Bitcoin and Fiat - this is how I see the future

[stellgod]

it may be difficult for the government to track transactions on crypto and control our money, because this is a digital era that is difficult to trace.

But I am sorry brother this really can’t happen. Bitcoin is decentralized and you need to know that decentralized things can’t be traced back. No one can trace back the records and the amounts shared or transferred except that little information about bitcoins and its holders. And this is one of the dilemma for which governments aren’t taking any solid step to legalize bitcoin.

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[squog]

Well, i hate to burst your bubble but we can actually trace the transactions and thereby it would be harder to use it for money laundering. Some wallet apps that are capable of receiving and giving out fiat from crypto currencies require identification and would hamper your withdrawals if your identity is not confirmed.

[aleksei_chizhov]

So in a governments aim to control our money it will leave a big opening for bitcoin and other decentralised crypto to exist along with fiat and will allow people to "trade" anonymously with each other over a completely independent infrastructure.

Bitcoin is examples of open cryptocurrencies. Everyone can see how much money you have on your wallets, how much it you send and who gets this money.

[1Referee]

Bitcoin is examples of open cryptocurrencies. Everyone can see how much money you have on your wallets, how much it you send and who gets this money.

On-chain there basically isn't much (close to zero) privacy, but off-chain (LN's second layer) will allow you to enjoy more privacy than ever before. In other words, from zero privacy you go to a decent level of privacy, which is a pretty significant jump in my opinion. The more nodes and adequately funded channels, the more anonymity there will be. At some point people will compete with each other by providing liquidity to LN, and that will make sure there is less hub centralization as some naysayers constantly keep hammering on.

[Vohoanghiep]

True, the nature of Bitcoin is anonymous and never controlled by the government. So you will not need to pay taxes as well as money laundering and many illegal activities are easy. That's also why chings blocked Bitcoin and said it was illegal

[Whitly]

To be honest, I think in future will be something like a symbiosis fiat and currency based on the blockchain, right after government will find the way how to regulate it, to create something own. And the government won't leave fiat, since this also has pluses, it's still more anonymously than any of cryptocurrency what we have already.

[Rath_]

On-chain there basically isn't much (close to zero) privacy, but off-chain (LN's second layer) will allow you to enjoy more privacy than ever before.

I am quite interested how much it is going to affect the Bitcoin mixing services and altcoins which aim is to provide 100% anonymity. Monero seems to be the strongest one right now and I can't imagine people ditching it for the second layer solutions. It will take years for that to happen. There are still many people who believe in the full anonymity of Bitcoin on-chain transactions which is a common misunderstanding.

[Idrisu]

This is true but it seemed our governments has refused to think things out in this way.  Trading bitcoin with fiat will allow governments to be able to tax bitcoin and cryptocurrencies.  I will advise governments to look at the potential of generating income tax from cryptocurrencies market by allowing free flow of cash among the both.

[teeevnglst]

You are right it does have some advantages and we know this way could go sideways since bad guys could use this way as a money laundering scheme though if the government see this maybe they do something that is not favorable on our side

[Shenzou]

At a time where I see currencies moving away from cash to digital I think the reason is partly so that governments can control the flow of their currency more particularly for laundering. They can possibly gain more taxation from a cashless currency because cash cannot be fully traced. If i sell my car for cash to another individual the government dont get any revenue from that because it is not traceable.

So in a governments aim to control our money it will leave a big opening for bitcoin and other decentralised crypto to exist along with fiat and will allow people to "trade" anonymously with each other over a completely independent infrastructure.

Yeah , but the real question is why governments will allow such thing to happen, all the government's control is in controlling the money because that is what our lives is based on, if they control the money they control the people, if digital currencies like bitcoin takes over governments will no longer have any control on the people, not only that but what makes you think that money laundering will stop when using bitcoin, it is the opposite, it will enhance it, i am not against crypotucrrency, and i don't like fiat as well, but why both can't co exist together.

[Rahar02]

So in a governments aim to control our money it will leave a big opening for bitcoin and another decentralised crypto to exist along with fiat and will allow people to "trade" anonymously with each other over a completely independent infrastructure.

