Can cryptocurrencies replace fiat currencies - page 2.

Sithara007

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That's not possible for cryptocurrency to replace fiat legally, because lawmakers will deal on it seriously. Due to volatility and unstable value it won't sustain for the economy, and though there's a good potential for this coin to gain positive reactions from every person but I think it will turn to conflict with economy. Unlike traditional fiat system, the regulation is present with stable price which economist can't manipulate to cause sudden price collapse.

Disagree with your view. Already El Salvador has made Bitcoin as the legal tender. It is not necessary for Bitcoin to replace fiat, as they can exist side-by-side. But theoretically, it is possible for Bitcoin to replace fiat currency in a legal way. However, it should be noted that El Salvador didn't had a national currency since 2001 (they were using the US Dollar for most purposes, while the Salvadoran Colon existed only in documents). However, I have heard that Panama is also considering to make Bitcoin as the legal tender (along with their national currency - Panamanian Balboa).

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Quote from: ROSERTY on July 12, 2021, 09:42:34 PM

Cryptocurrency is a new trend in the modern financial economy, and it is an Internet-based medium of exchange that can be traded using cryptographic functions.
The decentralization and transparency of cryptocurrency makes it free from government supervision and control, and it is the owner who controls own wealth. The benefits of cryptocurrency make many new users to invest in it, and it has been accepted and recognized by more people. Some countries have banned bitcoin from the beginning to now accept and use it, and some countries use bitcoin as legal tender.
With the passage of time and the increase in value, will cryptocurrency be used in the world instead of fiat currency?

No, no and no! BIG NO! Cryptocurrencies aren't that decentralized anymore and a lot of regulations are set on them and more comes as time goes. Also, people don't invest in them because of how innovative they are and the last price history and it's action to certain "Tweets" proves that. People invest in cryptocurrencies blindly, follow someone's advice that you can get rich by buying bitcoin or following someone's tweets that promise them that they'll rise the price (and yeah, I mean Elon Musk).

Bitcoins won't replace the fiats, the government will never/ever lose control on the money and its supply/circulation. And why will they replace fiat? You can easily use visa/master card, amex, union pay, etc, you can easily send/receive money online via regular bank transfer or via neobank. Fiat is digitalized and very comfortable to use. If there is any crypto offered by the government, it will be under their control too.

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Quote from: marilynmanson21 on August 02, 2021, 09:03:22 AM

Judging from developments, I think crypto can be a substitute for fiat money where fiat is the basis of the value of crypto itself, but prohibitions in some countries can hinder the process, because one country has its own fiat characteristics and usd is the world currency

I really don't understand what you're saying, because basically the global currency used today is usd and we can't ignore it let alone replace it with bitcoin.
and besides that if you look at bitcoin's fluctuating attitude at least we should be able to think of a solution when the price of bitcoin goes up or down because this is very risky when bitcoin is used as a substitute for fiat in the future this will be a problem which I think will take a very long time to be resolved and this requires a lot of sacrifice

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Quote from: ROSERTY on July 12, 2021, 09:42:34 PM

Cryptocurrency is a new trend in the modern financial economy, and it is an Internet-based medium of exchange that can be traded using cryptographic functions.
The decentralization and transparency of cryptocurrency makes it free from government supervision and control, and it is the owner who controls own wealth. The benefits of cryptocurrency make many new users to invest in it, and it has been accepted and recognized by more people. Some countries have banned bitcoin from the beginning to now accept and use it, and some countries use bitcoin as legal tender.
With the passage of time and the increase in value, will cryptocurrency be used in the world instead of fiat currency?

I don't think so. Because government maybe not want anything disrupt their fiat, maybe in future if people force them to use crypto instead of fiat, Government will do something that maybe can made us really hard to use our crypto like maybe made it illegal and closed every centralized exchange, although there are a lot of decentralized exchange, not resist that user of centralized exchange will get disruption because they usually use centralized exchanges.

YOSHIE

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Quote from: ROSERTY on July 12, 2021, 09:42:34 PM

will cryptocurrency be used in the world instead of fiat currency?

People should think that this type of crypto is not just Bitcoin, there are thousands of types of crypto circulating in the market today, why should people think crypto should replace as fiat currency, think logically, how can thousands of fish in the sea be made into meat.

Crypto is still crypto, it's just used as a medium of exchange that is measured by the value of fiat currency in each country such as Bitcoin etc.

