Bitcoin Forum

If FIAT Replaced the Gold Standard, Why Can’t Cryptocurrencies Replace FIAT?

History has shown that we have moved from the barter system to the gold standard and then to FIAT.  Is Cyptocuurency the next standard?

Have a look at my post, feedback appreciated, but please don't be too harsh.  I don't claim to be an economist or expert in this area.

https://urbancrypto.com/if-fiat-replaced-the-gold-standard-why-cant-cryptocurrencies-replace-fiat/

because crypto curnecy not ready physic
only digital curency, so is very dificult can replace fiat, cyrpto curency user only maker money online
if not maker money online not understand about bitcoin

Nice article! Yes, cryptocurrencies will obsolete fiat much the same way the automobile obsoleted the horse and buggy. It's simply better money.

Definitely seems like a possibility, the question is if, and when?

Never will those in power take this. But what about taxes? Without FIAT, there will be no state. This topic can be developed to infinity. But does it make sense? We do not decide this. Do we need this?

Only time will tell. I personally believe that the blockchain will change the world as we know it now. I am just not sure how it will replace or improve the use of FIAT.

FIAT is convenient to use for everyday expense,it can be used directly to pay it,not wait for confirmation and no additional fees
But if crypto can be used so easy like that,i think crypto can replace FIAT in term of transaction

Crypto currencies will replace fiat but its rather unlikely they will do so in the near future. There will most likely be gov created tokens that will be used in place of the current system, not much will change other than the costs to run the system. Crypto as we know today serves another purpose.

Fiat money is unique since the creation of the world. Crypto is just a good and innovative technology to make our lives easier. We all must beware of this and don't expect too much things from cryptocurrencies.

The cryptocurrency only exists on this planet for a few years while fiat has been created for many years and centuries. It is very hard to abandon paper money right now because most of the people still find that it is comfortable to use cash. In somehow, cash is still faster than bitcoin and other cryptos and people can easily use cash without advanced technologies.

There's no reason for cryptocurrencies not to be able to replace fiat currencies one day.
Whether or not it really will depends on a wide range of factors though. Such as the rate of adoption, how governments will deal with cryptocurrencies in the future, whether or not scalability issues will be addressed sufficiently and whether or not the average Joe will gain sufficient trust in cryptocurrencies as a form of wealth storage and payment mechanism. The latter would require some way for tech unsavy people to feel secure about their funds, which means that there needs to be a simpler way to keep private keys and stuff like that safe.
Considering that central banks literally just shit out money at will though, I do think that we will eventually make the move to cryptocurrencies. After all, central banks are devaluating fiat currencies through the printing process, which causes prices to increase while simultaneously the wages and salaries of the lower classes remain largely constant. This is what causes people to be "poorer" over time.
If those same people realized how money works however, and started using their money in smart ways, there would either be no poor people or the system would collapse.

We will most likely see a mix of both worlds for the next few decades though.

to be honest
frankly at the shop if i buy makeup ima just pay with cash. cause using my phone to pay with some address is too nerve wrecking really
just use that cash if you have that cash at hand
and some coins make a good sound, and some good papers in your hands can be a nice feeling

I have always been paying with plastic, ever since I got my first bank account. I hate carrying around pocket change, it bloats my wallet and slowly destroys the leather over time. It's also annoying to have to count the change if you want to get rid of it, or even bringing it back to the bank to throw into one of those automated change counters.
Debit/Credit card >>>> Paper/metal currencies. And at that point, there's little difference between using cryptocurrencies or fiat money, especially with cards like Monaco and whatever the other ones were on the horizon.
The only value in "hard" cash is of sentimental nature and thus negligible. I'd also rather not have trees cut down just to print some shitty numbers on them.
Alas, I can not think of a single redeeming factor that is in favour of cash.

Fiat currencies are backed by governments (those guys with all the guns) so it would be hard to replace it anytime soon. Perhaps in several decades from now, cryptocurrencies will have a big enough market share to completely replace fiat.

I am sure it is possible to replace fiat.

But a currency should have a lot of features to do so.
One of them is a kind of a central bank, but with de-centralized ownership of assets and investment decision making.

What do you mean by central bank with decentralized ownership? As long as there's a group of people that owns the assets and decision making processes, be they investment related or not, the bank becomes fully centralized. Please elaborate?

but really why? I really wanna pay with cash. Some nice papers and coins. You can use some rubels or some euros. Some nice central currency is a good feeling sometimes.
   But Bitcoin is very very good. It is the good digital asset.
   But. In the shop I wanna pay by cash.
   Why? Taking out my purse and the phone is a long time. Cash is just the coin or the papers. It's a goooood feelin. we say Cash Cash Gotta Drop It where I come from. They like to play with the bills. But. ultimately money is not so best

We can make paper money through crypto currencies and I believe that is possible to happen in future. But people are just now focusing by purchasing stuffs online with it. It was also known because of it's tag line as the modern digital gold or currency or something like that. And that's why people thinks it can also be used online.

I really don't get your point. I pay faster with my debit/credit cards than people pay with cash. People have to count the change and whatnot, which takes time. Entering a 4-digit pin or just swiping a piece of plastic takes far less time than paying with coins and paper and then counting the change.

so you honestly prefer the credit card not cash? nice cash coins and papers from different countries?
all the same american VISA brand ? no thank you i dont support this type of thing. i just use my rubels
i am already happy
i dont need usa card

I think I undertand is point of view, he means that he has pleasure to pay with cash, a lot of people do. They like to take out of the pocket a bunch of bills and play with it to pay something, makes you look rich.

