Topic: Can cryptocurrencies replace fiat currencies - page 9. (Read 1271 times)

Even you count on decades or centuries, the physical form of money will always exist. It even evolves as most payments now are digital and cashless (encouraged during the global pandemic) but it doesn't mean it's all about "crypto" in general.

The discussion was been in talks even before. You might want to browse some people's views before and compare if there's a change about it today.

https://bitcointalksearch.org/topic/crypto-vs-fiat-491337 - 2014
https://bitcointalksearch.org/topic/bitcoin-can-not-replace-fiat-1301320 - 2015
https://bitcointalksearch.org/topic/--5299167 - 2020
https://bitcointalksearch.org/topic/cryptocurrency-will-not-replace-fiat-currency-5217908 - 2020
https://bitcointalksearch.org/topic/--5284280 - 2020
https://bitcointalksearch.org/topic/is-bitcoin-better-than-fiat-5325101 - 2021

I have read and commented several posts regarding this topic. And for the nth time, I would like to say and stand my ground that cryptocurrency will never and can never replace fiat money. Crypto isn't made to take over physical money. It has a very different nature - decentralized. And with that, the thought of totally replacing fiat is nearly impossible to happen because certainly, the government officials won't allow that to begin with.

Most leaders of the countries all over the globe are even aloof with the idea of accepting cryptocurrency. Hence, the possibility of it replacing physical fiats is extremely low. Although there are open-minded officials that already took the initiative to risk with crypto as an alternative mode of payment, store of value, and as a legal tender, still there are still a lot of officials that are not in favor of crypto and does not recognize crypto in their country.

In addition, cryptocurrency and fiat money has their own uses. They serve their own purpose in a country. A fiat money plays a great role in the economy of a country. Meanwhile, crypto serves as an alternative option for purchasing, saving, investing, trading, buy and sell, etc. It also provides wide opportunities for the people that fiat money alone can't offer. You see, they have their purposes that's why we should not pit them with each other. One way or another, these two have helped and will help the citizens and the country in general.

Basically bitcoin is here to eliminate the involvement of banks with every transactions we make bit we never know that each and every transaction is going to happen via oeer to peer mode since bitcoin blockchain is not actually ready to process such hige amount of transactions which let people to create other cryptos which are generally called as altcoins but nowadays cryptos becomes assets more than actual payment mode so for now we are actually in the direction of adopting cryptocurrency as a currency in the future.

Ofcourse. But combining the Transparency and free from government supervision sounds counterintuitive. One of the purposes of the transparency is for network participants (which includes government) to publicly verify transactions while taking part in consensus or governance.   So, true cryptocurrency network is the true or right public network unlike what we have with fiat currencies systems.

That's the kind of network/system a honest and transparent government ought to be using. So, I think it's right and moral if the fiat systems is truely decentralized, transparent and public.  Besides, it's hard to abuse your power on well decentralized and transparent system with good rules/principles.

A crypto based government can easily print cryptocurrency out and distribute like they print and distribute paper fiats. There will be more transparency and accountability in Crypto printing

This is almost a reason for unrealistic possibility for cryptocurrency to replace Fiat. Country's identify is going to be a stop to realize that. I don't think that there is a particular country that would relax the use of there Fiat for cryptocurrency, even El Salvador that admits the use of cryptocurrency yet uses her Fiat and that is giving us that idea of what the practice would be in future for every other country. However, cryptocurrency will well satisfying the global digital need.

Transparency has nothing to do with freedom in this regard, it is because of the first one you mentioned which is decentralization which makes Bitcoin not to have central control.

Yes, Bitcoin gives freedom, but just that many people are now making use of exchanges and other centralized services in a way the real coin owners has no private key, unknown to many of them that they do not have the freedom while having their coins on centralized platforms which makes them not to have total control. This is why the freedom is for this that are using noncustododial wallets, especially open source wallets which are the recommended ones.


