Bitcoin Forum

In your opinon do you think cryptocurrency have to become somewhat like a fiat currency to compete with traditional financial system?

Would like to hear your opinon.

Necessarily not. But if it has to compete now, then it ought to be, cause mass people still don't have that trust in bitcoin. Also, one of the main characteristics of fiat is tax collection. In bitcoin, you don't necessarily have to pay tax.

The main difference between cryptocurrency and the traditional financial system is the fact one is decentralized and the other one is centralized. With it has each has their own restrictions and freedom. The fact the traditional system is relied upon as it has been in use since the start and people are still new to the idea of cryptocurrency and how it works. After adoption from governments and banks we could hope to see how both would co-exist in this economy and how it would work.

Distinguish what fiat is and cryptocurrencies are.

As long as it can be used as a medium of exchanged there's no need to compete with the traditional financial system. This is the future and people are longing to have something like this. This is good that we will only have one means for medium of exchange and is acceptable everywhere.

Cryptocurrency operates with a system that is totally  different from how fiat operates, which is decentralization v centralization. So it does not need to be change, because that is more like deviating from the original intention of creating it. If that is also the case, there is also no need for cryptocurrency.  So it has to be different in its form operation.

Cryptocurrency is completely decentralised system which is mainly popular in the present world for a good source of income. Fiat currency on the other hand is centralised system and there is huge difference between this two currencies. Crypto has not reached the point to compete against the traditional financial system.

Crypto should get the same features as money, be a measure of goods and services' exchange but it is possible just with stable coins.

I think sooner we won't have to compare them because those companies in the traditional financial system are going to be moving to the blockchain. There were rumors about it, I think they are not just rumors, NASDAQ are considering to move into blockchain as the news said. Those in stock market as well I think I've read it on cointelegram too. If this happen then I guess the adoption would be a smooth transition..

our whole goal was to NOT be like fiat currency! so your question doesn't make sense to me because if cryptocurrency were like fiat then there would be no reason for it to even exist anymore and we would be wasting our time here trying to make something different and new.

the fact is cryptocurrency started by Satoshi as bitcoin so that we have a different payment system that is decentralized and other features such as being censorship resistant that comes with it.

I think the exclusivity is its main attraction, for fiat has its essential place, and crpto will find its way to co-exist in its own identity, once the regulators and policy makers set its recognizable and acceptable norms.

Many banks are learning about blockchain technology and adopting it into their operation system, i think they will use cryptocurrency in their banking systems soon when it is possible. We can't separate cryptocurrency and the traditional financial system ( governments, banks) because the economy can't exist without banks or governments..

Blockchain can be adopted by those companies and that can be separated from bitcoin or cryptocurrencies.

They can move to it anytime they wish but using crypto's and fiat systems are two different things. And applying blockchain is another thing, well I'm not sure if my explanation is enough or confusing but all of those 3 things really can't be compare to each other and they are all different.

I will not say that crypto has to be like fiat but the mist important thing for crypto to become massively adopted is the ease of use and service, i think we need simple and easier payment services for crypto like crypto cards, phone transfers, email transfers, text transfers and others, as many ootions and as easy it will be the more people will adopt it.

If you want to use cryptocurrency in the traditional financial system it can be used as a payment technology, easily.
Problem is laws, rules, regulations etc.
Those big guys have to make some rules to welcome the technology in their old lives.

Yeah, the main problem is that in theory they can not control cryptocurrencies . In real life there is no such thing at least in bitcoin. Below is allocation of all bitcoins.   https://i.imgur.com/eKH7wgM.png

The traditional financial system is slow when compared with the cryptocurrency financial ecosystem, most cryptocurrency ecosystems are highly scalable, they can process millions of transactions per second, also the cryptocurrency transactions are mostly decentralized in nature while the traditional system is centralized.

Cryptocurrency in the future will become a common currency, but until countries begin to accept it, it will not be able to take its place in the world economy.

I think it's not needed, crypto is right like this. if anyone thinks crypto should be like the traditional financial system it is very wrong. crypto initially existed because it was to solve the problems in the traditional financial system that were centralized and lacked transparency. what is needed by crypto at this time is trust, until now we see the crypto confidence level is very low. it is proven when the market starts falling many people sell their assets.

crypto currencies like FIAT currency? what do you mean? Does crypto currency have to be physical like the FIAT currency? how to implement blockchain technology if crypto currencies are physical?

Traditional financial system is too rigid and centralized, the objective of cryptocurrency is decentralization, if cryptocurrency have to become somewhat like fiat then aim and purpose will not be actualized.

