Bitcoin Forum

there will always have some sort of inflation
the push pull for sure
but that is dependent on many variables etc, at least it is possible to get rid of one form of\ inflation if the entire market place was based on a money system that had a limited supply
what are your thoughts on what if the majority of the population all of a sudden sold all their fiat and put it into a crypto? like BTC, do u think the system or part of the traditional finance system see some type of impact/disruption?

It is a what if that cannot happen. You can't expect fiat to be out of existence, we arrnt ready for that just yet and not sure we would be in the next decade or even a century. Where would that keep the physically challenged like disables, those with the difficulty to read and write or compute? Definitely there won't be a world for them no more and you can't say the path to literacy would be easy for everyone. That as much as many other factors such as, networks and what it takes to afford devices that can be used in having access to the crypto space.

There isn't a what if in this and I don't see it being some permanent solution to inflation even. Scarcity has its on effects on a commodity.

That's a dream that can only done in a dream. Why would you thought something like that when bitcoin cannot replace fiat in any aspect of monetary system and matter of fact. Yeah, we are so called "bitcoiner" here, but don't be so delusional. Such thing wont come true.

It's not just about everyone "putting their money into btc". It is also about the acceptance of it in regards to goods and services. All businesses would need a gateway implemented at this sudden moment as well. If (for arguments sake) all businesses instantly implemented this gateway with no hiccups, everyone knew how to use BTC appropriately and this event happened, without a doubt the fiat system would crumble and positive change would quickly follow. It would take a lot of work for the people to quickly facilitate this change though...as I am sure that if something like this were to happen then the community involved would need to be governed by a new fair and non-corrupt body of people rather than existing government bodies.

That is never possible, if that is what would likely happen, the government would have felt the pressure and ban bitcoin and other cryptocurrencies if that would be the only way that they can protect their fiat. But people do not have that kind of mindset, cryptocurrencies are not having stable price and they are volatile, stable coins that are most reliable depend on fiat while many people will always have a reason to have fiat. Most businesses in the world are using fiat and they are growing, but I understand that keeping fiat in bank or holding it is just a way to make your wealth to be deplete in value.

You are very correct, bitcoin was not created to replace fiat but rather to serve as an alternative. Bitcoin to most people today is for investment purposes.

Then that will reflect on the price as the demand will increase drastically if that happens. We always see that during the bull run and everyone's feeling and sentiment is happy to see that its price increases.

There are always the two thoughts about it from them, some do like it and many don't like it because it goes against the usual system that they've been used to. It doesn't really matter if those things happen again as we always see those changes from time to time. Not just it, we also see changes in market trends that's why all of us are just adapting to whatever changes are.

If the majority of the population suddenly sold all their fiat and invested it in cryptocurrency like Bitcoin, it would have a significant impact on the traditional finance system.  The sudden outflow of fiat currency would cause a drop in its value, leading to inflation, and might this would cause economic instability, leading to a loss of confidence in the financial system.

IMO, if a large amount of money is invested in crypto, it can lead to a massive increase in its value, causing a bubble that could burst at any time, leading to massive losses for investors and the sudden shift of investment from fiat currency to crypto would cause significant disruption and volatility in the financial system.

When we talk about imagining and delusion, the answer is always imagining and delusion also. we don't know about future and what happen next, if fiat system dead, the strong goverment will try another ways to replace it by the time. One of very potential is gold, because gold is tested about many years ago and strong. but if crypto, I am not sure will replace it when gold is more stable than it. I just thingkin it by your imagine.

People will not just change their mind like this there would need to be a big event that caused doubt in the banks and fiat if every one changed their view on Bitcoin and converted all of their money to Bitcoin. I do not think Bitcoin is stable enough to have this many people convert to Bitcoin all at once and I think it would cause big swings in the btc price. It is better if we have a steady increase of people using Bitcoin.

You don't have to wait for such an extreme event to happen to see some impact or disruption of the status quo. After all, it is simply wishful thinking to consider it possible that the majority of the world's population will suddenly convert all their fiat into Bitcoin. That's not going to happen. But the disruption is there. Remittances in some countries, for example, are done in Bitcoin. Some people have also quit saving in fiat and shifted to Bitcoin instead. I mean, there are small yet significant disruptions happening right now. There's no need to see shocking events just to see the impact of Bitcoin.

You need a big event to happen if you want every person in the world to convert to Bitcoin instantly. We would probably need fiat to collapse and that probably will not happen for a long time. Every country wants to keep fiat alive because they profit huge margins from keeping it alive and Bitcoin is a threat to their profits because they can not control it like they do with fiat. They will try to rescue it if it is at threat of being replaced by Bitcoin and I think it might be bans on Bitcoin if we did come close to threatening them because they want people to think that fiat is the only option for them.

