Topic: Will bitcoin co-exist with the current financial system (Read 834 times)

I don't understand why some people are aiming for crypto to dominate the market, which is very hard to attain as most governments will prefer to stick with their fiat. Why not just be grateful that btc and other alts can co-exist in most governments? So it is up to the people where they want to go. But most of our financial transactions still need the traditional banking system, whether you are into crypto or not. So right now, it can co-exist with the current financial system but it will not be the main system by most governments.

Does anyone still believe that one day the currencies of governments will disappear and only bitcoin will remain? who would believe that? government currencies will always exist, bitcoin is the only one that has no choice, is forced to have to be side by side with the governments currencies, bitcoin is forced to co-exist with the banks

How?

Bitcoin simply has no other way than to coexist with the currencies of states. He can exist in his virtual digital world. But people can use it only in their physical world and only on the territory of individual states, where their currency has been used for a long time.
At the same time, bitcoin or other decentralized cryptocurrency cannot dominate the national currency of states. The state will not allow this.

Yes, the current financial system will exist with Bitcoin. More as Bitcoin's 'Layer 2' system for non-tech people.

Yes, bitcoin will co-exist with the current financial system. As it is co-existed for more than one decade. But in this era of decade bitcoin got much popularity in the world.No one can control its spread. The number of its joining is continuously increasing. Its meaning is that crypto is continuously going to dominate FIAT. But see what happens in the future.

Yep, bitcoin will change the world bit by bit and it will surely co-exist with fiat. It does have issues that make it impossible to use for daily routine so it will be regarded as an asset for its lifetime. Already a lot of big companies, banks, and insurance companies are seemingly interested in investing in BTC, so we can say that it is a good start towards a better future.

Those things you had mentioned are really just impossible thing to happen on this world on where getting rid completely with fiat or banks? As long government do exist this wouldnt happen
even on my wildest dreams.

Both are already existing on this world but as we do know that they cant collaborate yet decentralization will always be a main issue on why government just cant accept bitcoin
and there would be lots of debates and argumentation before there would be some consideration.

Just let it be on how its been doing upto these years.It might not be completely adopted but at least we are seeing some progress.

Not only PayPal but also Venmo will offer and accept cryptocurrency for all online payments. PayPal is rolling out cryptocurrency support later this year. It will encourage global use of virtual coins and prepare its network for new digital currencies.

News: https://www.theverge.com/2020/10/21/21527288/paypal-cryptocurrency-support-buy-sell-venmo-bitcoin

I think that fiat just has to be there playing it's sick role. I'm not sure about this but I feel that if bitcoin is used by everyone, they'll be problems we've never thought of. Let's imagine everyone begins to use bitcoin, what will happen to the banks? The whole world will just stop printing money? It sounds like trouble tho.

There is no winning in coexistence or in such coexistence. The financial of the world is getting support from cryptocurrency and the pressure has reduced in the banks, that is because you can do business and get paid right in your home and transactions are clean without third party as bank.

Think of a situation where you have a few coins worth 400 thousand dollars or more. A wealthy person like you can still buy groceries with Bitcoin just like people did in the old days.

A wealthy recognized individual had a store tab that would get paid every month. They wouldn't have to carry money around every time. They'd go to a store take what they wanted and get it signed to the tab.

It's also possible to use your address as an escrow. You'd get a wallet that would lock up 1 bitcoin and then a third party processor would cover all your payments in fiat money. Once those bills reach 1  BTC the escrowed bitcoin would be sold by the processor and you'd have to recharge the account.

While bicycles have always coexisted with cars.  Also, bitcoin must coexist with the currency of states.  Bitcoin needs to walk on the territory of different states.  It will be much better if it is legalized by states.  Then its infrastructure will be able to develop and bitcoin will expand its liquidity as a means of payment.

Even if bitcoin is banned in a country there are circumstances in which it could still be used alongside the official currency, for example if the country was going through a very important and almost permanent economic crisis then people will make the decision to still use bitcoin despite the penalties because that is the only way they have to keep their wealth.

And in the case there is a high corruption in such country, just as it is the case in most countries going through such a huge crisis, then those that use bitcoin could always get away with it thanks to that corruption.

I think an utopical equal society isn't achievable through bitcoin or through any other way, it's just an illusion impostors sell people to make their own political careers.
But I have no doubts bitcoin can decrease the barriers between the richest and poorest in the world, since these people have a genuine will to work and thrive in life. What happens today is that our national currencies are very devalued, as pointed on this thread, and our economies are broken. So only few groups who have access and influence with the government find ways to make their fortunes, while all the rest have to perish.