That is the main reason why cryptocurrencies cannot replace fiat. People trust or likes to use fiat more than they like to use cryptocurrency, and they only use crypto in the first placeto gain cash or just to send cash to other people far away, then later on converts it into fiat again. Cryptocurrencies will just be like a credit card, an efficient way to pay but not a suitable thing to replace fiat at least for now. Also, governments wont just let cryptocurrency replace fiat easily.

I think, cryptocurrencies will replace fiats the next 30 years, but not in that way, we would wish. Financial institutes and governments will create their own cryptos. Banks are already working on it. So it will be possible to control peoples better with cryptos than fiats.

You sound like you speak in this age while you should be speaking from a mindset of the future. Noone thought cell phones would have changed the world so much to the point that everyone carrys one.

I for one have no doubt crypto will change the world we see today. Only question is when.
When i look at the wild guesses people made some years ago that bitcoin would be worth 500 euro at this time while it is worth 2K now i can only state that your wildest guesses are off by A LOT.

Fasten your seatbelts...

I think you are wrong here, banks would surely want that but it is the people who descide here. I you and me descide 1 bitcoin is worth 2K and you can buy my lawnmower with it no government has business with it. That is the whole point of these coins. FK the system?

Just like people prefer the newspaper over some digital paper, and yet the younger people folow the digital trend. Guess what is going to happen with money old guy ;-)

Because crypto currencies is decentralized, and since it cant be controlled so it cant be used by the government to control inflation, and then not all people know crypto currencies and like to used crypto currencies , that is why no matter what happened, fiat will never be replaced

People depends on the currency in a much more tangible way. Some want to hold their money physically as they do transaction to other. And also the point that bitcoin need fiat in a systematic way. We all know that the price of  bitcoin is usually dollar base so the development of bitcoin is aligned to fiat so it does not really want to replace fiat as a form of tangible material for transaction. The goal of bitcoin as a form of crypto currency is to be an number option on transaction on a more easy and reliable one.

Simple.. because they are not currencies.
The vast majority are hollow worthless pointless tokens that have no other use than to be traded on govt controlled centralized exchangers with teh profits coins you gots advices for fer teh ROI's.

why not?

I am for cryptocurrencies in general and a year ago I thought that this is where the world is moving, this is how things will get done in the future. I think we all remember discussions about times when one could buy a cup of coffee or some goods in the supermarket and pay via bitcoin. Now nobody says such things because it is obviously impossible. Perhaps the currency which has chances to become new fiat is dogecoin, because it is cheap, safe and fast. But even a good currency can't become a part of everyday life yet. As the main point of currencies is decentralization, owners of online wallets, trade websites and markets are unknown. This leads the to temptation to steal of the money and disappear. Sometimes they get caught but mostly they aren't. I think that cryptos can replace fiat only by losing anonymity at least in important cases like with website owners. And they have to be regulated by laws so that owners of markets where people lost money really take full responsibility for that.

Sure in a short term cryptocurrencies won't completely replace fiat money, but it is higly possible in the future. For today banks, even government structures actively try to use blockchain technology. Some of them attempt to create their own cryptocurrencies or estalish some kind of control on existing ones. I think they'll figure out the way to take cryptocurrency under regulation and control.

i shall ask you, who benefit from the crptocurrency, it's you and me ? any force we have to push it now? maybe its a trend, but it must be a long time

Why Can’t Cryptocurrencies Replace FIAT?

because governments and central banks control the monetary system
and the financial infrastructure is based on FIAT. I get paid from my
day job in FIAT, I buy my groceries in FIAT, I pay my bills in FIAT.

I cannot drive to the fuel station and buy petrol with BTC or LTC or
any other currency other than FIAT.

I do believe that "Crypto" is the way of the future but as others have
mentioned it wont be anything decentralised, it will be controlled by
governments and central banks.

As almost everybody inside an economy has a smartphones digital currencies may get widespread in some years, maybe 4 or 5. I dont know if today cryptos will survive, merge or whatever, but the movement is unstoppable.

The decision to replace The Gold Standard by Fiat, was made by governments.
The govermant has the advantage that it decides how much value the fiat has.
If they need money they just press more.

So why should the government give their control away to cryptocurrencys. There would be no advantage for them.

who said that Crypto's can't replace FIAT?

Governments will never give up control of the monetary system so cryptocurrencies will never replace fiat. Governments will always pay government workers in fiat, pay their debts in fiat, and demand their taxes (including taxes on fiat-notional gains in cryptocurrencies) in fiat. Digital fiat will undoubtedly become more of a thing but it won't be a true cryptocurrency as it will always be under central control.

We have a very simple and comprehensive reason, because "cryptocurrency is a new technology and technology is not spread all over the world yet. Another reason is all the past experiences that took place, have taken too much time like from barter to gold and then to fiat." So give it time and it may replace fiat.

Cryptocurrencies don't necessarily have to replace fiat. It could in the distant future, but the major concern now is adoption. There is nothing easier to spend like paper money, and there lies the advantage. Cryptocurrencies for now will do well to be adopted enough for day to day goods and services. Not everyone have access to the internet, just look at the developing world, when it becomes freely and readily available + cheap and affordable, you can worry about the block chain taking over.

1 day.  :D