For me, I don't have a strong reason that crypto will be turned into fiat, what's happening now is better than what hasn't happened yet.

there is not and will not happen, in all countries in the world using one currency/crypto/Bitcoin, and it will not happen that one country uses many currencies with hundreds of crypto types, impossible.

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Quote from: adzino on July 30, 2021, 07:17:35 PM

I doubt many people buy crypto currencies because of their use cases or giving people the power or because it's decentralized. Most of them invest in crypto currencies to make short and long term profit. Once they reach their profit goal, they are going to go back to fiat. Sadly this is the truth. As long as people keep on depending on fiat currencies for everything, crypto currencies won't be able to replace them. At best we will be seeing both of the currencies being used side by side. Even if fiat gets replaced, it will be by some centralized currency.

That's right. everyone comes to cryptocurrency looking for profit and get rich quick.I don't think it's entirely good that crypto will replace fiat.It would be great for the government to accept cryptocurrencies, both co-exist and use together.

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Quote from: DU18 on August 02, 2021, 02:29:47 PM

the two currencies, both digital and fiat money, in my opinion have similarities, both are acceptable to the public because they have a function as a transaction tool in making payments and purchasing goods and services, fiat currency has value and is trusted as a medium of exchange because it is issued by the government while digital money apart from being an investment tool, digital money can also be used as a transaction tool even though it is not issued by the government, but in this case of course there are many policies from the government that prohibit the use of digital currency as a transaction tool and one of them is the nature of digital currency which is not limited and cannot be controlled by the government, however, along with technological advances in today's modern era, of course, one day the government will be able to accept digital currency as a substitute for fiat currency or the currency we usually use today, because currency digital has b many advantages both in terms of transaction speed, security and ease of storage.

Digital currencies can also be issued by the states themselves, which these states have recently been using very well and are looking for new options Wink

Whether the states will want such a competitor as digital cryptocurrencies is a very big question, because there are a lot of pitfalls, for example, about the level of emission. No offense, as the head of state, you would like to influence the inflation rate in your state and somehow try to influence it. Now imagine when there are guys from a foreign state who are trying to influence this... Personally, if I were the head of this state, I would think about it a little... And even more so about the displacement of the national currency by some competitor...

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Quote from: Republikcoin.com on August 02, 2021, 04:52:11 PM

Quote from: Kusman on August 02, 2021, 03:16:45 PM

I think that cryptocurrencies are not to replace fiat money. It's not their main goal. They are a great alternative way to use and invest into. And as they are volatile, it's really difficult to see them being the world currency or the main currency of a country. And I'm pretty sure that they will stay like this in the future also.

Yes, indeed Bitcoin and cryptocurrencies will not replace fiat. However, Bitcoin and cryptocurrencies will not be like this forever, because every time Bitcoin and cryptocurrencies experience development which is a progressive rate of a powerful but not well-known technology.
I support Bitcoin to be more powerful, and cryptocurrencies are starting to become a mainstream payment tool, at least as an alternative payment gateway for those who want their privacy to be maintained.

Even though the digital era is growing, and online payment systems are increasing, it seems that cryptocurrency will not be able to completely replace fiat, but only as an alternative to payments. Yes, it is true, regulatory constraints are obstacles, but it is the right of every country to maintain its economic sovereignty. e-money can also be effective in online transactions.
but lately, there are several countries that have had a discourse to create their own cryptocurrency. I don't know if it's just a rumor or a plan to deal with digitalization and the rapid development of technology.
what is clear, cryptocurrency and fiat have their respective advantages, there is no need to debate which one will lead in the future. whatever is important is that we can use it comfortably.

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Quote from: Kusman on August 02, 2021, 03:16:45 PM

I think that cryptocurrencies are not to replace fiat money. It's not their main goal. They are a great alternative way to use and invest into. And as they are volatile, it's really difficult to see them being the world currency or the main currency of a country. And I'm pretty sure that they will stay like this in the future also.

Yes, indeed Bitcoin and cryptocurrencies will not replace fiat. However, Bitcoin and cryptocurrencies will not be like this forever, because every time Bitcoin and cryptocurrencies experience development which is a progressive rate of a powerful but not well-known technology.
I support Bitcoin to be more powerful, and cryptocurrencies are starting to become a mainstream payment tool, at least as an alternative payment gateway for those who want their privacy to be maintained.

