Topic: Bitcoin and the Future of Money (Read 445 times)

Bitcoin is the master future if all digital currency and it is good to understand that is all about and even if you don’t have it now? Alway make plans to buy and store for the future

You are mixing up the three uses of a currency:

1. As an investment instrument.

2. As a means of performing a transaction.

3. As a means of measurement.

Those things are independent of each other. US dollars are used as all three right now, but I suspect #'s 1 & 3 will decline over time. I don't see the world getting rid of usage #3 though. The most important thing about Bitcoin today is it's value in US dollars. That's way everybody thinks of it. If I asked somebody how much something costs, and they replied "42.5 quatloos", virtually everybody would immediately translate that to US dollars in order to understand how much value that was. They can figure out how much of their savings this item would require, or how much work they would need to perform in order to earn it. The world needs this regardless of what happens to the US dollar itself in the other categories.



The US doesn't have a CBDC, and I suspect that project will never get off the ground. Non-government digital currencies will probably make CBDCs a moot point, I suspect.

As for the difference between a digital currency and PayPal/credit cards/banks:

1. A digital currency can provide anonymous transfer, e.g. like physical cash (there are technical problems with things like Bitcoin for this because of chain analysis, but other digital currencies solve this problem in other ways, starting with simply legally promising to not divulge your privacy for any reason barring a government subpoena, e.g. like VPN providers work).

2. A good digital currency (I'm really trying to do this without self-referencing here ) will have an extremely low transaction fee. Say, $0.005 for instance.

3. A good digital currency will be extremely fast, on the order of 10ms per transaction, which is ~500x faster than today's credit cards and PayPal et. al.

4. A good digital currency will be suitable for high-scale realms like games, wherein they could use "real" external currency instead of internal currency because the transactions would be fast enough to keep up.

So yeah, I think "good digital currencies" are the wave of the future and will replace most of today's physical cash transactions and many of today's credit card transactions as well.

Explain "measurement device".  Anything can function as a "measurement device", USD, EUR, BTC, LTC, GOLD, etc.  The distinctive aspect of USD is its current status as the global reserve currency.  If by "measurement device" you mean this, I highly question it. USD, like any fiat currency, operates essentially in an experimental realm.  But sure, it will probably always be possible to exchange goods and services for USD, just as with bitcoin. 


Digital currencies, like?  CBDC-USD?  How is that different from banks and Paypal for low value transactions? 

At a time like this when regulators are hitting hard on privacy of money and how money moves in the hands of the citizens, bitcoin future can be said t be a little unclear and seems that the time we enjoyed true freedom have past and for sure it may takes alot of struggle and hustle to have freedom in the future and if that be the requirements for the freedom of money that comes along with bitcoin it then means there is no freedom at all if the government is allowed to sweep privacy under their foot.


But the bitcoin original design is to support the financial inclusion of everyone who adopt it and also serving as an alternative to the highly centralised financial system around the world.

Bitcoin is already disrupting the banking industry and the same goes to the financial technology. The impact that it provides to the global economy is actually a lot.

You can have the conception that it does for those investors that are providing millions of investment on it. They're impacting the market cap of it and also the individuals that are part of it.

So, if it's about the global economy impact that it does, it's certain that it sure gives a lot of benefits to every aspect of life that's holding it.

Comparing the fiat and Bitcoin is easy to determine that where we can earn a lot of profits.  Holding a Bitcoin have the chance that we will got rich in the future as we all know that there's a chance that the current price will got doubled or trippled and that is what happen if the price increase then our investment or hodl amount will increase too. While investing on fiat only few of it will got a high income. But some of it are it's just a normal thing that can make a profits  too slow. So Bitcoins is one of the best investment coins.

BTC has played a good role in the life of users in different countries, which is the reason many people prefer to hodl BTC than fiat money because they know that no matter how long you hodl your fiat money in your bank account, it will not give you what BTC will give to you in a long period of time.

Government is the control of Centralized currency, which they can print more money to be in circulation for the citizens to use to provide food and other things to their families, and BTC is not control by the government because it was created for government to use to eliminate delay in transaction and unemployment in their various countries.

BTC can pump higher during the bull season for hodlers to earn well from the market, but fiat money don't use to pump for fiat hodlers to earn a big profit from their hodling because is a centralized currency.

