As Bitcoin takes the world by storm, we start to question fiat money's position as the de facto currency of the future. Is it possible to create an ideal balance between the two systems, and to move forward in a direction that honors both the old and the new?
Cryptocurrency and fiat money, money declared as legal tender by government, each have unique advantages and disadvantages in today's global economy. Cryptocurrency offers greater transparency and portability, and it allows you greater authority over your money. However, it is subject to market fluctuations, cannot be recovered if lost, and many people do not yet fully understand what it is or how it works, and as a result do not trust it.
Fiat money can be be spent much more easily than crypto (at least for now). It can be produced by central banks as they see fit, giving them greater control and the ability to prevent or reduce damage from financial crises, although the economic events of 2008 call that into question. The disadvantage of fiat money is it can be printed on demand, making existing money less valuable and creating inflation. It is controlled by financial institutions rather than consumers, and as a result, lacks transparency.
The fact is both forms of currency play a vital role in the current global economy. The secret is to create a balance between the two systems, so that consumers can reap the benefits of each.
Read more here...I do agree that we really need both the fiat money and cryptocurrency and in my opinion both platform can go hand in hand and that there is no to declare war between the two. We have to remember that not all people can adopt what can be technologically new for many reasons and there is no need to cram their throats so they would be joining us here in the world of cryptocurrency. The future belongs to cryptocurrency but it does not mean that we should totally discard our traditional currencies as there is actually no need to do it. Honestly, I am using both cryptocurrency as well as fiat money as it would a lot of time for that small grocery store somewhere to accept Bitcoin.