If Bitcoin grows steady and people do not jump ship instantly the government might not ban it or put too many restrictions on it. Then when we have enough passionate users who are willing to fight to keep Bitcoin alive we might be in a good position to challenge the fiat currencies but we are a long way off until we can challenge it.

They won't. It will never happen.

Do you see all people on Earth change from paper books to e-books?
Do you see all people on this planet change from paper/ polymer fiat currencies to bank transfer digitally?
Do you see all people change from fiat currency to physical gold bars?

If they don't change all like that, they won't change all because of Bitcoin.

Bitcoin is only one element in society and it has yet become a part of global financial system. It won't fix anything.

Purchasing power of the US. dollar over time (https://www.visualcapitalist.com/purchasing-power-of-the-u-s-dollar-over-time/). Fortunately with the decreasing purchasing power of fiat currencies including the US. dollar, people will look for alternatives and Bitcoin would be one of most attractive alternatives.

I think people that believe bitcoin will replace fiat any moment soon are kind of delusional. I've said it a lot of times, maybe sometime in the future as you said, some 100 years later, bitcoin may replace fiat but even that looks highly unlikely. looking at the history of man and money, there have been different forms of money over time before paper money so I believe the world might get to a stage where people no longer need fiat but from my estimation that can happen in at least 200 years later and it's not still guaranteed that it would be bitcoin that would replace fiat.

we won't know in the future whether people will do something like that or not in the future but now it seems that no one is buying crypto or bitcoin in the majority in the world, because of course there are those who view bitcoin positively and there are also those who are negative. but I hope that one day the majority of people will invest in bitcoin, and the price will be very high.

I never thought that far, but maybe something big has happened to disrupt the financial system that is related to trust, for example, global financial institutions that are blatantly showing chaos. The problem is, does everyone have the same solution (in this case bitcoin) at the same time and bitcoin holders are even willing to trade 1 sat for $1m USD (referring to the outright distrust due to sudden inflation)?

As a reminder, a large portion of the human population is still dependent on financial institutions and has never even heard of crypto.

Actually many countries already tried their best to replace paper books to e books because it's more effective, convenient and flexible rather than distributing using paper books.

I think almost all countries do have digital wallet which used to store digital fiat, they also have another way like debit card or credit card, they didn't need to use paper cash.

Gold can't replace fiat because gold itself isn't a currency, while Bitcoin is actually a currency but people tend to use it as a commodities.

Based on my answer, it do show people are prefer with digital form, but they just can't accept the volatility of Bitcoin.

The problem is that inflation isn't widely regarded as a negative thing. Too much inflation is an issue, but a stable inflation rate is considered healthy and stimulating for the economy by many experts, with the argument being that the fact that money is losing some of its value over time motivates people to spend it rather than save up, and spending is crucial for a healthy economy. With Bitcoin, which keeps growing in value over time, there truly seems to be an issue for many to spend it, as people want to hodl and enjoy better profits. At the same time, though, people aren't inclined to spend Bitcoin when it's losing value either, as they believe it's temporary. With fiat, when a currency loses some of its value, it rarely then grows in value later, so the spending motive works. At the same time, it can be argued that people spend money when they need to buy something or feel like they want to buy it, not because of inflation.
But I don't see people turning to cryptos instead of fiat in the near future because people don't want volatile money and largely views cryptos as assets, not as a payment method.

It also makes sense in your opinion, if one day the majority of people invest in bitcoin, because they see that fiat money is always inflation.

but some people will of course also think about the risks of investing in bitcoin,
because investing in bitcoin is not always profitable.
so i think bitcoin and fiat money will always be friends and indeed bitcoin and fiat money are
it fits perfectly hand in hand together.

I believe we plebs exceedingly zero in on "Bitcoin vs. the U.S. Dollar" narrative. I was guilty of that during the start of my journey and actually thought that the biggest value-proposition that Bitcoin has is scarcity/limited supply. It might be, but my opinion/thoughts about the narrative changed, or perhaps I simply don't care about "Bitcoin vs. the U.S. Dollar" considerably anymore.

From a "disruption" viewpoint, I believe we should look more into Bitcoin as a tool for weakening political strongholds. As an illustration, what if Russia pegged Russian Oil with Bitcoin to go around sanctions and price-caps implemented by the United States?

This already has been happening, but on a gradual process, when something new is coming on board, you don't expect the rush because it will stylishly come onboard as being a surprise for many, bitcoin has been adopted by two countries as a legal tender is a clear indication that more countries are coming in sooner, the whole world us seeking after the use of bitcoin on the internet and many people were already using it for their asset and currency because of its safety and freedom, bitcoin is the most common brand name on the internet today everyone is searching about is also an indication that it's relevance is of great value.

I think we witnessed something similar in 2017 when millions of dollars were poured into projects every day and the market grew like a big bubble and eventually it burst,which subsequently caused a protracted fall in the main assets.So I don’t think this is a good idea.