The bitcoin was the best one for the long term investment,many traders get fear after the price of the bitcoin reduces to 60k dollars.But now check the price of the bitcoin it already near to 61.9k and on the way to the 62k dollars.The bitcoin was the decentralised one as like the other cryptocurrency it’s doesn’t have any company behind it to manipulate and make the trader at risk.The price variation of the bitcoin was purely based on the market demand of the bitcoin.

The price of the bitcoin was based on the legalisation of the cryptocurrency by the particular country.By legalisation two things will happen,one is the trader never need to worry of the loss of the money if they made their investment in the good coin.Secondly the taxes from the cryptocurrency leads to the usage of their government for their people by introducing some good schemes.This legislation plays huge role in the variation of the price of the bitcoin.

When you read older threads, you will have clearer understanding how the future works and what our duty is presently. The early bitcoin adopters had believed that by now bitcoin believers should be using bitcoin to buys things from the grocery shops. This is because of the promise of;

• Fast transaction
• Low transaction

But now, we are faced by reality that altcoins are doing the above two more than bitcoin.
I therefore, speculate the future of bitcoin only as A store of value , i.e the digital gold as it is being referred to, more than as a currency.

Thank you. (I would send you a +merit but I am presently out).

I am amazed how many people simply don't understand the difference between transacting and investing.

In summary, US Dollars have three potential roles:

1. As an investment instrument (usually not a good one for the long term).

2. As a means of performing a transaction.

3. As a means of measurement.

My experience is that people can't wrap their heads around that last concept: that the US Dollar is a measurement, like meters are for distance or kilos are for weight. Measurement systems like the metric system and the imperial system are used because people know them, and since that phenomenon feeds on itself, one can understand why they will never go away (and this explains, for instance, why the US is still stuck on the imperial system even after 60 years of trying to get out of it).

But you can use USD as a measurement even if you don't use it in the other two ways (again, look at what we are doing with the UE for Haypenny). This is why I think that, even while the first two uses (investment and transactions) may fizzle out for US Dollars, the third usage will stay around forever because we will always need a way of measuring a transaction that everybody agrees upon.

Bitcoin is an alternative to fiat and to traditional financial assets. But it's not a mutually exclusive alternative. People can use Bitcoin alongside fiat, and they can invest into Bitcoin while investing into other assets. That is why, while I believe that Bitcoin will continue growing and might at some point reach, like, a billion users, it won't disrupt the existing global economic structures, unless something unprecedented happens. It can coexist with traditional financial institutions and currencies, and I think that's how things will move forward.

But the impact is likely to be very different from the expectations of bitcoiners. In fact, these changes are already being felt - it’s not for nothing that governments are developing CBDC's inspired by blockchain.

You wanted to say about investments, didn't you? Because this is how most people perceive bitcoin, and not as money.

It's all because of their ignorance. Money (especially paper money) was never intended to store value.

People's interest in bitcoin has encouraged them to study financial issues in general.

In my own term on how I would speculate on the long term impact of Bitcoin is Bitcoin is the currency of the future.Bitcoin is a deflationary currency that has created for financial freedom globally.Bitcoin was created to purchase goods online without the involvement of a middleman but due to it's volatility in nature,enthusiasts have adopted the investment scheme for long term that profits huge amount return.Bitcoin is a digital currency not only a digital currency but it has it's unique monetary policy[Decentralization].

and this is what exactly what we are doing in bitcoin now , using this as like physical investment like Bitcoin because the main objective of users now wanted to keep holding instead of using as payment and that for me is something we must be warned , because if we all continue doing such then we will not hitting what Satoshi wanted to happen.

How will Bitcoin compete with dollars and euros? Do you think the US government accepts bitcoin ETFs so that bitcoin can compete with the dollar? I don't think they are that stupid.
By the way, they accept bitcoin ETF, which means they treat it as an asset, an investment, not allowing bitcoin to become a currency.


Banks provide dozens of services to users and play an important role in our economy, banks are not only used to deposit money or transfer money across borders. Banks aren't limited to those little things, so bitcoin can't easily challenge banks' dominance either. Don't be too naive to think that bitcoin is so big that it can challenge the world.