But bitcoin gives us the chance to reach further and find job and investments opportunities anywhere in the world without the necessity of leaving home, city or country.
Bitcoin has already changed the current financial system in some personal cases, even with the system against it. And I'm glad for it.

More large companies are getting into bitcoin for investment purpose and as reserve to back the company. The recent involvement of paypal into bitcoin business is an example of bitcoin co-existing with the financial services.

Already we've got more such ventures functioning along with bitcoin. One of the UK based venture Cashaa is partnering with UNICAS of India to provide user friendly cryptocurrency buying and selling through savings bank account. Initially it has planned for 34 branches within India. Likewise the co-existence of bitcoin with current financial system has begun.

Bitcoin were already existed and it was also a currency well a digital currency in specific. We have just waited for the legality of bitcoin in every country and of course a worldwide adoptability of the bitcoin in near future . If it would going to happen it will be good enough for the digital economy of bitcoin. This would be also a good option for transaction and paperless and no hassle transaction.

Bitcoin does not require any financial institution to complete the transaction later and does not depend on the financial system. Bitcoin is not yet widely used in many countries so it has no effect on the financial situation. Decentralized Bitcoin is becoming increasingly popular in more than one country. Bitcoin is currently used in the form of digital currency products or services. like the Fiat currency financial system is circulated and centralized around the world bitcoin will depend on the financial system. Being decentralized has nothing to do with anyone, everyone can invest independently.

Isn’t bitcoin already coexisting with the current financial system? Bitcoin was established to be an independent community, governed by no one, and with the main goal of being decentralized.

Bitcoin has been existing together with the global financial system that we have long ago.  It is another form of payment system and currency as well, which has unique features and advantages for those who know how to use it. It can help people to generate income as well, which is a very good thing. You can’t find this kind of feature in a bank or any centralized organizations wherein you’ll apply for campaigns and you can generate money.

However, bitcoin does not guarantee equality in terms of wealth distribution. It can help people make money out of it by investing and such, but it cannot eliminate certain bracket and class which gets richer and richer each day. Remember, bitcoin is open to all and can be utilized by literally anyone. It just depends on how you will make the best out of what you have regardless of the amount.

If you are talking about a normal country, then yes, Bitcoin will co-exist with the fiat national system side by side. Official cryptocurrency exchanges will serve as financial gateways. Citizens investing in Bitcoin will pay taxes levied by the government and fund the budget of the country they live in.

If you are talking about a country which has banned Bitcoin in its jurisdiction, then no. Local BTC holders will be forced to hide themselves in order not to be punished by law enforcement officers. Bitcoin will only try to survive there. In any case, the fight against blockchain technology based on a decentralized network is very difficult, so eventually this government is likely to fail.

I consider BTC coins to be investment assets such as stocks which can be traded without involving third parties, so I like the first option. In my opinion, both financial systems should exist, people must pay taxes on their income.

According to a Deloitte survey, today the blockchain industry has cleared a large number of projects created in the wave of the 2017 rush, the industry is developing more calmly, but there is a steady interest in the technology itself, and new options for its use are emerging.
Big companies like Amazon, IBM, and Walmart are looking for ways to use blockchain in the supply chain, data management, and project administration. According to TechCrunch, hiring specialists in blockchain technologies came in second place in terms of growth dynamics.
Banks are also looking towards integrating blockchain technology to ensure transparency of transactions: they will not need to radically change existing processes in this case. If the “compliance” and KYC procedures are unlikely to be fully automated, then ensuring payment transparency using distributed technologies may become the industry norm.
That is why I think that this is an option for a bitcoin to gain its place in the financial system.
The main obstacle to the development of the industry remains state regulation: the circulation of cryptocurrencies is still associated with a lack of legislation and lack of control.

That is true and since both of them are coexisting right now, there is possibly no way that the Cryptocurrency Industry can mess up with the current financial system because it could always exists since not all people are available to use Cryptocurrencies or some people still lack knowledge on how to use Cryptocurrencies. This would be a huge step if people can gain knowledge about them since it might also be another way to help people to monetize their time.

Bitcoin has marked a new era for transferring money into the banking system. It has proved to be an effortless convenience that doesn’t require the user to rush to any bank, remunerate for the taxes, and a gazillion other allowances, making the transaction quite expensive, compared to bitcoin. With more people accepting this leisurely method, will the centralized banking system be forever vanished one day in the future?

