Bitcoin Forum

Crypto will never crash  the system and replace money, at least not in north america.Everything is enforced by laws, like a law that tax needs to be paid in cash, on all items, no matter what the person pays with.Sometimes it feels like people think if we all go crypto, money is somehow going to be free, and life is going to be so much easier, I don't think that's true.Imagine if you could only buy bread with crypto, and some billionaire buys a large amount of crypto the night before, the next morning your bread will cost twice as much.In other words its a rare resource, basing prices on crypto doesn't make sense.It can represent money all day long, and have value based on the dollar, but I don't think it can be money, unless governments just make digital cash for us, that doesn't jump too much.

How can crypto crash the system. The system has its place in the world and crypto has its on. It will be better if the system accepts crypto.

I think the thread starter has not used the right terms in stating what he intended to because crypto is not here to crash any system and it can work with traditional financial system but dont you think that the traditional stock markets, traditional banking, traditional financial system is outdated and there should be atleast some better, more efficient, transparent and advanced system available to be used atleast as an alternative option to the traditional system?

As if it was designed to be that system destroyer lol. This is what most of people don't know about, and does not care that much with crypto. Crypto as an alternative was never meant to replace fiat, systems we have now won't work with the absence of fiat, and this why the creation of crypto was intended to be just an alternative to work along with the fiat coz there are times that fiat is inconvenient to use wherein crypto could just be a several clicks away. And by the way it isn't just to North America.

What you trying to look for is putting a decentralized system on the real situation where we already live, it's like believing that one day bitcoin will be our universal currency. That's what you sounds like mate.

Who regrets about the pizza that was bought with bitcoin in 2011?

The analysis with buying bread using crypto got me laughing. Well, nobody ever said crypto will replace FIAT, it's fallacy to assume that. It only compliments FIAT and not otherwise. Some very remote communities may not have internet access, and to transfer crypto, it's a requisite. You don't expect such remote zone to use crypto in daily transactions do you? Just an instance ☺.

Crypto has definitely that advancement of tech and infeastructure that it can easily replace the centruries old financial system but most people will agree that it cannot be 100 percent replaced by crypto so i think most of the system will be upgraded to blockchain and crypto in next 10 years and the old system will also be available so we will have the option to chose the one we want.

It will never happen and both will be alive together, crypto has so many potentials and we have been seeing some potentials that have already developed like tokenization, smartcontract defi and many more. It may replace the traditional system but i think that will never remove the fiat currency.

What system are you exactly talking? The fiat, i mean the current monetary system? No one said anything about crashing the system. There are some people who believes that it will be replaced, but not anytime soon.
I hope you are aware that you need to pay taxes on your gains from holding crypto currencies, which means that government does track your holdings (assuming you are using US based exchanges to buy coins). True, you won't get free money using bitcoin, but things are actually going to be much easier.
And I think you are wrong over here where you say the cost of your goods is going to increase. When a billionaire does buy a lot of coins, you will have to be paying less coin for your goods, not more.

The cryptocurrency is not going to break the current global financial system, but it will have a strong impact on it. We can already observe that after the advent of cryptocurrency, the world financial system is being digitized quite quickly. Almost all states note the advantages of digitized currencies and this is the direct merit of the cryptocurrency.
Decentralized cryptocurrency will go along with the usual currency of states and only in this way its liquidity can be increased.

What will crash the system is the injected money. The helicopter money that has been announced by the US government. And if you're someone who's monitoring the foreign exchange for dollar, the value starts to drop. The reason is because of the too much supply of fiat in the economy which has been done for the aide of the people. Crypto is a good place to invest for those people that wants to save the value of their money and that is to be specific for bitcoin.

It doesn't work that way. Crypto acceptance won't crash any system. Using crypto to make payment dosent mean the price of goods will increase exponentially. It's still same goods at same price but with another payment system.

If you can buy bread with crypto, let me use bitcoin as an example, the store will not set the price in btc, if it's a country with a dollar fiat system, the price will be set in dollars, you then as a customer can decide to pay then in bitcoins, when you convert the fiat value to btc. Also if the billionaire buys a large amount, that will appreciate the price of btc, and your own coins will increase, so you'll be paying a lesser amount for the bread the next day 8), that being said, prices of goods are not based in crypto just yet, except in bitcoin communities, like this forum and few other places, only mainstream adoption can make It possible.
Governments already are in motion to create their own CBDC, but it is not going to be like bitcoin or even any other decentralized digital currency, it's just going to be a revamped centralized fiat currency, so don't be too expectant, i'm not btw.

