Topic: Are FIAT Currencies Facing an Extinction Level Event? (Read 2070 times)

Lol let me get this straight..  the fact that some people who call themselves "governments" or "banks" also claim to have some modicum of control over the issuance of a no-cost private issued note --  is an assurance that nothing will challenge it?  By the same logic, I claim to control all snails.  Therefore nobody will be faster than a snail. 

Actually you got it reversed.  It's fiat that can't be regulated, as it is issued in private -- this means nobody really knows how much is issued / printed.  Corruption is inevitable.  Public coins like bitcoin on the other hand - are regulated perfectly and can have the regulation verified by any participant. 

I agree with you also, I don't believe that fiat is already on an extinction level yet. Many still use it today in transactions to pay for goods and services that they need in their everyday life. Fiat is still needed to survive in this world so its not on an extinction level yet. Before it happen, there might be a crypto currency that is made by the governments to replace fiat and that crypto-currency is centralized I think.

I think there is some difference between horse-car and fiat-bitcoin situations. Horse is obviously worse than a car, because you can only travel alone with a horse and you have no shelter in case of bad weather. Fiat has inevitable inflation and bitcoin doesn't. However, bitcoin is not and can not really be regulated by any government, whereas people mostly prefer some guarantees and stability instead of anarchy.

Yeah i thinks its more likely even that bitcoin would be extinguished before fiat ever could be. The fact that fiat is controlled by governments and big banks pretty much assures us that no other currency now or probably in the future could challenge fiat's supremacy

I think that fiat will not on extinction, but governs could change to digital fiat in some years. Bitcoin can't be manipulated by governments, they will try to create digital coins under its control (not decentralized, and that they could change).

They are both currency and they function as currency, they are both being traded except the other one is decentralized and driven by speculation.  I do  believe that fiat currencies are facing extinction but not soon.  It will take long years before electronic money take over.

I don't think it would be the same with currencies though. We've also seen upgrades with the xurrent fiat system but the basic cincept is still there. I dont think thr world is prepared to go full digital when it comes to monetary systems. It still would be the same currency for a long tjme but with advancements and im seing here that the role of cryptocurrencies would nit be to replace fiat but to support it as backup or an option for people who have access to it

Nope. Not yet. I honestly can't see it happening anytime soon.

I know that in some countries people are more and more dependent on cards and that digital currencies
are gaining some ground. But, it's nowhere near the point where it could take fiat's place.

For me, I use Bitcoin but still prefer using cash when buying/paying for things offline. It's just more convenient in my area, and cheaper too.(fees, interest, charges, etc)

A decade before no one can even think that fiat has any threat of losing value to digital currency and now we see the current situation.  People still think that Fiat can never die but who knows in the next 10 years there shall be no fiat. I just cannot rule out this thing that fiat cant die, It CAN 

no they are not because apart from a amall portion of bitcoin users, nobody else in the world thinks about using anything other than fiat currency. even most bitcoin users are just using bitcoin as investment and nothing more than that.
this is sad but true

The evolution of email and public transport has no relation with the current economic situation. Fiat can't be replaced by any crypto currency only because they are not governed by any central authority.

However, some government s can adopt the blockchain technology for future need of money but they will be restricted to that country. It will not become an international currency.

Maybe, if people lose their fear of technology, yes. While it is convenient for people to use fiat money they will continue to use it. Here in Brazil people are afraid to use internet banking. 

20-30 years ago the internet was something hard to been used on real life and right now every where the internet can be used just on smartphone, it is same with digital coins. Today digital coins are hard to be used for daily transaction, sometime digital coins can be used with easy on real life and replace fiat currencies on 20-30 years later.

Because Fiat currencies, by definition of being "fiat" are unbacked by anything but government edict, they are always vulnerable to a population choosing something with more durable value. The whole reason governments gravitated to Fiat was to enable them to manage and manipulate the currency to achieve political ends. Typically that means supporting inflationary trends so that governments can run deficits, buying votes in the short term by placing future generations (who have no vote) in debt slavery.

The average person doesn't like this, even if their understanding is vague. So yes, a real alternative to fiat currency does serve as an existential threat to fiat currency. HOWEVER, the alternative has to be flatly superior in every way that matters for fiat to be at risk of extinction. Current Bitcoin and cryptocurrency in general exhibit several advantages, but others remain as open issues. To wit:

1. Ease of use. Crypto payments must be as easy as swiping a credit card or counting out cash, with none of this public key copy-and-paste nonsense.
2. Security. Bitcoin as a system is very secure. Bitcoin wallets and online services, not so much. Fiat suffers the same problem but has an infrastructure of insurance (FDIC) and so on to mitigate this problem.
3. Right mix of Privacy, Audibility and Traceability. People need privacy in a way the open bitcoin blockchain precisely lacks, and we need the ability to track down thieves that is also lacking. Auditability is ultimately important not just to businesses but also to governments and to honest individuals (who would like to be able to prove their financial health and/or tax compliance on occasion). While these seem like conflicting goals, progress in altcoins like Zcash is showing that it may be possible to have much better solutions than we have now.
4. Transaction capacity. Enough said.
More would be added for a complete list (widespread adoption, better tools to prevent erroneous AND irreversible transactions, etc.)

I'm hopeful these can be solved, but it will not happen overnight. So fiat has a little breathing room. But it may be extinct in the time of my grandchildren if these problems are solved.

I think electronic payment options as a whole, are placing Fiat currencies under pressure. How many people in 1st world countries still draw

cash to make payments? I think Crypto currencies will possibly grab a big percentage of the online payment market, because it has the

improved security over centralized services. { That is to say, once Bitcoin are used without 3rd party services } The 3rd world countries

might replace Fiat currencies because it is cheaper. { Minting and printing money is expensive } 

I don't think bitcoin would replace Fiat any time soon cause there are still a lot of number of people that are using fiat that cryptocurrencies, but there are a possibility that Cryptocurrency can become a replacement for the fiat but bitcoin would just become a sub and other countries would introduce their own altcoins that represent their country, well let's just see what awaits us in the near future.

Probably not something that is going to happen in this decade, and perhaps not even in the next decade... but in the long run, the tendency is for fiat currencies to lose their value, as governments that are controlling these currencies make decisions based on individual interests, and people suffer the consequences of this by using a weak and centralized currency.

Certainly not!
Fait currency of a country is regulated by Central Bank of the country. It is backed by reserves. Every country adopt different methods of reserves like'Minimum Reserve Requirement' etc.
Every country works hard to develop its own economy through strengthening its currency. No country gonna adopt Bitcoin as its main currency else it will blow its economy!

Bitcoin is not a threat to any of the fiat currency.First of all bitcoin is not considered as a legal currency in many parts of the world. What to say, many of the population in the world haven't heard about this digital currency. So how bitcoin can cause a threat to any fiat currency. By chance if bitcoin rise up then governments will regulate it's usage. Because if everyone starts using bitcoin then government won't get any tax. If government doesn't get tax, it will affect the proper functioning of government which in turn will affect the economic condition of whole country. Governments Won't wait to happen that situation. before that itself they will regulate it's usage or may ban it. So in anyway it's not a threat to any fiat currencies.