It's difficult to forecast the impossible. Don't believe that everyone will exchange their fiat for cryptocurrency. Just consider how cash would be exchanged for cryptocurrency in the absence of a buyer on the opposite side. Consequently, fiat remains in the end. Whether it is in paper or digital forms makes no difference. Nobody is able to stop Fiat. Due to centralized government, it is genuinely important for daily necessities. People of views is they can earn from crypto investment, they aren't wondering to replace fiat with crypto at all.

Crypto currency adoption is fast growing and this already has had some countries government having a rethink about the ban on it, some have begin to lessen the ban and are looking towards regulating it. So yes mass adoption by the people will definitely have an impact on the government decision. But fiat cannot be thrown aside because of crypto. Crypto volatility is one aspect that will make fiat relevant no matter what. Crypto should be seen as an alternative to cryptocurrency

I think, it will be difficult for the majority of people to use all their fiat money to purchase crypto or Bitcoin, because anything can happen that will make you to go back to your fiat money to solve the problems immediately but if all your money are in the crypto and Bitcoin investment, it will hard you to get the money when the price of Bitcoin and crypto is low in the market. No matter how strong the inflation may be in the community, people will still stand on their ground never to invest all their money in decentralized currency because decentralized currency is not control by the government.

Even if the fiat system dies, the government will never choose something they cannot control to replace fiat, that will never happen. As long as governments control the world, bitcoin will never be able to replace fiat unless they figure out how to control and manage bitcoin their way. Bitcoin was created not to replace the fiat money system, but only as an alternative to fiat money.
I guess, it is because of these thoughts of some people that have made the government hostile to bitcoin, don't try to propagate that bitcoin will replace fiat.

Never gonna happen. I think crypto being as good as it is, won't win over fiat as a traditional way to make payments. To change from fiat to crypto you need to rebuild the entire economic system and it would be very hard to control because you can't print new bitcoins (which is good for inflation) but at the same time you can't print bitcoin even to boost the economy or resupply lost bitcoins.

So I think there are really no point to make bitcoin a new fiat. I think they should just coexist.

If all people start buying the bitcoins, then definitely it will increase the demand for the coin. And as we know, Bitcoins are limited in number, so yes, for that reason, in order to meet demand, the price will go up. Bitcoins follow the principle of supply and demand, and for that reason, the price will go insanely up. The traditional system will definitely get a large impact due to this; the transactions that are currently being done through fiat currency will now have to be replaced with other alternatives, for now let’s say bitcoins, and hence bitcoins won’t be treated as an asset anymore.

The government remains the ultimate authority, and fiat represents their power, so even if people do something harmful to the fiat system, they will stop it immediately. Bitcoin or any altcoins will never have a chance to replace fiat money, if one day, fiat collapses, a new monetary system will be created. It will also be a product created by the government, they will never accept something they do not create and have no control over. I believe we are all aware of it, we are just delusional, stubborn, and do not want to believe the truth.

Inflation is a natural occurrence in the economy that can be limited to some extent by a limited supply money system such as cryptocurrencies such as Bitcoin. If the majority of the population suddenly sold all of their fiat currency and invested it in cryptocurrencies, the traditional finance system, which is based on fiat currency, could be jeopardized. The shift could cause financial markets to panic and cause traditional assets to crash, or it could promote widespread adoption of cryptocurrencies and the development of new financial systems. The outcome would be difficult to predict because it would be dependent on a variety of economic and social factors.

Let's just put it on a scenario that they will "actually" sell it. Do you think most parts or countries on this world can support that sudden change? I think nope, it's because not everyone has the ability to adapt into modern technologies and use it for their daily means. There are also several factors to consider before jumping into crypto industry:

1. Internet Accessibility
2. Gadgets
3. Financial Literacy (including education regarding crypto)

There're more factors that can be added on this list but these alone proves that it is impossible to change the way how the world works. For us who grew up adopting crypto it is easier for us to adjust in this modern and technical problems, but how about those who are inclined to traditional methods? How about those 60 years or 70 years old people from low income economy? As far as I am concern there're lots of people with the age 50+ and above from 3rd world countries who relies on fiat and are still working to sustain themselves on day to day basis.

So thinking about this scenario actually happening is clearly impossible.

I don't think such a thing is possible, although it is possible. But the government won't let it because they know it could disrupt the economy. After all, the amount of money in circulation will decrease. Inflation can happen anytime, but people will still hold fiat and try to earn more.

And if they are not allowed to use crypto freely, they will still use fiat as usual. But maybe some people will invest their fiat into other things like investing in crypto or gold or something. So obviously, it could disrupt the traditional financial system.

This will not happen unless a real problem such as a world war occurs, and then what people will buy will not be stocks, real estate and Bitcoin, but rather they will return to the basic need, which is food and purchase.

