But the problem with fiat is if you try to save it for the future generations. For example, my parents worked about 45 years and what they saved now are worth a few thousand EUR.
Fiat is not meant to be a long term store of value, but a fluid means of payment.
But if you think crypto is going to be a long term store of value, "for future generations", you are out of your mind.
If you buy crypto so that it rises, it means you're counting on someone paying MORE for it than you did: a greater fool. If most of the people buying crypto do this for that reason, this is a greater fool game, that stops when you run out of greater fools. No expectation of greater fool any more, no incentive to buy. No incentive to buy, no more price rise. Big crash.
Crypto is still new, there's a lot of greater fools to get to the game before you run out of it. So you can still hope not to be in the last layer. But hoping that your grand children will still find greater fools, is crazy.
Yes, I think that our grandchildren will use crypto as store of value and as a payment method as well. Crypto are designed as inflation resistant, differently from the fiat. I think you don't see the whole picture - we don't need crypto as a payment method. If crypto is only designed as a payment method - it is in any way innovative. The best part of crypto is limited supply. You can't print it to infinity as central banks and governments are doing with fiat.
Of course you can. It is sufficient that you change the parameters. Like block size in bitcoin. The only thing you need for that is an agreement between miners, when it is sufficiently centralized. And it is unavoidable that it will centralize because of economies of scale, regulation, and I don't know what. Look, Evan, all by himself, has divided the supply of DASH by 4 once he had made his premine. If you can lower it, you can increase it as well.
But that is not the real inflation of crypto. The real inflation is the creation of extra crypto currencies out of the blue. New coins. For instance, all the application tokens on top of ETH are inflationary tokens. If you allow second tier layers on top of a crypto (the only way to scale a block chain crypto) you will get forms of fractional reserve banking.
Don't think that there is a finite amount of crypto. There may be, for the time that it is sufficiently decentralized and immutable, a finite amount of COIN X on its chain. That doesn't mean that coin X proxies are not created, that the market cap of X is not diminishing (comes down to inflation) and so on.
Speculation is to high today and it will stabilise in the future. You know that 99 (if not 100%) of todays projects will fail but new will arise. Much better than previous.
Exactly.
If you believe that fiat will survive while governments are pumping economy with new printed money (or new emission of digitized fiat) we only can see this as in Germany before WW2.
Of course, but that didn't stop Germany to have the strong German fiat Deutch mark after WW2 until the end of the 20th century, and now it has the Euro, and maybe in the future another fiat.
Again, I don't see fiat as a store of value. That's crazy. But as a payment system. I think that state fiat will always be a superior payment system than a clunky crypto currency, simply because the state will put everything into work to make it work well. The centralisation makes that it is easy to deal with. No crypto hassle. No block chains. No shit.
I am not saying that a *specific given fiat* currency is for ever, but neither I think that a specific, given crypto currency is for ever. It doesn't need to be. It just needs to be the right payment system for its application, at its time.
Fiat has been ruling payment systems since at least 2000 years if not more. Of course we don't use the Roman fiat. But fiat nevertheless. Crypto has its place where fiat cannot go.
? No merchant that I use dropped Bitcoin, and not farther from a week ago I bought stuff with it, so please do not make people panic out of nothing !