Nope it won't work, if all fiat currency is gone what will happen is powerful countries as well as multi-billion dollar companies will hoard as much as supply they can in order that they can take control of the word which is not far from happening. No law can change this and no regulation can change the tide as the one with the most BTC will have the greatest influence in the economy. Having no fiat currency is simply wrong as this kind of currency will show how selfish the people are in this world.
Well said, this what people can be because of greediness, they wanted to overpower and become the controller of the system, if things like this happen we will witness how superpower countries will try to dominate and for sure it won't be the best of each individuals around the world, fiat currency should still coexist with bitcoin, it will represent how solid the economy was by each country that exist. 
Topic: Can Bitcoin even work in our current system? - page 7. (Read 12976 times)
bitcoin can now be used with the current system, but there are still many problems that need to be fixed first so that the use of bitcoin is more effective and more advanced than now, if the problem is solved then more beginners will and want to learn about bitcoin and more now.
Nope it won't work, if all fiat currency is gone what will happen is powerful countries as well as multi-billion dollar companies will hoard as much as supply they can in order that they can take control of the word which is not far from happening. No law can change this and no regulation can change the tide as the one with the most BTC will have the greatest influence in the economy. Having no fiat currency is simply wrong as this kind of currency will show how selfish the people are in this world.
But with bitcoin you can't loan money that doesn't exist.
That's what we have tokens for that can run on top of Bitcoin. USDT is the perfect example of how you can create money that doesn't exist, and it can be done in more ways than just one. It grants you the security of Bitcoin's immensely powerful network, and you have the possibility to issue tokens subject to inflation, or even back them by whatever you think it should be backed by, so I don't really see an issue here.
In the end, people advocating for freedom of choice shouldn't want fiat to be replaced or killed off, because that's not different from governments trying to kill off what they don't like.
I think all platforms can use the technology owned by bitcoin, because I see that bitcoin can record all transactions that use bitcoin and the advantages of bitcoin technology is that transactions can be seen by the public and how small it can be recorded from that technology can make bitcoin used for many systems .
But with bitcoin you can't loan money that doesn't exist.
Bitcoin will never replace FIAT. They'll coexist. If bitcoin will be deemed as the only currency that we can use then lending is possible. People will always try to find ways to lend out money. How can we use bitcoin as a mode of payment if it doesn't exist?
Even if we peradventure, get it to work and maybe in a way we have a large set of people all over the world making good use of it, I still do not see how fiat would still not be in existence, as there would be some fractions in the world that would not even have access to this and possibly they may just want to stick with the usage of fiat and all the other opportunities they may get from it, and with that I believe bitcoin would just be another alternative way to spend.
Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin. Ignore scalability issues for this scenario.
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
Working fully in our current system when the fiat space is abandoned and no one wants to even make use of it at all, then this is certainly something that would really be hard to come by as governments will try everything in their power not to make it work.I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
Nonetheless, in cases like this and with bitcoin being deflationary which means we only have a limited supply at the long run and when the last bitcoin ends up being mined, we are only going to be left with the ones that are not lost in circulation, this would mean a big huge growth for bitcoin and remember, decentralization means no control, no economic policies that would affect anyone but I can't imagine how that would ever work out.
you are right that is borrowing more money will potentially trigger the rise price in everything. Therefore people should change the consumerism or consumptive habbit, they must be productive in life.
Bitcoin is such as real fiat or paper currency that created in limited because the creator know if it it is created in a massive number of course there will not be a value for bitcoin. However, both are two different currency.
Bitcoin is such as real fiat or paper currency that created in limited because the creator know if it it is created in a massive number of course there will not be a value for bitcoin. However, both are two different currency.
Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin. Ignore scalability issues for this scenario.
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
Banks maybe turn their bussiness to lend cryptocurrency. If cryptocurrency replacing fiat money, i am believe banks will evolve their bussiness and accepting cryptocurrency for deposit and lending.
That is the key difference between any fiat and Bitcoin - Bitcoin is finite, and it is still not available in its total quantity.
This will, first of all, make it extremely hard for bank and governments to control economy - the only way to influence the amount of money on the market is to mine faster, which has its limitations in spending money on mining equipment. It still leaves the issue of mining difficulty open, though.
As for the people, the problem is in slowly increasing time for each transaction - no one wants to wait 5 minutes every time they pay for anything. The prices, as you said, should drop.
It is natural thing if only limited supply of currency is available.
This will, first of all, make it extremely hard for bank and governments to control economy - the only way to influence the amount of money on the market is to mine faster, which has its limitations in spending money on mining equipment. It still leaves the issue of mining difficulty open, though.
As for the people, the problem is in slowly increasing time for each transaction - no one wants to wait 5 minutes every time they pay for anything. The prices, as you said, should drop.
It is natural thing if only limited supply of currency is available.
