Topic: Cryptocurrency can not replace fiat currency. - page 3. (Read 2200 times)

I agree with you that I think it will provide an alternative method Because using crypto they will never feel comfortable using Fiat With crypto decentralization everyone can invest as they wish There is no role for the government here. However, in the case of Fiat the government manages. At present  if the government of each country supports crypto, then the alternative method will come out Many will not support it Working in crypto requires more or less both The government will never be able to control the crypto-like Fiat.

Agree. Crypto will never replace Fiat because of the way it’s designed. The lack of a central authority makes crypto entirely different from traditional Fiat as we know it. Governments will continue to patronize Fiat above anything else, as they want to remain in control over people's money. The fact that Fiat is backed by the government, gives people some certain level of "confidence" that the type of money they're using is completely legitimate. That's not the case with crypto though.

While crypto brings many benefits over Fiat, it'll always be one step behind it. The biggest issue of decentralized cryptocurrencies is price volatility. Serious merchants and businesses alike would prefer to deal with Fiat directly because of its stable price on the market. Even those who accept crypto, don't use it directly as they would with Fiat. Crypto is instantly converted to Fiat when a customer makes a purchase in order to maximize the merchant's profits as much as possible.

Nonetheless, I believe that both crypto and Fiat will live alongside each other for many years to come. Governments cannot prevent crypto from being used in the mainstream world, whereas crypto advocates can't prevent the use of Fiat. The decentralized and centralized world will be separate from one another, giving people the option to choose which economy they want to support. Depending on a person's needs, will be the type of currency to use for mainstream transactions. Just my opinion

Governments dont allow anything they are allowed by us, they represent the people and are of the people.  Iam aware theres military dictatorship and communism, fascism and all sorts but ultimately an economy is by agreement of the people.   Even in the USSR people operated pricing outside the government system, because that is the market that will always exist between people for the value they place based on time and personal need.   I believe in that case it was cigarettes and dollars which were most often used instead of the official Ruble.
   If BTC is to become reserve currency it'll be because society benefits most from it being in that position, we cant really force it only enable it by Bitcoin generally the most useful product.    I imagine the boring truth is we go back to gold as a block of metal kept as an asset but lent out via loan, promise or agreement which is effectively a reserve asset or currency.   BTC itself should be useful in in its secure transaction, gold is a ton of hassle to be shifting around.    Between banks they must melt down the gold and recast the bars when gold is transferred, this is to certify its good asset value so mostly that is not done and the gold stays in NYC or London and is merely changed on a balance sheet.

Maybe cryptocurrency can't replace fiat currency but in a utopic future where money will be only digital or "coined" and cash will represent what originally the bitcoin was made for. Economy and the banking systems had to implement crypto in their asset, but if they'll do it, certainly it will not be agreed by the native users of bitcoin; Anonymus and Instant peer- to -peer transactions are the fundamental basis of cryptocurrencies. My personal opinion is if bitcoin will be globally implemented as an investment asset or used to normale transaction, it will be his death.
First of all, (1) if bitcoin users or who owns bitcoin wants it to speculate over its price, I don't care that a global coin can receive more value than what nowadays already is, of sure the demand, will increase by the users but hyperinflation take his price down again.
(2) If the point(1) is accepted: Why should bitcoin users maintain their assets in their portfolio if the price will fall?  
Before responding to this question ( money has the function to speculative, reserve, precautional).
Obviously who owns bitcoin will sell all assets to return to the fiat currencies, which has globally implemented and zero cost of a transaction, and meanwhile the bitcoin will raise the fiat currencies will be the standard. (3) In the end, bitcoin will increase until its implemented (  achieved the higher valuation of all time as a "spike", someone forecast 100x and 1000x) by the way, investor and users will sell all or not at all their asset cause the high volatility of the price.
The future of crypto is to remain crypto also if in long term transaction fees will decrease. But I think that as in the economic circle, the new system takes the old system down and the transistor will be updated by quantum-transistor, anyway will happen to bitcoin if we believe it has to be the future.

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ps Excuse me for any mistakes.

There's no play, though in the most develop cities where they have a good internet connection and digital currencies are widely used, they can't still beat the volume of money going in and out which are fiat, therefore let us not think that crypto will replace fiat because it's tantamount to saying that decentralize system will replace the centralized system, not gonna happen.

Of course, I apologize, but in what places did cryptocurrencies replace fiat? I don’t see, there are especially many places where you could pay with cryptocurrencies without converting them into fiat currencies, either directly, using exchangers, or other methods.

I still don't see it happening, well, I respect your opinion but there's a certain part of the world which are still not covered with internet, therefore online transaction is impossible for them, and with fiat, it was the government who are managing it, it maybe not transparent and they can abuse it but they will also not allow for it to be replace by something they will loss control of.  That's my opinion too.