The government can create a digital form of their national currency, such as might happens in some countries:
- Ecuador, issuing of a national cryptocurrency, Dinero Electrónico, in 2015 as part of the country’s monetary laws.
- Tunisia, making instant payments worth fractions of a Dinar, at almost no fees at all
- Sweden, not to be outdone, the Swedish central bank, Riksbank, is currently working on a digital version of the Krona. The eKrona, as it has been called, is slated for release in 2018.[1]
Sweden is the most cashless society in the world, it has been steadily moving towards a completely cashless society for years. Cash is now used in less than one in five of all cash transactions in stores.[2]

If the government aims to control money flows in the state, doesn't necessarily allow people to trade anonymously, they will completely ban other cryptocurrencies such as happened in China.

https://bitcoinhub.co.za/list-countries-national-cryptocurrencies/
http://www.bbc.com/capital/story/20180427-does-a-cashless-society-benefit-everyone

[gambitcoin53]

yes, definitely, fiat and crypto will and continue to co- exist, well, as for the time being. there are only few merchants that is accepting crypto payments, and i am sure that it will not be completely zero fiat, maybe in the far future, as long as the internet access is still limited in many countries, as long as the price of crypto is highly volatile unlike fiats, this fiat and crypto tandem will never cease to circulate. 

[serverus]

Now, I think people are going to be able to spend cryptocurrencies, like Bitcoin, in mainstream situations. Cryptocurrencies will eventually replace credit cards and will be something you can access on your phone. I actually think cryptocurrency will replace fiat currencies entirely.

[bozo333]

Now, I think people are going to be able to spend cryptocurrencies, like Bitcoin, in mainstream situations. Cryptocurrencies will eventually replace credit cards and will be something you can access on your phone. I actually think cryptocurrency will replace fiat currencies entirely.

fiat currencies are centralized currency so government should monitor and controlling the fiat currency. But Bitcoin is a decentralized cryptocurrency and it is not control by government so cryptocurrency is not completely replaced in fiat currency may be it is legalised in future and fiat currencies will never stopped in entire world.

[Supreemo]

So in a governments aim to control our money it will leave a big opening for bitcoin and another decentralised crypto to exist along with fiat and will allow people to "trade" anonymously with each other over a completely independent infrastructure.

The government can create a digital form of their national currency, such as might happens in some countries:
- Ecuador, issuing of a national cryptocurrency, Dinero Electrónico, in 2015 as part of the country’s monetary laws.
- Tunisia, making instant payments worth fractions of a Dinar, at almost no fees at all
- Sweden, not to be outdone, the Swedish central bank, Riksbank, is currently working on a digital version of the Krona. The eKrona, as it has been called, is slated for release in 2018.[1]
Sweden is the most cashless society in the world, it has been steadily moving towards a completely cashless society for years. Cash is now used in less than one in five of all cash transactions in stores.[2]

If the government aims to control money flows in the state, doesn't necessarily allow people to trade anonymously, they will completely ban other cryptocurrencies such as happened in China.

https://bitcoinhub.co.za/list-countries-national-cryptocurrencies/
http://www.bbc.com/capital/story/20180427-does-a-cashless-society-benefit-everyone

,yes you are actually right. they can ban instantly those who don't follow accordingly to their rules and laws. as for an example chuna bans cryptocurrency as for the moment, there are tendencies that it will be unbanned or it will be banned permanently, but still nobody knows what will happen , depends also on the developments of crypto and for sure only time knows what will happen.

[Rossy Akbar]

I think the fiat still really important even the bitcoin has been famous nowadays, we can forget the fiat and mostly people around the world using fita for their individuals transaction and any other business.

[jmlona]

The government will know how much money you have and will know what you are spending it on mostly. Maybe not specifically, but when you report it then they have access to it. The government can track digital money easier because all the records are there for them to have. It would make sense if they would want to have a digital currency for that reason, but who really knows?

[Johnyz]

So in a governments aim to control our money it will leave a big opening for bitcoin and other decentralised crypto to exist along with fiat and will allow people to "trade" anonymously with each other over a completely independent infrastructure.

Bitcoin is examples of open cryptocurrencies. Everyone can see how much money you have on your wallets, how much it you send and who gets this money.

Technically we cannot know who is holding that wallet which mean we are really anonymous but in terms of security we are not because of KYC. Fiat money is very important because not all people knows how to use cryptocurrency but I think our future with cryptocurrency is pretty amazing.

[Blondy12]

Good thinking.
Using credit cards there will be traces of every payment you have made even with debit cards.
I dont believe about the privacy that was said by the banks. Yes another individual cannot look at your account but when it is the government they will give it.

That is the problem with all the governments. Theyhave the power to take something from us withh banks.
So better go with cash or crypto currency.
Very good.

Absolutely true mate.. banks and governments tandem, just keep on fooling us around from the money that we’ve work our ass off. Its not like we got it from just setting or lying at home. And maybe that is the reason why most of the company decided to directly sends our salary to the bank through atm, so that they can trace everybody’s income. What a shame! And that’s one of the reason why the rich becomes richer and the poor becomes poorer. Sad facts.

[gowobonyok]

more details, because every bitcoin or other crypto transaction is recorded in a blockchain ledger, so nothing can be hidden. can be controlled, but the transaction is also done anonymously. I also see a bright future with crypto as a decentralized payment tool.