Until now, bitcoin was just an asset, an investment. It has not made any significant impact on the economy or financial system of any country, let alone the world.

The impact of Bitcoin on the future global monetary system and economy is inevitable. Since Bitcoin was born until now, it has gradually changed many people's thinking about money. Previously, many people still thought that cash could store value and could not collapse, but with the emergence of Bitcoin, people have come to understand how cash is created and how are their labor exploited through cash?

When the Bitcoin ETF was approved, it opened a new page for Bitcoin, officially making it a part of the mainstream financial system, which could create competition for other currencies such as the US dollar or euros. This could lead to the weakening of some traditional currencies and push them to look for ways to improve and modernize.

Traditional banking will also be challenged with the emergence of Bitcoin as cross-border money transfers are almost faster, easier and eliminate many complicated intermediaries when using Bitcoin. This means banks may have to adapt by offering new services or finding ways to integrate blockchain technology into their operations.

On a more macro level, Bitcoin can affect the monetary policy of a certain country. If Bitcoin becomes more popular and affects the global financial system, authorities such as Central Banks may need to reconsider their approach to currency management.

The reason why many people are speculating bitcoin on how it will be big in the future is because in this early stage of bitcoin it has done very well, getting more awareness,  of good benefit to people and a ledger tender in some countries. From what people can see in this early stage of bitcoin,  it is belive bitcoin will be bigger than other asset that have been existing before bitcoin was created. How far bitcoin have gone is an assurance that it will be of greater in the future.
For bitcoin to be legalized is very important because this will give people access to accept it freely and it will also give bitcoin more awareness. For the short time bitcoin have being we can all see that it is good having it as an asset and I know adoption won't be a problem for bitcoin, it may not come very fast as we want but it will be adopted by most countries.

Due to high transaction fee, and higher percentage rate of appreciation overtime. I think Bitcoin would be use as wealth preservation like gold and other assets instead and not as fiat like dollars. And in fact, many investment companies are now considering Bitcoin as one of their instrument to keep their investments. Yes it can be use for transactions as it's have a true value, but for me I don't see it to be used as major currency but as in a form of investment.

One could easily write an entire book on each of topic that you mentioned here. These are very broad topics. We can break them down further.

Anyway, I am generally looking forward to the day when money would be separated from the state. Bitcoin might become the strongest case for it. Such isn't anymore a mere theory because Bitcoin exists. It's a hard proof that it can be turned into a reality.

Another point is that money in the future could be designed in such a way that it is neutral and can't be influenced by external factors. Such is the design of Bitcoin.

Banking would adapt. The process is gradual. It has already started.

As to the global economy, it has yet to adjust to the kind of money that Bitcoin is. The world remains a fiat world.

Interesting suggestion about LP on an EVM compatible network for bonuses. As for the BTC chart, a hanging candle mid-air sounds like an intriguing moment. Are you expecting a bullish breakout?

I don't know because we don't even know how far bitcoin can go yet and we're only in the early stages, it's hard to say anything.
Many people think that bitcoin will be as big as gold, will have an impact on the world economy, banks... blah... blah... all are just baseless predictions and no one can guarantee what they say.

We should focus on one stage at a time and the next thing we should aim for is bitcoin being legalized globally before thinking about bigger things. Bitcoin has not even been adopted globally yet, there are still many countries that have not legalized it, so don't rush to think unrealistic things.

An interesting thought from you, but regardless of what you said above, there is no message that BTC wants to convey to all who believe that BTC is a win-win solution in the future and We'll see when more countries recognize and adopt Bitcoin as a legal currency.

Regarding sustainability, of course, lies in demand, the more that comes to BTC, the better the growth even though market volatility is often inevitable plus skepticism from many parties that still exists today and continues to haunt it. Yes. This is tied to adoption and consumer trust of course.

Long-term impact? I'd say that it will be affecting those that will invest in it most of the time, I don't believe that it will affect the economy big time because it's like stocks but the only difference is that there's no company behind it. Maybe it will have some kind of impact when it becomes adopted as a legal tender by more countries, we know that the more people that are using bitcoin then the more the demand increases for it and with more demand there is then the price will definitely increase, that's the only way that bitcoin will have a long-term impact that would be significant to the global economy in my opinion, bitcoin's already good as it is but the problem is that the recognition is still so lo and the resistance and skepticism of many economic leaders is still rampant, maybe if we start changing that, we would see something different or maybe even better, we might expedite the long-term impact that we're talking about.

