Are we about to redefine money again with Bitcoin?

[Arne9131]

I tried to articulate why cryptocurrencies would be the future and redefine money again. The article talks about how and why money took the shape we have today, and how and why cryptocurrencies can also take that shape.

Please provide feedback if you have 10minutes. Clap and share if you find it interesting.

https://medium.com/@anvay.rane/are-we-about-to-redefine-money-again-4bed5344ebaa

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[renes]

Good article, with bitcoin the money will be redefined because it is not an simple technology but it is revolution, it changes everything related to money.

[Arne9131]

Good article, with bitcoin the money will be redefined because it is not an simple technology but it is revolution, it changes everything related to money.

True. As we can see shape and form of money changed as we evolved solve old problems money had. Bitcoin does solve a crucial problems fiat money face, if the community accepting bitcoin grows, bitcoin has the potential to be used as a global currency.

[goodman4hire]

I absolutely agree that Bitcoin is redefining money.  The fiat system and King dollar is about to die a violent death and the powers that be needed something to replace it and push us towards one world government.  And then Bitcoin appeared.  Those who get on early get to live well after the transition.  Those with fiat under the mattress get to be slaves.

[Arne9131]

We, humans, have evolved and so did the tool used as money. We have experienced problems with fiat currencies in third world countries, due to hyperinflation. As we moved away from cowrie shells to metal coins, metal coins to fiat money, I believe we will move away from fiat to cryptocurrencies.

[riosakamoto]

In the past, the interpretation of money was changing and still doing, long ago these paper we're dealing with today were not, buying with a Mastercard everywhere you go wasn't even a dream, now we're slowly going to cryptocurrencies mass adoption, a simple light transaction click is very near until that happen BTC and the others alts will not be defined as money from the majority.

[Arne9131]

Even for BTC or alternative cryptocurrencies to be eligible as money, they need to satisfy all attributes of fiat. To replace fiat, you don't have to be different but rather better than it. Fiat has intrinsic value, no matter how much we argue. The intrinsic value comes from coercion, pay your taxes or go to jail. Fiat has extrinsic enforcement by governments issuing denominated currencies, to determine its value. A 5 dollar is always a 5 dollar.

BTC lacks intrinsic value, people might falsely argue, sending transactions is the intrinsic value of BTC. Sending transactions doesn't give an edge for BTC to compete against traditional currencies. Until BTC doesn't have intrinsic value, replacing fiat would be difficult. One scenario where bitcoin would work as currency is when the global population, consider it acceptable similar to cowrie shells accepted by the people of Uganda.

I am bullish on Ethereum having a higher chance to dethrone the fiat currencies.

[Arne9131]

Bitcoin doesn't have value, it has a perceived value. Similar to brass rings used in West Africa, provided the tribe agree on using it, it works as a tool of exchange, ie. money. The price, on the other hand, gravitates to the cost of producing a bitcoin, same can be observed in commodities. Lack of intrinsic value prevents bitcoin's relative stability, but it can be used as money since we have empirical evidence of using objects as money without intrinsic value within communities.

[Coin-1]

BTC lacks intrinsic value, people might falsely argue, sending transactions is the intrinsic value of BTC. Sending transactions doesn't give an edge for BTC to compete against traditional currencies. Until BTC doesn't have intrinsic value, replacing fiat would be difficult. One scenario where bitcoin would work as currency is when the global population, consider it acceptable similar to cowrie shells accepted by the people of Uganda.

Some of governments recognize Bitcoin as an asset, not a currency. It is something like a share of a company that can be bought without using a stock market and securely transferred using a strong asymmetric cryptography directly to a buyer which can live anywhere. I think the replacing a fiat money is almost impossible, because the national economies are based on them. The governments will protect the financial system of a country they managed. Yes, the shape of money is changing, the currencies evolve and go forward.

[TepungBeras]

for the future purpose of bitcoin is actually to replace fiat currency, and I think that is the hardest thing but I believe dengab future of increasingly sophisticated technology that all can be realized.

[larkinvain]

Yes, we are redefining money with bitcoin. Bitcoin is better than USD, gold and even will be platinum if BTC hits 40K USD. I Don't think Bitcoin will replace the fiat money, but everyone will take bitcoin seriously as their investment.

[biskitop]

Good article, with bitcoin the money will be redefined because it is not an simple technology but it is revolution, it changes everything related to money.