In my opinion changes are coming, and crypto will play important role in that changes. Will it crash the system (and in my humble opinion that's the best thing that can happen to all of us), or will the system find a way to adopt it and use it as they want (with all their rules, controls, surveillance...) we will see.
I would like to see the world where the power is in the hands of the people, all people, and that can be done only with decentralised system.

I don't think this is really a valid point. A situation where bread can only be bought using crypto would be very different to the situation we are in today. For a start it would mean that crypto had become fully integrated with  mainstream society, and was used by everybody, all the time. Crypto would be vastly - multiple orders of magnitude - bigger than it is today. Look at how the price of small cap alts can be manipulated very easily, and at how much more difficult it is to manipulate the price of bitcoin, with its much higher market cap. In general the bigger a thing is, the more difficult it is to manipulate the price. As an example, if 1 bitcoin was worth $1 million, then $1 billion would only buy 1000 bitcoins, perhaps enough to move the price a bit, but no more than a $1 billion purchase in traditional markets would do.

There are many different ideas. The first group says that there will exist both systems, the traditional one, and the blockchain one and people will be free to choose which fit them better. The second group predicts a collapse on a traditional financial system and Bitcoin and other cryptocurrencies will replace it.  :)

For cryptos to be successful it goes against the governments for sure, maybe it looks impossible for now but if people all around the world moved to cryptos then you are the only one using paper money then you will also love to move which takes years but it will happen.

All depends on the crypto mass adoption, the trust level should be high among the masses, there should be full regulatory compliance only then there is a chance of crypto being emerging as a complete alternative financial ecosystem so may be we will have to wait for some more years to see that.

I think it will be the other way around. The fiat system will crash one day because all the paper money is not full backed up by gold. As per the experts, the dollar will crash soon and people will turned towards bitcoin and crypto currencies. That will be a mass adaption phase and after that paper money will only be a past.

yes of course cryptocurrency can be a very appropriate choice for the future because cryptocurrency can move without using paper money anymore so I'm sure local paper money and fiat will be destroyed someday. therefore you should be able to prepare digital currencies such as bitcoin with very large amounts and can be used for long-term investment because it will be more difficult to get bitcoin, the price will be more expensive and can provide a lot of profit.

It may take some time until crypto currencies will  fully take over the fiat money. Currently bitcoin is too much volatile and its transaction time is considerably high and due to this it is not widely used in local and physical market. The only usage of crypto currencies is in online transactions.

We should look at both the bright and dark side of cryptocurrency before making it a main stream currency. Even though it will be easy to carry cryptocurrencies online but at the same time it will increase the risk of being hacked. Paper money can only be stolen if someone steals it from you in physical but crypto can be hacked by hackers online. Everyone needs to understand the risk and safety measures if they want to use cryptocurrencies in place of paper money.

Imagine you buy 10 loaves of bread with fiat currency for $5 total, save the money in your savings account and the next day a billionaire buys up and hoard most of the basic things in the market and those basics things double in price due to scarcity... [Printing too much money than is needed can also cause such inflation.] And the little savings of the poor saver is devalued.


Or
Imagine selling your cherish bike for $3,000, you keep the money in your savings account long-term, and next 7months the currency loses value due to inflation of basic goods and services.


I think deflationary currency will be best for both the bread and bike savers. A moderate deflationary currency can function as both "stablecoin" and normal cryptocurrency

It's an open opinion that dictates those position, there's no certainty if what will be the impact, It's better to co exist and allow both to work alongside,
let people to choose which are their prefered method, knowing that there are still lots of debates in case full adoption for crypto system will take place, there are still someone that will continue favoring the traditional system.

Yes I agreed with your point of view sir, we should balance the temper on which you will not be put into trouble. Since there's a lot fraud people spreading here and hackers in general bad people that took advantages in everyone's weakness. But there's a solution for some cases that wallet will be hack. Storing your assets in a cold wallet if it is not used or let say a savings to ensure the security of your money would be better.

Irrespective of the laws of the land regarding fiat and crypto currency, the blockchain and crypto currency is not here to cause distrust or disrupt any political system, instead the blockchain and crypto currency is here to bring freedom and ease of doing things to all us. With decentralization, you have the freedom to handle everything related with the payment system

Exactly my point. Crypto cannot really crash the system but can start to coexist with it. Just like people invest in the stock markets, gold and other financial assets, they can invest in crypto currencies seeing its use cases and real life applications and its potential to grow. New technologies like blockchain, IOT etc are finding their ways into people’s lives.

Cryptocurrencies can act as a new wave in the world of digitization if properly regulated and legalized. So, crypto and the system can coexist and boost a countries economy, but it is highly impossible for a vulnerable digital market to crush the whole well-established system of payments, trades and ecommerce.

