Topic: In the future, will fiat currencies be necessary in the world? - page 30. (Read 35815 times)
September 18, 2018, 11:15:35 PM
Yes, fiat Currencies are a must globally becayse they help us for our day to day transactions. We cannot use cryptos for our day to day life so peoples always prefer for the fiat Currencies at this situation.
September 18, 2018, 11:11:47 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.
Obviously it was really necessary, not every people can manage to invest on cryptocurrency and that is the reason why fiat is very important today and not just cryptocurrency.
September 18, 2018, 05:16:10 PM
I bet some states can clone and create the other states fiat currencies with todays technology. Maybe thats why crypcocurrencies that have algorithym were created.
September 18, 2018, 03:59:08 PM
yes of course this fiat currency is very important for the world because without the fiat currency will make the world economy very difficult, with fiat currency can be used by many people who need it.
Well hope you won’t mind but I am not agree with you, now according to me fiat has no value bit bitcoin has, now in a lot of areas crypto currency has taken the place of fiat currency because it is good, easy, profitable and source of earning as well, when people only use crypto so we can do with crypto currency what we are doing with fait but we cannot earn their same money with fiat what we are earning from crypto currency. September 18, 2018, 03:31:47 PM
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..
September 18, 2018, 12:43:59 PM
You need fiat money to buy your daily needs. Fiat will still be needed now and in the future. Fiat plays an important role in the economy and also fiat is governed by rule, and it will be difficult for bitcoin to shift fiat.
September 18, 2018, 11:31:42 AM
Fiat currencies definitely aren't necessary, there is an increasing trend towards digitization of currency, and blockchain based currencies are just the next generation of this. The problem is that Bitcoin came out, and everybody treated it as the successor to fiat currency, rather than an incremental improvement on digital currencies such as Paypal and Skrill. I think that if Bitcoin was never invented, but somebody like Paypal had implemented a blockchain technology first, then we wouldn't be in the rivalry scenario that we're in now.
I highly disagree with this, the existence of the cryptocurrency is a by product of the the fiat currency, innovation is present but there would be always a reason how does somete sprout somewhere, and we cannot really jump of trading of goods to digital methods, I was actually talking about the process how are we now embracing digitization is also because of the past ways how we do transactions.
September 18, 2018, 10:52:46 AM
There is no other option for those who can't use the modern decentralized cryptocurrencies. Let's admit the fact that we don't have an impressive literacy rate when it comes to the global level especially regarding technology and it is the basic requirement to use the cryptocurrencies. There won't be any single option for illiterate people if we are eliminating fiat currencies from the picture of the economy.
September 18, 2018, 10:08:49 AM
Fiat currency is essential in this world because there are many small-scale industries which will help them to use the fiat currency for their transactions. FOr online transaction, we need to have a fiat currency whereas cryptocurrency completely digital asset which we cannot easily do transaction completely in online.
Businesses cannot just easily shift to cryptocurrency because there are so many things to consider that would be vital to the flow of the business. Money is the blood of the business that's why it should flow continuously. Unfortunately, not everyone accepts cryptocurrency yet and only a small percentage of them accept it so fiat is still needed.
For me perhaps, I still need to convert my cryptocurrency to fiat when I need to buy something especially if it is a store that do not even accept credit card transactions. Technology in the current world cannot do all transactions online because some places doesn't even have enough electricity so it would be less likely for them to use a digital currency that they don't know anything of.
and also cryptocurrency needs to established its integrity first before the large scale businesses adapt this industry for now it is really hard for them to adapt it because of lack of regulations and security.
September 18, 2018, 09:59:43 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.
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.
Maybe this could be the reason why bitcoin experts were in the near future they've predicted that Bitcoin can possibly has a capability to become the world currency, which means Fiat in the future will be like a toilet paper that will not be useful anymore. But for now while the government are having now research for crypto or in the blockchain, of course Fiat are still prevails and useful as long as there is no final declaration for Bitcoin digital world.
September 18, 2018, 09:43:45 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
It has a point. But the thing here is, people do not want fiat anymore because of that kind of manipulation or characteristics that varries on the government wants. With this, it is necessary if it happened that the role of fiat will be the same role as the cryptocurrency but with modifications. This will surely helps everyone.
September 18, 2018, 09:25:51 AM
yes of course this fiat currency is very important for the world because without the fiat currency will make the world economy very difficult, with fiat currency can be used by many people who need it.
September 18, 2018, 08:05:37 AM
Fiat currency is essential in this world because there are many small-scale industries which will help them to use the fiat currency for their transactions. FOr online transaction, we need to have a fiat currency whereas cryptocurrency completely digital asset which we cannot easily do transaction completely in online.
Businesses cannot just easily shift to cryptocurrency because there are so many things to consider that would be vital to the flow of the business. Money is the blood of the business that's why it should flow continuously. Unfortunately, not everyone accepts cryptocurrency yet and only a small percentage of them accept it so fiat is still needed.
For me perhaps, I still need to convert my cryptocurrency to fiat when I need to buy something especially if it is a store that do not even accept credit card transactions. Technology in the current world cannot do all transactions online because some places doesn't even have enough electricity so it would be less likely for them to use a digital currency that they don't know anything of.
September 18, 2018, 07:25:49 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.
Since not every one are now aware about it and it can be cased people stop paying tax they may become happy if it happen, but there smiles won't visible forever soon there country stop making progress foreign countries start forcing for loan everything can be destroyed.So fiat is the most important thing. September 18, 2018, 06:24:29 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.
September 18, 2018, 06:12:36 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.
Fiat coins are absolutely necessary, for example if you spend with bitcoin and its value changes hourly, it is totally unreasonable. A fiat currency supported by the government is needed at the present time 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 18, 2018, 06:04:07 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.
September 18, 2018, 05:57:10 AM
Absolutely, unless all people in this world are able to use crypto which is almost impossible for some reasons such as financial condition, government regulation, and some other reasons. Fiat wont be replaced by crypto, probably fiat currencies will only adapt the the technology and create their own digital fiat currencies but still real cash money is not replaceable. Many people will still need cash money for their daily needs.
September 18, 2018, 05:42:12 AM
We will always pay and buy something, so we need a means of exchange.
And that medium of exchange will be bitcoin, I really think that cryptocurrencies and fiat are going to coexist in the future, some people are very stubborn and are going to keep using the currency printed by the government even if that means that they lose everything but people like us who knows very well what is happening will only use bitcoin as a medium of exchange, in fact even right now I am avoiding using fiat as much as I can and I'm sure that in less than a decade I will be able to avoid fiat completely.How many merchants, sellers and producers are actually using Bitcoin or any other coin as a means of exchange right now? No one, in fact, at least not in any significant degree. And the explanation is simple, all these people need a stable currency but since the modern economy is not stable by any measure or in any frame of reference, it needs fiat with its built-in mechanic of automatically regulating and adjusting the money supply according to the needs of the economy, so that it would be dynamically stable (like a roly-poly). This supply includes not only money itself as we are used to think of it but also other highly liquid instruments which are effectively money derivatives and can function as money, while being created and destroyed on the fly as required by market participants and economic entities like banks.
Now imagine what catastrophic meltdown is going to happen if Bitcoin, by some magic or miracle, becomes the only medium of exchange in the whole world. It will wreak total havoc through the economies. It is definitely not about some people being very stubborn or anything like that. Fiat is in fact the only viable option to keep economies ticking, whether you or someone else like it or not.
The volatility of bitcoin goes down each year, it is conceivable that in 10 years, or 20, or 30, that it becomes sufficiently stable to be used as a currency.
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.
September 18, 2018, 05:31:48 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.
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