no. Fiat currencies are controlled by central banks and governments and do not allow this to happen.
Topic: Will usage of bitcoin reduce the value of native currencies? - page 8. (Read 2035 times)
If bitcoin completely replaces national currencies, and their use is minimized, then it will really fall in price, as people simply will not use it. But the probability of this is very low.
I dont see the relevance. Bitcoin’s value is based on fiat and fiat’s value in every locality is determined by their local currency, so every transaction in bitcoin does not affect at all any native currency, it just reflect the value. Native currencies just serve as mirrors that reflect bitcoin’s value based on fiat. Bitcoin is not a property of any nation or locality so No reason it will affect.
There is no connection between Bitcoin usage and the value of the money used in different countries. Even when BTC becomes extremely popular globally, fiat will be used everywhere as usual.
Will the value of native currency fall down if the usage of bitcoin increases?do people feel that they don't need fiat anymore for the transactions to happen?Is that why people are trying to let down bitcoin ? Many questions are just wandering in my mind at the moment. Can anyone answer atleast few of them?
I don't think if the usage of Bitcoin will reduce the value of our local currency it is because of the fact that majority of our fellowmen are uneducated about Bitcoin, or adoption is not that wide I mean Bitcoin is just an option in terms of usage as it can't be used as for daily expenses or whatever it should be due to some technical reasons. Here in my country, I think 10% of the total population uses Bitcoin and for me it does not affect the price of our local as it was based on dollar rates not in Bitcoin or any cryptocurrency.
If bitcoin will accept every where as a payment method then I'm sure native currency uses decrease surely,but now I don't think like this.
Quote
Will the value of the original currency fall if the use of bitcoin increases?
yes, it will fall, because if digital currencies continue to increase both in quantity and in trade traffic, this will directly marginalize the role of the central bank as an institution that has the authority to print and determine the money supply.
Local currency is stable and it cannot decrease its value anymore ( except from others like usd which can somtimes decrease but the decrease is only small though it can also recover from its fixed rate )
Local currency is still the one that people will use before they buy a crypto , so local currency will always be indemand than compared to cryptos .
Instead , we can say that other values of cryptos such as altcoins and tokens will reduced if people will only buy more bitcoins .
Quote
Will the value of the original currency fall if the use of bitcoin increases?
yes, it will fall, because if digital currencies continue to increase both in quantity and in trade traffic, this will directly marginalize the role of the central bank as an institution that has the authority to print and determine the money supply.
If the turnover of any national monetary unit decreases, its emission should be decreased too. This ultimately should lead to an increase in the value of this currency. Therefore, the introduction of Bitcoin into circulation should contribute to an increase in the value of national currencies.
Will the value of native currency fall down if the usage of bitcoin increases?do people feel that they don't need fiat anymore for the transactions to happen?Is that why people are trying to let down bitcoin ? Many questions are just wandering in my mind at the moment. Can anyone answer atleast few of them?
Nothing will change fiat, because people still use it. Like bitcoin as based of crypto, fiat is base of common currency. And don't forget if not all people in this world already touched with an internet. Will the value of native currency fall down if the usage of bitcoin increases?do people feel that they don't need fiat anymore for the transactions to happen?Is that why people are trying to let down bitcoin ? Many questions are just wandering in my mind at the moment. Can anyone answer atleast few of them?
I think it will still be used as the main transaction even though bitcoin is growing in the future because there are some things that Bitcoin hasn't reached to be able to defeat Fiat.1. Bitcoin does not have security and high popularity compared to Fiat
2. Bitcoin has a price that almost always changes every hour
3. Bitcoin doesn't even have legality in some countries.
I dont see the relevance. Bitcoin’s value is based on fiat and fiat’s value in every locality is determined by their local currency, so every transaction in bitcoin does not affect at all any native currency, it just reflect the value. Native currencies just serve as mirrors that reflect bitcoin’s value based on fiat. Bitcoin is not a property of any nation or locality so No reason it will affect.
I think fiat currencies are loosing value all the time regardless of bitcoin... the price of bitcoin doesn't have to change for it to increase in value against fiat
Well probably it has a point. But then, the value of the currency depemds of what currency it is. As we can see the USD has a stable economy but then there are analyst who says that dollar is going down. But then we can conclude that today bitcoin do not have an effect.
Still, it might not be enough for fiat to continue losing its value. Currencies go down and up all the time, it doesn't mean that it will lose its value just like that just because of bitcoin. Especially not USD. It's way too big a currency to lose its value over a virtual currency just like that. Plus, there are still more people using their native currencies. Even us, bitcoin users, we still use it today because it's what allow us to pay for goods and services. Doesn't mean though that bitcoin have lesser value over fiat.
Off course if the bitcoin use is increases the people of the present currencies will reduces but still the native currencies will be used more than 70% of the public and the 20% will use both fiat and crypto while at least 10% of the public will shift fully to the crypto side but somewhere we need native currency to fulfill our daily needs but up to business it is true that bitcoin will change the monetary system of the world.
I don't think this happens. Fiat currencies are controlled by central banks and governments and do not let this to happen. It will happen only if cryptocurrencies completely replace fiat money. The probability of this is very low.
in my opinion it could be detrimental to the original currency because like the real money is lost and increasingly not used and it will harm real money if bitcoin develops in the world I think like that Will the value of native currency fall down if the usage of bitcoin increases?do people feel that they don't need fiat anymore for the transactions to happen?Is that why people are trying to let down bitcoin ? Many questions are just wandering in my mind at the moment. Can anyone answer atleast few of them?
Nope, I think not since a lot of people still do work and people who works there tend to receive only "native" money there and I know that Bitcoin is not yet stable to be called a currency.
For me this has a point while we are using bitcoin or other digital currency will reduce the value of our native currencies because we are all mmnow use and we all now save our bitcoin as savings and investment that before we are doing it with our natural currency. But I think this is okay because for me the maine purpose of any currency is to help us to make our life better and to buy our daily needs not only a trademark of every country. And the bitcoin provide it for us so even we feel that we dump our natural currency it is okay if exchange of it is a better life and future for you and for your family.
If you compare between crypto and fiat, they are complete different things.
So it will not affect on native currencies or fiat , I can guarantee !
People may have different alternative for transaction so it will increase their mobility around the world !
So it will not affect on native currencies or fiat , I can guarantee !
People may have different alternative for transaction so it will increase their mobility around the world !
I think they will both exist in the future. The coexistence of the two has different sides.
In other countries cryptocurrency usage already increased but they still use fiat money.
Fiat money has the stable value compare to bitcoin that has unstable value because of market changing.
I definitely agree on you.Even if mass adoption for bitcoin will soon to take place,fiat currency or native currency will not be easily broken or fall down.Of course it will continue to live in this digital world because people are already used to it.And it will never reduce its value from what i see for now. In other countries cryptocurrency usage already increased but they still use fiat money.
Fiat money has the stable value compare to bitcoin that has unstable value because of market changing.
Will the value of native currency fall down if the usage of bitcoin increases?do people feel that they don't need fiat anymore for the transactions to happen?Is that why people are trying to let down bitcoin ? Many questions are just wandering in my mind at the moment. Can anyone answer atleast few of them?
Increase or decrease in bitcoin value got nothing to do with what happened to fiat. Fiat is printed by the government of the country and managed by the Central Bank thus explaining the centralisation of it.
No . Using bitcoin for current billing is often not widely used. Many investors buy bitcoin for their investment purpose instead of using it for payment methods. The daily payment method is mainly traditional currency. So , rising bitcoin demand will not diminish the value of the domestic currency.
Jump to: