Bitcoin Forum

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?

"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.

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

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?

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.

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}  ::)

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 .

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.

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.

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.

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.

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 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

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 ;D

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?

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.

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.

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.

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.

what i think would be more beneficial for bitcoin.. and helpful to the world economy.
stop measuring bitcoin in dollars.

imagine bitcoin being measured in the 'cost of living index' thus making the bitcoin<->goods/services more direct where fiat becomes the side issue sat in the corner where people think of it as an afterthought just to calculate taxes once a year

I think no , atleast in the current time no chance to down the use of fiat over bitcoin .
Because the user of Bitcoin are not more than in fiat .
But it may be possible that if people will use fiat in less amount ( due to fear of demomentization of fiat e.g in India )
So here the you thinking is also true somewhat .

"Cash is going away. But... Is it?" - Andreas Antonopoulos
https://www.youtube.com/watch?v=G6VtsOUwWgs

I'm in the US and there are a number of politicians who support BTC. Ron Paul (no longer in office but still influential) is probably the most outspoken. His son, Rand Paul (Senator, KY), also supports the use of BTC, and there are others: http://www.coindesk.com/7-politicians-in-support-of-bitcoin-and-blockchain-tech/

Trump may shake things up. He may be pro USA but he's anti government control, so he may be favorable toward BTC. We'll see.

I've heard too that at least one person he's chosen for his cabinet is a supporter of BTC.

I think its not gonna reduce the demand of fiat. Fiat is really important because we can buy things that bitcoin cant buy. Remember, bitcoin can only buy only limited things that fiat can. Fiat is accepted everywhere and bitcoin is not. Fiat also is more than bitcoin. So i think bitcoin may never affect the demand of fiat.

For now.  ;D

the usage of faint money sustem is not that simple its demand will not loose if we  started using bitcoin because it is not controlled by people insted banks are the one controlling them and you need faint currency people will not accept bicoin

Not just BTC but Crypto currencies in general will impact not only Fiat Currencies but Banking System, governments and other organizations as their revenue, tax streams reduce or even dry up.
Eventually they will do everything to kill off crypto currencies but I don't think its possible.

I dont see that happening until we have stores all over that accepts Bitcoin and that won't happen until government voices its backing because if my Bitcoin cannot be used to buy basis things then I will have no choice than to demand for Fiat which means the more Bitcoin I have the more Fiat I will need for exchange. Its as simple as that.

Definitely if Bitcoin Usage become popular, meaning bitcoin holder does not need to convert Bitcoin to fiat money in order to transact or buy any items in the neighborhood, will reduce demand of fiat.  The reason is that fiat will more likely to be used less, when the usage of one item is lessen, the demand of it will surely be affected in a negative way.

Yes the demand of fiat will reduce and with that an idea came to my mind that if the demand will reduce then maybe the value of fiat will also reduce. At that time there will occur something strange. I think people will like to depend totally on bitcoin at that time.

i think because of this, people will hold their bitcoin until they see the good price for them to sell their bitcoin and yes the fiat is like useless but fiat is still needed by us because we still use fiat in all of real life to buy something. i don't think fiat will reduce maybe a little bit reduce because there are many people still using fiat depend of people using bitcoin.

the answer is yes, when a lot of people used bitcoin the demand of the fiat will go down, this is not the situation that the government likes, the slow transaction flow of fiat can cause economic unstable in the country, but for now the bitcoin user is not too many and can't be too many because there are limit in bitcoin

yes that is right to sa that still there is not such a big impact of bitcoin on fiat, because bitcoin is not yet so much introduce every where, and majority of the people are still using fiat currency and not bitcoin and those who use bitcoin the sue it as second option.

this is correct but the important part is that "if" at the beginning and the word "use".
people are not using bitcoin most of the time but instead they are investing in bitcoin as a quick way to make more fiat and spend that fiat. if this changes in the future and they start using bitcoin as payment method at least for online payments and replaces terrible services like paypal, then we can see the real price rise for bitcoin to $5000 and more.