You are surely true with whatever you have suggested up here. Actually when such scenario will happen then things may even get brighter and smarter than what they have for the blockchain technology. I guess if bitcoin was only one focus then developments would have been made for it and thus next level of Bitcoin v2.0 can take birth easily. If we are pretending fiat is gone then surely banks will develop the bitcoin to all new level and will start giving some better services with its born features.
I guess its not finite, its finite in number but not in its fractions. Remember a Satoshi can also be transferred over blockchain and it can be equal to couple of hundred dollars to thousands dollars thus making it possible to use on mass level.
There is a lot to consider as our current system isn't without it's issues, and as time passes there are there are changes happening to the market that makes for even more uncertainty as nothing can be determined for sure. All we can do is wait as nothing can be said for sure what works now will tomorrow for sure.
Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin. Ignore scalability issues for this scenario.
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
Its hard for all country in the world using single currency. National currency usefull to measure their economic condition and i am believe bitcoin can not use as national currency. But if bitcoin system implemented by government, i am believe it will be good for their economy
But with bitcoin you can't loan money that doesn't exist.
Bitcoin will never replace FIAT. They'll coexist. If bitcoin will be deemed as the only currency that we can use then lending is possible. People will always try to find ways to lend out money. How can we use bitcoin as a mode of payment if it doesn't exist?
But with bitcoin you can't loan money that doesn't exist.
Bitcoin will never replace FIAT. They'll coexist. If bitcoin will be deemed as the only currency that we can use then lending is possible. People will always try to find ways to lend out money. How can we use bitcoin as a mode of payment if it doesn't exist?
Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin. Ignore scalability issues for this scenario.
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
Lending can still happen even with bitcoin, it's just that the money being used for lending will not be generated out of thin air and therefore there won't be such inflationary pressure on the currency. As for how that would work from an economic point of view it's hard to truly answer as it's never before happened.
Lending in fiat requires some form of security by including third party like guarantors but how will that also be possible with bitcoin where bitcoin even don't adopt third party agreement. It's really not too difficult, it's the same as in fiat, persons asks to borrow money and the lender asks for something to use as collateral, a house for example with a mortgage. As for governments borrowing money from themselves which they intend to print in the future then as I said that won't be possible. We are already moving away from a world where banks and governments can lend/borrow with little reserves so it's not impossible to function with 100% reserves.
Well, I mean it's kinda the only way to do if we pretend that all the fiat money is gone. Bitcoin was the main choice after that, it does work for our system but I think it might be need time for it, will not so easy changing the economy system of the entire world using cryptocurrency.
NO.That's why we have to change the current system into another system that is build on a crypto foundation.
The current debt/credit fiat system is going to collapse sooner or later.We have to be prepared for the financial Armagedon and we have to solve our own problems inside the crypto world.
The current debt/credit fiat system is going to collapse sooner or later.We have to be prepared for the financial Armagedon and we have to solve our own problems inside the crypto world.
I agree, more and more people are borrowing from banks to fiat, making large fluctuations and making the price of necessities more expensive if it continues.
Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin. Ignore scalability issues for this scenario.
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist. Maybe we would have to change our consumerism as a society and prices would drop. Being able to borrow money easily makes everything rise in price. What are your thoughts?
Definetly in my own thought,at this situation now crypto could not adapt or totally works in our current system now especially if we imagine that fiat all are gone and crypto become the alternate all of this asdoing all the transaction,because the crypto are not totally awaken now in order to doing all system in monetary fund of the whole world.
Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin. Ignore scalability issues for this scenario.
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist.
I'm sure most of you know that most money is actually created by banks through fractional reserve lending. Our economy is stimulated by people constantly taking out loans to make purchases. But with bitcoin you can't loan money that doesn't exist.
actually, you can. fractional reserve banking is a separate issue from the money supply. fractional reserve just means a bank holds only a fraction of its deposit liabilities on hand. this is not necessarily incompatible with "bitcoin banking"---it just means bitcoin bank deposits may not be fully backed.
hal finney spoke cogently about this subject in the early days:
Actually there is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, redeemable for bitcoins. Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and included in the block chain. There needs to be a secondary level of payment systems which is lighter weight and more efficient. Likewise, the time needed for Bitcoin transactions to finalize will be impractical for medium to large value purchases.
Bitcoin backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoin backed. Interest rates may vary. Cash from some banks may trade at a discount to that from others.
George Selgin has worked out the theory of competitive free banking in detail, and he argues that such a system would be stable, inflation resistant and self-regulating.
I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash. Most Bitcoin transactions will occur between banks, to settle net transfers. Bitcoin transactions by private individuals will be as rare as... well, as Bitcoin based purchases are today.
Bitcoin backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoin backed. Interest rates may vary. Cash from some banks may trade at a discount to that from others.
George Selgin has worked out the theory of competitive free banking in detail, and he argues that such a system would be stable, inflation resistant and self-regulating.
I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash. Most Bitcoin transactions will occur between banks, to settle net transfers. Bitcoin transactions by private individuals will be as rare as... well, as Bitcoin based purchases are today.
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