Bitcoin can not replace fiat

[Parazyd]

Yes, got you intrigued, didn't it?

Bitcoin is a very good thing to have as an asset. Just like gold. Even better if I may say. It's secure, and unlike fiat money it actually exists and work is put into it to produce it. This makes it great to store value.
However, it cannot and will not replace current fiat money that the entire world it using. It just cannot.
Take paying a cup of coffee for example. To pay your coffee with bitcoins, one must get bitcoins first, either by mining or buying bitcoins with other kinds of money (*cough*fiat*cough). It ends up being a quite complicated process, don't you think?
Until we reach the point where paying for a cup of coffee is as easy with Bitcoin as it is with cash, we will never get mass adoption. And as far as I see it, there is no way of simplifying the acquiring of bitcoins.

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[USB-S]

However if one already owns bitcoins, this problem that you have becomes non-existent.

[Ethalir]

Of course can't fiat money replace bitcoin, because we still use fiat money at the end look how much banks they are in the world they won't just change to go to bitcoin. Bitcoin is just good when you trading or other stuff. Also we need fiat for bitcoin price.

[langedwig]

Bitcoin cannot replace fiat its true but It is a source to earn and convert into fiat.
But as days will pass more and more companies will accept bitcoin and it will be close to be used just as fiat

[Parazyd]

However if one already owns bitcoins, this problem that you have becomes non-existent.

Yes, but what I am talking about is mass adoption. I don't see my grandmother owning BTC.

[USB-S]

However if one already owns bitcoins, this problem that you have becomes non-existent.

Yes, but what I am talking about is mass adoption. I don't see my grandmother owning BTC.

Bitcoin wasn't designed to be used by 70 year old ghouls. However the newer generation will get this.

[Parazyd]

Of course can't fiat money replace bitcoin, because we still use fiat money at the end look how much banks they are in the world they won't just change to go to bitcoin. Bitcoin is just good when you trading or other stuff. Also we need fiat for bitcoin price.

The thing I love about banks... "We want the blockchain, not Bitcoin".
So unintelligent, they want to cut down their maintenance costs and take the blockchain for their own stuff. It will probably end up in firing a lot of people from accounting too.

[DannyHamilton]

- snip -
one must get bitcoins first, either by mining or buying bitcoins with other kinds of money (*cough*fiat*cough).
- snip -

Or perhaps by getting a job that pays in bitcoin?  From an employer that accepts bitcoin as payment for their products or services? And that pays their suppliers in bitcoin? Suppliers that use that bitcoin to purchase raw materials and to pay their employees?

Then if you visit a coffee shop that accepts both bitcoin and fiat, suddenly the only way to pay with fiat is to get fiat first.  The only way to get fiat is then to buy it with other kinds of money (*cough*bitcoin*cough*).  Spending fiat then becomes quite complicated process, don't you think?

You are assuming that just because very few businesses accept bitcoin today and very few employers are willing to pay their employees with bitcoin today, that the future will be the same.  However, in the long run businesses will generally make choices that improve their profitability. If they can reduce costs (transaction fees and chargebacks), can increase speed of transactions, and can gain publicity by accepting bitcoin, then they will eventually start accepting it.  As more customers demand the option to pay with bitcoin, or are at least willing to do so when presented with the option, more businesses will feel pressure to add it as a payment option. They will then have to choose between exchanging the bitcoin for fiat (and paying an exchange fee) or offering it to those employers and suppliers that are willing to accept it.

These kinds of economic changes don't happen overnight.  It will probably take decades.  Bitcoin is barely 7 years old, and already it is being accepted by major nationwide merchants and there are already employers willing to pay their employees with it.  Bitcoin may fail, but there is a very real possibility that 25 or 30 years from now many people will be using it in their daily life.

[Parazyd]

- snip -
one must get bitcoins first, either by mining or buying bitcoins with other kinds of money (*cough*fiat*cough).
- snip -

Or perhaps by getting a job that pays in bitcoin?  From an employer that accepts bitcoin as payment for their products or services? And that pays their suppliers in bitcoin? Suppliers that use that bitcoin to purchase raw materials and to pay their employees?

Then if you visit a coffee shop that accepts both bitcoin and fiat, suddenly the only way to pay with fiat is to get fiat first.  The only way to get fiat is then to buy it with other kinds of money (*cough*bitcoin*cough*).  Spending fiat then becomes quite complicated process, don't you think?

You are assuming that just because very few businesses accept bitcoin today and very few employers are willing to pay their employees with bitcoin today, that the future will be the same.  However, in the long run businesses will generally make choices that improve their profitability. If they can reduce costs (transaction fees and chargebacks), can increase speed of transactions, and can gain publicity by accepting bitcoin, then they will eventually start accepting it.  As more customers demand the option to pay with bitcoin, or are at least willing to do so when presented with the option, more businesses will feel pressure to add it as a payment option. They will then have to choose between exchanging the bitcoin for fiat (and paying an exchange fee) or offering it to those employers and suppliers that are willing to accept it.

We (the users of Bitcoin) are a vast minority. Don't underestimate that fact.
In the next 10 years, or maybe even more, it's impossible that people will get paid in Bitcoin. I'm talking about the public sector, supermarkets, or any kind of big(?) business (which is where most of people work).

[DannyHamilton]

We (the users of Bitcoin) are a vast minority. Don't underestimate that fact.
In the next 10 years, or maybe even more, it's impossible that people will get paid in Bitcoin. I'm talking about the public sector, supermarkets, or any kind of big(?) business (which is where most of people work).

I'd be careful about predicting what is "impossible".  The future tends to be fickle and unpredictable.

How about 20 years? 30? 50? How certain can you possibly be about what changes people will be willing to accept decades from now?  Unless you've got some proven clairvoyant abilites, I'll take your predictions of the future as nothing more than personal opinion based on wild guesses.

[Patatas]

Though I partially agree with you but in some cases, at some point,it will replace fiat .Consider the examples below :

Buying Digital Goods online : A company selling vpn's/proxies/social media marketing, are more likely to use bitcoins rather then fiat cash .Why ?Because its easy! Who would want to pay additional taxes and bank service for online payment setup when you can just have everything automated for few digits ?

Porn Websites :Though it belongs to Digital Goods category ,it has its special relevance .Privacy .Why would some has to leak their bank details online to buy the service ? Bitcoins are transparent and anonymous to reveal anyone's identity .

E-Commerce :The way e-commerce is taking over hardly you can find anything which is not available online.As the number of people using bitcoins rise,the big giants will soon start accepting them.It has already begun on the markets coming out of Europe.

[Parazyd]

We (the users of Bitcoin) are a vast minority. Don't underestimate that fact.
In the next 10 years, or maybe even more, it's impossible that people will get paid in Bitcoin. I'm talking about the public sector, supermarkets, or any kind of big(?) business (which is where most of people work).

I'd be careful about predicting what is "impossible".  The future tends to be fickle and unpredictable.

How about 20 years? 30? 50? How certain can you possibly be about what changes people will be willing to accept decades from now?  Unless you've got some proven clairvoyant abilites, I'll take your predictions of the future as nothing more than personal opinion based on wild guesses.

Well, for starters banks will never switch to Bitcoin. And creating Bitcoin banks would definitely be against the Bitcoin way of decentralization.

[Amph]

that problem of the coffee, is related to the adoption, which is missing, i mean if bitcoin was directly given to people via their salary each month, like it is with fiat(there is actually bitwage for this...)that problem would not exist...

the confirmation time can easily be fixed, with sidechain if when big adoption enter in play, you get random strangers that complain about paying a coffee and waiting 2 hours, because in that particular time the block average was not 10 minutes...

bitcoin is still in beta...

[iv4n]

If we speaking about present time u are totally right. But future is coming, and who had cell phone, computer 30 years ago? Look what kind of phones we had 10 years ago, and look what we have now? Digital era is comming and bitcoin will find better place in that then fiat. When will that come, who knows, we can just make some speculations. What will happen with btc when people start to recive salaries in btc? When I think about it its possible that alt coins will replace fiat one day.

[DannyHamilton]

Well, for starters banks will never switch to Bitcoin. And creating Bitcoin banks would definitely be against the Bitcoin way of decentralization.

Bitcoin banks already exist.  What do you think Coinbase and Circle are?  They may not be legally allowed to use the word "bank" to describe themselves, but they offer a service where individuals set up accounts, and then give their money (bitcoin) to the service.  The service then secures the money (bitcoins) and processes transactions on behalf of the customers.  They act as a clearing house for all transactions between customers without actually moving any money (bitcoins).  They also provide a Visa debit card that can be used at merchants everywhere and that debits your bitcoin account. Sounds like a bank to me.  Coinbase even offers an exchange service, just like many banks.  As they work their way through the regulatory requirements, I'm certain that they'll offer additional financial services in the future, just like a bank.

Legally sanctioned "banks" have to deal with a lot of regulations that get in the way of them managing bitcoins today, but I don't see any reason that those regulations won't change to allow banks to manage bitcoins in the future.

[Parazyd]

Well, for starters banks will never switch to Bitcoin. And creating Bitcoin banks would definitely be against the Bitcoin way of decentralization.

Bitcoin banks already exist.  What do you think Coinbase and Circle are?  They may not be legally allowed to use the word "bank" to describe themselves, but they offer a service where individuals set up accounts, and then give their money (bitcoin) to the service.  The service then secures the money (bitcoins) and processes transactions on behalf of the customers.  They act as a clearing house for all transactions between customers without actually moving any money (bitcoins).  They also provide a Visa debit card that can be used at merchants everywhere and that debits your bitcoin account. Sounds like a bank to me.  Coinbase even offers an exchange service, just like many banks.  As they work their way through the regulatory requirements, I'm certain that they'll offer additional financial services in the future, just like a bank.

Legally sanctioned "banks" have to deal with a lot of regulations that get in the way of them managing bitcoins today, but I don't see any reason that those regulations won't change to allow banks to manage bitcoins in the future.

You do have a point there, you know?

[~Bitcoin~]

Bitcoin is asset just like gold and silver and fiat is the one that evaluate the value of every asset. So bitcoin can never replace fiat but it can dominate the online payment processors with low fee.

[botany]

Bitcoin cannot replace fiat, as long as taxes have to be paid in fiat.
That will probably be the last hurdle to fall.
Otherwise, we can have a bitcoin economy slowly develop. 

[countryfree]

Of course, BTC cannot replace fiat. I certainly don't want BTC to replace fiat. I love fiat. I'll never use anything but cash to get a drink. I love having a thick stack of banknotes in my pocket. The goal should be to replace credit cards, traveler checks, and that's huge.

[Meuh6879]

Re: Bitcoin can not replace fiat

It can ... and It will.






FIAT BANKSTER BITCOIN





Cost of a McDonald's in Europa Zone = 13 USD ...  
Nooooooooooooo, it's not the bank ... for the inflation ?!?