Topic: Let`s say bitcoin replaces fiat. What happens? (Read 1039 times)

United State government have not allow using bitcoin to replace fiat exactly with USDT, so this news make bitcoin and altcoin dump last day, I think many countries not agree if bitcoin become legal payment transaction although many advantage when using bitcoin as digital payment currency, many people will get much profit when adopting bitcoin.

You are giving too much credit to the miners but they are not running the show. Miners are an integral part of the Bitcoin community which also contains the developers and the users. Also perhaps the exchanges and wallets are part of this equation. Being a successful miner today doesn't mean they will be able to cope with future requirements, regulations, or trends.

However, I think that the argument of Bitcoin replacing fiat is a mistake and not going to happen. Bitcoin isn't the kind of money that helps development. As it stands today it isn't even used as a currency so it will not be able to replace fiat. Money has to be inflating to keep the machine running. Having as a currency an asset that we accumulate and store hoping that the price will keep rising means we don't need to invest this kind of money and take risks, but we just hodl and shit back, sell a few on each bull cycle and not produce anything.

This kind of money is not going to help an economy where fiat hasn't been completely devastated. Although, in the case of a few countries that have destroyed fiat currencies like the Bolivar or the Lebanese and Turkish lira, it would be welcome by the financial authorities to have a way to stabilize the collapse and maybe with the help of a strong asset like Bitcoin, these economies and the fiat currencies could revive. We could see this as a countermeasure to combat hyperinflation. Bitcoin could work on these occasions in a parallel system of payments and stabilize the fiat economy.

I don't understand one thing: Why do you think that bitcoin was created in order to conquer the world? It can't replace fiat, it wasn't meant for that massive usage. Even if we ignore that fact, I want to remind you that the highest percentage of people don't have access to the internet, a lot of people still prefer cash but in this case, we have "let's say" situation, so:
Then, miners won't be in hand of average people like it happens with money: You can't print money at home and even if you do, it will be illegal (+ some countries depend on another countries to print money, they can't do it on their wish).
The government wins again.

In as much as we somewhat dislike fiat because it is controlling, Bitcoin can NEVER replace it simply because fiat is important for each country. If not for anything, it serves as an identity for countries.
Bitcoin wasn't created to push fiat away but to make payment easier, let's not forget that.
What we should be aiming for is a future where these two will work together.

You never gonna expect that the Government won't make a touch on crypto, definitely, they should. If that so happens, crypto will become centralized and no longer become anonymous. Massive adoption is close to reality but I don't think we have to replace fiat, nor to have this possibility in the future. There is only market sharing which people have their option to use either fiat or Bitcoin.

Bitcoin replaces fiat will be the next best thing besides sliced bread I'm telling you. Why, you ask? Just look at all these benefits
-Environment Friendly as you wouldn't need to cut down trees and plants to use for paper bills, and mining precious metals for the purpose of creating metal coins is going to be halted too, which I know you all know is good for the planet.
-Seamless International Transactions can be achieved and without many restrictions unlike what fiat currently has.
-Anonymity, dare I say this is good for those people who wanted tp regain their privacy in more ways than one but can obviously be abused by criminals

All in all, we can see a very bright future ahead of us should bitcoin replace fiat, we're getting there, and that's the best thing about it.

If bitcoin replaced fiat nothing will happen if government did not kicked against, but massive adoption in replacement of fiat will really generate issues in societies, because they are well convinced and well familiar with fiat, most especially the young adults who don't really know what's cryptocurrency is all about will condemn crypto, because fiat has been in existence for century which bitcoin will find it very difficult to be taking in place of fiat despite that actually bitcoin does some elements fiat does.

Now bitcoin have higher price what will you say with bitcoin, keep believe when bitcoin success break out to higher price can replace for fiat position as transaction payment. Will government change their opinion and wanna adopt bitcoin as legal payment currency or not. Still waiting for when bitcoin could be place the same like fiat.

I believe this scenario is only one that can exist in the mind. I don't mean to sound like a non believer, but i can't picture a future where fiat is totally replaced by bitcoin. I think what we are striving for is widespread acceptance and not complete replacement of fiat.

Only way that bitcoin will replace fiat is if each decimal is worth the equivalent of fiat because a lot of people will be sharing the 21 million and right now, not all the bitcoin has been mined yet so we have to make do with what is currently in supply. Another problem is that people will have a difficult time adjusting when the status quo is changed. 1 bitcoin should be enough to buy someone a mansion if bitcoin were to ever replace fiat.

Fiat usage will exist forever. Right now direct fiat usage has diminished, but through some means fiat is connected with each and every form of payment system. Bitcoin too isn't an exception, from the systematic value of bitcoin and its backing system has the ability to go mainstream. To experience the same governments needs to be supportive. Few countries provide the support for bitcoin whereas the majority encourage digital growth, but stand against bitcoins.

Bitcoin is better as a store of wealth, not cash. I think we need something "faster" and with lower fees to replace fiat.

Many feature by using bitcoin when make transaction but I think not all transaction could get benefit using bitcoin than fiat, although later bitcoin raise to higher price fiat keep get position for many people have believe and use fiat for transaction digital currency. Still not have allow for using bitcoin as legal currency payment make Fiat position most stronger than bitcoin so not have any chance to replace fiat by bitcoin.

And come to think of it....
If Bitcoin gets adopted so much it replaces fiat.... The price of it will shoot up as well right??
As per the laws of supply and demand, and it reaches 1million dollars for 1BTC....
Then as we know well enough, there are people with a huge enough amount of BTC who will now become the elites....
the 0.01% of the pyramid....
That would upset the whole economy, the gap of the have and have nots will widened 10x more....
Well anyways its a what if situation .... I love the imagination...

In my opinion, Bitcoin can become a competitive asset and replace gold in the future. But there is no substitute for fiat per country. It also goes against the roots of bitcoin.
Bitcoin's supply will not be sufficient for conventional demand, and bitcoin's volatility will be the biggest hurdle.
It was an assumption, but it never really happened.

For the time being, no cryptocurrency has effectively overtaken fiat in any part of the world. Bitcoin could potentially replace the U.S. dollar as the world's reserve currency, but for this to happen, the digital currency would need to make progress in several important areas. Currencies serve as a medium of exchange, a store of value and a unit of account.

Assuming that it would replace fiat (with the exception of stablecoins), the government, SEC and banks are gonna find it very hard to regulate them (especially if P2P transactions are performed in cold wallets for physical goods and services). It may happen, but it may take decades or centuries to happen.

It can't and it never will.

It's just a what-if, and the OP even give a scenario where it is replaced.

I would reply to this, but same to others who aggressively post reply about it being stupid. When it is just a what-if.

This is the same as with, "What if earth is flat, what will happen to gravity,etc."

Bitcoin should not replace legal tender, it is not yet suitable for all countries, and it is not yet familiar with its use.

Bigger risk when bitcoin could replace with fiat because every time have cases with bitcoin stolen and reality is not good how to adopt as legal digital currency payment, I think looking with how much fees transaction needed when sending bitcoin with small amount maybe many people will think again could effective using bitcoin as payment transaction or not. Better using fiat is transaction small and when you use bigger transaction amount the best way with bitcoin or altcoin.