What does it mean to be a "global currency" though? I am talking of its use purely as a measurement device in order to figure out how much money to charge for things, or how much money you "have". Inflation of the USD wouldn't change this. The USD has inflated probably 3x in my lifetime, but I still know what I should personally pay my gardener per hour. I wouldn't know how much Bitcoin unless... I converted the value to USD.

To me, USD is akin to.. the English language as a standard "common tongue" means of communicating.

This is already happening. Many people are already cashless but it does not pertain to credit cards or such.
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I'm pretty much cashless these days, but I wish I didn't have to use my CCs or PayPal for any purchase under say $100. Right now it's ludicrous that buying something from a vending machine requires an exchange or personal information--and I don't even dare trust the average content charge e.g. for a news story. All of that stuff really needs digital currency that can operate without identity just like cash. No digital currency has crossed over into the mainstream yet (although some of us are working on that ).


I mean an investment people make purely based on the name and how it makes them feel. For most people who invest in Bitcoin, the investment is in the name, "Bitcoin". They don't know what "decentralized" means, and their investment is actually just an entry in some central database at a broker. They are buying the word, "Bitcoin" because they think the word, "Bitcoin" will be worth more in the future.

Bitcoin's actual utility is extremely narrow since it isn't even a very good means of clandestine value transfer because of chain analysis. And it's absolutely unthinkable as a mainstream means of transacting. Most will pay more for Bitcoin than they do for Ether for the same reason they pay more for the same exact shirt with a Gucci logo on it versus a Nike logo versus Fruit of the Loom.

I think it is very clear the direction of movement and economic growth in the future where everything will be digital and BTC is one of them that will become a global currency in the future only currently in the process of traveling there.

All because of the technology, because blockchain and blockchain are accountable and can be used by anyone and anytime. Is OP still in doubt on Bitcoin?

Of course, the price of this asset also fluctuates, but that's normal. Just wait for 2025 if that's not how it happens later.

It will depend on whether the us dollar can maintain or improve their position. Many are trying to make dollar fall in act of dedollarization and other nations are very well intentioned to do this. So if their currency falls, it might not be the global currency anymore.

This is already happening. Many people are already cashless but it does not pertain to credit cards or such.
What do you mean meme? Bitcoin is far from being a meme investment.

My predictions?

1. The USD will stay around forever as a measurement device. Much of today's wealth worldwide is measured in US Dollars, and I think as things get even more globalized, this will increase. Prices for goods and services, salaries, people's measurement of their own wealth and company's cash flows will be measured in US Dollars.

2. Digital currencies (not blockchain-based) will replace today's cash transactions for "small" things and online content, and these transactions will partially replace credit cards and payment services (PayPal et. al.) as well.

3. Cryptocurrencies like Bitcoin et. al. will remain as high-end meme investment instruments and stores of wealth. Non-blockchain digital currencies will take over the low end of the meme investment market.

4. People's stores of their wealth--today, called, "bank accounts"--will change into seamless, automated, diversified portfolios of investments that convert to either USD or digital currency on the fly. In other words, people will hold less and less sovereign currency because technology will allow them to only trade into those currencies when they absolutely need to for trade, or simply want to as an investment decision. For instance, Europeans won't hold Euros unless they happen to think Euros were a good investment at that moment, just like they'd invest in Bitcoin, Ether, or Legiteum.

5. As of this week, I'm now predicting that CBDCs do not have a place in the future world of money . In the above scenario, where would a CBDC fit in? Why would you need one?

Bitcoin is the future of money.

We are seeing how currencies would be in a few years time. Of course we’d have to develop it more and there’s a bunch of regulations to go through but I really believe that bitcoin could be someday adapted by many if not everyone.

The blockchain technology will definitely contribute to the banking system and might be incorporated into it. Central banks would have to find their balance between centralized and decentralized.

As per global economy, I am sure that an individual’s economic status can be improved through bitcoin.

