Does Bitcoin Has What It Takes To Replace Fiat?

[Elwar]

Bitcoin has replaced the dollar for me.

So, is it possible? Yes.

Is it likely? No.

Does it matter that idiots will continue to use fiat? Some people still have landline phones. Doesn't bother me.

[drugs]

Bitcoin has replaced the dollar for me.

How? Do you not use dollars at all anymore? I don't think its currently easy to exist solely on bitcoins right now.

Does it matter that idiots will continue to use fiat? Some people still have landline phones.

I don't think it makes people idiots. I would love to use exclusively bitcoin but it's just not possible for me to do so currently, and paper money is still useful for certain transactions. I still have landline as well as a mobile and skype etc mainly because it's cheaper to use than a mobile and costs very little to have with my internet package so I still use that when at home.

[avatar_kiyoshi]

Last year Bitcoin was labeled as the worst investment of 2014, however, bitcoin believers can topple fiat currencies as the widely used mode of payment all over the world. The technology behind it and bitcoin's scarcity can both pose a threat and bitcoin's selling factor. But the question is, can bitcoin really substitute dollar or other currency sometime soon?

I think not, this coin is limited, and the age is still baby. I don't think will substitute/replaced to fiat, maybe for alternative is yes.

[Snorek]

But the question is, can bitcoin really substitute dollar or other currency sometime soon?

Not until the confirmation issue is resolved.  I wouldn't want to buy a chocolate bar and have to wait 10-30 minutes until my payment was confirmed.  I want to pay and go instantly.

Until this problem is resolved. And it can't be solved easily without harming bitcoin security in the process. Confirmation time is security parameter, lowering it makes the system fundamentally less secure for a lot of reasons, including giving an advantage to large, centralised pools and in result they can monopolize bitcoin.

[bakada]

Bitcoin has replaced the dollar for me.

How? Do you not use dollars at all anymore? I don't think its currently easy to exist solely on bitcoins right now.

Does it matter that idiots will continue to use fiat? Some people still have landline phones.

I don't think it makes people idiots. I would love to use exclusively bitcoin but it's just not possible for me to do so currently, and paper money is still useful for certain transactions. I still have landline as well as a mobile and skype etc mainly because it's cheaper to use than a mobile and costs very little to have with my internet package so I still use that when at home.

Actually, I think its the other way around.  You'd have to be an idiot to be all in on BTC, unless you don't have much wealth to protect.    It is slow, with no protections, no financial legislation protecting you from uninsured asshats running away with your money,  and it is volatile.

[Giggs]

Bitcoin certainly has the potential to replace it at some point but it's not there yet nor will it be ready for that anytime soon. The biggest barrier is getting merchants and the general public interested in it which is going to be a hard and slow process.

[Snail2]

Slower than the 2 days it takes credit card payments to go from pre-authorized to cleared? Nope, a TX can be verified to comprise valid UXTOs and not be at risk of double-spending in muuuuuuch less time than 2 days.

Wait a minute pls! I'm just trying to imagine and visualize the bloke in the off-licence shop around 11pm as he checking the TX for valid UXTOs .

[Elwar]

Bitcoin has replaced the dollar for me.

How? Do you not use dollars at all anymore? I don't think its currently easy to exist solely on bitcoins right now.

Full disclosure, today I used some dollars to buy a hot dog and chips. It is the first time in weeks that I have used dollars. I won a hundred bucks on our office Super Bowl pool so I sometimes spend that money on small things like that. But that money will likely last me at least a year.

I get my dollar based paycheck converted to bitcoins using bitwage.co via direct deposit.

I get euros via localbitcoin to pay for things like rent and food (though I just found http://www.takeaway.com and will give it a try this week). Though I am slowly working on getting my landlord to accept bitcoins. Brawker going away has been the biggest hit for me.

[Mudd]

Slower than the 2 days it takes credit card payments to go from pre-authorized to cleared? Nope, a TX can be verified to comprise valid UXTOs and not be at risk of double-spending in muuuuuuch less time than 2 days.

Wait a minute pls! I'm just trying to imagine and visualize the bloke in the off-licence shop around 11pm as he checking the TX for valid UXTOs .

Does he have to check whether the credit card payment is valid or wait to see if the card is going to be chargebacked or has been stolen x amount of days later? Payment processors are used with both cash cards and bitcoin and they will protect against this sort of stuff but regardless once coins are sent they're as good as spent the vast majority of the time.

