In the future, will fiat currencies be necessary in the world? - page 25.

cahbagus555

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Quote from: jak3 on September 06, 2018, 03:30:44 PM

first of all, I would like to point to a topic that digital payment is not a new thing to the world or any governments, Why does it did not conquer over faint currency. It's only because not everyone has access to the internet or maybe a smartphone and they person having those facility has no experience or maybe even worse they are not even aware of it. Let's think everyone gets the awareness but still, the capability and affordability plays a very important role in this decision. But till then I see a lot of need of faint currency as it can be used offline without any disturbance.

Digital currency is not new but still controlled by central bank and i am believe its different with cryptocurrency. Crypto like bitcoin not controlled by any institution and thats why many government or institution ban bitcoin for payment transaction. I am agree that fiat money still needed to measure economic and boosting economic growth

anthonytcm

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Quote from: ulhaq on August 28, 2018, 03:29:55 PM

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

While FIAT has been going strong for quite a while, you gotta remember that FIAT didn't exist before, and its mass adoption was due to how simpler FIAT made things. With advances in ourselves as societies and as new technologies are being developed, I believe that yes, eventually, something better/faster/easier than FIAT can and will replace it. Is it crypto though? I wish. That'd mean we get to tell everyone "I told you so!".

Jokes aside, and building on that "something better/faster/easier" that I mentioned earlier, I wanted to share a piece of info that you guys might find interesting, this just an excerpt:

"A federal science agency in Australia has claimed a world first after completing testing on a global blockchain network that is capable of processing 30,000 cross-border transactions per second.

If the test can be successfully carried into a working model, it could help the banking industry attain the scale needed to put blockchain networks into the mainstream.

The network, called Red Belly Blockchain, was developed by the Commonwealth Scientific and Research Organisation (CSIRO) and the University of Sydney, and deployed over the Amazon Web Services (AWS) global cloud infrastructure. It was tested across 1,000 nodes in 14 countries at a benchmark rate of 30,000 transactions per second and with an average latency of three seconds.

According to the developers, the network hopes to solve the scalability issue by using an alternative consensus algorithm instead of the proof-of-work mechanism adopted by most public networks, including bitcoin."

Now I feel that news like this are gigantic for the crypto world because if there's something crypto kinda fails at is at scaling, there's issues with scale, now, to completely phase FIAT away I think crypto should first take care of its own inner workings and make sure it has the capacity to run the world's worth of transactions in the blockchain, and then, FIAT will disappear out of lack of use. At least that's what I think.

Link to the article I mentioned above, here: https://www.finextra.com/newsarticle/32700/australian-agency-claims-blockchain-breakthrough

South Park

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Quote from: ulhaq on August 28, 2018, 03:29:55 PM

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

You are approaching the subject from the wrong angle, it is not about whether fiat is necessary in a future world, this is about if any currency is going to be able to displace fiat and the chances of that happening are very slim, so at least for the next years and decades it's clear that fiat is going to keep existing and it's still going to be the most dominant form of money around the world.

yoseph

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Quote from: zubrr51 on September 28, 2018, 02:27:17 PM

The presence of fiat currencies in the world remains necessary until the world economy shows interest in alternative currencies.

In most developed countries, fiat money is rarely used because people are always using their credit card for almost al, their transaction but the same cannot be said of developed especially Africa where everything is done by FIAT.

zubrr51

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The presence of fiat currencies in the world remains necessary until the world economy shows interest in alternative currencies.

djkyno

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Actually, fiat currencies are really necessary in the world, because most people around the world use these currencies, and also the governments and banks still supporting fiat and local currencies. We have to wait several years (at least) until cryptocurrencies can replace fiat and get the most usability.

joebrook

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Quote from: calebwa on September 28, 2018, 10:50:46 AM

I think that fiat money will keep on being necessary. For me cryptocurrencies looks more like analogs of gold than replacement of money. They are limited and difficulty obtained. If the governments would decide to use this technology, each one would create its own national cryptocurrency that would also be controlled in a greater or lesser degree. Regarding cryptocurrencies, I believe they will be actively used, and the market capitalization will rise because they are attractive as investment tools. Thus both fiat and crypto will co-exist at least in the nearest future.