It does not have to outsmart the fiat system already in existence

What matters is crypto currency achieving its potential and making the world even convenient
Let’s continue our participation in crypto currency as we await the governments decision regarding the acceptability and accountability

Keep in mind, Blockchain technology will take over

in my opinion these two things cannot be chosen for one, cryptocurrency is a modern financial system that has a sophisticated system with all the conveniences but the traditional financial system is the main driver of every country that keeps cryptocurrency running well and has good harmonization with fiat

I think I like the way Cryptocurrency already is. It is not necessary for cryptocurrency to compete with traditional financial system by changing its nature. Fiat is centralized and crypto would always be decentralized.

Why do cryptocurrencies have to become fiat or compliant with fiat system? Crypto and fiat are totally two different paradigms and a coexistence of both is what true crypto enthusiasts seek.

In my opinion I do not think cryptocurrency should try to become like fiat currency in order to compete. Cryptocurrency is unique from fiat which is why it is very attractive and also it has its own great potentials and features that will lead the currency to glory and popularity.

The traditional financial system and cryptocurrencies are very different. The typical cryptocurrencies works in a decentralized sapce with peer to peer exchanges. This eliminates the possibility of unwanted intrusions and privacy threats, where as the traditional financial sytem faces these issues.

Cryptocurrency was never created to compete with fiat currency. They are different in nature and coexistence between them is what the world needs.

  I think crypto does not need to be something. Because crypto is the future of trading, it will help people a lot when trading in two different countries or when they are far away quickly without paying any fees. . So crypto should be developed in that direction

Banks have started embracing blockchain technology into their operational infrastructure. The major difference between cryptocurrency and traditional financial system is decentralization but both can still make use of blockchain technology in their operation.

It can be an interesting thing to watch how will the regulations imposed by the government can eventually affect cryptocurrency in general...will it lose some part of its decentralized nature or will it adopt well to the new environment. Though ideally cryptocurrency should have nothing to do with the government we have to face the reality that this could not live in a vacuum or in an island of its own...there is that need to connect cryptocurrency to the traditional fiat system otherwise people may not be adopting cryptocurrency in the first place when movement is constricted and not seamless. Banks will naturally be exerting some level of controls otherwise they will also refuse to connect and adopt cryptocurrency...these stakeholders can impact the ecosystem and who knows which can eventually gain the upper hands in the future.

Cryptocurrency ofcourse. Why dont we choose crypto, it makes our transaction very easy making it super comftable because you only need some codes for you to send money but if in traditional you need to go in the bank and then you will fill up so many forms before you can send and recieve. But in cryptocurency codes is all what you need.

I think that the whole idea of crypto-currencies is ultimately aimed at establishing a new world order, when every person will be under observation!

I really liked one interview, in America in a public institution, the tax authority,I do not remember exactly what state,there the head of the Department said that we now live in the 21st century,we use many technologies,so why do we still use the financial system from the 18th century?therefore, he says we started accepting bitcoin as payment for paglini,taxes and charges,fines and so on!You know what I'm getting at?!

That's the real advantage dealing with less hassles and it can be process much quicker than the banks can do, cryptocurrency is an enhance part of financial system, it can be use co exist with fiat currency the best thing with crypto is you can also use it for investment where value can grow big
but the institution role can be the same with traditional system.

Become the financial system that they're trying to replace? Lol, if that's why cryptos were created in the first place, what would be the benefit for example of centralizing us? the economic system has centuries like this, and I don't think that crypto centralized currencies are the solution to any problem that the cryptos are facing, so it doesn't make much sense for that to happen.

I think there's no point in drawing comparison between both digital currency (Cryptocurrency) and Fiat currency (Traditional currency). Yes it is well known that traditional financial system is centralized and we have been doing well with it till the evolution of digital currency. To survive in the world we are in, I think there's need for both because some persons still don't have an understanding of how Bitcoin and other Cryptocurrency works. Aside that, I still haven't been able to purchase anything in the real world with my Bitcoin. Rather I convert Bitcoin to Fiat.

Cryptocurrency and traditional financial system both are good in their places. but still people believes in traditional financial system because they feel more secure and happy in traditional financial system. On the other hand in crypto, you can earn profit and loose profit according to the market scenario.

Not at all, the only thing I think cryptos need to be a competition to the traditional financial system is mass adoption, I've been trying to talk to different people and giving introductions to cryptos and teaching them to use exchanges and there are still people who believe that bitcoin is for the rich because you need to buy 1 whole bitcoin, they still have a little difficulty understanding the use of decimals and that needs to be improved.

People are fascinated with the idea of cryptocurrencies taking down the traditional financial system and replacing fiat so they fail to think of things in the way you just expressed. Neither one is better than the other in every way and therefore they both are important and need to co-exist. It's better just to be grateful you have something to suit your own needs than to be frustrated because everyone else doesn't place the same value on it or have the same needs.

The traditional financial system will replace the crypto. I'm sure everyone knows that. The crypto money system will crush the traditional financial system. All this will happen in the next 10 years. And we will be witnesses to this revolution. We're very lucky.