Your question needs differentiation, there are now two types of cryptocurrencies:

• decentralized cryptocurrencies which I believe is the reason for your question
• CBDCs which are completely centralized

The CBDCs mimics fiat and yet are cryptocurrencies also, this may give ways to reducing use of fiat, but they are just still the same because they are created and controlled by the governments.

But if you meant will decentralized currencies that gives freedom totally replace centralized ones, I do not think so also because Bitcoin was even created to be an alternative not a substitute or a replacement. Also, the governments will always look for possible solutions to make sure centralized currencies are existing.

You said it, it is a "trend" and trends die out with time while the product remains and the ones who used that trend to make profit remain wealthy. The previous buzzwords of blockchain and stablecoins saw similar "trends" and even though they still exist, nobody talks about them anymore. I wonder why?

Hold your horses, the country where has been made legal, they are facing skepticisim about bitcoin's use already and I am still watching as to how this progresses in future. Whether it will end up as something good and acceptance or ends up as a failed PR stunt.

My reasoning behind this is that for using bitcoin one needs electricity supply and internet. So unless someone develops a product that can have a battery and internet for quick bitcoin transactions, fiat will remain the bigger one. Because you cant expect every person in every country to be owning a smartphone and having access to internet all the time - can you?

Bitcoin based cards is another option to mitigate the above trouble. There have been a few ICO startups that did this and are now no longer heard of.

Of course in future we might see changes in this line, specially if the governments start allowing crypto become mainstream in many countries.

Cryptocurrency cannot replace legal currency now, but there may be a chance to realize it in the future. Bitcoin is decentralized, and it is not regulated by the government. Many people who like to control their own financial power like to use Bitcoin. Many areas that initially banned bitcoin are now gradually accepting bitcoin, and El Salvador also uses bitcoin as legal tender. The massive circulation of Bitcoin means that people's consensus will continue to increase, and the development potential of Bitcoin is also unlimited.

Yes, crypto currencies are going to replace fiat money eventually. We can already realise that trend with El Salvador. Small countries with currencies that pegged towards the USD this becomes very attractive. As a small country it is very hard to have an independent currency because speculators can just take advantage and manipulate the market. Going into the crypto world can provide some stability.

Fiat has its own use and is difficult to replace because Fiat is also the identity of a country, I think the most likely thing is that crypto will be used more and more for online transactions, but its use will not (at least for now) can replace Fiat.

I see you are mixing two terms, OP. The concept cryptocurrencies is much broader than Bitcoin, and you seem to be assimilating them. If you mean Bitcoin can replace fiat currencies:


It may not be today but I think that was the spirit when Satoshi created it as a 2P2 electronic cash system, another thing is that after years we realize that it is a much better store of value than cash.

To summarize, I believe that in the future Bitcoin will prevail as a store of value and will coexist with cryptocurrencies of Central Banks and the more useful shitcoins.

Digital fiat currency is coming which is what could be the next that we are going to be using along with cryptocurrencies. Physical cash had been foreseen to disappear actually in the future and this could be because the creation  of CBDC. But in many case its the same thing with the fiat use today. The FED and banks still owns them and we may still be using these digital fiat still along with cryptocurrencies.

Cryptos goal is to let users have an option of becoming their own bank, which doesn't necessarily mean that it wants everyone to use it so that they can become their own. Fiat was mostly made to increase qol of its users. Yes, its centralization is a negative, but it's also a positive imo that it forces everyone to actually accept only one system. With one system being used, transactions would be a lot smoother and easier to process and management would be easier, though again, there's a negative in every positive.

I think crypto becoming the underlying value for fiat, like gold, is more likely to happen. As mentioned above, fiat still has its own uses, especially for countries and governments who want to gain control over their economy. Relying on a tech where everyone can contribute might not be the best choice for them.

I don't think that's bitcoin goal.

Bitcoin is important because it is decentralized, universal, independent from governments and so on. It has its use cases and will certainly be used where fiat currency is inefficient, but I don't think in long term we will have only cryptocurrencies.

Physical money, i.e. cash, is necessary imo. It is handy, anonymous, and we use it for a very long time.
i

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?