True. As we can see shape and form of money changed as we evolved solve old problems money had. Bitcoin does solve a crucial problems fiat money face, if the community accepting bitcoin grows, bitcoin has the potential to be used as a global currency.

we always wait for it. when bitcoins become global currencies (though not the preferred currency), but bitcoins can be used for legitimate barter tools.

[Lisadavis87]

in my opinion, If you want electronic currency Become shaped like the currency we are using it is quite difficult and must undergo a revolutionary change or acceptance is quite long.

[Samuel188]

It is already defined over years therefore it is not easy to redefine money again with bitcoin

[aris av]

I tried to articulate why cryptocurrencies would be the future and redefine money again. The article talks about how and why money took the shape we have today, and how and why cryptocurrencies can also take that shape.

Please provide feedback if you have 10minutes. Clap and share if you find it interesting.

https://medium.com/@anvay.rane/are-we-about-to-redefine-money-again-4bed5344ebaa

Bitcoin has value, bitcoin can be used for transactions and hence bitcoin can be called as currency, only bitcoin in digital form is not like fiat having physical shape.

[Romanlevi1980]

We should not do anything. If people accept bitcoin as official currency, they must change their opinion about money

[Arne9131]

It is already defined over years therefore it is not easy to redefine money again with bitcoin

Depends on the perspective. Evolution of monies over the period of years was to eradicate flaws the previous form of monies had. Today, we have moved away from the gold standard, ( one of the sound monetary policy ) to fiat. The problem fiat currencies face are that governments or federal reserves are unaccounted for their decisions in increasing the supply. Argentina, Zimbabwe, Chile, are a few examples.

Bitcoin-like systems allow a codified rule to adhere to for the betterment of the system, thereby removing the current problem in fiat currencies provided cryptocurrencies are able to meet other advantages of fiat money.

Some of governments recognize Bitcoin as an asset, not a currency. It is something like a share of a company that can be bought without using a stock market and securely transferred using a strong asymmetric cryptography directly to a buyer which can live anywhere. I think the replacing a fiat money is almost impossible, because the national economies are based on them. The governments will protect the financial system of a country they managed. Yes, the shape of money is changing, the currencies evolve and go forward.

Yes, you are absolutely right. Bitcoin is more of a commodity. And we know from experience, that mankind heavily relied on a commodity as money, animal horns, crocodile money in Malaysia, Whiskey in Germany.

Fiat heavily relies on coercion, ie. pay your taxes in USD or go to jail. A private money competing against fiat money has to rely on persuasion. People who are persuaded enough with the advantage of such private money ( cryptocurrency ) will prefer to hold coins over their national currencies.

On a long run, national currencies and stable cryptocurrencies will be competing based on price stability. Citizens are free to choose one over the other based on evidence of price stability.

[squatz1]

It really matters on what you mean when you're talking about this redefinition of money, I (personally) don't think that Bitcoin is going to end up being the currency of the world as so many would like to think it's going to be. But I DO THINK, that Bitcoin is going to bring innovation to the world currency stage -- be it with blockchain tech, and so on and so forth.

So even if Bitcoin does die, I do think that the world is going to gain the knowledge that a decentralized currency is possible. This is the most amazing part in my mind.

[Arne9131]

It really matters on what you mean when you're talking about this redefinition of money, I (personally) don't think that Bitcoin is going to end up being the currency of the world as so many would like to think it's going to be. But I DO THINK, that Bitcoin is going to bring innovation to the world currency stage -- be it with blockchain tech, and so on and so forth.

So even if Bitcoin does die, I do think that the world is going to gain the knowledge that a decentralized currency is possible. This is the most amazing part in my mind.

Maybe the title is a bit misleading. If you glance at the article, I have tried to overlay the evolution of money ( historically ) with evolution in cryptocurrency landscape. Bitcoin, Ethereum, EOS, and now stable currencies. I believe bitcoin fits well in commodity money category.

I am merely suggesting, for the first time in history, we have reached a point where it could be possible to build a price stable monetary system, which can be utterly decentralized as promised by Nakamoto, always adhered to a rule-based policy as advocated by Friedman, privately issued to compete against the monopoly of government-issued currencies as dreamt about by Hayek.

[ParveZ219]

Its not redefining...The price of bitcoin is also unstable if compared to Indian rupees and the price of dollar is also slightly unstable compared to Indian rupees....As like other currency it is also a currency...But its digital currency but not digital money...Digital money are those which are stored in paytm or freecharge etc sites...But its a digital currency...Its just an evolution of technology..