If something so volatile takes over the whole system, it will surely create a whole lot of problem in the country. Crypto assets can exist as a side source of income or act as an alternative to stock markets for instance but can never be the main currency of the country cause economic is not something simple and it takes years to framework everything.

I do have a few times thinking for a co-exist scenario as you said. Cryptocurrencies will keep being a rare and in-demand asset and won't replace fiat money like the dollar. Yes, it will more wide use but that it since it doesn't have the backing of the government. I think I'm okay with that scenario since crashing another thing like fiat won't be easy and could cause a backblast.

Anything that posses a threat to the government, they find ways to control it and make sure it doesn't remove power from them. Crypto do not afford government the power of control they sort for and thus it can't crash any system because the government won't allow it. Also, crypto is global but countries have their own fiat which gives them power to carry out anything they want. So I will say, crypto will continue going forward but will not have the power to crash the world system however it can only offer a better alternative to services being rendered to users.

Whatever you see happening to crypto now is still an experiment and somehow, it is already proving to be relevant. Although it might not be totally accepted allover the world, there are some parts of the world today that are already using it full fledge because they appreciate it's value. Irrespective of how volatile it is, crypto will one day becomes relevant to everyone and modalities will be worked out for its usage.

the problem is that there are various types of crypto and for now crypto is not used too much for day-to-day transactions.
most people use it as an investment tool.
and also fiat money will continue to exist but its form will change to digital.

Decentralized cryptocurrency is not intended and is not going to break the global financial system. It also cannot replace the usual currency of states. Thanks to the advent of cryptocurrency, the common currency of states is rapidly digitizing, various types of stablecoins appear. Now about 80 percent of states are considering introducing national stablecoins.Cryptocurrency will not replace the currency of states, but will circulate in society along with ordinary currency.

For this type of theme I don't look at the side of the project, but at the true meaning and in this case it's the blockchain. All the projects that exist derive from this technology that was born to unlock the system and decentralize the command of finance and transactions. However, we know that governments mainly in the North and South do not sympathize with this idea due to tax rates and government interests. In general, crypto is the solution of the global financial system and it's worth remembering that it's my opinion.

You can't seriously discuss breaking "the system" if in all these years crypto didn't manage to gain any noticeable adoption. Regular people are not interested in crypto, because it's way too volatile, it's hard to use, it doesn't have the benefits that banks provide. Until this problem is solved, deflation, taxes and all other stuff don't matter.

If Crypto wants to crash it would have done that long ago when different bodies including government were after it and banned some if thier citizens to stop using Crypto and also tagged it to be scam. Crypto is digital so I don't think it can be changed to paper so nothing to worry about.

This is right, crypto was never invented to replace FIAT and never will. They can only work side by side, however crypto hasn't been officially accepted by any government for open use, we are still in the process of adoption globally. Anyone who thinks crypto will replace FIAT money in the long run should dream on, it's mere illusion.

Indeed, it will have a major impact on the global financial system and the overall economies of various countries. Government will somehow need to keep a trace of the money flowing between the countries. Cryptocurrencies can sometimes act as a savior such as during the situation of hyperinflation. For example: in the case of Venezuela where the domestic currency was much more volatile and the economy was sinking at an unimaginable pace, cryptocurrencies lent a helping hand.

It is widely believed that both crypto and existing system will coexist without  doubling each other because crypto is known for flexibility to adopt any kind of system by making it suitable for that. This way I am sure we are going to have crypto regardless of whatever kind of trouble we are having with the current system 8).

Yes it is certainly true that cryptocurrency can never be cash. The way cryptocurrency prices fluctuate makes it impossible for us to buy everyday items. If you want to market through cryptocurrency then its price can be double or more. So I think it would be wrong to think so.

Crypto has been advancing eversince so I doubt there is no possibility that the world can see it like money and currency to be accepted. Many users in the world believe that it could be the future of money and as we speak it is happening already. Lots of establishment are now accepting crypto and in due time it will increases in the future.

Crypto currencies can never replace fiat. You are being confused between blockchain technology and crypto currencies. Crypto currencies work in a decentralized manner. If someday digitalization of the fiat currencies takes place, it will be built on blockchain but will be regulated and centralized unlike the other crypto assets out there.

Traditional system of using cash if likely to exist though as not everyone in the world is familiar to the modern technology of digitalization. Cryptocurrencies require lots of basic infrastructure to get familiar among masses; it means you must need internet and basic computer/smart phone knowledge and then stronger awareness against internet fraudulent activities so that you can get start with cryptocurrencies and then can stay secured. This blocks cryptocurrencies from achieving mainstream adoption.