Cryptocurrency is made-up to be an different find of payment that's scarce and decentralize, while the from way back financial system gets to keeping pace and manipulative.But if individuals gets to fed up with it, we force think about it immense migration of users from fiat to cryptocurrency, uniquely once countries are frustrating to found their concede cryptocurrency we power distinguish a colossal adoption in the future.

What you talking about, FIAT has already been replaced, it's just a matter of time and architecture of dynamics. LOON are already putting the world on the NET...

Exactly. Right now, crypto has far more benefits than Fiat itself. Its current issues will be solved over time as development and innovation grows in the Blockchain space. With stablecoins, volatility is no longer an issue. Anyone can quickly trade from a volatile crypto to a stablecoin without the need to interact with a bank or real Fiat whatsover. As far as scalability goes, we already have second layer solutions like the Lightning Network and Raiden Network, sidechains, a higher block size capacity, and more. People can still send/receive money faster and cheaper than they would with wire transfers, etc. You can even interact with crypto anonymously via the use of privacy coins, decentralized exchanges or even non-custodial mixers. That's not entirely possible with Fiat as it's subject to control and manipulation by central banks. Everything you do on Fiat can be easily monitored, while banks charge you high fees for their own gain. Not to mention, a wire transfer could take days to settle.

Despite all of the benefits crypto provides over Fiat, it'll never replace Fiat because of its decentralized design. Fiat is and will always be backed by the government, which gives it a certain level of legitimacy within the mainstream world. People tend to trust it more than crypto because of this. When it comes to mainstream commerce, Fiat is the true winner. For each use case, will be the type of currency to use in daily life. I think we should make use of both crypto and Fiat for our own financial benefit instead of using one over the other. Just my thoughts

Goverments will never allow it, they want to control money. Maybe we will see digital fiat but not a btc as resserve currency

That's right and compared to bitcoin or cryptocurrency, our fiat or national digital currency is more useful in terms of payment for the fact that it's faster and regulated at the same time, however, if people think of holding their fiat, then they should think wisely as we know how the government are handling our financial system, the economy is struggling and fiat's inflation will increase.

It seems to me that you are confusing a decentralized cryptocurrency with a national digital currency) The national digital currency will not be subject to volatility and will be fully centralized. And this is the main goal for any government - control over its citizens.

There are chances that cryptocurrency might replace fiat but it is very low simply because fiat is regulated by the government. The question is what if the government turn fiat money into digital currency, imagine if the world does not have fiats anymore and are just using digital ones. This is the thing that is being arranged for now, some countries are experimenting on it, they are even turning bitcoin into new economic class and asset. We can't tell future but we can decide what could be the future.

No, they will not replace fiat. Just because some governments are creating their cryptocurrencies that doesn't mean they have the intention to replace national currencies. Besides cryptocurrency are not in the stage they could support economies and financial systems.
No regulation, no stability, fluctuations, volatility I suppose these are no characteristics that you would want from the currency you depend on.
So, cryptocurrencies and fiat money will function together and with time cryptocurrencies will develope and progress more but they will not replace fiat.

Now there is a non-cash payment method for goods and services, so nothing new in this can bring to the economy cryptocurrency. Governments of various countries are now on the way to creating a national digital currency, which will replace Fiat.

   
   I can say for myself that I am a true believer in crypto-currencies. I believe crypto-currencies will replace
traditional fiat system. I would like to see decentralized projects to replace them, but sadly some countries
will make their own and maybe force and limit people to use them, they will find a way.
   But even that can mean nothing, if people embrace crypto-currencies we know now! Decentralized projects,
privacy coins, anyone can find the best coin, and we can change the world with help of crypto-currencies, but
to do that we need to do it all together!

It is right that the time didn't yet come to replace the fiat money but it is not such a matter that it never be possible. Many countries of the world have already given the legality of cryptocurrency. Now, more people are gradually being interested to the crypto world. If we compare the present position of cryptocurrency with five years ago, we see, there has been a great advancement of the crypto world. So, I hope, cryptocurrency will acquire the whole world in near future and countries will permit to use it as like as fiat money.

But it doesn't mean cryptocurrencies have the upper hand.

There are a lot of mobile wallets that offer payments using Bitcoin and other cryptocurrencies but I don't think people are actually using it right now since the halving is closing and people would be thinking to just save or hold it rather than selling it. That just means that despite the chance that we are seeing people would use cryptos, they are not. And another thing is that not all of the people are actually interested in using it and usually, people don't know what it is.

Do you think crypto can work well in rural areas and don't even need the internet? the fact that you convince them to use a new currency and to use technology is something unimaginable. They are people who don't know about technology and you force people to follow?
It will be very time consuming and even impossible to do if the people do not cooperate. I feel that crypto should only work in Defi, it should not be in centralized markets.