Decentralizing Physical Assets

[100action]

IMO the one big thing that stops Bitcoin or any decentralized cyptocurrency from being the reserve currency is the human desire for physical assets:

Essential physical assets:
-Food
-Shelter (House + land)
-Infrastructure (sewer, water, gas, electricity, internet connections).

Luxury physical assets:
-Luxury cars (lambos)
-Toys and accessories
-Waifus
-etc

Physical assets are centralized by nature, for example that dream house you crave is fixed on a large plot of land, its easily locatable and any centralized authority will have the power to influence whether it can be acquired for a bitcoins or not (if you disagree, it may well be seized).  Obviously smaller and more transportable goods (i.e. drugs) are harder to control but it can still be controlled rather significantly compared to decentralized assets.

The above leads me to believe that as long as humans require and desire physical assets, fiat is here to stay.  Cryptocurrencies may play a role alongside FIAT but will never truly replace it or even become the dominant currency.  Perhaps in a post-singularity world where everything is digitalized but obviously there would be no need for a blockchain as every conscience can be programmed to live in its own dream world 'infinite tsukuyomi' type scenario.

So my question to you is how physical assets, which are centralized by nature, be overcome?

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[SUDARMONO]

yes it is so true that bitcoin can not replace fiat money completely, and I think the currency name is just a tool of any kind of exchange rate in its form, here bitcoin can only work through digital, and real assets are really necessary for the necessities of life as it is you mentioned above, we can concentrate physical assets for our real-world needs.

[digaran]

You can't overcome what's already owned, they have armies, they have the best technologies, you will have no chance against them, you shouldn't think about it. physical assets have their own manufacturers, companies own them and governments own the companies. with Bitcoin you just have a private key, any body holding it is the owner, decentralized physical assets need to move, when you try to move them if you don't have some license or paper, they could take them away from you. they would take your private key if they could and knew how.

[davis196]

The only thing that stops bitcoin to be accepted as a reserve currency is the central bankers.
I`m 100% sure that bitcoin will be a better reserve currency than the USD,euro or any other national currency.Anyway,your theory is somehow wrong.I wouldn`t compare bitcoin with a real estate property or common goods.I don`t think that all the physical assets are centralized.You own them after you buy them.

[amacar2]

Have you heard of decentralized gold tokens (there are many) which are backed by real gold in some vault (as they claims), Gold can't be moved digitally but this tokens can be moved in decentralized manner (without any paper works) however when you like to cashout these tokens into real gold or cash you have to depend on centralized entity. So whole process of decentralizing physical assets gets invalid at this point.

[Zorbak]

The only thing that stops bitcoin to be accepted as a reserve currency is the central bankers.
I`m 100% sure that bitcoin will be a better reserve currency than the USD,euro or any other national currency.Anyway,your theory is somehow wrong.I wouldn`t compare bitcoin with a real estate property or common goods.I don`t think that all the physical assets are centralized.You own them after you buy them.

Yes after you buy you own them, but for example you buy gold, can you move it easy? No, they have laws and if you want to take out from your country they put controls and limit you, same happen with fiat and well they can always create a new law or modify the existants.

If you buy a house, because you are owner you have to pay a tax, they decide how much, and next year they change the amount you have to pay as they wish... if you wanna sell any physical assets you have to follow they rules and laws even they are completley ridiculous some of them.

Bitcoin it is not easy to control as the other assets we can own, of course they can  add license and control since you want to exchange it for traditional assets.

[Xavofat]

A small and admittedly ineffective way of decentralising physical assets is to introduce tokens that represent physical assets.  For example, Burger King in Russia has tried introducing a "WhopperCoin" which can be exchanged for a Whopper at their restaurants.  Some physical assets could be handled and bought this way, at least in the private sector.

In most cases though, you're right.  I never saw it as particularly likely for BTC or another cryptocurrency to become a reserve currency anyway - it seems more likely that banks would continue to use digital fiat, or at best a permissioned blockchain-based system.

Physical assets are centralized by nature, for example that dream house you crave is fixed on a large plot of land, its easily locatable and any centralized authority will have the power to influence whether it can be acquired for a bitcoins or not

As of yet, governments have been relatively reasonable about this.  A lot of Bitcoiners are edgy libertarian types as well, and probably want some other kind of system for an ideal BTC.