If centralized banking systems were to disintegrate, the world would process much cheaper and conveniently on digital currency. However, the centralized financial system that exists now is core to the cryptocurrency, for, ironically, these banks are in charge of the digital banking system. And banks, renowned for their immense sense of tangible security, are by far the best bet for accountability and authorization of bitcoin. Thus, it’s more lucrative and safe to process transactions from banks.

To fully disintegrate the entire banking system, will take ages, to say the least. New decentralized banking systems and institutions have to be formulated. To cause the dematerialization of banks may curtail the costs of retaining the infrastructure and special barricades of security. The money will be more convenient to use and the hindrance of its freedom that was caused by banks.

However, it will be a long and lengthy process and unity between the systems may help with the process. So while the bank-exclusive institutions are being built and structured, the bank has to coexist to retain its regulatory decree and issue the governmental trading securities. Cryptocurrency policy and alteration of interest rate may produce a simplification of bank and digital fiat wallets while smoothing the transition from a decentralized system. Nonetheless, the digital banking system has to proliferate worldwide to make lives easier, and only then will bitcoin be able to take over as the official banking system.

This is my fear as well, if digital currencies created by governments take hold then this will be even worse than the system that we have now, can you imagine a coin in which the government can control the funds of all their citizens? If they run into trouble economically they could impose a tax on your wealth and get it immediately, if someone becomes a political dissident they could block their wallet and let him starve.

The future looks very grim indeed if that gets to happen, this is why I hope that bitcoin survives all of that as it is one of our lasts hopes to avoid that terrible future.

You cannot simply say that amazon will not be allowing bitcoin as a payment option, may be if we have a better scaling solution and there are more demands from the customers we might see them accepting bitcoin payments, we had more adoption in 2013 and it died off when the transaction charges started moving higher and once that is sorted we will see adoption by these merchants.

 

Bitcoin is already co-existing with the current financial system for we have using both fiat and Bitcoin all at the same time. That is observable for those countries where Bitcoin usage when it comes to mode of payment is massively adapted wherein they can freely use both Bitcoin and their fiat currency according to their as long as it is on the right and proper spending. Both Bitcoin and fiat are co-existing in a sense we are being able to use Bitcoin and fiat currency depending on the availability of the resources that enables us to do such thing of being able to use whether of the two depending on our choice or will.

With time the government will realize their centralized digital currency won't work either and will have no other option but to adopt the use of bitcoin as a global means of exchanging goods and services. Bitcoin isn't no country's liberator as many things and assuming the currency to be. It's basically another currency but this time not subjected to the manipulation of the government like every other fiat is.

Bitcoin also makes the rich richer meaning it's not a saint in that aspect as the fiat specialized in doing such although with Bitcoin, everyone has an equal opportunity as it also give the opportunity to the others and not restricting this opportunity to make money or profit just for the elite like we noticed with the fiat system.

I think that as Bitcoin usage grows the services of the current financial system will continue to do so as well and they may be incentivized to adopt some of the benefits of Bitcoin over time. As more seek privacy and the ability to control their own funds, I think that the banking industry will have to evolve in that way in order to stay relevant.

That is the trend of modern finance. Look at the currency collapse of nations, they have no control over the value of their national currencies and harm their people. During Venezuela la Bitcoin's Bolivar crash, Bitcoin performed well and helped Bitcoin holders get through.

Fiat is more widely used.
Cryptocurrency are only accepted in some countries as mode of payment.
Some people are saying cryptos are the future of payments. Some says fiat will still be on top of cryptos. The situation is that, both of these currencies are more likely to co-exist; both being used in services and purchase of goods depending on the preference of a consumer whether to use Bitcoin or to use fiat, in a free manner. Cryptos are not yet accepted to majority of countries as a method of payment. It does seems to be but the reality is that there is always a convertion to fiat which is quite not making any sense if crypto is desired to be the payment. That is the situation cryptos are having at this moment. So maybe, OP is wondering if these two will totally co-exist in the future or not such that one will still be more dominant.

Electronic money will sooner or later replace classic paper money. It is already happening. I am not sure if Bitcoin will become the main currency in the world, but it will definitely find its place in the financial market. Just as we now use payment cards, PayPal, paper money, cryptocurrencies and other forms of payment, so will be in the future. Over time, will simply change the percentage market share of each payment method.
So my answer is yes, Bitcoin will definitely remain part of the financial system for hundreds of years.

Those who are looking at the price are traders and investors who wants to make a lot of money since Bitcoin is traded in the market, but the real goal and ultimate goal of the blockchain where Bitcoin was created is to establish a transparent financial system that is very much different from the banking system where red tape and third party is very rampant and so far Bitcoin and blockchain is succeeding.

That's what a group of people in the world are doing when people will take the alternative to the traditional system with the currently developing centralized system model.

Soon you will see, as you said, the traditional fiat system is starting a new chapter: blockchain and cryptocurrency.

Maybe many people ask about this. The existence of digital currencies that are increasingly having value, with that all of its existence can change with the times, it can all happen beyond our expectations.

PayPal accepting cryptocurrency and the private/public companies accumulating Bitcoin as their reserve is good news but it the institutions and the centralized world that eo-exist with Bitcoin, because they were convinced by it through it price during the total lockdown and don't, want to miss Bitcoin benefit in the future.

I don't really understand what you mean by bitcoin co-existing with the current financially system, is it not existing yet. Bitcoin is getting more circulated and being used as a medium of exchange already.it is the future coin, but it still uses the given value of every currency on the negotiation of exchange using USD as the major exchange currency for the moment

It's jus a matter of time where people will start to embrace cryptocurrency, after paypal mainstream adoptions is no longer far to come.

For sure with news that circulate globally and with it's availability now with one of the most useful tool from payment online, awareness

will spread more and businesses will be there to adopt this chain.

Paypal has accepted Bitcoin payment on its platform.
Corporations have bought Bitcoin to reserve.
Major countries around the globe have already accepted Bitcoin payments.
Bitcoin is coexisting with modern finance and is likely to be the mainstream in the future. Looking at the value of Bitcoin and the liquidity of Bitcoin globally, we will see that it is no longer an internet phenomenon, but a fact, the future of money.

It all co-exist now I'm sure it will be the same 10 years later since governments are not going to be using Bitcoin. But just like today we can cashout our BTC through the banks going to digital fiat in the next decade.


Unfortunately, people are and will be deceived again. The government will still be able to create more digital fiat just as printing more of it because its not meant to really make everyone happy. The digital fiat is just meant to take control.

While a collapse of the fiat system is inevitable and the more decades we give to it the bigger the probability of its crash reaches 100%, at the same time I do not think bitcoin will ever be able to replace it completely and the reason is very simple in order for that to happen the majority of people will have to become economically adept almost overnight.

And while a crisis all around the world could be enough to make people wake up to the fact the fiat system is nothing but the biggest scam around the world, once that scenario happens people will be desperate for any kind of solution and there is the possibility governments will claim that their own cryptocurrencies will be the solution to all of this and not bitcoin and if people are deceived again then we do not know how many decades or hundreds of years will be enough to see another opportunity as good as the one the people could miss at that time.

This won't be possible no matter how we want it unless Bitcoin will be centralized in the future but that is quite sketchy still, at this moment. Fiat currencies are more supported accross the globe multiple time more than Bitcoin and other cryptos which could still be considered as something new. Thus, fiat currencies will forever exist and if there will be a bright future for cryptos, these two will more likely to co-exist with one another as alternatives. To put it simply, Bitcoin could be in mainstream but the support still to fiat will always exist, that's how powerful governments are.

So it is and will be! We are already witnessing it thanks to the desire we have made for Bitcoin to be accepted in our day to day.
I think we will move towards mass adoption if we propose it. Once on a local e-commerce platform, I offered to pay for a phone with Bitcoin and the seller accepted and we proceeded with the transaction.

Actually the matter of your OP focuses a lot on a part of the whole of what bitcoin really means, and it is in essence the part that shines the most, therefore it is the small part of the whole that many see as the only objective of bitcoin.

The value of bitcoin is really important, because it has and should have a "traditional" fiduciary framework for people to understand it. But in the reality of the future of bitcoin, he must be the reference.

Bitcoin has a great intrinsic value in its characteristics that gives it great power of control to those who possess it, that in the utopian reality that we want to happen, the reference framework of the traditional system is not necessary.

Currently we "suffer" from an existential "adoption" of the traditional system to allow us to exist as bitcoin users, it is a cancer, which unfortunately we are letting it metastasize when in my opinion the best chemotherapy is not to co-exist with the current financial system.

The current financial system ain't going anywhere so it has no choice but to co exist. Co existing is the same as parallel anyway innit?

As long as there are governments there'll be fiat and they will pay out in it and demand tax in it. You may be able to step out of parts of the old system but you'd need to live in a properly radical jurisdiction yet to exist to fully shed it.

Isn't it already doing that?

With every new day bitcoin doesn't get destroyed, it is reinforcing its status as a financial asset.

Will it get adopted by the banks? I am not sure about that. Probably not but still not sure. Crypto does not forgive mistakes. Banks sometimes do. And that's a big problem.