I agree. Even with all the people who have invested in Bitcoin, fiat still has a very high demand. This is because not many stores accept Bitcoin and that is why fiat is necessary to live. Maybe this will change in the future though.

Bitcoin is still small and all the bitcoin users use btc and fiat money at the same time.

To reduce the demand of fiat money we need around 500 million people worldwide who use bitcoin and no

other currency.

It is right , Bitcoin now is still growing to get bigger and bigger until It can reach fiat demand, Every day bitcoin transaction and bitcoin user is increasing every day. We can wait until bitcoin reaches the demand of fiat in the world .

Not a chance, there will always be a massive demand for the fake paper money with or without BTC.

Even with our current market capitalization of more than $19 billion I don't think that Bitcoin can be influential force creating or decreasing fiat demand.
I will use an analogy here: expecting bitcoin to make impact on fiat is like expecting that if you pee into the ocean it will create a tsunami.

If bitcoin is peeing into the ocean then weather.gov (US government) just issued a tsunami watch (bitcoin tax regulations). ;D

Only time will tell my friend!

There will always be control of the central banks in most countries which are controlled by the same private bankers. The control has been sealed and that will never change now the world has became pussy, there will ALWAYS be demand for any currency that they delude us with.

Hmm.. Both are tied by the laws of supply and demand but differs in the number of supply . Fiat clearly outnumbered bitcoins in terms of supply . Lets say that a number of people used bitcoin worth 10M instead of fiat .
It will definitely have an effect on bitcoin market leading to price increase but in fiat who have a billions of supply it will be unnoticable and most probably some people will fill the gap of the 10M fiats who should have been spent instead of bitcoin .

No, it will not happen. The more demand in bitcoins the demand in fiat will not be affected. Remember that we use dollars or fiat currency to buy or purchase bitcoins in the exchangers but it doesnt mean that we leave fiat behind. When the price is ripe for bitcoins we also sell them in exchange for dollars to gain profit. So bitcoin usage therefore does not really reduce the demand in fiat.

That's true, and since bitcoin is not part of the system ( I mean the government ) therefore we don't have a choice but to use fiat in everyday living. The demand for fiat would only reduce if most of the merchants and those services that we pay in our locality would start to accept bitcoin, that way, you won't be needing to convert your bitcoin to fiat.

That's why bitcoin is so revolutionary though, it can take power and control away from those central banks because there isn't much they can do to stop it if the people choose to use it rather than fiat!

"Literally" yes but lots of things mush happened first. Bitcoin related services are that much compare on fiat related services so this is far from happening today and even in the years to come. Also fiat already established even at the beginning so it will be hard for people to just switch to cryptocurrency.

And generally, bitcoin can't performed other fiat services can do and vice versa, so it's not making sense if one of that will be totally not being used.

Depends on the impact of demand since both bitcoin and fiat have some own domination in terms of money transactions. So people will choose where they will feel comfortable.

E.g. Bitcoin is better when used in online transactions and on the other hand fiat will take care of physical transactions.

But if fiat will be undervalued then definitely usage of it will be lessen although chance of happening it has low odds.

It will reduce the demand of fiat in a lighter way but if any governments try to regulate Bitcoins then it will be a negative factor for the Bitcoin as it needs to be independent and decentralized.  ::)

yes i also think so that still fiat is ok and its demand is going to reduce the use of fiat. because bitcoin is not yet used by all the people of the world, i think it will still take a lot of time. it is not going to be so easy.

Even if government want supreme control, I don’t think they can even ban the usage of bitcoin because of complete anonymity and worldwide access, it is near to impossible for governments to prevent citizens from using bitcoins. I don’t think that bitcoin would bring any impact on fiat because there are the people who will always use fiat no matter how much other alternatives are convenient than using fiat.

Well, it loos correct and logically. But I really doubt that bitcoin will be used by the half of all generation soon. This process will ask for many many years and who knows what is going to be in such far future with all of us and bitcoin.

