Topic: In the future, will fiat currencies be necessary in the world? - page 29. (Read 35816 times)
September 21, 2018, 06:24:42 AM
Fiat currencies are so common in our society that it is very difficult to change the majority to refuse them.
September 21, 2018, 06:21:09 AM
The references were for your benefit. I am extensively read in economics and I studied it in school. I chose those 3 references to address the 3 specific points that you made. What is the source of your knowledge, your own mind? If you have references for any of those points (or even discussions on this forum which you mentioned in passing), I would take a look at them.
Your references are irrelevant as well as your being "extensively read in economics and I studied it in school". If you can't explain things how you understand them, how can you know that you truly understand what someone else is saying or writing, Nobel prize winners included? This is not a pissing contest, anyway. If you can prove your point, go for it. I gave you an example from real life, and anyone who is actually versed in economics, who understands how deflation and inflation work on the level of separate companies and households, that is at the lowest possible level, knows that deflation is not inflation mirrored. Why should I care about your Nobel prize winners if you can't even answer a very simple question, which reveals your true knowledge and understanding of the matter (or rather lack thereof)?
Um, economics is not simple. Why would I take several pages to explain something when it has already been explained by others at length? I am not going to take the time and the references are not irrelevant. If you are not willing to look them up, then that's your choice. Your "example in real life" - I think you are referring to a claim you made that producers' profits are dependent on inflation? That is a claim without any given basis, not an example.
If you can't explain something in simple terms and a few sentences, you don't understand it yourself as good as you think you do, end of story. What I mentioned is not my claim, it is a textbook example which shows that you don't really understand anything from the ground up. Economics starts with particular individuals, households, and separate businesses, but of course, that doesn't interest you. Now imagine how it feels when you refer me to the works of Nobel prize winners while I refer you to a textbook (why deflation is not inflation negated), and you don't even have a clue what I'm talking about. Just in case, I can explain it in a couple of sentences.
You are acting like someone who read a highly abstract book or two without having any idea or understanding how things work at the lowest level. But I can offer you some comfort as you are definitely not alone in this guileless effort.
I love your tone. I have read and have multiple textbooks of economics. You can assume whatever you want, but you give the impression that you are not familiar with the work of Nobel prize winners? You did not refer me to any textbook, and you haven't explained anything in a few sentences in any of your posts in this thread. If there are some explanation you've given elsewhere, you can give the links. I said that deflation is the opposite of inflation, which is true. I'm not sure how anyone can dispute that, it's basic economics. Maybe there are some misunderstandings going on. I did discuss the possible effects of the use of a deflationary currency like bitcoin in the economy instead of fiat. But you made erroneous statements regarding inflation/deflation, and also claimed that bitcoin is inflationary, which it is not. So forgive me if it seemed that you do not understand economics.
September 21, 2018, 06:02:21 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.
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.
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.
September 21, 2018, 04:44:40 AM
Fiat will continue to pose good significance in our society until the new set of generation which are completely inclined with technology and the internet emerge. Remember, there are still some people who do not know much about the internet or do not have internet access in order to use crypto.
Till date fiat currency has its value and nobody can deny it. the value of fiat currency could not be eliminated so easily. It is right that if the new era of digital currency takes place in the market and is acceptable all over the world, fiat currency may lose its value but till that time fiat currency plays a vital role in the economy of a country and we will have to accept this fact.You are right, fiat currencies really have a high value in the society and this is the main currency used to buy are personal needs most speciall basic needs in our everyday life.
September 21, 2018, 04:33:47 AM
Fiat will continue to pose good significance in our society until the new set of generation which are completely inclined with technology and the internet emerge. Remember, there are still some people who do not know much about the internet or do not have internet access in order to use crypto.
Till date fiat currency has its value and nobody can deny it. the value of fiat currency could not be eliminated so easily. It is right that if the new era of digital currency takes place in the market and is acceptable all over the world, fiat currency may lose its value but till that time fiat currency plays a vital role in the economy of a country and we will have to accept this fact. September 21, 2018, 04:00:48 AM
Cryptocurrencies certainly offer some advantages that are absent with fiats, however, fiats play another role for government as it is a tool to control the supply of money and as such control the economy, that will be difficult to replace with crypto in the future
This ia true. We can see the big difference between the two. Both have advantage but I can see that there are more advantage in cryptocurrency especially on the part of the users. In fiat more often the government are the one who rule, but then both are benificial. Still I prefer bitcoin being a necessity today.
September 21, 2018, 03:50:00 AM
I think that fiat money will still be there, because bitcoin is an alternative money, money that the method of payment is via the internet or indirectly, unlike fiat money, fiat money the payment method meets directly between buyers and sellers, I do not agree if fiat money will become extinct.
September 21, 2018, 03:24:58 AM
Fiat currency is for sure necessary for our day to day transactions.It is the most trusted and safest way to do our transactions.It can used in a mall and even in a small store where we don't have internet connectivity for digital transactions.So yes fiat currency is necessary in the world.
Fiat is now or can be used for transactions in malls or small shops that are not yet covered by the internet network, but with fiat currency you will carry a large physical form and I think this is inefficient, it is better for the government to expand the internet network in every corner of the area
Yes, you are right transaction might be easier for us to be in the cashless world, but to carry physical money it is very difficult. The government should focus on more security in order to get drive people to use more and more cashless transactions.
September 21, 2018, 03:04:22 AM
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.
If you think fiat currency isn’t necessary in this world maybe you should try going to the market to buy something without your country’s conventional currency and seeing if it will be possible to buy or sell anything. I don’t know why some people here keep on asking questions that looks so stupid and doesn’t even require to be answered.If you don’t know, then YES it is still necessary and you can’t do anything if you don’t have it. 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.
