Should Fiat currencies still exist or be replaced by Crypto Currencies? - page 2.

iMark

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Quote from: Eclipse26 on October 11, 2019, 12:20:52 PM

Why do we have to replace or remove one thing when they
can just work together. You know the saying "two is better than one". This can be applied when two of them are being helpful to each of us. Fiat and crypto are both helpful to us so why would we eliminate one of them? I can't see the reason to replace fiat because fiat is important. Not all citizens can access digitally. Some rural places don't have enough knowledge and capacity of digital innovation.
We cannot really replaced fiat. And since crypto is a great development, it is the addition to make things more easy.

Yeah agree, you can't use bitcoin or crypto completely after all, I know that many crypto users too glorifying bitcoin, that in the future bitcoin will replace fiat, it's just speculation. Not everyone accepts crypto, not everyone connected to digital, and also there are still many others competitors in addition to fiat anyway. Right now we depend on fiat its the fact, bullshit if you fully shop using bitcoin. Both can be used together and it's more easier, why bother yourself to only choose one, whereas you can be much easier to use both.

7788bitcoin

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Quote from: Kakmakr on October 09, 2019, 12:46:10 AM

I personally think there are still huge challenges that needs to be addressed, before electronic payment options can permanently replace Fiat currencies and that alternative payment options can co-exist with Fiat currencies.

There are a lot of challenges to replace the fiat currency and make everything digital, the next generation will be more than capable of going through the transition period but not everyone will be comfortable with it and then there is an serious issue of privacy on where the money is spent, i do not want any transactions being recorded if i am meeting an escort or a stripper Tongue

and hence i want both to co exist.

nicecrypto

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Crypto is far from perfect yet, there are a lot of flaws associated with crypto especially in the transaction aspect, for instance, in crypto any transaction mistaken sent to an unintended wallet can not be reverse and if you don't know the owner of the wallet, then your funds are lost for good, I don't know how many people are ready for that, because trust me no one is above mistake. Fiat is still the more reliable to use.

Eclipse26

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Why do we have to replace or remove one thing when they
can just work together. You know the saying "two is better than one". This can be applied when two of them are being helpful to each of us. Fiat and crypto are both helpful to us so why would we eliminate one of them? I can't see the reason to replace fiat because fiat is important. Not all citizens can access digitally. Some rural places don't have enough knowledge and capacity of digital innovation.
We cannot really replaced fiat. And since crypto is a great development, it is the addition to make things more easy.

Chrystora123

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fiat currencies must remain to exist and continue to circulate together with cryptocurrencies, technological and infrastructure developments in almost all countries are still uneven. in my country there are still many areas that do not yet have electricity and internet networks, how do they transact if fiat currency is destroyed.. so I'd agree if Fiat remains in circulation and cryptocurrency is an alternative payment/investment option.

qwertyup23

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Time and time again this question was asked several times already and some still think that cryptocurrency can totally replace fiat in terms of being the main medium.
Unfortunately, it cannot considering the circumstances that each is facing especially the factors that are needed to be taken into account.

Fiat will always remain as the main medium of exchange among countries. The value of currency primarily depends on the number of gold reserve the country respectively has and its economic power. Fiat has been accepted by all as the main medium of exchange and the government has been trying to regulate its supply/demand depending on the need of the country.

On the other hand, cryptocurrencies have no innate value as they solely exist in the internet. In addition, a limited supply of 21 million in circulation would bring chaos and manipulation to the person/organization who has the majority of coins. Lastly, the government of each country must adhere and view it as the MAIN medium before it can be implemented and applied.

Darooghe

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I agree with your first scenario. Technically, without fiat there is no bitcoin because the mining farms that operate the Bitcoin network all require fiat to purchase their hardware and electricity. A total fiat collapse would destroy Bitcoin and the entire Crypto ecosystem, but this will probably never happen. At least not without some type of major world war where the power elite are wiped out and economic rules are re-written.

If fiat collapses BTC will collapse as well. This may not be a popular opinion but I see BTC as built on top of fiat, similar to how altcoins are built on top of BTC. In order for BTC to gain value it had to be bought with fiat. Similar to how altcoins had to be bought with BTC. this is not to say that BTC can't become one of the largest world currencies or stores of value like gold but ultimately, in a doomsday scenario, you can't eat or drink BTC. If fiat collapses were are all done.

xvids

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They both could co-exist.
I don't really think that crypto needs or would replace Fiat anytime soon.
We all know that the government wouldn't let it happen because they couldn't control crypto .