Fiat money has an expiration date to it because eventually all money will go digital and we should also know that the government spend a lot of money when making money, imagine how much money will be saved if the country digitized all currencies.

calebwa

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I think that fiat money will keep on being necessary. For me cryptocurrencies looks more like analogs of gold than replacement of money. They are limited and difficulty obtained. If the governments would decide to use this technology, each one would create its own national cryptocurrency that would also be controlled in a greater or lesser degree. Regarding cryptocurrencies, I believe they will be actively used, and the market capitalization will rise because they are attractive as investment tools. Thus both fiat and crypto will co-exist at least in the nearest future.

djselery

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People around the world still using fiat currencies a lot more than cryptocurrencies nowadays, so obviously it is very necessary in the world. In addition, most governments and banks support only fiat and local currencies right now, and also the digital assets like gold, silver...
It will take a long time until BTC and cryptocurrencies can replace fiat currencies.

Hell-raiser

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Quote from: ulhaq on September 21, 2018, 07:02:21 AM

Quote from: Hell-raiser on September 18, 2018, 06:04:07 AM

Quote from: sevenbits on September 18, 2018, 02:18:59 AM

At the current stage of development, Fiat is absolutely necessary. Perhaps for the real functioning of the economy, Fiat is not needed, but the consciousness of most people is still very attached to the Fiat. So it was with the first paper money, then with electronic payments.

What do you mean by "real functioning of the economy"? It is generally accepted that any advanced economy, where advanced is anything beyond a simple subsistence economy, money is a must-have, as it were. In a subsistence economy you don't really need money and can get along with barter as it doesn't introduce division of labor other than hunting, gathering, and agriculture. Anything else needs money, and modern economies need fiat as money because money based on hard assets will be ineffective in so complex economies.

Quote from: ulhaq on September 18, 2018, 05:42:12 AM

The "built-in mechanic" of fiat regulating itself is a complete fantasy. Central banks and governments set interest rates, expand the money supply, established the rules of FRB, create bailouts, maintain liquidity, etc. There is nothing "built-in", nor "automatic".
Of course all of the features you mention can be implemented in cryptocurrency, as well.

You may need to finish school, really. And learn about the forms in which money exists today. Central banks and governments on their own can't "expand the money supply" as it will only cause inflation, price inflation. Hint, you may want to read about endogenous money supply.

Your cryptic remarks are not going to convince anyone. Central banks and governments do "expand the money supply", and it does cause inflation. Are you disputing that? You seem to be claiming that 100% of the money supply is endogenous? Endogenous money supply is a function of fractional reserves and banks making loans. Yes, it was occurring before it was allowed by law, but today it is either allowed or not allowed; courts, eg in the US and UK, have ruled that bank deposits are not bailments.

I'm not going to convince anyone. I have been here for too long so as not to get into this kind of thing, that is meaningless discussions. We are talking about "built-in mechanic", while central banks and governments expanding money supply have nothing to do with that as they are an external factor and therefore outside the scope of the question. You see, it is not so much about me making "cryptic remarks" as about you failing to remain within the domain boundaries. Violating these basic assumptions and premises makes the whole argument pointless, so you are on your own here, as I have already said.

Silberman

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Quote from: Mihaylovic on September 24, 2018, 04:13:32 AM

i think so. cryptocurrencies are based on blockchain technology which is totally decentralized and can not be controlled or protected by any organisation or regulation. there are some cases that financial items have to be controlled by governments.