Bitcoin and fiat currencies can coexist and need each other, but not the system. Bitcoin is out of government control but we can see that bitcoin and fiat money need each other, for example, if we want to buy bitcoin, we definitely need fiat money as a medium of exchange.
if you want more fiat money then hold on to bitcoin until the price is much more expensive, then if the price of bitcoin is already expensive, it means our money has increased.

I absolutely agree with you!  I shun all projects that try to mix bitcoin with traditional fiat systems.  I hate the broken fiat system and refuse to support it any more then I absolutely have to at the moment.  But I agree that bitcoin should be separate.

It is unrealistic to expect Bitcoin to replace the current system so it will probably exist as an alternate system. As Bitcoin continues to improve and is more efficient and private to use I think it'll start to gain a bigger market share because people don't want to be burdened with regulations.


Altcoins with "better features" like cheaper fees and faster transactions have made some sacrifices to achieve those features. Every single altcoin is significantly less decentralized than BTC, transactions can be censored more easily, and they are also less secure. If altcoin devs have the power to bail out their wealthy friends then they are no better than the legacy system.

Bitcoin is a popular asset and trusted by many people (its user) and increased adoption is a form of support for the development of bitcoin itself. I think bitcoin cant be affected by the volatility of other asset such as gold and also fiat or the stock market because I think bitcoin is an asset that has its own foundation without any authority controlling it.

I don't think that bitcoin will be a centralized asset in the future, although in term of usability it could still be the same as other centralized instrument. Bitcoin cant be controlled and can only be regulated based on the laws applicable in each country.
So far, bitcoin is not an illegal asset used by its user even though there are several countries that have severely restricted the existence of foreign currencies such as Argentina and Russia. I can still use bitcoin as well as fiat whenever I want, both have weaknesses and strengths and I think there is no problem bitcoin and fiat coexist just because not everyone know about bitcoin and how it works and they still need fiat.

The only problem why I don't think Bitcoin will be widely in the future is because there's a lot of new and existing crypto that has a better feature than Bitcoin. No one can assure the value of BTC because there is no valuable things such as Gold or USDT backed its existence. Only speculation on the price is what keeps BTC grows overtime.

Besides that, Bitcoin can't or might faced hard time on co-existing on the financial system because they are completely opposite. The current financial system is centralised and BTC is decentralized. We all know that in terms of financial, It must be centralised so that government can control all taxable money. As you can see, the goal of most big mover BTC related company was to register an ETF that will represent BTC on stock market.  It means that BTC direction towards to indirect centralization.

maybe now it has started side by side with the current financial system, and maybe in the future this Bitcoin system will be widely used in many countries, and more use the Bitcoin system because many do not agree with the current financial system, "but this is only hope"
and I think Bitcoin was created not only for investment but to be able to change the current financial system,
Even though it will be difficult but I always hope this can happen

Bitcoin is a decentralized currency that is not control by the government or any country in the world. Fiat money is be control by the government, operate by the government and control by the government. Many fiat currencies lose their value during pandemic period that give bitcoin a good position in the eyes of the users.
Bitcoin is existing and it will continue to exist no matter how the situation may be in the next few years. Bitcoin is different from other cryptocurrencies in the areas of exchange market.

Bitcoin is the most common cryptocurrency and has already enabled businesses and individuals to grow and prosper, while many depend on trading as their source of income. Bitcoins can certainly be of great benefit to the global economy and society in general.

As the use of cryptocurrencies and blockchain does not rely on an actual physical area to exist, the costs associated with transactions of these currencies are very low. Numerous sub sectors have already been created by bitcoin that have enriched many businesses and people.

We are slowly going to adapt bitcoin to the community. We know that bitcoin is still too young.

Nevertheless, bitcoin has been a great deal to anybody here for it has already prove its worth in making payments, money transfer from other countries, as an investment and in other aspects of financial system. There will come a time that all or almost of the majority of the people will going to hold cryptocurrenct especially bitcoin. It could be other coins as well like ethereum and BCH.

Bitcoin can certainly exist with the current financial system but I don't think everything in the world like a 2 bed room or a hatch suddenly becomes cheap because of Bitcoin. Remember that not everyone will have a Bitcoin to become rich, the inequality among people will continue to exist.

True. But the thing is that even if all people have an incentive to produce something or offer services in exchange for scarce money, that doesn't mean they all will take steps  towards their own prosperity. That is a part of the reason why inequality cannot be completely "cured". But it can be significantly decreased because some people, even lazy ones, will definitely take this opportunity.