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I think that cryptocurrencies are not to replace fiat money. It's not their main goal. They are a great alternative way to use and invest into. And as they are volatile, it's really difficult to see them being the world currency or the main currency of a country. And I'm pretty sure that they will stay like this in the future also.

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the two currencies, both digital and fiat money, in my opinion have similarities, both are acceptable to the public because they have a function as a transaction tool in making payments and purchasing goods and services, fiat currency has value and is trusted as a medium of exchange because it is issued by the government while digital money apart from being an investment tool, digital money can also be used as a transaction tool even though it is not issued by the government, but in this case of course there are many policies from the government that prohibit the use of digital currency as a transaction tool and one of them is the nature of digital currency which is not limited and cannot be controlled by the government, however, along with technological advances in today's modern era, of course, one day the government will be able to accept digital currency as a substitute for fiat currency or the currency we usually use today, because currency digital has b many advantages both in terms of transaction speed, security and ease of storage.

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I think bitcoin and fiat currency will go hand in hand, and it's hard for bitcoin to replace fiat money even though the possibility exists.

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Judging from developments, I think crypto can be a substitute for fiat money where fiat is the basis of the value of crypto itself, but prohibitions in some countries can hinder the process, because one country has its own fiat characteristics and usd is the world currency

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Quote from: Dragonfund on July 30, 2021, 04:29:08 PM

Quote from: Sir Legend on July 20, 2021, 12:27:56 AM

Quote from: fuguebtc on July 19, 2021, 10:40:53 AM

Cryptocurrency replacing fiat will certainly never happen. Governments and central banks will not allow that to happen. Cryptocurrencies will be the trend in the future and will exist alongside fiat. Cryptocurrencies give people more options in their payment methods or become another trusted place to invest and store assets.

I think so, cryptocurrencies certainly can't be applied like fiat, there are many conditions that cryptocurrency cannot fulfill to replace fiat, for example is a security system, I'm worried if I want to pay with crypto then the internet is disrupted so the transaction fails.

Just imagine a situation like this. It cost a plate of chicken $20 equivalent to 0.0020btc for example, and then, you wake up one morning bitcoin double and the restaurant rule was no matter what, the cost of purchasing a plate of chicken remain 0.0020btc, that would be ridiculous cos I know much people would want to implement something like that and vice versa.
If one is selling goods and receiving cash in form payment, you would be at lost when bitcoin fall in price and if one isn't careful, you may be force to leave the market because the chance of buying more goods will be low.
Bitcoin is and will never be good for fiat replacement but perhaps for reserve.

Exactly the Point. This is why it will be almost impossible to use Bitcoin or cryptocurrencies generally for purchases like Fiat is used and from your example, it wouldn't be easy for the restaurant to keep changing the amount of Bitcoin from say the 0.0020btc to a 0.0010btc because the price went up, so you might just end up paying more with you BTC for that same item because Bitcoins price went up.

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Quote from: Xampeuu on July 30, 2021, 10:43:54 PM

that's the reality at the moment. where people tend to make money from cryptocurrencies, which are considered easier and faster to make money, especially for those who are familiar with the cryptocurrency market. I think that in order to fully use crypto, the government is still rethinking the dominance of the country that has the most bitcoins, of course they are not willing to intervene with their own fiat currency

Well, it's a good thing crypto dominance isn't dependent on just one country. When satoshi created bitcoin, he wanted it to be open and owned by plenty of people - this is as a bid of putting monetary value in the hands of people (the community) and so far so good, I'd say that we're very close to reaching that goal. Government have to realize that there's no way one country will gain overall dominance over bitcoin since its an open protocol. Their best bet would be to launch their own current-wide cryptos but we all know people aren't ready to participate in such since the end game would always be to inflate and mint more supply later for the 1% to continue staying rich.

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Quote from: Kong Hey Pakboy on July 23, 2021, 12:05:09 AM

Quote from: leetcoiner on July 22, 2021, 03:10:12 PM

Not yet. The whole world is equal to the dollar, and is used to the dollar and local currencies.
I have no idea what will happen if financial systems disappear leaving only cryptocurrency, how will we determine the value of certain things in cryptocurrency?

I'll tell you what happens, we will see the whole financial world collapse right in front of our eyes because cryptocurrency alone won't be able to handle the sudden vacuum in power that was in place after the fiat is gone although that's not the likely scenario to happen, most likely it will be a slow absorption until it becomes all digital.