50% of the world's population can be convinced of the importance of investing in Bitcoin, and 20% may do so at best, so the future is still promising before us.
Bitcoin use globally has not reached 1% yet.

It is going to be difficult for many people to even convince them to invest in cryptocurrency and bitcoin because a lot of people just don't trust cryptocurrency or do not even know what cryptocurrency is. Bitcoin is a great investment to be with and you could easily earn a profit on investing in it but at the same time, there was also a risk in investing because of the volatile market price of the cryptocurrency. You could earn easily but at the same time, you could lose your investment easily. It would be great if all people use bitcoin instead of fiat since it has a different supply and demand but I guess there will be problems if that happened because of the small supply of bitcoin market price of bitcoin is going to increase to the point where people cannot even afford to buy or invest on it.

All that could not happen suddenly. To adopt bitcoin like that certainly requires a lot of planning and preparation. Including the readiness of all goods and services providers related to the use of Bitcoin.
Maybe it could be done in one city first to eliminate Fiat and change it to Bitcoin's ownership. After the control within a good city, it might be developed for a country, which eliminates Fiat.
But this is difficult. Because of every relationship with an outside institution, of course, they need Fiat for transactions.
If what is done is for a certain scope, I think the impact on the traditional financial system will also affect the particular scope. For now, it is very difficult to see those who will release Fiat for the use of Bitcoin when everything does not happen thoroughly.

Inflation is part of the fiat system that is not going to disappear, people are losing money or money is getting destroyed by accident. That's why there is a natural form inflation that is always going to occur. Also most savers only set money aside because they are getting interest and hope they get more for their money in the future. Without any inflation the interest rates would be much lower and there would be less incentive to save money. I don't think a country could survive if all people would switch to crypto currencies at the same time. The government would like intervene and stop the capital outflow.

But I want to ask you one question, who would be willing to sell all their fiat to buy bitcoins? I'm a bitcoin investor but still I wouldn't do that stupid thing. As long as fiat remains the world's primary currency, there's no reason for us to exchange all of our money for bitcoin. Too risky for us and our family.

It's true that there will always be some form of inflation, but a limited supply money system can certainly help to reduce one form of inflation. As for the impact of a sudden shift from fiat to crypto, it could potentially have a significant impact on the traditional finance system. It could lead to a loss of faith in fiat currencies, and traditional financial institutions could suffer if they do not adapt to the changing landscape. However, it's also important to note that such a shift is unlikely to happen overnight and would likely take time to play out.

You are right and talking about being realistic then people sometimes do already go into that certain point on which they are really trying out to claim up things which arent really that realistic at all.

Its true that fiat would really be staying as long there would be government would really be the top of the chain.We might really be able to see some other options but we know that fiat would still remain.

At least we do really have some other options for us to deal with but dont make yourself believe into something which cant really be that possible.
Yes, we could really be having the freedom but its better to be having always that realistic approach.

Obviously Bitcoin price will surge if majority of the population exhange their fiat into cryptocurrency like Bitcoin.  Automatically the traditional finance system will be disrupted because all of a sudden the financial institution's influence become weak.  Majority of merchants will accept Bitcoin to cater people who uses Bitcoin and will also make the government to implement regulatory law and even ban cryptocurrency to shift the financial authority back to financial institution.

I believe it will be economic chaos since there will be a war in the financial sector between Bitcoin and centralized financial authority.  Mostly many people will lose money in this event once' the government banned Bitcoin.

If they are selling the fiat, it means someone is buying. If everyone sold all their fiat like you have imagined, it will lead to scarcity and lowered circulation of fiat that will make it more valuable. People are bound to experience some form of difficulties because no matter how we see it, bitcoins cannot be used in the purchase of everything. There are some things that are really cheap and it will be senseless paying with cryptocurrency, so it will really disrupt the way things are, and also because you have described this move in your imagination to be very sudden. Sudden changes always have effects.

and to look at this situation, this won't be realistic in the first place. as you said, if someone is selling, there is someone buying as well. scarcity means the currency can possibly be valuable. not thinking about this theoretical situation because it won't happen. a large percentage of population will still use the traditional fiat system no matter what. even crypto users have their accounts in traditional banking system. i don't think we will see this in our lifetime as even most governments will stick to their currency for so many reasons.

To whom they want to sold their fiat for crypto? coz this sounds like eradicating the use of fiat in the society, which will not going to happen. I mean who want's to have that fiat when everyone wants to have crypto based on your scenario? Well, we can only have a clear answer to questions which is at least realistic in our current timeline. We can't even have a decent discussions about the things that could happen in the next 100 years, because all we can say it's just another speculations as nobody really knows what would happen in that far ahead years.

I never imagined that would happen because until now, many people still don't believe in bitcoin and still hold their fiat in banks or hold it as cash.
But if that happens, it will disrupt the traditional financial system because there will be a scarcity of circulating fiat on the market, even though they can use digital money from each country.
This can happen if people in many countries can no longer trust their government because they can not solve many cases properly so they decide to use crypto.
But whether that will happen or not, people still use fiat for all sorts of things.