Of course, bitcoin will be an alternative payment and become an effective financial system in everyday life. However, there are some aspects that are not fully covered by bitcoin such as mycro payments, which is why paying with bitcoin will be a complement to conventional payment systems.
Well, the latest announcement from Paypal that will support transactions using 4 cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, amplifying crypto adoption has become even more evident. This is a very good sign, I think there will be some interesting increases in the future if there are no other heavy rumors.

I think right now Bitcoin has started to co-exist with the current financial system, that's why some merchants have started accepting
Bitcoin payments. Although not all countries have yet to accept Bitcoin as payment, but I believe in the next few years Bitcoin can be
used as a payment in all countries in the world. Because there is no way Bitcoin will completely replace fiat currency, so it is possible
that Bitcoin will co-exist with fiat currency.

Despite the fact that Bitcoin was decentralized and also created by Satoshi as an alternative to make people financial freedom and it too early to conclude it will never be mainstream currency because we cant predict the future. Mind you, we have some government that sees Bitcoin as a legal tender.

Nilanjon, crypto setting is wide and welcoming for every institutions thats ready to comply with it decentralize nature. I think the question should be will current (government) financial system co-exist with Bitcoin.

No No! No matter what you or other folks say let me tell you what you are imagining is never going to happen. Bitcoin isn't a magic wand that would take away all your problems with itself. What all you are pointing out can be done in fiat too. What is stopping you from buying a car or yacht from fiat? It's because you don't have money. How are you expecting everyone to have BTC just by default? If you are talking about the problems of income inequality or poverty there is absolutely no connection that Bitcoin has with it. Chances are it would worsen off with cryptocurrencies as there would be no social regimes to pick them up. Bitcoin isn't made for this purpose. It's sole purpose is to transact payments over long distances without any intermediary I think even this value thing that has been attached to it is quite ancillary and not the primary activity. The purchasing power would also not increase because the production won't increase. Because producers too have to do expenditure in order to produce a good. If they can get a better ROI just by holding Bitcoin why would they produce? So imagining such an economy is certainly impossible.

I wouldn't bet on Bitcoin completely replacing fiat currencies in the next 15 years. I think the most probable scenario is Bitcoin becoming the standard value for our financial system and potentially replacing Gold as the 'go-to' assets in times of crisis and uncertainty.

However, I have learnt to never say never. If the current financial system based on fiat collapses, we might see a change of behaviour on macro level that should speed up the transition to cryptocurrencies. Keep your eyes open for market signals.

I agree, BTC is a currency on its own that has not ties to 'inequality' (at least the type discussed above' whatsoever as in the end only the people who can afford BTC buy it, people who don't have the money don't buy into BTC. However, by this logic all else excluded this may lead to the putative dilemma of BTC and cryptocurrency in general widening the inequality gap even further.

This gap will consist initially of obstacles from inability to gain access, then move up in terms of finance (to be able to acquire it) and lastly at the level of technological understanding and innovation.
The division within sets/classes of people I can only envision it to be getting bigger and bigger.

In some way, it already does, though not to the extent that you’re seeing it. Bitcoin can provide a good hedge against inflation and loss of confidence on traditional assets and currencies, but it does not mean that it’ll replace those and most people will move to it. It can also act as a payment tool for cross-border transactions without having to go through all the hurdles of KYC and high fees, plus it’s immutable, public and decentralized so your transactions are safe forever.

I don’t get why people are trying to make bitcoin look like it’s an answer to all our problems in the 21st century. It’s a great invention and addresses some problems, but some are overestimating what bitcoin can do, and that’s where some misconceptions and failure occurs. It’s an option to be used on cases where fiat usage isn’t practical or is too cumbersome to use, not as a replacement or even a permanent contender to replace what people are using.

I don't think it's a binary question, some part of the mainstream finance could adopt Bitcoin, we already see the first companies starting to use it as a reserve asset, maybe in the future some will start using it as a method of transacting money. At the same time there can be an alternative Bitcoin economy growing, where there's small companies that only deal with Bitcoin and might even operate without abiding to regulations. These things aren't mutually exclusive, Bitcoin gives the freedom to use it both ways.

Bitcoin co-existing with the current financial system won't happen in the short. As of now governments have begun to develop their own digital currency for usage within the country. This way every country might have its own cryptocurrency. Maybe for the cross border transaction needs people will use bitcoin as a common asset. This is the only possible way by which bitcoin can co-exist with the current financial system.

As long as people can earn Cryptocurrencies that they can change into cash, it has no problem co-existing with the current financial system. Bitcoin along other Cryptocurrencies are made to be flexible in how we can use them. Its not causing any problem with people who are making a living out of it so the short answer is: "yes".

You seem to make a differentiation between your two options when I do not find any, bitcoin since the moment it was created it has been coexisting with the current system so by definition it is also parallel to the current system itself, and since governments cannot get rid of bitcoin this is going to be true for the foreseeable future and since it is quite unlikely bitcoin will get rid of the current economic system then this is a status quo that will continue for a long time.

However as time passes bitcoin will grow in size simply because it is better than the system currently in place and as people realize the lie they have been told about the current system and how those at the top get profits unfairly out of them then more people will begin to use bitcoin as a way to protect themselves from that predatory system.

Yes, I believe it will coexist with the current financial system for many years to come.

From what I can see the younger generations embrace and understands how to use cryptocurrencies, while the older generations cling hard to their old school paymentsystems like Visa and so on.

Given enough time, the old generations will go away and in turn crypto will have a golden age.

I totally agree with you with most, but this part is quiiite debatable. It's probably safe to assume(at least from where I'm from), that the "lazy" demographic I was referring to doesn't even know much about inflation/deflation; what more monetary policy in general? No monetary shift into a deflationary-ish society is going to change most of those people imo.

Bitcoin is already currently co-existing with the present financial system. And I believe the future will still be a coexistence of both as I really doubt any country will consider Bitcoin as their official currency. Bitcoin will always stay as an alternative to fiat. Fiat will evolve over time but it will likely stay for long.

Furthermore, Bitcoin does not really address the deeper and larger ills of the system. While it addresses centralization in the monetary system, for example, it does not in any way eradicate it. While it somehow provides financial freedom, it does not in any way uplift the condition of the downtrodden sector of society.

Lest we exaggerate and assume that Bitcoin is heaven sent, we need to remind ourselves that Bitcoin does not provide food on the table.

Total True and i also i live in development country regulation about bitcoin in here is not to tight and also are you heard the news recently that bank is racing to adopt blockchain technology and i think slow but sure people gonna use crypto as secondary payment after digital wallet  because so many things going on on crypto industry from stable coin,stable gold and recently about Decentralized Finance

For better or worse, inequality is a natural state of affairs, it is an integral part of any society, so neither Bitcoin nor anything else could fix it. That is true. Nevertheless, history makes it evident that the monetary system under which people live usually affects economic inequality, it can increase or decrease it. The graph below clearly shows us that inequality has only been increasing since we went off the gold standard:




Source: https://mises.org/library/gold-and-economic-inequality

If we return to deflationary monetary system, but this time based on bitcoin not gold, it could affect the level of inequality in a positive way. People that were wasting their time watching YouTube will now have an incentive to lower their time preference and work hard in order to acquire valuable and scarce bitcoin. The harder they work, the more services they offer, the less unequal they will be.

Coexist is the term I would use and would hope to happen I suppose. It's not like the governments can fully remove it from the scene, I mean they already tried, and they failed quite splendidly. Not to mention that more and more users are being attracted by Bitcoin after all. Also, Bitcoin wasn't created to address the inequality or whatever of the currency of your country and usd, nor was it solely for currency. It was made mainly to remove the third parties between transactions, to create a system where trust isn't needed, where transactions happen directly between you and another party. Sure it seems more advantageous than the current financial system, but it only fixes SOME of its issues, such as being transparent. And at the same time, it also has issues in itself.

The current financial system of ours isn't actually bad, the evidence is that it's used till now. The problem is, the ones that we trust our money to, the ones that manage the said system, are quite inefficient and literally break the concept of what we give to them, "trust".

Isn't it existing side by side with the current financial system? Yes, in the beginner there might be problems as the current system attack bitcoin, nevertheless many banks or county has somewhat relax stand on it.


But remember, bitcoin is not design to solve the wealth inequality, it was created to be an alternative payment system and not to solve every mankind's problem specially regarding money issues. Just be grateful that you find bitcoin and make the best out of it.

Lol a lot of people are looking for things and people to blame for their financial "inequality", even though what they mostly do on their free time is to be on Facebook and watch YouTube or Netflix all night whereas the future wealthy minority are actually working on stuff to get out of the shithole that they're in. Lazy people are just looking for an easy way out.

Bitcoin is a completely different payment system, and is not dependent on banks. You might as well say will bicycles coexist with cars when/if electric cars replace petrol cars

I am lucky in a way because my country does not have an issue with bitcoin. Sometimes my country's indifference bear good results. Hopefully when the time comes, they will support bitcoin's existence. Regarding the question whether will it co-exist, there will be varying answers. Although the current financial system is broken and cracks are showing everywhere, the roots that it planted in nations are so deep that the system can't be rid of entirely. A coexistence will be of benefit for bitcoin but that alsl means the system it swore to replace will still live and the masses will suffer.

The real potential of Bitcoin is not in the possible price of BTC,that might or might NOT be achieved in the future.The real potential of Bitcoin is in the blockchain technology that can make banking and financial services obsolete.
The main goal of decentralization should be to take away power from the banks,governments and corporations and give ti back to the people.
Bitcoin is currently co-existing with the current global financial system,so your question is kinda pointless.
The really important question is only one-Will Bitcoin change the current financial system?

Isn't it co-existing already? It's true that bitcoin will never become a mainstream currency system because it is controlled by none! So no government around the world, will approve it as a mainstream currency ever. We will always see bitcoin as a parallel currency system co-existing with the traditional one! That's how it has grown to this level, and that's how it will eventually reach to the top of the game!


I can assume what your country is and which part of that country you belong to! Whatever you are saying is true! However, the reason for such situation is the government and not the currency system. When Britain arrived there, that country used to share 43% of world's GDP and when Britain left the country after looting it for 200 years for their own benefits, it was decreased to 3%! There's nothing we can do about this fact! Bitcoin can't help a country to come out of the poor status. However, individuals can be benefitted financially if they adopt bitcoin.   

What do you mean by that? Bitcoin was created, has been used and will exist because the current financial system is broken. Bitcoin is an attempt to create a completely independent financial system, a system that governments cannot control. Although they can fight it and try to regulate it. For such financial system to succeed and replace the current one, it first needs to survive in battle with the states and central banks. They should be deprived of the ability and power of control money supply and money issuance. It is not going to happen any time soon, but still bitcoin nowadays can and should be used by people completely isolated from financial system, it is for them, after all, bitcoin was born.

bitcoin as a currency is not meant to do either one of these. it can't fix the "inequality" because it is not equipped to do so and the inflation issue that exists with fiat currencies doesn't exist in bitcoin just because of its controlled capped supply but that is only a very small thing compared to what bitcoin really offers.

bitcoin is meant to address the centralization issue with currencies. so it provides a censorship resistant global payment system that is also fast and secure.

they all will adopt bitcoin eventually but first people have to stop wanting to ONLY hold their bitcoins and wishing for its price to go to the moon to make them rich!

Will bitcoin exist with the current financial system? Or will it become a parallel system that coexists like two countries exist side by side? I believe it will be a parallel system? The fiat money will flow from traditional to bitcoin system slowly but surely. We are already seeing some indication of that happening. Around, $7Billions, have already poured into it. It is here because it no longer 100% believes in the USD or any other currency it holds.

I was born in a poor country. During our independence 1USD = 7unit of currency. It got devaluated to such a level that now 1USD = 80 units of currency. We are worst off then we were in the 1990s. Some people have become multi-level rich. It is now one of the fastest rich producing nations, whereas the country is mega poor.

Bitcoin is the future. Does it solve the underlying problems of inequality providing utopia land? Possibly not. However, it solves the constant devaluation of currencies by governments all around the world. The world financial system is built to ensure a specific few groups of people get richer and more prosperous. That stops! Period! Rest will be what off shot applications come out of Bitcoin or Ether etc

If we just for once assume 1btc = $480,000, then we quickly realize the potential of this thing we call bitcoin.
Let's assume 1btc = $480000

We can take 1btc and buy a 2bed apartment in the heart of any significant part of the world. We can take 1bitcoin and start our own business. Bitcoin was never built to allow one to buy groceries. However, if one sees the potential to be able to transact in other places where wait time is not crucial, then one soon realizes that bitcoin has a place that will ultimately change the world. You want to buy a car. Bitcoin likely can do that in the future. You want to buy a home. Bitcoin. You want to start a business. Bitcoin. You want to purchase a yacht. Bitcoin. You want to pay utilities that does not need to be paid instantly (usually you get time to pay those). Bitcoin. You want to pay you credit card bills that give you a few weeks to pay. Bitcoin. You want to pay your vendors that live overseas and don't need payment immediately. Bitcoin. You want to send money back home. Bitcoin. Bitcoin has a future.

Every such transaction will likely be a cheaper and more economic benefit for the party that receives bitcoin. The purchasing power increases over time. And everyone will want to use it. Simple. I do not expect amazon to allow bitcoin. However, I expect bitcoin to be used in other parts of our lives in the next decade