Bitcoin does not offer total anonymity. It's only pseudonymous: https://bitcoin.org/en/faq#is-bitcoin-anonymous

If you're looking for anonymity, check out Monero. Here's a comparison of coins and services which advertise anonymity: https://moneroforcash.com/monero-vs-dash-vs-zcash-vs-bitcoinmixers.php

It's not true. Fiat demand always increase or stable because fiat supported by goverment.

Yes, fiat is supported by government. A SINGLE government, as we don't have any universal fiat. Also fiats tend to fight and compete with each other.

So in theory bitcoin has upper hand here, because it is not limited to one country, government or political background. Bitcoin is global and everyone can back it, make it better.

As long as people will trust that BTC is better than fiat, BTC has a chance to be global economic force in the future.

Bitcoin has every upper hand imaginable. Like you said, people just need to trust it, and it will change the world forever. One day  ;D

There wont be. in the future we may still use fiat but it wont be in cash and change. Everything will be digital.

If people start accepting bitcoins as currency in our country it might happen otherwise fiat will always rule the market .we should make it more popularise it throughh these and make them understand that bitcoins are better than fiat .

Yeah, I think that's nearly a fact given how fast we're evolving as humans and how quickly technology is advancing.

relating to the users of bitcoin the fiat users are more but that is not what will be in the future as in the future people will like to adopt the payment system of bitcoin whenever they will know about bitcoin and with the passage of time you will see the users of bitcoin will be more than the users of fiat.

Fiat will still rule the market unless technology is widely used even in the farthest corner of every country.Fia currencyt is readily available to everyone while bitcoin exist only in the internet and you need to go online first before you can use the virtual currency.

Not really Bitcoin and fiat both hold their importance in equal ways. Many people use Bitcoin and then convert it to Fiat to use it for daily working. Not all countries and places is Bitcoins used. So no I don't see that it will come to a end any time soon. Bitcoin and Fiat are two sides of the coin both are needed, cause if Bitcoins are in over demand caous would take place. Hence I feel both should be kept in one's wallet not only one that is either Bitcoin or Fiat.

I think indirectly if many are using bitcoin will definitely reduce the use of fiat currencies. Because in my opinion, bitcoin is an alternative to fiat currency, so if bitcoin widely used it will definitely reduce the use of fiat currencies. But not to substitute because fiat currencies will continue to be used, bitcoin as the only alternative.

Only the alternative for now  ;D

I agree with you though, the more people use bitcoin and the more that businesses accept bitcoin, the fewer people will use fiat.

the demand for fiat will always exist as long as we are living in a country with a government and majority of its citizens using fiat. and besides the only place that i have been seeing people talk shit about fiat and banks is here and even those who do, are using both fiat and banks with open arms. so there really is no way to see the demand for fiat be reduced at all.

Yes indirectly use fiat will be replaced and it certainly is. I think not only now, at any time until bitcoin will be an alternative to fiat.
Because fiat may be used at any time until the function is going to be replaced by bitcoin as a main currency.

Indeed. Look at me, I can be the most lively example. I used to buy many things online buy my Paypal and perfect money and send money oversea by paypal. Since the Bitcoin was created, I have converted my paypal into Bitcoin and I find it is more useful and contains many advantages than Fiat. Transactions are very fast and convenient. Well, the more people use Bitcoin, the less demand of Fiat

   How many bitcoins is there now in this moment? Of course it will reduce demand, not significantly, fiat is everywhere around and bitcoin is only a little part of all that space. 
   With the time bitcoin can take a little by little and to make this part much bigger, but that depends from many circumstances. For now usage of bitcoin is probably less then 1 % of total money in the world. Give it a more time, like 10 or 20 years.