I think that's not the point though, if you lose money, or even if you just burn money in flames, then you can produce as much and you can keep it steady. The point of inflation in a healthy manner is growing, after all if amazon keeps on making profit every year, does that mean they will have all the money in the world with none of us ever having even 1 dollars? Of course not, which means we need to print some more to make everyone grow, and that steady growth is good.

However that's good up until like 2% and at most 3%, which is what your wage increase could be, if not? Then you are going to actually hurt if the inflation is anything close to 10% or more.

It's not possible that bitcoin will replace fiat currency because there are individuals who prefer fait currency and according to them bitcoin is a volatile money and we cannot assured about its accuracy of return.

People cannot sell overall fiat currency and if they do it they I think it will not be a wise decision because we know that putting overall money money to bitcoin means that we are putting ourselves in danger.

Bitcoin is not a legal service in most of countries so therefore people cannot do this. Cryptocurrency is beneficial but its benefit is not 100 percent sure.

If the majority of the population were to suddenly sell all their fiat money and invest it in cryptocurrencies, it could cause significant changes in the financial system.
First, such a drastic shift from fiat money to cryptocurrency could lead to a significant reduction in the money supply in the economy. This could lead to deflation and other economic problems associated with a lack of money in circulation.
Secondly, a sharp transition from fiat money to cryptocurrency could cause significant changes in the banking system and financial institutions. Many banks and financial institutions could lose a significant portion of their deposits and other fiat-related assets. This could lead to the bankruptcy of some banks and other financial institutions.
In general, a sharp shift from fiat money to cryptocurrencies could cause significant changes in the financial system, but such a scenario is highly unlikely as fiat money remains the main medium of exchange in the economy and has the support of governments and central banks.

The very first vision was to do the same however with the time bitcoin was suppressed by traditional banking system with the help of government itself. The bitcoin was visioned by Satoshi so that we can have freedom to be our own bank. Now that’s what got changed over the time by authorities. Imagine if every single person started using bitcoin then we will form powerful decentralised alliance. That can literally disrupt the government since they will have no taxes and there won’t be funds to run. Think of it as some old age era when there were limited peeps, doing their trade for whatever they had (not fiat) and still they did it properly. Could happen today as well but not if government interferes the whole process.

There is no sudden change in whole population mindset untill there's no news flashing at the bigger levels so it won't happen with bitcoin.The slow impact is much better I would say in btc case as we have already seen over the past years like calling it scam we have now seen big companies accepting payments in it so this is how it will work in future also.

Unless there is massive inflation going on around the world, people will probably change their mindset, save their assets, and even move their money to a safe place other than keeping it in the bank. Perhaps, the bank will not be their choice because the bank may also experience disruption. And if that happens, probably they'll move to bitcoin as their holding asset.

And in recent developments, people have started investing in bitcoin, but others still use fiat without touching bitcoin at all. But let's hope there won't be inflation worldwide lest it causes more problems.

If our previous experiences are any indication people do not begin to move away from fiat until the value of their money is on free fall, and at the time they are looking for any asset which can be used to protect whatever wealth they have left.

And at that point we could expect for the price of bitcoin and gold to skyrocket, and while that would be good for us this is a scenario I would not like to happen, as the amount of suffering people all over the world will have to go through is immense.

The government would not allow this to happen and that is why they're constantly spreading misinformation so the public won't be informed on how beneficiary holding Bitcoin has been and will be. With people selling their fiats to cryptocurency or Bitcoin specifically, the government losses control and they won't have the power over the people any more.
The reason why the people listen to the government is because they're in control of our money which everyone needs. This is the reason behind the government creating their own cryptocurrency but it isn't decentralized like Bitcoin instead centralized like the fiats which are CBDC. With this CBDC replacing fiats, they can still control and monitor us.
But lets assume this was to be possible that everyone uses Bitcoin instead of the fiats, the traditional system would had been abolished and not just disrupted by so doing.

If there is greater inflation, I'm not sure they will look to bitcoin, but they will think of gold first. Bitcoin is still a volatile asset and still affected by inflation, people will never use it to replace fiat, and that certainly won't happen. As for inflation, I think we need it, and it happens on purpose, not everyone wants it, and there are still a lot of group interests when inflation occurs.

It will not happen suddenly. Of course deflationary bitcoin is a part of another type of economy and opposes the old system so entire economy will be forced to change. But it will go slowly. And some ideas of a future economy can be seen even today: discussing an idea of the universal basic income is held for years and there were some experiments with that; automation, robotization and AI makes human work less needed and we can focus on a creative types of work which will make us better. So if a brighter variant of future will come true its economy will be totally not like of nowadays. But changes will not drop from the clouds, we'll have time to prepare.