Not really, that is what they want you to think, they want you to think that the economy is so complex that only the governments and banks can manage it, but the truth is that if you know how to balance a checkbook then you know enough about the economy to understand in general terms how it works and how to run it efficiently, what happens is that governments try to rig the game so they get an advantage over the rest of us and that is why they want to have the control of the economy.

nbausa

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fiat currencies are always very necessary. Every need for trading, exchanging, and trading is indispensable. Cryptocurrency is very convenient and very good, but there are still many cryptocurrency issues that cannot replace fiat.

Flor1982

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Quote from: ulhaq on August 28, 2018, 03:29:55 PM

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

It is true that Crypto currency is quite convenience to use and more safety than bringing fiat in the streets in which full of bad people but still it is impossible for Crypto to supersede fiat, this is because not all people will know how to use it specially the poor people in which majority of the world population and Crypto currency will need the power of internet on every transaction in which there are lot of places that did not have the technology therefore before you say fiat is not necessary then better to consider these obstacles first.

jak3

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Of course, erase necessary, the world cannot live only on the cryptocurrency and other digital assets or maybe stock market. We need Fiat currency in order to calculate the market price. They both create demand and supply in the market so we need both of the currencies virtual and physical. If we want to go cashless for everything around us then we have to wait till A decade. I want technology is way too slow to adopt that many changes.

BigBos

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Quote from: jonatuzc on September 26, 2018, 03:29:07 AM

Quote from: hotBriX001 on September 19, 2018, 09:51:30 PM

Absolutely yes because we can make our day to day living by means of our national currency even in travel of different countries. What we really expect to crypto is to earn from it and converted into our real fiat for our future use.

There are certain aspects of life that could not be changed and an olden economic system is one of them. As long as your economy does not allow the crypto, you cannot use it. However, I believe in near future, you might be able to use crypto by booking a ticket or while traveling since the system gets upgraded.

In daily life, while making ordinary transaction, you might not feel the need to use cryptocurrency if fiat can do the job. However there are so many possibilities in the current market.

Well, people have been using Fiat for a long time, and are used to it. well, i think the need for fiat people has increased. even now. So, of course Fiat is needed to balance the current economy. although currently online transactions are the center of attention.

demonz666

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Of course the fiat currency is still needed by the world. because of the total population of the world population only 51% can access the rest of the internet and do not get internet access.
so that fiat money will remain. and now there are still many countries that reject cryptocurrency as a currency and payment instrument. but if the technology advances 10 or 20 years, it is possible that the cryptocurrency will replace fiat.
I took information from the website m.liputan6.com

jonatuzc

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Quote from: hotBriX001 on September 19, 2018, 09:51:30 PM

Absolutely yes because we can make our day to day living by means of our national currency even in travel of different countries. What we really expect to crypto is to earn from it and converted into our real fiat for our future use.

There are certain aspects of life that could not be changed and an olden economic system is one of them. As long as your economy does not allow the crypto, you cannot use it. However, I believe in near future, you might be able to use crypto by booking a ticket or while traveling since the system gets upgraded.

In daily life, while making ordinary transaction, you might not feel the need to use cryptocurrency if fiat can do the job. However there are so many possibilities in the current market.

patarfweefwee

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Fiat has been with us as long as there was trade. It is a very convenient way of exchanging goods and services than barter. If and when crypto currency becomes big and the norm, I still think that people might still use fiat as a form of untraceable transaction. Maybe for malicious purposes but that is what they'll use.

Getcoinsite

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Quote from: ulhaq on August 28, 2018, 03:29:55 PM

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

Being said ,fiats will stand when cryptocurrency is not available,like for example that electricity is not available,or the internet provider then what would be to use?Isn't fiats?So theres no way that this paper money will be thrown and abandoned because without this cryptocurrency will never be successful .i have been thinking about this for long and i know that this is impossible to becomes reality

congresowoman

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For me Fiat currencies are still necessary. Even though this form of money is in old form still it is not that obsolete. Many people will still prefer to transact with fiat simply because they have confidence in a money that they can physically touch. On the other hand, digital money are a thing to people with definite knowledge of digital transactions

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