I think as well that the demand for fiat goes down a bit with bitcoin. But the percentege of bitcoin from all the money in the world is way-way-way less than 1%
The national debts of the US alone are at about $14.3 trillion dollars at the moment. All bitcoins in the world are worth only about 14 billion dollars.
That means bitcoin could only cover 0.1% of the US national debts.
I think this shows good how small bitcoin still is in the world. And that there are really big chances for bitcoin to grow incredibly in the future.

It is correct. Even now it is happening because of credit cards. But this are for people who can afford it. So it just lessens the usage of fiat.
With the growth you are correct too. More people using bitcoin means more people might see it too and might consider doing the same thing. We people are somehow thinking to mime others when we see it is convenient for other people.

fiat is still used by many people from all country and they are trust with fiat, only a few people that know bitcoin and use bitcoin, while in future i think the more people will use bitcoin and still using fiat as their payment in offline store. unless bitcoin is available in offline store so people will have option with the payment and maybe because of this, bitcoin usage will reduce demand of fiat.

it is not right. even there is more demand for bitcoin, it does not mean people are going to change all their fiat into bitcoin. I think bitcoin is just for their invesment.

besides that fiat is legal currency in the world, so it will not be easy to change fiat totally even in a country that accepts bitcoin because they still use fiat as the main currency

Of course it will not be easy, but I think one day it may be possible. People are using bitcoin now for investments but slowly over time I think the scale will start tipping, more and more merchants and businesses will start accepting it, and more and more people will start using it over fiat.

i don't think so to me i think there is not such a big impact of bitcoin on fiat currency because most of the people are using bitcoin as investment and a little number of people are using it as currency.

   Yes, good comparison, and you just mentioned 1 country debt and where are other countries, companies, corporations. Bitcoin is really small when we consider everything, also like you said this shows how much bitcoin can rise in the future,  "can" but will it who knows.
   Dollar, euro, and other currencies will not surrender, we can expect economy war in the future, I see it like that.

Definitely, Bitcoin usage will reduce the demand for fiat and increase the demand for bitcoins which in turn increase the price of bitcoins.That is why many governments fear bitcoins.

Possibly no for current generation because people are not familiar with bitcoin as of now. But may be in future the scene will change and people will start using bitcoin but the concept of digital payment had already started and people will better use fiat.

The fact that most of bitcoiners will end up converting their bitcoin to fiat means the demands for the fiat itself still remain the same and there's nothing for the government to be afraid of about bitcoin.
And as you know that bitcoin's value always determined based on fiat currency such as USD and that indirectly reflects that bitcoin still need fiat

Seems like no one knows when bitcoin truly would be recognized as what it really is, and that's around 80 up to 100 years from now. Please stop joking can't laugh no MOAR! demand reduced comparing the fiat market is something between $5000B and $650,000B against $15B worth of entire bitcoin ecosystem?
Bitcoin wasn't really meant for our time period and I think that's the downside of open sourcing new technologies without properly studying every aspects.

Still fiat are widely and commonly use instead of bitcoin,to people who are not engaged how to use todays modern technology the one that are rarely use is fiat.Well,probably in due time if the demands of using bitcoin will continue to and its widely use worldwide then probably it will reduse the demand of fiat.

There is no demand of Fiat but the demand of commodity or service that can be acquired with fiat creates Fiat demand.
If fiat is totally replaced by bitcoin,then Fiat will become useless and obviously there would be no demand for it.
Value of fiat depreciate with storing it while bitcoin value appreciates with time.

Fiat wouldnt become useless in the long run and im sure with that and it cant be replaced by bitcoin no matter what.We cant say that fiat is on demand since we do really need it on  everyday living.Value of fiat would not depreciate and it cant really be compared or compete with bitcoin since bitcoin is getting its value from fiat.

i think yes with the passage of time it can be possible that bitcoin will overcome fiat. when the number of bitcoin users will increase more and more. in our area the number of bitcoin is really in creasing too much and if the same ratio continue everywhere the defiantly bitcoin will become number one currency of the world  not online online but in real life also.

