Bitcoin is already a global currency but not "officially".
FIAT will also exist in a digital form and both will coexist.
I really cannot see crypto putting an end to FIAT because not everyone is going to accept it,
no government will want to adopt it either because they cannot regulate it.
Topic: What will happen to global economy when crypto becomes global currency? - page 3. (Read 1630 times)
August 23, 2018, 07:28:56 PM
August 23, 2018, 07:28:39 PM
If and when cryptocurrency finally becomes an official global currency, how do you think it will affect the global economy and the economy of each countries? Will it help improve the economy better than fiat or will it still need help from fiat?
I don't see it is happening anytime soon or within our lifetime. Cryptos need government regulation and clear legal framework to become local currency first. Out of all countries in the world, only Japan and Germany have adopted them to be used as a legal tender. Rest all countries are still going through a dilemma. They have neither absolutely adopted it nor absolutely banned it! So the chances look really grim for bitcoin or any other crypto to become a global tender in our lifetime.
Even if it happens in the near future, it will be certainly not bitcoin. It will be something similar to the government regulated digital currency whose values will be guaranteed by some of the big economies. I don't see much future of cryptos here in the global level for global trades because the consortium of governments won't let it happen!
I do agree with this. Crypto has a long way to go in terms of replacing the fiat currencies.
But, we are in the stage that crypto money has real fiat value so we can use it for our everyday living.
Though many merchants are already accepting cryptocurrencies as a form of payment, yet, it is still in its early ages.
So, I believe that the global economy would still be the same if ever that scenario will happen, only that, business transactions are faster and are more transparent.
August 23, 2018, 04:45:53 PM
If and when cryptocurrency finally becomes an official global currency, how do you think it will affect the global economy and the economy of each countries? Will it help improve the economy better than fiat or will it still need help from fiat?
It depends on what you mean by the official global currency, which will become the crypto currency. It is necessary to proceed from the fact that states will not widely use the decentralized crypto currency in their financial activities. It seems that it is unlikely to be widely used and private business. Decentralized crypto currency is too volatile for this. As a global currency, only citizens can use a decentralized crypto currency.In this capacity, decentralized crypto currency is unlikely to have a strong impact on the economies of states.
August 23, 2018, 03:43:57 PM
I think with the use of bitcoin as a global currency, payments between countries will be more efficient because it can be done quickly and costs a little. however, the high volatility of bitcoin prices can cause the economies of unstable countries
Essentially what we need bitcoin is high stability and good price. Issues related to national economies are due to many factors. Not all electronic money has the most impact on the market. Make sure it only happens part of its scope. 
August 23, 2018, 03:41:37 PM
If and when cryptocurrency finally becomes an official global currency, how do you think it will affect the global economy and the economy of each countries? Will it help improve the economy better than fiat or will it still need help from fiat?
My theory will be that all of the human being in the planet will work as one economy and will rely to one currency to be used all over the world and humans will work together as one.
August 23, 2018, 10:04:21 AM
Not 'when', but 'if'. This future is not likely to happen. At least, not with the current bitcoin's limitations.
The network capacity is just incomparable with visa and mc. Also, the constant price volatility is a huge stop-factor.
Crypto may take some part in the global economy, but it will not replace bank payments and fiat.
Just like the internet didn't replace usual mail as the means of transferring information.
The network capacity is just incomparable with visa and mc. Also, the constant price volatility is a huge stop-factor.
Crypto may take some part in the global economy, but it will not replace bank payments and fiat.
Just like the internet didn't replace usual mail as the means of transferring information.
Bitcoin doesn't need to grow scale wise to cater for every transaction on the planet. It's good enough as it is to act as a settlement network which would be in practice a better gold standard. So people would use second layer solutions like the Lightning Network instead of onchain transactions. This way even poor people in the end of the world could have access to the global economy, and this would be faster, cheaper and more private than any government alternative, so they have an incentive to support it.
At the same time, the elites have an incentive to support Bitcoin because they can afford on-chain transactions for their massive transactions and bypass the nation-states' controls.
In the end no matter what criticism you have about it, both rich and poor have incentives to support BTC, correct me if im wrong.
August 23, 2018, 09:51:42 AM
This will probably cause unbalance in the distribution of wealth since majority of the early adopters would have had many bitcoins accumulated until that point. It would cause more problems since the rich will become richer and the poor will become poorer.
August 23, 2018, 09:48:54 AM
Cryptocurrency would certainly become a part of the global economy and would aid finance and sending of funds. This would become possible in the nearest future due to the fact that cryptocurrency is gaining popularity these days. When it becomes part of the global economy it would aid transactions and funds transfer, they would become very fast and easy leading to a better global economy.
August 23, 2018, 09:31:17 AM
What happens is that we can all make transactions easily but for the country I think it is not good because crypto is not stable and to become a global currency it still requires a long process.