The government also definitely won't let that happen in their country and will try to maintain economic stability so inflation won't destroy it. It is hoped that people have started to open their eyes to try to invest in many things so that they can have assets when there is inflation so that assets can help their economy so that they are not too affected by inflation.

But indeed, when inflation occurs in many countries, many people will suffer and most of them will not be able to survive. The economy can falter because people will prioritize basic needs over other things.

People are turning to gold because they know gold better than bitcoin and gold is already being used as a hedge of their assets so if there is inflation, they can sell the gold. And at the very least, the value of their wealth wouldn't decrease by much.

But if they also know bitcoin, they will invest in gold and bitcoin. They might also try to collect more bitcoins, especially if the bitcoin price hasn't increased much. And there will be interest from a group that will benefit from inflation because they are the ones who can survive the most when it happens.

What do you mean they will trade all their fiat for Bitcoin? Because at this time Fiat is still important in goods and not all merchants are using bitcoin as payment options online.

     Although it is good and in our favor if the majority of people around the world will invest in bitcoin because when this happens there is also a great chance that the value of bitcoin will rise, but it is not to the point that there is no fiat left to buy our needs on a daily basis of course.

You are certainly right, our Fiat is still very important.
We cannot buy all products and all things using Bitcoin everywhere. If I say that I have to buy some useful goods. Then if I ask the shopkeeper to do transactions through Bitcoin, he will definitely disagree and there are also shopkeepers who don't believe in Bitcoin, then what to do?

Of course then you will need your own country's fiat. We cannot use Bitcoin for many such tasks. There the importance of own country's fiat is immense.

@OP is just citing a situation when all people sold their fiat for Bitcoin and asking us what would be the effect of such action.  He is not saying that fiat is worthless whatsoever.


It is only beneficial to a person who has already Bitcoin on their stash but to those who do not have, they have little to no benefits from the Bitcoin price surge because of the buying craze.  Fiat will always stay because it is being maintend by the authority, it (fiat money)  will only become obsolete if the authorithy or government give up on it

Good point, actually many people changing their point of view in regards to fiat money would be good news! :)

Now you can always think about the worst case scenario and consider what would be happening if they don't trust in cryptocurrencies, but what about the other way around? Why trust fiat money?

I believe that as much as the trouble is going to rise in the short term, and we are seeing that can happen when even mediocre banks crash, more and more people will think about the advantages of an independent bank like Bitcoin. It is the ultimate control you can have over your own assets.

Bitcoin is impossible to change the fiat system right now becaue all economic aspect is still use fiat. But if you invest bitcoin from now, I am really sure if the system  suddenly change, you have already and and not surprised anymore. Crypto also have benefit, you can trade it and and rotate it for capittal.

If that happens then that will certainly make the value of bitcoin soar because the supply of bitcoin is limited so when everyone has put funds into bitcoin it makes the demand for bitcoin in the market higher while the supply is lower, but I think events like you imagine this will never happen happened, the fact is that so far fiat currency is still needed by the community, moreover, basically not everyone understands technology and while some people who live in rural areas do not have internet access to transact with crypto, so they will always use fiat currency when they want to shop and for other purposes.

Do you think fiat currency is limited in its creation?
I mean that there are several reasons for the variables that underlie inflation, not only in terms of how much currency is printed and its limited availability, but also because the circulation is unbalanced, causing price spikes in the market to go up uncontrollably. This scenario often leads to inflation and although there are other patterns that affect it too.

So what if everyone starts dumping fiat and trying to put their money into bitcoin?
1. There will be chaos in the crypto market because everyone will be buying bitcoins with a limited amount of availability, thus making bitcoin go up without following the four year scheme and any pattern anymore.
2. Maybe you and I will never be able to buy bitcoin again, if everyone will throw away fiat and try to put it back into bitcoin.

This scenario is unlikely to occur in the near future and even for the next few years, because it is unlikely that people will throw away fiat with a lot of consideration and also throwing away all fiat does not make an appropriate solution to curb inflation

Nothing is certain in the more distant future, but in the near future, it is unlikely to happen anytime soon. In the past few days, the bank's bankruptcy has also caused people to worry, panic, and lose confidence in the bank, but I see that people's reaction to the monetary system has not been too extreme. But if the government does not improve the banking system and there are more serious consequences, the ability of people to switch to other assets is also very likely.

Put it into crypto? What crypto? Bitcoin or some altcoin? If they put everything into Bitcoin a few things will happen.
The BTC price will hit 1 million dollars or more.
The BTC blockchain will get clogged with millions of transactions, so the transaction fees and the confirmation time will skyrocket(despite having off-chain solutions like the Lightning Network).
Everyone will get disappointed and the majority of the people will start selling their BTC, which means that the Bitcoin price will drop severely to low levels. A small amount of traders/investors will become insanely rich due to buying and selling at the right time and the majority of the people would probably lose money. And no, I don't think that the traditional financial system will get disrupted. 