[Snail2]

Does he have to check whether the credit card payment is valid or wait to see if the card is going to be chargebacked or has been stolen x amount of days later? Payment processors are used with both cash cards and bitcoin and they will protect against this sort of stuff but regardless once coins are sent they're as good as spent the vast majority of the time.

With a credit card payment you can be quite sure about that you will get your money. Your shop insurance can cover losses from credit card fraud, so there are no need to check it, if the bank accepted the transaction.

[TheButterZone]

Slower than the 2 days it takes credit card payments to go from pre-authorized to cleared? Nope, a TX can be verified to comprise valid UXTOs and not be at risk of double-spending in muuuuuuch less time than 2 days.

Wait a minute pls! I'm just trying to imagine and visualize the bloke in the off-licence shop around 11pm as he checking the TX for valid UXTOs .

That's what software is for.

Does he have to check whether the credit card payment is valid or wait to see if the card is going to be chargebacked or has been stolen x amount of days later? Payment processors are used with both cash cards and bitcoin and they will protect against this sort of stuff but regardless once coins are sent they're as good as spent the vast majority of the time.

With a credit card payment you can be quite sure about that you will get your money. Your shop insurance can cover losses from credit card fraud, so there are no need to check it, if the bank accepted the transaction.

So you want to pay higher insurance premiums to accept fiat payments which can be 1) cancelled before the preauth goes to cleared 2 days later 2) reversed months afterward. Great!

[ChuckBuck]

Does Bitcoin Has What It Takes to Replace Fiat?

At the moment, no.  We're still early days and proof of concept stage.  Laying the tracks or building blocks so to speak.

Can it?  Maybe.  Maybe not.  Let's not try to topple a currency that's been in rule for centuries.  It takes time for next generation money to succeed the old order.

Let's just focus on trying to be a viable alternative first, before we talk about replacing something so ingrained into the world's mind....

[bornil267645]

Bitcoin will never be the replacement of the fiat, it will always be the alternative of the fiat currency. That's the beauty of it. As long as the fiat exists, we can complement Bitcoin.

[countryfree]

No, and I don't want BTC to ever replace fiat. I'll be fully satisfied if BTC would replace credit cards, nothing more.

[fartbags]

Last year Bitcoin was labeled as the worst investment of 2014, however, bitcoin believers can topple fiat currencies as the widely used mode of payment all over the world. The technology behind it and bitcoin's scarcity can both pose a threat and bitcoin's selling factor. But the question is, can bitcoin really substitute dollar or other currency sometime soon?

Yes it can replace fiat but it wont, its more likely we will see gov replaced by a new type of donation based gov and therefore fiat will just become worthless.  This seems like way in the future, gov is very strong atm.

Governments, Businesses, Charities, Co-ops and Non profits... they will all be replaced with this technology.

100% transparency for these things.

100% anonymity for users/citizens.

[Billy Hlapinnio]

The thing with Bitcoin not being able to replace the real money is that it does not have the protection of the state. Legally you have no guarantees of your bitcoin investments like there is for example when you are making bank deposits. That is why there were these bitcoin "robberies" we hear about now and then. 

[ranochigo]

The thing with Bitcoin not being able to replace the real money is that it does not have the protection of the state. Legally you have no guarantees of your bitcoin investments like there is for example when you are making bank deposits. That is why there were these bitcoin "robberies" we hear about now and then. 

Those wouldn't exist if you kept your device virus free. I doubt you would able to get your fiat back even if you lost them though.

The main problem is the volatility and acceptance rates. Most brick and motar shops would only accept fiats rather than Bitcoin since they may think it is a hassle to set it up. The acceptance rates is still currently quite low due to the lack of understanding among normal people. Double spend can already be prevented by taking steps so there's not much reason why it can't accept fiat other than volatility.

[Agestorzrxx]

I don't think it will relace Fiat, at least in our rest life. Government need Fiat as financial revenue, I can't see any government will give up this privilege。

[Amph]

No, and I don't want BTC to ever replace fiat. I'll be fully satisfied if BTC would replace credit cards, nothing more.

then how fiat will work without it? paypal fee are tremendous high, and wire transfer is too slow, you can't use it at the supermarket

if bitcoin replace credit cards it will replace fiat too, those two things are tied together

[odolvlobo]

Yes, once bitcoin payments become reversible.

That will never happen, but companies like Coinbase and Bitpay may implement chargebacks in their payment systems on top of Bitcoin.

Not until the confirmation issue is resolved.  I wouldn't want to buy a chocolate bar and have to wait 10-30 minutes until my payment was confirmed.  I want to pay and go instantly.

I'd like to see you try to buy a chocolate bar with a credit card.