August 23, 2018, 09:26:32 AM
Of course it will still need the help from fiat, crypto can't and shouldn't be the main currency, it could be dangerous fornthe country, because the price could be manipulated, I think if crypto become a global currency it could increase the world economic, as we can see bitcoin had been help so many people by provide more job opportunities and more income, but the government will need a good regulation so the crypto and fiat could go together
August 23, 2018, 08:15:24 AM
The effect is certain, let alone a change of that magnitude by changing the system from banking to digital today with the weakening of the exchange rate against the dollar, the impact will be felt, but I doubt crypto money can run alone without flat money because of many factors such as culture, habits, living standards such as lack of inequality of technology, poverty, lack of education are some of the constraints in which btc cannot be used fully but there must be flat money to cover all these shortcomings
August 23, 2018, 07:33:03 AM
If and when cryptocurrency finally becomes an official global currency, how do you think it will affect the global economy and the economy of each countries? Will it help improve the economy better than fiat or will it still need help from fiat?
My theory will be that all of the human being in the planet will work as one economy and will rely to one currency to be used all over the world and humans will work together as one.
August 23, 2018, 07:23:12 AM
If and when cryptocurrency finally becomes an official global currency, how do you think it will affect the global economy and the economy of each countries? Will it help improve the economy better than fiat or will it still need help from fiat?
I'm at an expert so I am choosing for myself a strategy of waiting and anticipating because I will eventually see what would be happening with the world economy and only thing that I need to do is to react properly. August 23, 2018, 05:16:03 AM
I think with the use of bitcoin as a global currency, payments between countries will be more efficient because it can be done quickly and costs a little. however, the high volatility of bitcoin prices can cause the economies of unstable countries
August 23, 2018, 05:08:39 AM
If and when cryptocurrency finally becomes an official global currency, how do you think it will affect the global economy and the economy of each countries? Will it help improve the economy better than fiat or will it still need help from fiat?
I don't see it is happening anytime soon or within our lifetime. Cryptos need government regulation and clear legal framework to become local currency first. Out of all countries in the world, only Japan and Germany have adopted them to be used as a legal tender. Rest all countries are still going through a dilemma. They have neither absolutely adopted it nor absolutely banned it! So the chances look really grim for bitcoin or any other crypto to become a global tender in our lifetime.
Even if it happens in the near future, it will be certainly not bitcoin. It will be something similar to the government regulated digital currency whose values will be guaranteed by some of the big economies. I don't see much future of cryptos here in the global level for global trades because the consortium of governments won't let it happen!
August 23, 2018, 04:16:48 AM
The possibility to see crypto become a global currency is almost ZERO, but if it is really happen in the future and crypto is still fluctuate as its nature then it may bring good effect as well as bad effect for the economy of a country. It will bring good effect if the price is going up and bring bad effect when the price going down unexpectedly. With this case, people in this world are forced to be trader if crypto become global currency unless every country has their own crypto represents their own fiat currency which has more stable price that wont affect economy too much.
August 23, 2018, 04:15:36 AM
Not 'when', but 'if'. This future is not likely to happen. At least, not with the current bitcoin's limitations.
The network capacity is just incomparable with visa and mc. Also, the constant price volatility is a huge stop-factor.
Crypto may take some part in the global economy, but it will not replace bank payments and fiat.
Just like the internet didn't replace usual mail as the means of transferring information.
The network capacity is just incomparable with visa and mc. Also, the constant price volatility is a huge stop-factor.
Crypto may take some part in the global economy, but it will not replace bank payments and fiat.
Just like the internet didn't replace usual mail as the means of transferring information.
August 23, 2018, 04:07:19 AM
If and when cryptocurrency finally becomes an official global currency, how do you think it will affect the global economy and the economy of each countries? Will it help improve the economy better than fiat or will it still need help from fiat?
It's hard to think about the questions: what happens if ...I don't think that in the foreseeable future, crypto currencies have any chances to take away a piece of cake from fiat money, but they will definitely play their role in the economy. They will make the economy better.
August 22, 2018, 10:10:57 AM
If and when cryptocurrency finally becomes an official global currency, how do you think it will affect the global economy and the economy of each countries? Will it help improve the economy better than fiat or will it still need help from fiat?
Why do you think that it will be happen like boom and we have crypto everywhere? It is a long term process if it be realized somewhere in the future
August 22, 2018, 10:07:43 AM
The world will still need local, governmental fiat currencies. You need some sort of inflationary money to enable and reflect localized growth.
Without inflation, credit becomes near impossible.
Without credit, future-oriented investments become near impossible.
Without future-oriented investments, economic growth becomes near impossible.
Despite all the flak it gets, credit and inflation serve a very important role. That is the ability to borrow from the future to generate wealth in the present. Obviously goes awry sometimes, but you should get the idea.
So while I see cryptocurrencies having the potential of being globally accepted like fiat currencies, potentially decreasing the need for exchanging into a foreign currency, I don't see them replacing fiat currencies.
Without inflation, credit becomes near impossible.
Without credit, future-oriented investments become near impossible.
Without future-oriented investments, economic growth becomes near impossible.
Despite all the flak it gets, credit and inflation serve a very important role. That is the ability to borrow from the future to generate wealth in the present. Obviously goes awry sometimes, but you should get the idea.
So while I see cryptocurrencies having the potential of being globally accepted like fiat currencies, potentially decreasing the need for exchanging into a foreign currency, I don't see them replacing fiat currencies.
Jump to: