In the future, will fiat currencies be necessary in the world? - page 40.

lorapalmer

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Quote from: ulhaq on August 28, 2018, 02:29:55 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.

Taxes should be paid in order to support the functioning of the country and its infrastructure. The greatest debate has always been about the rate of the tax (whether it should be a fixed tax, say, 15%, or a progressive one starting from 10% and to infinity).

Dread Pirate Roberts

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There are still many people who are not aware of technology at this time and there are still many who do not know what crypto is and even things about digital financial standards today. and also every country has its own regulations with their national banks and their financial regulation. so fiat must always be needed in every country .

timerland

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Quote from: ulhaq on August 28, 2018, 02:29:55 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.

What you're proposing is essentially a government controlled crypto, where they are able to keep an eye on the network in order to manage taxation better, introduce monetary policy more directly, etc. etc. It's definitely something that is foreseeable.

In that case, wouldn't it still be a fiat currency, as there isn't a limited supply and still controlled by a government? It's just in a different form. Not in paper, but on the blockchain.

Fiat is definitely not necessary for the economy to function. I mean, humans did not start using fiat until a few centuries ago, and before that, commodity based currencies are used and there were much less economic crises, in fact. A bitcoin based economy wouldn't be impossible at all. However, governments round the world will push their currency and try to back the value of their own currencies, regardless of what progress crypto adoption has made.

Reality5

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Fiat currency is still very important because not all situations you can use crypto.

tepakpak

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I think it's still necessary because Fiat has contributed a lot to a country, fiat symbolizes currencies in various countries. Although crypto actually provides convenience, fiat is still needed because in this world there are still many poor people who do not have technology.

Ezenwanyi1

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Veil

Yes.
Fiat is the vehicle with which facilitates the progress of econimic activities across the globe.
So it is very important.

frowsiter

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Quote from: Direwolve735 on August 30, 2018, 07:38:52 AM

Fiat money has a constant recognized value. It is money that is liquid assets. Thanks to fiat money, a measure of the value of almost all goods and services is determined. To date, fiat money remains the most recognized and understandable for most financial instruments. Therefore, for the time being, they are necessary for the modern world, despite the increasing distribution of crypto-currencies.

This is something unique and indeed true fact. I guess there is no currency that is as liquid as fiat is. Its centralisation is keeping it at constant value and thus we can surely put a price tag over the goods and services with constant value. This is the most important thing one can have as you dont have to have hassle in daily life as to check up the value of service and then decide how much coins you have to spend. While crypto currencies are far different than that and everyone knows they are too volatile to be used steadily. So yes, fiat is important.

martinholly167

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is this has the same meaning as changing fiat into a digital and changing its name to "crypto currency" by also not printing bank notes

boyshx

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I guess they are far better than crypto currencies and they will always be because they have made with proper trial and errors over the time. First there were stones and now today we have advised anti-cheat notes and coins which has the accurate detailing about it. I guess such sort of currency will always be wanted by the people and this society. Its use is very simpler than others. Crypto is not that fine right now, its not that better because it has very less characters which are any closer to the fiat. Centralised fiat is always best because its far controlled and straight currency.

Finestream

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Quote from: bfreetogo on August 30, 2018, 08:38:09 AM

in my opinion it is still a bit necessary, what if you got somewhere and there is no internet or electricity but you still need to pay for something?
if there only were cryptocurrencies for wich you need internet to send a transaction then you would be stuck to buy the thing that you would want or need in that situation

I think if that time comes that digital currencies are already adopted,the government then will also be aware that it needs internet connection for a successful transaction.Surely they will find ways for that maybe putting up wifi in every areas so that people will find it easy to transact using digital currencies.

sieemma

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Fiats are really a necessary part of our lives. These are what everyone generally accepts before exchanging an item with you so without it, life would have been miserable because we would have carried our fowls, gold, cattle, and many others before sending getting an item we needed but everything is simple with fiat.

Hell-raiser

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Quote from: ulhaq on August 28, 2018, 02:29:55 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?

Let's set things straight. It had already been tried and didn't work (with gold as money). Any deflationary currency (gold, bitcoin, whatever) would be massively taxing real economy. People who have a lot of tokens representing money would be profiting from just holding them, that is by doing nothing, from people who actually create goods and services, bringing value to the table. Fiat is not perfect but what it is perfect at is taking from idlers a competitive advantage which they otherwise would have just because they happen to be rich.

Quote from: ulhaq on August 28, 2018, 02:29:55 PM

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.

Yes, it can be considered a tax on those who bring nothing to the table. The answer is simple, don't hold the currency.

Quote from: ulhaq on August 28, 2018, 02:29:55 PM

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.

As said above, fiat is far from being perfect which is heavily aggravated by its misuse and abuse. But a deflationary currency as a means of exchange would mean a quick and painful death to the whole economy.

bfreetogo

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in my opinion it is still a bit necessary, what if you got somewhere and there is no internet or electricity but you still need to pay for something?
if there only were cryptocurrencies for wich you need internet to send a transaction then you would be stuck to buy the thing that you would want or need in that situation

DPrillio

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Quote from: Direwolve735 on August 30, 2018, 07:38:52 AM

Fiat money has a constant recognized value. It is money that is liquid assets. Thanks to fiat money, a measure of the value of almost all goods and services is determined. To date, fiat money remains the most recognized and understandable for most financial instruments. Therefore, for the time being, they are necessary for the modern world, despite the increasing distribution of crypto-currencies.

I think as of now that not everyone has the opportunity to access and use internet then fiat is the best option to make transaction and all mode of payment. The fact that crypto currency is useless without internet but I believe someday if crypto currency is available all around the world then fiat will become obsolete. But current situation the fiat currency is necessary for more convenient and easy way of payment.

Direwolve735

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Fiat money has a constant recognized value. It is money that is liquid assets. Thanks to fiat money, a measure of the value of almost all goods and services is determined. To date, fiat money remains the most recognized and understandable for most financial instruments. Therefore, for the time being, they are necessary for the modern world, despite the increasing distribution of crypto-currencies.

tayogpanganiban

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The Pure Proof-of-Tansaction [POT]

Yes.Same with cryptocurrency.They are necessary in the world because we use it to sustain our needs and use it un businesses, banks, hospitals, school, and so on.Others are not into digital money and they still prefer fiat.

carlisle1

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Fiat will always be necessary to the world,together with electronic money.this two will help each other to provide what the worlds need

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

privedvelosiped

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Quote from: ulhaq on August 28, 2018, 02:29:55 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.

A very interesting point of view on your currency. However, I will say this. It takes several years to realize all this. Very many countries, such as America, China, Russia will not soon move to such a system. Como it would not be beneficial. In General, your idea is interesting, but it takes many years to implement it.

deloreswest

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Open and Transparent Science Powered By Blockchain

Yes everything could be tracked via blockchain an when every transactions are using blockchain technology fiat would not be necessary cause we do have a better way to do transaction by using cryptocurrency.

nabinkhadka

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I think at the present day fiat in necessary in the world. Lets suppose when we move to mass adoption for block chain based crypto currencies , to address the number of people who are unaware about these types of currencies we will need fiat.

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