September 21, 2018, 02:11:42 AM
Fiat currency is for sure necessary for our day to day transactions.It is the most trusted and safest way to do our transactions.It can used in a mall and even in a small store where we don't have internet connectivity for digital transactions.So yes fiat currency is necessary in the world.
Fiat is now or can be used for transactions in malls or small shops that are not yet covered by the internet network, but with fiat currency you will carry a large physical form and I think this is inefficient, it is better for the government to expand the internet network in every corner of the area
September 21, 2018, 01:08:23 AM
Fiat in my opinion will continue to be in use worldwide. The world may not completely be able to do without the fiat since crypto cannot be easily accessible in very remote places or rural settlements.
That is right. Fiat cannot be ignored no matter how much the world advances. There should always have to be an alternative in case the existing system crashes. Besides, since the crypto system is all internet based, the collapse of the internet connection due to any technical fault in a country can result in the lowered economic activity of that country and hence can hostage the country. This is the reason fiat should be there to be used as an alternative in case of any collapse.
September 20, 2018, 04:23:03 AM
Fiat is being used to enslave you. So it is 100% not necessary at all to have fiat. People can use a resource like silver or gold which evens the playing field. We don't need the central bankers controlling our economies and running us into the ground so they can live large and have it all. In the USA we pay 6% to the bankers to print our money. WTF..
Yes, this is the way things are in the world. But I don't see how we can exist without fiat today. People had already been using gold and silver as money for a few millenia, and in the end it caused an incessant sequence of economic crises which ultimately ended in the world war (1914). Anyway, I don't think that you would want to get sent back in time like in the 11th century, with no fiat around and nothing else as well which makes your life so comfortable and cushy today. So be cautious of your desires as you don't know what you're bringing into fruition.
September 20, 2018, 01:12:15 AM
To me, Fiat currency is still necessary in the world. Even if it is still going to be withered out in the century to come, It is still okay for now. We should not forget that it is not only the developed/advanced economy we are talking about in the global world. Can illiterates at less or undeveloped economy operates computer on line? Fiat is still their medium of exchange understandable by them.
September 20, 2018, 12:47:52 AM
Fiat is necessary because it is far easier to distribute and it doesn't need much infrastructures to make use of and distribute. But i think all thse could be phased out once we have a system where by everyone coyld have access to their accounts anytime and anywhere. Maybe 10 years un the future or so and crypto currency will be king.
fiat currency is needed but the production costs of fiat currency are very limited, and I think it is impossible to eradicate fiat currency, but if fiat and crypto currencies support each other to conduct transactions I think it will happen with full government support
September 19, 2018, 09:14:54 PM
fiat currencies still necessary in every country because people still use fiat to buy anything. but fiat currency slowly has to turn into digital payment because we see some apps offering us to deposit some amount of money to them so we can use it to pay for something we buy without using fiat. and I think in the future, the fiat will still exist but there are many options of the payment which comes from the digital payment like I said.
the government still makes fiat as the main currency of course fiat is still very important for our lives, without fiat of course you will have difficulty in spending and paying for your daily needs, unless the government gives other options by legalizing other currencies like bitcoin September 19, 2018, 08:51:30 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.
September 19, 2018, 08:37:13 AM
The usual currency in the near and distant future will not disappear. If someone does not need a fiat, then many still need it and most of the world's population will not be able to do without ordinary national money. In addition, the crypto currency can not replace the national money vseravno. She can only walk in parallel with them. Therefore, the reasoning is whether people still need the usual currency, which is still used today, is meaningless.
It has some point. It is a stereotyping in which we tend to believe what we have commonly seen, or somewhat we believe the thing that we just assumed. This kind of mentality is probably what most of the cryptocurrency users needed. We must not only considered our personal interest but rather think of the future benefit of everyone. But still it will be beneficial if everything will be digitalized because it is the new trend and what people need. 
September 19, 2018, 03:17:52 AM
fiat currencies still necessary in every country because people still use fiat to buy anything. but fiat currency slowly has to turn into digital payment because we see some apps offering us to deposit some amount of money to them so we can use it to pay for something we buy without using fiat. and I think in the future, the fiat will still exist but there are many options of the payment which comes from the digital payment like I said.
September 19, 2018, 02:07:56 AM
The need for fiat currency is currently maintained in many countries but I think it will gradually be abandoned. I was quite observing in terms of raw materials and real ownership of money between the fiat and crypto currencies.
1. Fiat currency requires special raw materials and this will continue to grow and will eventually run out, if so what happens is the sustainability of fiat currency? Crypto does not need this raw material because they are non-physical and no longer cost to procure raw materials.
1. Fiat currency requires special raw materials and this will continue to grow and will eventually run out, if so what happens is the sustainability of fiat currency? Crypto does not need this raw material because they are non-physical and no longer cost to procure raw materials.
Fiat money already exists mostly in digital form, and in some countries like Denmark or Sweden (not sure here), they are going to remove paper banknotes and coins from circulation altogether within a certain period. So creating fiat in the majority of cases doesn't require anything "material", technically speaking. Besides, modern paper money is made from cotton (and linen), not from wood as many mistakenly continue to think. Though I agree that it is a complicated process but definitely not because of "special raw materials". There is nothing special about cotton.
September 18, 2018, 10:44:50 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 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.
In my own opinion, fiat is necessary because people in other countries are still using fiat which is a physical cash for physical stores so it will be always important but digital currencies has also advantage so they are both important.
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