Even if the world of the future is digital, this does not mean at all that it will be a cryptocurrency. Money from states or large corporations that can replace states will still exist. Cryptocurrency cannot exist alone. It can only go along with a currency that reflects the value of material values in society that are in circulation and are more stable in their price.
There are many reasons why cryptocurrency cannot replace fiat money.

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Quote from: nicecrypto on July 30, 2021, 10:09:45 AM

Quote from: ROSERTY on July 12, 2021, 09:42:34 PM

Cryptocurrency is a new trend in the modern financial economy, and it is an Internet-based medium of exchange that can be traded using cryptographic functions.
The decentralization and transparency of cryptocurrency makes it free from government supervision and control, and it is the owner who controls own wealth. The benefits of cryptocurrency make many new users to invest in it, and it has been accepted and recognized by more people. Some countries have banned bitcoin from the beginning to now accept and use it, and some countries use bitcoin as legal tender.
With the passage of time and the increase in value, will cryptocurrency be used in the world instead of fiat currency?

I believe there was a special need for this to remedy the already bad financial system of that country, (one country for now). However, I don't believe this will be a global thing. Yes, some governments might not ban the trading and acceptance of Bitcoin and other cryptocurrencies by some organization that wants to in their country but I don't believe they will do away with their national monetary system for Bitcoin.

right, moreover they can't control it because of the decentralization system, I also think it's still difficult to make it happen. still lucky we can own bitcoin and trade it for profit, although in the end I think the government will tax this

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Quote from: adzino on July 30, 2021, 07:17:35 PM

I doubt many people buy crypto currencies because of their use cases or giving people the power or because it's decentralized. Most of them invest in crypto currencies to make short and long term profit. Once they reach their profit goal, they are going to go back to fiat. Sadly this is the truth. As long as people keep on depending on fiat currencies for everything, crypto currencies won't be able to replace them. At best we will be seeing both of the currencies being used side by side. Even if fiat gets replaced, it will be by some centralized currency.

If this is the case, then the question posted by the OP should not even come to the picture. Because here the users are treating cryptocurrency as an investment asset and not as a currency. Also, none of the retail shops or supermarkets accept Bitcoin. You need to convert your BTC to gift cards, before being able to purchase from them. So the possibility of replacement of fiat doesn't even need to be considered here. But there are signs that this may change soon. For example, El Salvador recently recognized Bitcoin as a legal tender, which makes it possible to use BTC as a direct mode of payment.

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Quote from: adzino on July 30, 2021, 07:17:35 PM

I doubt many people buy crypto currencies because of their use cases or giving people the power or because it's decentralized. Most of them invest in crypto currencies to make short and long term profit. Once they reach their profit goal, they are going to go back to fiat. Sadly this is the truth. As long as people keep on depending on fiat currencies for everything, crypto currencies won't be able to replace them. At best we will be seeing both of the currencies being used side by side. Even if fiat gets replaced, it will be by some centralized currency.

that's the reality at the moment. where people tend to make money from cryptocurrencies, which are considered easier and faster to make money, especially for those who are familiar with the cryptocurrency market. I think that in order to fully use crypto, the government is still rethinking the dominance of the country that has the most bitcoins, of course they are not willing to intervene with their own fiat currency

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Quote from: adzino on July 30, 2021, 07:17:35 PM

I doubt many people buy crypto currencies because of their use cases or giving people the power or because it's decentralized. Most of them invest in crypto currencies to make short and long term profit. Once they reach their profit goal, they are going to go back to fiat. Sadly this is the truth. As long as people keep on depending on fiat currencies for everything, crypto currencies won't be able to replace them. At best we will be seeing both of the currencies being used side by side. Even if fiat gets replaced, it will be by some centralized currency.

It depends on what currencies we are talking about. If the state cryptocurrencies of central banks, then this is quite possible in some cases, and the example of China with its experiments with the national digital currency fully confirms this. However, there is absolutely no question of a complete replacement. The use of decentralized cryptocurrencies of classical bottling in their activities is inconvenient for any state that at least to some extent controls or at least tries to control its economy. And there is no need to have any illusions about this, because no mentally sane government of any sufficiently large economy will rely on a tool developed by it is unclear where and it is unclear by whom, on which there are no levers of any influence. It's just that decentralized cryptocurrencies and fiat currencies are different tools for different tasks and goals.

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