Topic: Will Bitcoin Usage Reduce Demand Of Fiat? - page 5. (Read 3577 times)

I didn't suggest not paying taxes on bitcoin transactions, and I didn't say that a revolution would be a happy event. You event admitted yourself - as many people do - that our government can't possibly adopt bitcoin because they cannot control it. Well what happens if america starts using bitcoin? It means fiat crashes. When I say "use bitcoin" I don't mean use bitcoin as we do today. I mean mass adoption. Something that could one day happen. So in that world where there is mass adoption and people simply don't see the need for fiat, what will happen? The government can't adopt bitcoin, so they fight it. This is when said financial revolution comes into play. Of course it's 100% speculation, but that doesn't mean we can't talk about it.

The answer is simply no even though people would like to think otherwise. Using bitcoins online for various things is all good but if u weigh the total market against the fiat currency of any developing to developed countries where people are atleast aware of cryotocurrency, i dont think there will be any change in demand.

A scenario for example, think that your a developer and u are making a project for someone. Now you will ask them for payment in bitcoins but that will be dependent on the global exchange rate right... unlike in general case if you ask them in USD it wont be because okay USD/EURO rate is so much and hence i want so much payment. I hope you understand the point here.

if you think the revolution will be a happy event. you are fooled.
firstly the IRS will request your income amount. even if you list that you only have assets(bitcoin) they will still ask for FIAT payment of tax on those assets.
if you do not comply by suggesting you dont want to touch fiat. then expect a court order with excessive penalties added on.
if you still dont comply expect a knock at the door from the local sherriffs office to sieze goods and arrest you for tax fraud and unpaid fines.

end result is people end up paying tax or using the governments hyper ledger to avoid all that hassle. but ofcourse they wont know its hyperledger, they will just see it as normal bank/government money that is taxed and inflated.

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but here is something really interesting.(a scenario)
you know the xx trillion dollar national debt. most of those finance agreements are contracted to repay in dollars.
so when a government moves over to its 100% controlled hyperledger.. the old dollar can happily be hyper inflated to such a point that 10 trillion dollars only amounts to a slice of bread. thus literally wiping the slate clean.

citizens wont care about the dollar hyper inflation as their funds would be measured in hyperledger coin value not dollars.
but the citizens own credit agreements /mortgages will have the terms re-wrote before that happens so dont expect citizens to gain from a switch.

and dont expect government to turn to bitcoin.. as i said they cannot control bitcoin so the future will be minimum wage laws, income tax, fines which will be payable in hyperledger coin. requiring converting bitcoin to hyperledger and most citizens ending up still required to pay hyperledger coin(fiat2.0) to stay within the law.

Of course the usage of bitcoin will reduce the demand of fiat. However, bitcoin with its limited supply, will more become the cyber gold than a real currency, I think central banks at some point will issue their own currencies to partially replace the fiat.

In long term I believe so. But we don't know if it will be interesting for people in the future. Maybe most people will continue using fiat and Bitcoins at same time if it's profitable, to trade for an example.

I think it's not interesting to have only one currency or only one kind of currency, competition is important, one currency must proove to be better than the another, and who wins are the users, investors. Paper money is important too, if the internet downs for a long time and we have only Crypto Currencies what would happen?

A big enough impact for the US government wanting to tax buying and selling it and wanting a peak inside Coinbase to make sure it's users aren't evading taxes. Just give it time, bitcoin is still in it's infancy 

I cant see that happening any time soon but I can envision it for the future like in 2050 when eveeryone is riding around in self driving cars, have robots working for us and well, Yeah..The jetsons

https://www.youtube.com/watch?v=FyinD6ZDqeg

No, bitcoin will never have a real impact on demand / usage of fiat usage, you must be delusional to think otherwise. Even now, after 8 years, probably 99% of it's volume is speculation, and 1% real usage. Keep in mind that bitcoin's acceptance ecosystem is really small, like , some places accept it, but these places won't use it further to buy services or goods, won't bother, no sense. Bitcoin is good for speculation and short to mid term, hedge against fiat. But that's it, bitcoin is a speculative niche currency.

I'm sure that if 99% of america - or even a far smaller number than that - used bitcoin, there would be no fiat as we know it today to convert to. I guess the only question is what do you mean by "use"? If people start acknowledging bitcoin and adopting it (people, retailers, grocery stores, corporations, etc) and start realizing that there is no need for fiat, the government has to try to kill it. People would finally realize that they are the ones with all of the power, and not the government. The government gets its power to govern from the people that it governs. If people start waking up to this idea, it could cause a revolution. That's how I see it at least.

governments have laws inplace.
1. income tax
2. minimum wage
3. fines

even if 99% of america used another currency (whether it be bitcoin, euro, pound, hyperledger) the people will still need to convert to fiat to remain within the law. to pay taxes, fines etc.

at the moment although bitcoin is being thrown around as the saviour of human rights and the next best thing since sliced bread. america will stick to having laws to protect THEIR 'PRODUCT'. AKA dollar.

they wont introduce bitcoin into being legal tender.
they wont introduce the euro, brics or other national currency into being legal tender.

because they cannot 100% control it.
however you will see the government join the IMF to have something america can control. which will be a sidechain of hyperledger. though average citizens wont notice the difference when using payment methods as the hyperledger sidechain will be hidden in the background.

forget trying to convince governments to accept bitcoin.
bitcoin should remain free from government control. otherwise it becomes commercialised and simply another fiat currency the banks can boom and bust..

leave bitcoin as the free and open choice for people that want an alternative to fiat.

Any currency is same, means if the supply < demand = price rise, vice versa.


View of government to bitcoin is like a threat, 100% government will not get involved to bitcoin party, instead they use blockchain technology to create their own digital currency, like denmark have plan to create it. Obviously I doubt it will looks like bitcoin system.

Bitcoin has the potential to be revolutionary.

Of course I think as time goes on we'll see the scales tip, so long as we manage to keep making bitcoin easier to understand, easier to use, easier to adopt.

Yes , Ofcourse . Because if more and more people will engage in the bitcoin as an primary currency then people will not make payment in fiat .
Everyone will favour to pay in BTC directly .
But at the current time condition is something different  because bitcoin is still a secret thing for the big part of the population of world . So it will take some years to be a successful at that much degree .

Well, other payment methods have already replaced most cash transactions. Take credit and debit cards as a example. Most of my friends do

not use cash any more, so this is not something new. Bitcoin use will definitely decrease the need for cash, but there will also be a lot of people

who will not release their loyalty to fiat. {cash} 

Big YES, With some online store that I purchase with fiat, I now purchase with bitcoin. No tax to my government, no trace of transaction except for the online store registration. If my transactions go on well for longer time, definitely I wont seek alternatives so also the online store.

Technically it can be if more people use bitcoin than fiat money but not in the nearly future as fiat is official payment that had legalized by government and used in daily basis. Let's say, 30% people in a country using bitcoin, this condition will cause fiat demand decrease for sure. But, the question is it really will going to be happen?

Thank you for the information, this adds to my deeper insight, if government join hands in bitcoin what will happen? whether the transaction should anounymous disappearance? , What will happen in the deep web? then it is gone essence of bitcoin and cool relief from having bitcoin

"Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of" -- Investopedia

So basically fiat value is based on supply and demand and same thing for bitcoin as well , the higher demand it is , the better. I doubt we will see changes in fiat just because of bitcoin demand only though , at least not in the next few years.

Is it correct if more people start to use Bitcoin than they will use less fiat currency than demand of fiat currency will reduce and at the same time Bitcoin value will be growing?