cryptocurrency will take over at some point, or at least a form of payment that utilizes the blockchain technology. The million dollar question is when this will happen? It's very interesting that this strategist is facing reality and recognizing the fact that the time of fiat has ended. The current system still has major flaws and crypto currency can be a solution to those, I hope we can gradually strive to a mass adoption where cash or government controlled money is history.

Argoo

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The existing system of conventional money periodically provokes global crises, it is also not perfect. Money fiat will gradually be replaced by a crypto currency as a more technologically advanced system, however this process will be very long and, in my opinion, the crypto currency in the foreseeable future will not be able to completely displace the usual money. For this, the society is not yet ready morally or technically.

Lukas Tarantas

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Quote from: tyz on November 05, 2017, 04:42:27 PM

Deutsche Bank lead strategist Jim Reid believes the reign of fiat money could soon end and cryptocurrencies like bitcoin could take over the global financial market.

So many financiers believe. I do not believe that fiat money will disappear in the near future.

The Cryptologist

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It is already taking over but those anti-btc just keep ignoring it. Their fiats are going to be useless and I think that it will not take a decade for it to become obsolete.

iamTom123

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Quote

Reid delve extensively into the unstable fiat currency system and firmly stated that the fiat currency system will highly likely come to an end in the upcoming years.

Just a while ago I was reading an article quoting a certain man telling us that Bitcoin (and cryptocurrency for that matter) will not succeed in becoming the currency for the whole world all because it is unstable maybe due to volatility concerns. Now, here is another guy who is saying that fiat currency system is actually unstable. I am more inclined to believe in the analysis of Mr. Reid.

We have to remember that the rise of cryptocurrency happened after the great economic crisis that started to affect USA in years 2008-2009, which eventually spread to other parts of the world. Just one word I can remember at that time: BLOODBATH! So maybe we should be asking the right question: Which of the two systems facing us can be more stable and less vulnerable to manipulation and corruption? I think we all know the answer!

Should we then be wondering why Bitcoin is having a great surge right now? The more we hear famous people opening their mouths and saying something negative about Bitcoin, the more that the market ignores them. Now, that's a big fact!

tyz

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Deutsche Bank Strategist: Reign of Fiat Money Will Soon End, Will Bitcoin Take Over?

Deutsche Bank lead strategist Jim Reid believes the reign of fiat money could soon end and cryptocurrencies like bitcoin could take over the global financial market.

In a recently released research paper, Reid delve extensively into the unstable fiat currency system and firmly stated that the fiat currency system will highly likely come to an end in the upcoming years.

Reid stated:

Quote

“Central banks and governments which have ‘dined out’ on the 35 year secular, structural decline in inflation are not able to prevent it rising as raising interest rates to suitable levels would risk serious economic contraction given the huge debt burden economies face. As such they are forced to prioritise low interest rates and nominal growth over inflation control which could herald in the beginning of the end of the global fiat currency system that begun with the abandonment of Bretton Woods back in 1971.”

http://www.newsbtc.com/2017/11/05/53213/

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