There is a funny twist to what you just described though. If the price of Bitcoin goes through the roof the incentive to develop layer two technologies would also increase a lot. Now I doubt that that would happen in the first place because some of the people putting money into Bitcoin would not do it because they expect payments to become any easier for them because of that. Most of them would use it as a store of value and not unnecessarily increase the number of transactions, but just store it and keep it.

Now if some do it in hopes of being able to transact faster and cheaper, you are of course right in that that is not going to happen. But that's easy to learn actually if they do some research in advance. The block time alone doesn't allow for fast transactions as of yet. They would probably go with another crypto for that matter, at least with a little portion of what they want to put it into crypto.

am not sure but the total supply of Bitcoin cannot accumulate such big money so surely this is impossible to happen mate though there are other factor to consider like altcoins(in which for me not a practical way)

 and also if this happen? then the whole world(the government will intercept and have same stand to banned or blocked the usage of bitcoin so the power will remain as theirs)

so let us not look into this scenario instead let adoption happens little by little.

as long as the market is standing with people like us who believes in its future? I believe that either future near or distance will serve the same and that is good for users.

Yes, interesting to discuss. Bitcoin king of all coins/tokens operates outside of the traditional financial system and is not subject to the same rules and controls as traditional currencies.

What the impact would be If the majority of the population suddenly sold all of their fiat currency and put it into cryptocurrencies like Bitcoin it would likely have a significant impact on the traditional financial system, where the demand for traditional currencies would decrease, which could lead to a decrease in their value.

Vice versa, a sudden influx of demand for cryptocurrencies can cause their value to increase rapidly, which can create a bubble that can explode at any moment.

No, the traditional financial system that adopts cash payments will continue as usual even if the majority of the population puts all their money into crypto. Traditional payment systems are more commonly used by all levels of society, from the old to the young.
Payments using fiat can be made anywhere, even in the most remote places that are not covered by the internet network. Imagine if at your place there are no internet facilities for a week, how can you make payments using crypto.?

In my opinion, that traditional financial systems could potentially see an impact in terms of their revenue stream. Banks, for example, derive most of their revenue from fees and interest charged on loans and other financial products. Well, If people switch to cryptocurrencies, it could lead to a decrease in demand for traditional financial products, which could impact the income streams of banks and other financial institutions.

While a sudden switch to a cryptocurrency like Bitcoin can have a significant impact on the traditional financial system, it is important to note that such a shift is unlikely to happen overnight. It is likely that cryptocurrency adoption and acceptance will continue to grow gradually over time, rather than all at once.

If this has not happened yet, then most likely this will not happen, because the cryptocurrency market is very volatile, the mood changes very often, today the news is positive, and in a week it is negative, this is perceived by different people in different ways. Theoretically, this would push the cryptocurrency market up, at least for a while, until some investors start taking profits and go into fiat money again. The market does not work in only one direction, there is a whole system.

We all know that in some countries like Sweden many stores use cashless policy. They accept bank cards only. In some countries like Russia you can't sell anything if your cash register is not connected to Taxation Service via Internet (there are some exceptions, but in general it is so). So we are already on the doorstep of a world where lack of Internet makes everything stop. Maybe it is a very risky strategy, but it is implementing right now. So maybe there will be problems with accepting bitcoin in some spots at the moment, but with further development these problems can be solved.

Different countries are making efforts to go cashless, especially developed country. My country tried it this period of our election and it was not easy for the citizens. People suffered and even till now. The major challenge is that majority of petty traders doesn't own account and doesn't accept anything else apart from cash at hand.
This is just bank account, let alone crypto. It means that people are going to lose their money because of errors and inability to secure them.
Meanwhile, fiat must always exist

You are looking at the current situation and expect it will last forever, but if we look at the situation with bank cards they conquered countries like Sweden just for several decades. Maybe your country is not ready to change all payments to bitcoin (and it is not necessary, I just talk about its possibility) at the moment, but it will develop and will be ready in probably a several decades. Why not? Technologies become cheaper and even not top countries can get their part of pie.

I'm not against cash, cash is much better than digital forms of fiat. But technologies are developing and not everything is based just on what we like or not. Bitcoin is a good alternative to digital fiat money.

Your question really exceeded expectations OP. why would someone or even the majority of the public exchange all their fiat to buy crypto?.
If the majority of the world's population suddenly became like that, it would shake up and disrupt the many systems that have been implemented today, not only for the financial system but for all the existing systems and regulations.
Except that the whole world is only led by one person or group who agrees to start eliminating and replacing fiat, and that means rearranging all systems and regulations in the world.
But that seems like an impossible thing to happen and will never happen in my opinion lol.

Well, let me just say that like what these other people have pointed out, such a world wouldn't exist because in every corner of this planet there will always be some stubborn yosemite sam that's not gonna adopt bitcoin. But for the sake of discussion let's think about your proposition and suppose that every single person on the planet bought bitcoins with all their money, belongings, assets, and whatnots. First and foremost, the dollar's value will collapse because just like the episode from Rick and Morty where Rick fucked with the Galactic Fed's economy, you literally just zeroed the value of the currency in one go. Furthermore, bitcoin will become so scarce that its value will shoot upwards, but it wouldn't matter because there's no dollar to relate its value to anyway, coz it's already dead. What's going to happen is that with 8 billion people all using the same congested network that couldn't even handle the transaction weight of a couple hundred million/to a billion, the bitcoin network will collapse.

Basically by funneling all your dollars to a deflationary asset like bitcoin, you're going to fuck the two currencies up.

This scenario you are picturing can only take place when bitcoin is used for daily transactions and by this I mean for purchases of any household materials easily without any constraint but even with this fiat cannot be completely sold out to obtain bitcoin.

Fiat currency is the entire operation of money and some individuals are not educated on what crypto is all about, some traders tends to make it a little bit complex because they're always on the wrong side of the market. The majority would messed up the entire system, because the existence of dump projects will improved highly in numbers and it will gives way to steadily rapid liquidation of accounts and scams will enchance actively in the space. Cryptocurrency is not something we should put all our hopes in because it's risky and capable of draining our trading accounts if we don't fully understand how the crypto market operates.

yes, even though it looks like a fantasy, but we will not have 100 percent truth from a prediction, the answer can be yes or no. Even though gold basically has tough stability, the downside is whether or not gold is easy to carry because it has a shape and weight.
I might think otherwise from you because if you think about it then there is potential for crypto or BTC to become a legal currency and everyone can use crypto even though it has price volatility but its status is an alternative means of payment meaning it is not the main one.
Talking is disrupted or not, I think it will be disrupted because it certainly takes quite a long time in matching this financial system.

First for you question, I believe that there will always be some form of inflation in the economy.

But, I do agree that the degree of inflation depends on a variety of factors such as market demand, supply, and other economic indicators.

For second part of you question, if a majority of the population were to suddenly sell all their fiat and invest it into cryptocurrency.

I do believe that there could be an impact on the traditional finance system. This could be a result of increased volatility in the market, as well as a shift in the balance of power from traditional banking systems to decentralized digital currencies.

Remember that, it's worth noting that the impact may not be entirely negative, as cryptocurrency has the potential to provide greater financial access and inclusion to a wider range of people.

I think what you are saying is vague and impossible, because most people are just poor and they will not prioritize buying bitcoin in the current hardship they are facing.

       Not everyone is for bitcoin and I believe most people are not for it. Because not everywhere in the world or place has wifi or a strong data connection. Although it would be nice if most people would buy bitcoin, that's why the value of bitcoin won't rise immediately so that you can earn a lot right away, of course while you wait for its value to rise, each day will pass and it won't. you buy the things you need from food, clothes, personal hygiene you need you have fiat currency.

Bitcoin is volatile at the moment but it will become more stable in the future. Future hasn't come yet, but old fiat system hasn't crashed yet as well. So it is not the thing we can expect right now so we are trying to predict if it is possible basing on trends we can see now. And I'd say that in the future I can see from now fiat system will stay for long, but decentralized currency alternative will slowly change a finance world and there will be a totally different financial system in the future. But I'm not sure how will it look like as I expect that many of nowadays tools will be gone and some new will be invented.

The idea that we will "all" go into crypto is just a fantasy not because it is due to anything about bitcoin, but because nobody is 100% anything. We are not 100% in fiat neither, you should see the way people move their money around and how it all works at a bigger level to understand that the barter situation still going on, but at a larger scale, they basically share their power with each other, one has a right to do X the other has Y and they do that.

All in all we are talking about something that will make a bit of a problem to have all of them in bitcoin. On the other hand we can grow and we are growing everyday so that part will continue.

If everyone turned their fiat currency in to bitcoin then the world would be turned upside down.  This is something that's going to be a slow and gradual process. Remember the blockchain still has its limitations.  We've seen the repercussions of the blockchain being overloaded before and that would almost assuredly happen again. 

As the saying goes , Rome wasn't built in a day. Things take time and this will take time as well. 

At this point, we shall see!

Since 1862 when dollar notes have been into existence, the FED knows inflations better than anyone and they know the solutions than anyone but the government is known to be crooked, if they limit the number of dollars in circulation, they wouldn't be able to do their dirty democracy system of government and agenda, they wouldn't be able to print more money and he sovereignty upon his people will be hard. However, if today people decide to convert all their fiats into bitcoin, I'm quite not sure which direction bitcoin will follow after what I witness with USDC FUD last week. USDT and USDC have an impact on bitcoin, I wonder how these relationships will end for bitcoin and the entire market.