RivAngE

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Ideally it should all become digital, but because we're not in an ideal world this is not going to happen. The many different countries and governments would just never agree.
Therefore our only option is to have both.

alexsandria

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I think they can both coexist. It is because of the reasons that you have mentioned. There were still developing countries who can't afford yet to lose fiat money. Also, even in developed countries, it is still hard to live without these fiat. With it coexisting with bitcoin, we are lucky to live this era with it. We all hope though that we must not be too dependent on one of the two.

Spaffin

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I am sure that fiat currencies and cryptocurrencies can coexist very productively without interfering with each other. I am sure that each currency will have its own regular user, because even though it has been possible for many years to use bank cards and payment systems, many people prefer not digital money and cashless payments, but paper money. The same situation will be with cryptocurrencies, when they will be used by a certain circle of people, which really can consist of a large part of humanity.

Eugenar

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Quote from: hatshepsut93 on October 09, 2019, 12:58:03 AM

You are mixing terms "cash" and "fiat" in many places in your posts, it makes it really hard to properly answer your question. Cash means physical money, fiat means government-issued money not backed by anything.

Should cash exist? Yes, because electronic payment methods rely on the Internet, electricity and special devices, and those things can't be always available, especially in remote places.

Should fiat exist? Crypto is technologically incapable of handling all fiat's transactions in the world right now, even with Lightning Network. So, it's kinda pointless to discuss whether crypto should replace fiat, until it's actually possible to do so.

Right at the moment, fiat are still needed, we can only replace fiat if and only if the government will require us to do so, because fiats are necessary and cryptocurrency has still something that can't do when a fiat can. That is to manage our taxes. Right now, there's allot of needs to consider in relation to taxes, such as a standard cryptocurrency to pay taxes, amount calculation of taxes, and conversion of currencies to national currency with blockchain.

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Quote from: Kakmakr on October 09, 2019, 12:46:10 AM

So, we are moving into a new era where Fiat currencies are getting some competition from Crypto currencies and multiple other payment methods. People are simply not interested in using cash anymore, because cashless payment options are more efficient and also more convenient. < Debit & Credit cards / Crypto currencies / Gift cards / E-Wallets / Cheque / PayPal etc. >

So with the endless alternative payment options available, cash payments are slowly being replaced by more practical and convenient payment options.

Is there still a need for Cash in this evolving world?

I can think of several scenarios where Fiat currencies are still needed, namely :

1. Where there are no electricity infrastructure.

There are remote locations that doesn't have electricity, but these days through the advancement it is possible as solar energy can be produced even from very low sunlight.

Quote from: Kakmakr on October 09, 2019, 12:46:10 AM

2. Where it is not safe to carry expensive smart phones.

As mobile operators have developed inbuilt wallets, we can enrich the security so that even if smartphones were stolen or taken by someone else they can't make use of it.

Quote from: Kakmakr on October 09, 2019, 12:46:10 AM

3. Where there are no access to the Internet.

More firms were trying hard to give cryptocurrencies physical appearance. This is hard, and paper wallet is the only way it can be viewed physically. Some form of offline transactions were made, but at some point it needs connectivity to register to the block.

Quote from: Kakmakr on October 09, 2019, 12:46:10 AM

4. Where there are a high number of illiterate people.

This is not at all a problem, people found difficult to use phones. Now everyone who haven't gone for school uses it better than a techie. So, being illetrate is not a big issue with cryptocurrency.

Quote from: Kakmakr on October 09, 2019, 12:46:10 AM

5. Where there are people with disabilities that presents challenges for electronic payment options.

People moved from physical cash to card payments, and this gets effective when governments promote it and encourage using card/other forms of digital transactions for all the needs. One such promotion is taking place through out Japan.

