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Topic: In the future, will fiat currencies be necessary in the world? - page 38. (Read 35816 times)

jr. member
Activity: 206
Merit: 2
This is simply synonymous to taking power away from the government. An absolute absence of fiat currency in favour of cryptocurrencies poses some threat to government control of both monetary and fiscal policies which are both important economic control mechanisms. Moreover, it could lead to increasing laundering of funds, this are some of the reasons why I don't see crypto replacing fiat in its entirety in the nearest future.
newbie
Activity: 84
Merit: 0
Fiat currencies are still needed because they still exist and have not been completely replaced by other currencies. This is because fiat still provides comfort for people with a low economy.
full member
Activity: 448
Merit: 100
CRYPTOCITIZEN $CCASH
Fiat money is necessary to us. It carry a country's nationality, dignity etc. And by this side online currency also show that the country's people are digital or modern. But absolutely not be avoided fiat money. Because it our dignity to other that we have our own money.
newbie
Activity: 52
Merit: 0
Yes fiat is necessary for the economic growth of a country even if we like or not. Fiat currency has it's own merits as well. Because it can be use for loans and to pay your taxes physically. Both digital and fiat currency can coexist, both has it's pros and cons and even help each others growth. bitcoin for me is another source of payment that is decentralized and free of control.

Yes, that's true about Fiat Currencies, but have you considered the prospects of Crypto-currency. Prospects development of cryptocurrencies exist, despite the fact that attempts to introduce a digital currency have taken place since the advent of the Internet, in fact, the use of digital money is in a moderate way. The opportunities of using cryptocurrencies include: the absence of inflation, the anonymity of the user, uninterrupted operation of the program in a server mode, quick transfers anywhere in the world, no counterfeit, ease of storage, the possibility of splitting into parts, and there are no fees for transactions, low fees for the exchange.
newbie
Activity: 52
Merit: 0
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.

That is a mystery yet to unfold. No doubt we all are aware of the potentials of Crypto-currencies. We have come to the understanding that cryptocurrency can serve virtually the same purpose of Fiat currencies. Infact, it can do better. As,  business transactions will be faster, inflation will be more controlled etc. The problem now is tha, Are Governments ready to pass the adoption of Crypto into use?. It is as easy as them declaring it a legal tender, but probably they think about how useless the existing physical currencies already in circulation will turn.
sr. member
Activity: 1463
Merit: 265
Pepemo.vip
Ofcourse it is very important for now. Knowing the fact that not all the people can access new technology like those people who are on the rural areas which don't have the means to have new technology materials.
But for me if world will move suddenly in crypto (of course when everyone will know how this technology works and how they could operate with their wallets) it won't be the end, after some time people for me could get used to how it work.
member
Activity: 350
Merit: 10
TRONscratch.com
Ofcourse it is very important for now. Knowing the fact that not all the people can access new technology like those people who are on the rural areas which don't have the means to have new technology materials.
member
Activity: 308
Merit: 10
Yes fiat is necessary for the economic growth of a country even if we like or not. Fiat currency has it's own merits as well. Because it can be use for loans and to pay your taxes physically. Both digital and fiat currency can coexist, both has it's pros and cons and even help each others growth. bitcoin for me is another source of payment that is decentralized and free of control.

Fiat is very necessary because not every people does have the potential to invest on cryptocurrency so they will not be able to have transactions with other people if they will not be using fiat.
member
Activity: 672
Merit: 12
Till date all the people of the world have not access to crypto currency.  Because of lack of knowledge , non availability of necessary equipment to use crypto, electricity and  or internet problems; it is not being used by all in the world.
Secondly everything commodity; service is being measured in fiat currency.  Then if fiat is absent ; how we will be able to determine the value of commodity and crypto for transactions.  So fiat is required though crypto will be used more in future.
newbie
Activity: 54
Merit: 0
I am used to fiat currencies although I participate in cryptocurrencies.I can't doubt or defame fiat currencies because they are also needs in everyday transactions we make.
legendary
Activity: 1008
Merit: 1060
yes just like the gold times during the old days, remember gold is valuable up to now and let us not forget the fact that there is still a lot of countries or part of countries that don't have electricity.
But gold and fiat isn't the same thing. Gold, silver, copper, and bronze were used as a currency before because they are precious metals and have to be mined. It serves actual purpose. These metals have their different uses and they are also priced on their scarcity. Fiat, on the other hand, is literally just paper. The only thing that gives it value is the belief of the people that it has a value. But when it comes to its use as the material that it is, it's just paper, nothing else. It's not like gold which can be used in the components of our devices. It's not a good electricity conductor either. Sadly but this meme posted by @nikflossus on Steemit is so true:


Fiat currencies are important to every country and the whole world. Not all areas around the globe can enjoy using crypto as a medium of exchange since not all are countries are having advanced technologies. Cryptocurrencies can only be accessed if have the electricity and internet connections. So to those areas having none, then crypto is useless unlike fiat money as long as you have it in your hands with or with electricity and internet connections you can use it anytime and anywhere.
But the thing about fiat is that once people start using cryptocurrency and you're left with fiat, you're basically left with a piece of paper. Its value is based on our belief that it has value (like I said), so once that belief is gone or is moved to a different medium, then fiat loses its power and goes back to what it actually is, a piece of paper.
sr. member
Activity: 594
Merit: 250
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.