At the moment, bitcoin is an investment tool that has attracted many investors the opportunity to receive good profit . In some countries it is legalized at the state level as a means of payment . But at the moment it is too early to say that it will completely replace cash.

I do not think cryptocurrency is nowhere near the traditional financial system right now but with the upcoming ETF and the turning into commodity instead of currency things made it a bit closer to it than what it was initial. Which tells me it doesn't "have to" become more like the traditional financial systems but since it is a democratic free market decentralized currency it can be turned into whatever people wants it to be.

Right now people wants crypto to become more commodity and make them more fiat than they got in and that is what is doing right now. If public decides that bitcoin should be a payment option everywhere around the world than some company (and than many more after that) will find a solution and we will buy everything with it. It does whatever it does according to what public wants.

Traditional Financial system is not asset investment and so very difficult to carry everywhere. But Cryptocurrency is very easy to canrry everywhere, it's asset investment and very fast in transfer transaction. So i think Cryptocurrency is better than Traditional Financial system and i will choose Cryptocurrency than Traditional Financial system.

The big difference is that the traditional financial system is tested by the market. Cryptocurrency has great advantages in technology. It is a decentralized system. The potential of the future is far greater than that of the traditional financial system.

Decentralised issue is the biggest and the most important thing about crypto. After now nobody will dont have the power for our moneys. Even with dollar euro yen etc. All the moneys are backed from some goverments and their currencies value related these goverments behaviours. After that we have our money and goverments can not control our money and our money's value. We are free with cryptocurrencies.

Are you for real? So you guys still ask this question till now🙄? Hmph. Cryptocurrency wasn’t meant to be used in replacing our current monetary, Satoshi just made something that can be used as an easier way of sending and receiving money peer-to-peer and not to be used in replacing fiat.

Cryptocurrency doesn’t even have a physical like fiat does. It’s only being used online, unlike fiat which can be used in any way including online and offline, so what makes cryptocurrency better than it? Cryptocurrency is just for speed in sending and receiving money if you’re not living in the country with someone you’re sending to, cause banks are slow when it comes to international transactions.

Most likely there will be a transition period when banks will use some of the achievements of cryptography. How long this period will last largely depends on the decisions of the governments of strong states.

So, in my opinion, the cryptocurrency would to change Traditional system, but it will happen in far future. Just in next 20-30 years.

The cryptocurrency is better than a traditional financial system of economy of any country of the world. This future of a financial system.

In the future, cyrptocurrency should be able to be used just as traditional currency, that can be used to make any kind of transaction in our daily lives.
When that happen, i believe the development of cyrptocurrency will be even better.

Depending on what you need both have strong suits. I am a person who hates banks and I really try to not have any business with them at all. However, the traditional financial system still has some good deeds in it, for example having a credit card to pay some stuff that you can't afford right now but know you can after a certain time is still a viable option for many people.

Some people use it to pay stuff they can't afford and can't afford later on as well which is the bad side of the traditional system in which cryptocurrencies win because you can only pay with what you have and not what you will have which will be good for second type of people but could be bad for the first type.

I use a credit card even though I hate the banks but I know how much I will be paid and spend it beforehand. Same goes with loans and mortgages which you know you will be capable of paying monthly but can't afford all at once.

In my opinion it is not necessary, if the cryptocurrency performance system is superior to the traditional financial system then it will be replaced by itself and of course the development of technology is a very positive thing to improve the quality of the old work system, as well as now everyone, uses a debit card positive value to facilitate each transaction without having to carry a lot of paper money. These are technological advances over time to help people safeguard their money.

I think that in the cryptocurrency system the user has more opportunities and fewer restrictions. After the cryptocurrency became popular, many users who had not previously engaged in economics began to be interested in this.

I think it's starting to be headed that way. The implementation of cryptocurrency for transaction already been started.
So in the future there is possibilities that most of transaction could be done using cryptocurrency.

Still a long way before cryptocurrencies will be easily spendable like fiat globally.
Also the high volatility is still present. Once regulations are put in, maybe we'll see mass adoption.
But it will also take out the excitement that we have in crypto  :'(

I don't think this is a kind of competition, at least not yet. The cryptocurrency is not a competitor to the traditional financial system. It must be known that the traditional financial system has hundreds of years of experience. Encrypted currency is a shortcoming that makes up for traditional finance. Future cryptocurrencies will be combined with traditional finance.

I prefer this method because this method is for every one every where and in traditional financial system it was a dream that time and we would keep our money everywhere or we would make transactions through big Institutions or banks will eligible for this but now you can do it possible through crypto currencies.

Never that can happen. The fiat money is really very valuable and it is still an asset and being active in the forex market. How can the cryptocurrencies compete with fiat money when it's not the same? We call the electronic money but its nature is the money transfer tool. It has no other functions. It is simply a unit in our crypto market.