Tylev

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The national money of states cannot be replaced by cryptocurrency, and above all, because they are an indispensable attribute of the existence of each state. Not a single state will allow this, because both the state’s economy and the state itself will be put on the verge of destruction and decay. However, this is only one of the reasons why cryptocurrency can not completely replace fiat with itself. Certain groups of people themselves will not want to, and to a greater extent will not be able to use cryptocurrency. In any case, for fifty years this question is still premature.

darkangel11

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There's no need for cash in this world but the transition should be slow so that people who lived all their lives with fiat money are able to adapt. Electronic cash and electronic banking is a new thing. Fiat money was there for decades and it will take at least another decade before it goes away. Fiat also has many advocates who like to feel money in their hands. And what about people who don't like cryptocurrencies at all and think it's another tulip bubble?

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Quote from: ReiMomo on October 10, 2019, 09:57:03 AM

Quote from: ?? on ??

Aren't stablecoin more like fiat on the blockchain, if we can develop stablecoin to become a force in the industry I don't think we need the service of Fiat currencies. Every country can simply develop their stablecoin just as Facebook is currently doing that way they'll still be in control of the currency as it'll be operated on the blockchain.

On my own point of view, I don't think fiat currencies will be replaced by cryptocurrencies because as we all know cryptocurrencies value are volatile so it may rise or fall from time to time so it's really hard for us to save and buy the things we want if the value of our currency is volatile. It should have a stable currency and the volatile currency so that we can create value through fiat pair.

That is why the guy said stablecoin. Just like USDT or the Libra currency of Facebook.

But as mentioned by op. There are cases where fiat is necessary. Just like places where there are no internet and electricity. Most cities and developed countries can do a full shift to their own stable crypto currencies but developing and poor countries will be having a difficult time to adapt this kind of monetary system. There are countries that poverty level is very high and needed to focus on those issues rather than developing their own crypto currencies.

ReiMomo

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Quote from: ?? on ??

Aren't stablecoin more like fiat on the blockchain, if we can develop stablecoin to become a force in the industry I don't think we need the service of Fiat currencies. Every country can simply develop their stablecoin just as Facebook is currently doing that way they'll still be in control of the currency as it'll be operated on the blockchain.

On my own point of view, I don't think fiat currencies will be replaced by cryptocurrencies because as we all know cryptocurrencies value are volatile so it may rise or fall from time to time so it's really hard for us to save and buy the things we want if the value of our currency is volatile. It should have a stable currency and the volatile currency so that we can create value through fiat pair.

error08

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Quote from: Kakmakr on October 09, 2019, 01:09:52 AM

Quote from: hatshepsut93 on October 09, 2019, 12:58:03 AM

You are mixing terms "cash" and "fiat" in many places in your posts, it makes it really hard to properly answer your question. Cash means physical money, fiat means government-issued money not backed by anything.

Should cash exist? Yes, because electronic payment methods rely on the Internet, electricity and special devices, and those things can't be always available, especially in remote places.

Should fiat exist? Crypto is technologically incapable of handling all fiat's transactions in the world right now, even with Lightning Network. So, it's kinda pointless to discuss whether crypto should replace fiat until it's actually possible to do so.

I use the word Fiat because it has a very close link to cash issued by governments. The word “fiat” is Latin in origin and refers to an arbitrary order issued by a government or other authoritative figure. When applied to paper money, fiat currency refers to the scary notion that our dollar has value only because the government says it does. <-- Source: https://americanmonetaryassociation.org/why-the-dollar-is-called-a-fiat-currency/

So let's not split hairs on the actual difference between the two, because it can be any physical currency that is issued and backed by the respective governments. Roll Eyes

Let's just focus on the discussion and question if these currencies should be replaced. Wink

If fiat refers to printed paper money which worth nothing but the government says it has, I prefer don't use it.
But it can't be replaced as long as the government still exists due to fiat currency backed by the government itself. Should fiat still exist? Yes it should, but in the different forms such as printed on gold or silver in place of fragile paper.

Ailmand

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Fiat is still important, cryptocurrency can be an alternative but it is not suitable to completely replace fiat. In cases where crypto is regulated, it is impossible to use crypto as an alternative to cash, that is why fiat is important.

airdnasxela

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Cash cannot be replaced easily since it is being controlled by the government. Even if we decided to replace cash with cryptocurrrency, we still have no power to control it and the government won't even allow the removal of cash. Other payment method were just given because of the innovation and development it offers, but the main way to pay is by cash. That's why it's called "other payment method", that just work as an option in payment.
Buying big amount things are good for cards to avoid bring lot of cash in your pocket but imagine buying small amount things and then you have to use cards just to pay for it... It'll just become more complicated.

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