The Death of Money

[n2004al]

“Tangible money, old-fashioned money … is a phantom from the past, an anachronism. In its place is an entirely new form of money based not on metal or paper, but on technology, mathematics, and science. This new ‘megabyte’ money is creating a new and different world wherever it proceeds. Money now is an image.”

What do you think of that? What is your position?
Do you believe in bitcoin?
Do you think the economic future is related to blockchain and bitcoin?

I strongly believe in the value of bitcoin and the value of the cryptos as an invention. I hope that they have a great future because with those every economy will have for sure new ways to explore, to have growth and to have stability.

As about my believe in bitcoin I have explained in the thread below my meaning of its role in the world of currencies:

https://bitcointalk.org/index.php?topic=1191118.0

Every comment on this thread is welcomed.

[Kprawn]

It makes me think of the evolution of man depicted by these fools.. http://www.telegraphcrossfit.com/wp-content/uploads/2013/05/evolution-man-computer.gif

We have the same type of evolution in money -->  (i) Commodity Money (ii) Metallic Money (iii) Paper Money (iv) Credit Money (v) Digital money

As with anything else in life... We need to evolve and change over time.... Bitcoin is the next step in the evolution of money. 

[Sir Lagsalot]

I don't think that traditional money will die just like that. I think that people all over the world would be lost if that happens in the next 20 years. In a 100 years, this will probably happen.

Until then, blockchain tokens like Bitcoin will need to coexist with the traditional money. Is Bitcoin and money the future you asked? Most definitely in my opinion! Otherwise I wouldn't be here!

Hyperinflation happens very fast so you never know. There are many example where you can see that.

Sure, but fiat's source is tyranny, specifically the power to impose your currency on others and make them play your game. Fiat is a fruit of human nature's darker side; I believe it'll survive as long as we do. The best we can hope for is to force it underground or relegate it to warlords.

[coinpr0n]

Cashless society has both benefits and drawbacks. Something like that can be used to control or oppress people. I like the idea of Bitcoin as the cash of cashless society.

[OROBTC]

...

"Money" is a slippery concept...

I am in the camp that "money" should perform the three below roles:

-- Unit of Account ("how much" different things cost)

-- Means of Exchange (transferring value between sellers and buyers)

-- Store of Value (worth about as much tomorrow as today)

*   *   *

Currency (US$, etc.) are almost always used by everyone, even in hyperinflations.  This is a historical fact.  My reading is that there have been ZERO recent hyperinflations where silver or gold were used over currency.  I NEVER saw silver coins (for example) being used in Peru's hyperinflation in the late 1980s.

Bitcoin, at least for now, basically FAILS as a "Means of Exchange", too clumsy and not enough acceptance.

BTC is more volatile, at least for now, so somewhat fails as a Unit of Account and Store of Value.

As BTC matures, its role may gain more traction as a MofE as well as, perhaps, a SofV.

It's hard to see BTC being better than gold as a Store of Value.  Could happen, but I suspect that is way in the future, if ever.

[Fabrizio89]

Money will eventually become obsolete in the full sense of it

[VCLChief]

THIS SAYS IT ALL!


http://georgewashington2.blogspot.com/2011/08/average-life-expectancy-for-fiat.html

Monetary scholar Edwin Vieira ... pointed out that every 30 to 40 years the reigning monetary system fails and has to be retooled. The last time around for the U.S. was in 1971, when Nixon cancelled the convertibility of dollars into gold. Remarkably, the world bought into the unbacked dollar as its reserve currency, but only because that was the path of least resistance. But here we are 40 years later, and it is clear to anyone paying attention that the monetary system is irretrievably broken and will fail.

[Soros Shorts]

Money will eventually become obsolete in the full sense of it

Gee, I hope we don't go back to bartering.

[chennan]

cash are bound to disappear eventually, not because of bitcoin, but because of their own issues with governments, which are known already

bitcoin is not even in match vs cash but vs electronic payment in general, i only really doubt that bitcoin would be the king, i could see it working side by side with other forms of payment

Couldn't agree more... More and more people are coming to realize the problems we have with a centralized bank issuing money out of then air to lend to banks.  It just becomes a matter of time before people will realize that cryptos are the way to go, because it's a finite currency that can be transferred anywhere.  The main obstacles to over come would be tx times, fungibility, and the fact that people will really have to over come the fear of not possessing cold hard cash.

I think there will be other cryptos out there in the future that can provide those quick tx times, and then another one that can provide the secure fungible crypto.  Bitcoin will be mainly valuable in the far future, I think, as the "gold standard" these cryptos depend on for a "pricing" or to see how much purchasing power it has... because I believe in the far future, bitcoin will become the very stable and highly priced crypto which ideally represents gold itself.

[SerenaL]

People will always seek some sort of currency to trade with others. Prisoners use cigarettes, canned fish. People in zimbabwe used rand or usd when their currency collapsed.

[chennan]

People will always seek some sort of currency to trade with others. Prisoners use cigarettes, canned fish. People in zimbabwe used rand or usd when their currency collapsed.

You seemed to have forgotten to mention toilet wine... prisoners love toilet wine... and soap on a rope. High value commodities there.