If I am going to compare it now in our generation my answer is Yes! Fiat still needed now because crypto currencies is only useful because of the internet we had it now but without it, it will be useless for sure. Although blockchain was very trending nowadays due to the high technology we have so far, that's the fact reality which I saw its true happens.
newbie
Activity: 126
Merit: 0
That is true fiat currency are still necessary in the world as of now, because fiat currency can still be utilized especially in the areas ,where internet is not available and we can not transact  on line business in any form because lack of this internet access , so this could the time that fiat is still usable for exchanges and in the market.
sr. member
Activity: 597
Merit: 250
WPP ENERGY - BACKED ASSET GREEN ENERGY TOKEN


yes, it is. you can say that crypto is more and more than fiat. but im sure high percentage crypto's user just for make money, not for daily needed like pay bill, buy donuts or the other stuff in society. comparing between fiat and crypto is like fiat and gold. its 100% will gain profit when you have gold because sometime the value of it can increase. fiat just for exchange. so, you need fiat to decide the price of crypto too
sr. member
Activity: 1400
Merit: 269
Yes fiat is necessary for the economic growth of a country even if we like or not. Fiat currency has it's own merits as well. Because it can be use for loans and to pay your taxes physically. Both digital and fiat currency can coexist, both has it's pros and cons and even help each others growth. bitcoin for me is another source of payment that is decentralized and free of control.
full member
Activity: 378
Merit: 102
We focus too much on what crypto can do but not what it can't do. Sure, it can do all sort of things fiat can't but the implementation will be sureal. Take note that not all people are technologically inclined especially in the poorer countries so using fiat is be better for them.
hero member
Activity: 1680
Merit: 535
Bitcoin- in bullish time
They are necessary in the world to have a fiat currencies because even the cryptocurrencies are not existing, it is the main currency that is being used and with the fiat currencies, the flow of the money is being centralized and well controlled by the government but i think that in the future, it will not be necessary anymore because the technology will take over the fiat currencies.
jr. member
Activity: 90
Merit: 5
A lot of good points. Many have said that fiat is necessary now. Well, obviously, the question was whether fiat would be necessary in the future.


Fiat has been tested for how long period of time,while virtual money was just here for only 10-15 years so please never compared the two because they are two different thing that has single purpose and that is to serve the people

Fiat has not been tested for a long period of time, maybe 75 years total. Before that it was gold or gold-backed currencies.

This discussion has been coming up everywhere recently. Although,I do not support the phasing out of the Fiat currency, I can't really find a point to back its existence. But I still think it's asking too much. Even if cryptocurrencies would replace Fiat, it would take a lot of time. But before than happens, some things must be taken care of. Take for example the volatility of cryptocurrencies. Such variable makes it too difficult to be made a major means of exchange. This is only one of the issues that I have in mind.

Volatility is not an issue, the volatility has been going down every year and will continue to do so.

Given the risks involved, l don't see a total switch to digital money anytime soon. Besides, an increasing acceptance of digital money comes with some compromises. The government in South Korea demanded that crypto accounts not be anonymous, but use actual name. This will facilitate taxation, and trace corruption. These and a number of measures will be taken by governments around the world. Besides, do you see the internet connectivity rate being 100% all around the world? What of those places without access, how do they functions?

This is a good point.

If crytpo is decentralized, and if all the governments use it, doesn't it mean, all economies are one?  Roll Eyes
No, all economies are not one, because governments will have different overall tax rates, will tax different things (income tax vs. corporate tax vs. sales tax), have different deductions, different agreements with each other for mutual taxation, will decide to spend the money on different purposes, etc.

Quote
Hey! What you are saying it is great, but what is the reason for such a switch? I don't think that governments are ready to work with crypto instead of fiat money. Moreover, fiat money give them several tools to manage economics. For example, interest rates, money supply etc. By increasing the emission, by lowering rates or by QE programms, central banks stimulate business activity. I can't see such a possibility when using Bitcoin, for example, as the emission is limited and the very crypto is out of reach for central banks

I don't see that any of those tools work to manage economies. By changing interest rates and the money supply, ostensibly to "stimulate" the economy, governments have created massive bubbles with catastrophic results. The thinking is that consumer demand for products needs to be increased during a recession. But most of the products people buy are junked within a few years and the individual has nothing to show for it, while savings rates are very low. It is nothing more than a transfer of wealth from poor/middle-class to corporations. How does that benefit the economy? Also the money that is spent to "stimulate" the economy is money that could have been spent elsewhere - eg, infrastructure, education. So I would say that direct money spent has had the effect of enervating the economy by diverting it from more productive use.


At least 2 good points - difficulty in in-person, small, retail transactions, and internet connectivity issues. But even these are potentially solvable in the future. The technology to collect crypto could become so cheap that even small retailers and stalls could accept crypto, also internet connectivity improves all the time, maybe there will even be backup internet connections available at some point. But even so, it is good to have fiat as a backup currency.

Very well put together, some arguments make sense but if you look at the pace of technology, in a few years every retailer probably will have a manchine (Pundix?) that converts any crypto to a currency of they acceptance, people will have embraced crypto currency a lot more and use for commerce, at least there is a high degree of probability.

I see another concern from a different direction, most of us typing here live in so called privileged countries, not only do we have fresh water, but also electricity and even high tech such as smart phones...however we are in the minority. Large parts of the planet does not have these luxuries, not even clean drinking water or sanitary installations. 
legendary
Activity: 1106
Merit: 1000
Of course it would still be necessary in the world. From the first place, for how many decades, we are using fiats for day to day transactions. You cannot eliminate that right away even though the possibilities of crypto in economy is high. There are benefits of crypto and the same with fiat. We can use both of them for our everyday life.
Right.Fiat currencies are still very beneficial to the majority of the people nowadays since they are still using it to buy their goods and pay for services.Maybe in the future it will be less necessary when most of the people are exposed already in using cryptocurrencies.I think it will only happen once the government decides to accept cryptos and legalized its usage.
full member
Activity: 518
Merit: 101
We the humans are getting more dependent on technology day by day. The day will come when people will start using digital money and fiat currency will be unnecessary piece paper in this world.
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