If people feel comfortable using modern technologies and more people start to prefer using bitcoins, it might actually reduce the demand of fiat currency. But i do not think that's likely to happen.

There some aspect , for example : goverment and stabilization

If your goverment legalize bitcoin usage , it will increase bitocin usage and existence over fiat
and also if bitcoin value already stable enough, people will use bitcoin as their daily currency

This thing might possible to happen if the government would decide to fully adopt bitcoin on their place but the big question is "they will do such thing?" I dont think so because government doesnt like bitcoin in terms controlling it since its decentralized which means they cant monetize it for sure.FIat is not a demand for me since its a commodity.

Bitcoin has nothing to do with fiat, people wish to use as well stick to growing technology. At the same they need to be convenient as well needs acceptance. At this point we haven't got as much acceptance that users expect, so fiat continues to have more demand.

nearly 7 billion people live on earth and nearly 70.000 people know what is bitcoin. When the number of people who aware about bitcoin will increase the usage of bitcoin and other cryptocurrencies will also increase. Particularly we will see this increase in the web shopping site. When the usage of bitcoin will increase the usage of money will decrease inevitably.

Yes it is correct, if more people start to use the bitcoin than definitely bitcoin price or value increase, but it is incorrect that bitcoin users left the fiat, because we are using bitcoin only on online to online, every country have no facility to use the bitcoin in open market,and secondly, if bitcoin cross the highest value than i believe people can't left the fiat.

Yes of course, when there is an alternative transaction that is better, of course with their bitcoin will reduce the use of fiat money. People will think more practical and low cost on send and receive money, so they will not think to return to fiat money.

No, that's impractical. Why would we not return to fiat, we can't live with bitcoin alone. Everything can be bought with fiat, but not with bitcoin, lets keep that in mind. For sure, if we use bitcoin just to send and receive money, we still need to convert it back to fiat.

Demand in fiat will never be reduced, unless central bank of a certain country starts to control the release of new paper money and introduce new currencies as alternative.

Both bitcoin and fiat has its own purpose and uses.While fiat can be used offline bitcoin mostly on online transaction. But, in the future I think, yes it will affect and probably reduced the usage of fiat since people change they way they pays and transact and mostly they are doing it online.

For me it has reduced my dependance on fiat, as I usually transact online.

Bitcoin usage will not reduce the demand of fiat but instead will increase it. Why, the more people earn bitcoins the more will sell them and convert it to fiat currency.  When people buy and sell bitcoins fiat currency is used and so it just means that bitcoin cannot move without fiat backing its value. This just means that the demand of fiat is not affected by bitcoin usage.

As quoted when people prefer technology and move towards digitization the demand for fiat won't gets reduced. Everyone is not capable of using digital currencies, on such basis fiat will be still in use without any decrease in its demand for all sort of needs.

Bitcoin won't reduce the use of fiat money. Especially not when it comes to using and spending fiat within the country. Fiat's position is simply too strong for that. If you look how easy it is to complete purchases with fiat, where everything is instant and free, plus everything you buy gets insured as well, then it doesn't leave much room for Bitcoin to gain ground in that regard. But it's not a problem at all since we know that Bitcoin is just an alternative currency/tool. Bitcoin's growth will come from other aspects where these are the main features;

# Investment aspect.
# Store of value aspect.
# Money transfers aspect.

For me these are the main reasons of me being in Bitcoin. Currency aspect (as in using it for shopping) was never an appealing feature for me.

I don't think the amount of the fiat money will be reduced in the observable future. Even if Bitcoin will become extemely popular fiat will stay for a long time because people have accustomed to using it.

I don't think bitcoin will reduce demand of fiat because exchange of crypto currency to fiat nowadays were very compatible and both of them earns independently in terms of its exchange rate value specially btc to fiat conversion. And if we talk fiat to bitcoi it also have its own market value of its pricing of bitcoin buying online so it doesn't confirm to the subject of demand is reduced because of bitcoin usage, its just a mere speculation if we can observe the reality.