[Hazir]

“Tangible money, old-fashioned money … is a phantom from the past, an anachronism. In its place is an entirely new form of money based not on metal or paper, but on technology, mathematics, and science. This new ‘megabyte’ money is creating a new and different world wherever it proceeds. Money now is an image.”
-snip-

There is huge problem with money 'created' by science, mathematics and existing only on technological plane of cyberspace.
They need POWER to be viable. That is making them simply not usable in certain situations. I doubt if we'll ever switch to 'virtual' currency without
solving this 'source of energy' problem.

[dothebeats]

Before bitcoins, money already existed in images and on-screen displays. Bank accounts that have billions of dollars on them exhibits only in digital space but not in the physical world we are in. Also, no limit in supply means inflation; bitcoin handles it with a fixed and diminishing supply. There is a lot of potential in an unregulated money compared to a money produced by and issued by the government. It's just that most people are still tied to using fiat that they couldn't part with it.

[chennan]

“Tangible money, old-fashioned money … is a phantom from the past, an anachronism. In its place is an entirely new form of money based not on metal or paper, but on technology, mathematics, and science. This new ‘megabyte’ money is creating a new and different world wherever it proceeds. Money now is an image.”
-snip-

There is huge problem with money 'created' by science, mathematics and existing only on technological plane of cyberspace.
They need POWER to be viable. That is making them simply not usable in certain situations. I doubt if we'll ever switch to 'virtual' currency without
solving this 'source of energy' problem.

Wouldn't you say that solar power would be the next source of power that would solve this problem?  I could see the next big mining farm, incorporating a way to use solar panels for mining rigs. It would be expensive for the initial investment... but it will be one hell of a good one in the long run of things IMO.

[dothebeats]

“Tangible money, old-fashioned money … is a phantom from the past, an anachronism. In its place is an entirely new form of money based not on metal or paper, but on technology, mathematics, and science. This new ‘megabyte’ money is creating a new and different world wherever it proceeds. Money now is an image.”
-snip-

There is huge problem with money 'created' by science, mathematics and existing only on technological plane of cyberspace.
They need POWER to be viable. That is making them simply not usable in certain situations. I doubt if we'll ever switch to 'virtual' currency without
solving this 'source of energy' problem.

You've mentioned science, and science would probably come along with a solution to that. Solar power is a thing now, and further developments with it could mean that we will have less reliance in fossil fuels and non-renewable enwrgy sources. Also, with mathematics we can come up with a rather secure form of money compared to its fiat counterpart. The only problem I see is how the masses would transit to virtual currency.

[FanEagle]

For who says oh its stable I don't believe it anymore,expect a surprise when it halveshalves,you will be surprised

[Slark]

You've mentioned science, and science would probably come along with a solution to that. Solar power is a thing now, and further developments with it could mean that we will have less reliance in fossil fuels and non-renewable enwrgy sources. Also, with mathematics we can come up with a rather secure form of money compared to its fiat counterpart. The only problem I see is how the masses would transit to virtual currency.

Small comparison: you can pay for everything everywhere with paper FIAT money. It will be accepted without problems. You don't need to have working smartphone, you don't need internet or any other network. It is just you your trading partner and money in this equation, it is simple.
With bitcoin or any other virtual currency thing are getting complicated to the point that is not longer easy and fast to pay for something.

[dothebeats]

You've mentioned science, and science would probably come along with a solution to that. Solar power is a thing now, and further developments with it could mean that we will have less reliance in fossil fuels and non-renewable enwrgy sources. Also, with mathematics we can come up with a rather secure form of money compared to its fiat counterpart. The only problem I see is how the masses would transit to virtual currency.

Small comparison: you can pay for everything everywhere with paper FIAT money. It will be accepted without problems. You don't need to have working smartphone, you don't need internet or any other network. It is just you your trading partner and money in this equation, it is simple.
With bitcoin or any other virtual currency thing are getting complicated to the point that is not longer easy and fast to pay for something.

Small comparison? Would you want to be controlled to use your money or would you want freedom in spending or holding what you have? This is exactly the problem: people already give up on things that could probably change the future before trying it. Airplanes were once deemed as a lucrative idea but look ay where we are right now?

[Slark]

You've mentioned science, and science would probably come along with a solution to that. Solar power is a thing now, and further developments with it could mean that we will have less reliance in fossil fuels and non-renewable enwrgy sources. Also, with mathematics we can come up with a rather secure form of money compared to its fiat counterpart. The only problem I see is how the masses would transit to virtual currency.

Small comparison: you can pay for everything everywhere with paper FIAT money. It will be accepted without problems. You don't need to have working smartphone, you don't need internet or any other network. It is just you your trading partner and money in this equation, it is simple.
With bitcoin or any other virtual currency thing are getting complicated to the point that is not longer easy and fast to pay for something.

Small comparison? Would you want to be controlled to use your money or would you want freedom in spending or holding what you have? This is exactly the problem: people already give up on things that could probably change the future before trying it. Airplanes were once deemed as a lucrative idea but look ay where we are right now?

All I was trying to do is show bitcoin's or rather 'virtual currency' limits. I don't like FIAT money and I hate current financial and banking system.
But society is not ready for 'cryptocurrency' revolution. I wish we were ready, I wish there was better technology to push bitcoin towards even niche adoption.
 

[dothebeats]

That is what I'm pointing out: it's clear that we aren't ready to use any cryptocurrency on a daily basis. It would take time for us to cope up, but we would get there soon.