If bitcoin would stand on it ground for the buying and selling of goods and services with p2p, the future of fiat money for National and the Global level would have been shaking. Even now the way things are going if bitcoin is accepted to be use for shops and other events centers in many communities and countries then the future of fiat currency will be in trouble. I think when bitcoin has been use massively in many stores, there costs of living will reduce because many countries use dollar to increase their products because they are using imported goods and products.

So they use dollar rate to make things costly for their citizens to buy. Though the fiat currency can't be automatically eliminated but it will be reduced drastically and the printing quantity will be reduced as well. And even now too the printing of fiat currency has reduced and why things are still.om the high side is because of the dollar exchange rate because most of the things we buy are imported goods.

More BTC will be in circulation, more Alts will be in circulation, and more money will be in circulation as well. Thus more USD and other fiats will be printed. And the banking system will be making a lot of money as well. Because countries are now accepting BTC and relevant products and imposing huge taxes and fines on crypto users and crypto bad actors respectively. And in this, banks and governments will make a good amount of profit. Overall, banks will only make money while the user will withdraw or deposit fiat to crypto and crypto to fiat.

When banks will make money and when governments will make money then at individual levels of countries a single country's economy will nourish and grow and then one by one countries accepting BTC will increase its adoption and more money will be printed and more money banks and governments will make. Banks will stay there and BTC will not take the place of Banks. As they are highly dependent of each other at the moment.

Maybe many people still think that bitcoin in the future can affect the global economy including replacing fiat because its value continues to fall due to inflation.

Fiat will remain and this will be the transaction of most people in the world while bitcoin is only an alternative used by people who do not want to be controlled by the government so bitcoin may not change the overall economy but what is clear is that bitcoin will be more popular as an investment.

Speculate no further because this post might just end up in the speculation board and the point you try to emphasize might be become very skewed.
Bitcoin and cryptocurrencies is the future of money no doubt, and the countries that have chosen to adopt it are actually in more control over their macro economy and the future of their trading currency.
It makes sense that a world Bank country like Switzerland, that is Lugano in particular, could adopt cryptocurrency just like El Salvador and use it to facilitate growth and prosperity in their country.
I can't talk about the control that comes in form of government regulations, but one thing is certain and that is that, cryptocurrency will get accepted eventually and would b recognized as a global payment option for transactions across borders.

Bitcoin has already sharpened the way most people view and understand world money; they can now differentiate between the way it could be used and how it shouldn't, when you need privacy, which currency you should go for, and when you need total control, which currency you should hold.
 
What I have learned to understand is that Bitcoin now has a place in the financial sector, and it's not there to replace any currency; rather, it's there to be used by those who want to use it, just as local currency usage can't be eliminated; there is always a need for it.

when you are talking of Bitcoin you are talking of a digital currency and we all know quite well that there is different between someone who is banking with bitcoin and someone who is banking with Fiat currency so from my own understanding I believe that bitcoin is more safe than someone who is investing with a Fiat currency because Bitcoin how a decentralized method in which a fiat currency have a centralize method to operate

53k. It's going down. Oh. In EURO.

The impact of Bitcoin on a long term effect on your financial economy is for you to have control over your assets, determine which and how to engage it use, remain being decentralized from the effects of government or any other centralized financial institutions, which we talked about having privacy, and at the end, when you hold your asset with you in your personal wallet, you have the right to gain a future profitability from it, instead of holding your asset in fiat and being affected by loss of value over time as a result of inflation.

Do some LP on an EVM compatible network if you want a bonus.

BTW. Check the BTC chart. I have a candle hanging mid-air.

I understand your concerns about government-owned currencies and the trust in Bitcoin fluctuating. The community's resilience and innovation are indeed promising. It's exciting to see how Bitcoin and blockchain technology are shaping the future of money. Let's stay optimistic and keep an eye on the positive developments within the crypto community.

You asked a very big question and I believe even you did not imagine what you actually want to know.

So, please read these books and clear out your questions.
The bullish case for Bitcoin. It's free on Medium.
The little Bitcoin book. It's not free.

Bitcoin can not change the global economy, it does not have a power to do this and it was not designed for it.

I don't really trust it as I used to. Because a lot of currency is already gov owned. However, I do still trust the community and its waves. I hope lots of good things come out of it.

Speculating on the long-term impact of Bitcoin on the future of money, banking, and the global economy.