In the future, will fiat currencies be necessary in the world?

[Hell-raiser]

The references were for your benefit. I am extensively read in economics and I studied it in school. I chose those 3 references to address the 3 specific points that you made. What is the source of your knowledge, your own mind? If you have references for any of those points (or even discussions on this forum which you mentioned in passing), I would take a look at them.

Your references are irrelevant as well as your being "extensively read in economics and I studied it in school". If you can't explain things how you understand them, how can you know that you truly understand what someone else is saying or writing, Nobel prize winners included? This is not a pissing contest, anyway. If you can prove your point, go for it. I gave you an example from real life, and anyone who is actually versed in economics, who understands how deflation and inflation work on the level of separate companies and households, that is at the lowest possible level, knows that deflation is not inflation mirrored. Why should I care about your Nobel prize winners if you can't even answer a very simple question, which reveals your true knowledge and understanding of the matter (or rather lack thereof)?

Um, economics is not simple. Why would I take several pages to explain something when it has already been explained by others at length? I am not going to take the time and the references are not irrelevant. If you are not willing to look them up, then that's your choice. Your "example in real life" - I think you are referring to a claim you made that producers' profits are dependent on inflation? That is a claim without any given basis, not an example.

If you can't explain something in simple terms and a few sentences, you don't understand it yourself as good as you think you do, end of story. What I mentioned is not my claim, it is a textbook example which shows that you don't really understand anything from the ground up. Economics starts with particular individuals, households, and separate businesses, but of course, that doesn't interest you. Now imagine how it feels when you refer me to the works of Nobel prize winners while I refer you to a textbook (why deflation is not inflation negated), and you don't even have a clue what I'm talking about. Just in case, I can explain it in a couple of sentences.

You are acting like someone who read a highly abstract book or two without having any idea or understanding how things work at the lowest level. But I can offer you some comfort as you are definitely not alone in this guileless effort.

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[Commotheon]

The usual currency in the near and distant future will not disappear. If someone does not need a fiat, then many still need it and most of the world's population will not be able to do without ordinary national money. In addition, the crypto currency can not replace the national money vseravno. She can only walk in parallel with them. Therefore, the reasoning is whether people still need the usual currency, which is still used today, is meaningless.

Since not every one are now aware about it and it can be cased people stop paying tax they may become happy if it happen, but there smiles won't visible forever soon there country stop making progress foreign countries start forcing for loan everything can be destroyed.So fiat is the most important thing.

[NeeNts]

Fiat currency is essential in this world because there are many small-scale industries which will help them to use the fiat currency for their transactions. FOr online transaction, we need to have a fiat currency whereas cryptocurrency completely digital asset which we cannot easily do transaction completely in online.

Businesses cannot just easily shift to cryptocurrency because there are so many things to consider that would be vital to the flow of the business. Money is the blood of the business that's why it should flow continuously. Unfortunately, not everyone accepts cryptocurrency yet and only a small percentage of them accept it so fiat is still needed.

For me perhaps, I still need to convert my cryptocurrency to fiat when I need to buy something especially if it is a store that do not even accept credit card transactions. Technology in the current world cannot do all transactions online because some places doesn't even have enough electricity so it would be less likely for them to use a digital currency that they don't know anything of.

Yeah it is right that cryptocurrency will take long time to take over the market and replace paper and fiat currency. People use fiat currency for small transactions and this will continue till the whole world starts using just one cryptocurrency and that will be definitely bitcoin. World is going towards digital currency but in this day we cannot stop fiat currency.

[ngacengan]

yes of course this fiat currency is very important for the world because without the fiat currency will make the world economy very difficult, with fiat currency can be used by many people who need it.

[Kittygalore]

Cryptocurrencies certainly offer some advantages that are absent with fiats, however, fiats play another role for government as it is a tool to control the supply of money and as such control the economy, that will be difficult to replace with crypto in the future

It has a point. But the thing here is, people do not want fiat anymore because of that kind of manipulation or characteristics that varries on the government wants. With this, it is necessary if it happened that the role of fiat will be the same role as the cryptocurrency but with modifications. This will surely helps everyone.

[rhomzkie26]

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

Maybe this could be the reason why bitcoin experts were in the near future they've predicted that Bitcoin can possibly has a capability to become the world currency, which means Fiat in the future will be like a toilet paper that will not be useful anymore. But for now while the government are having now research for crypto or in the blockchain, of course Fiat are still prevails and useful as long as there is no final declaration for Bitcoin digital world.

[Flexibit]

Fiat currency is essential in this world because there are many small-scale industries which will help them to use the fiat currency for their transactions. FOr online transaction, we need to have a fiat currency whereas cryptocurrency completely digital asset which we cannot easily do transaction completely in online.

Businesses cannot just easily shift to cryptocurrency because there are so many things to consider that would be vital to the flow of the business. Money is the blood of the business that's why it should flow continuously. Unfortunately, not everyone accepts cryptocurrency yet and only a small percentage of them accept it so fiat is still needed.

For me perhaps, I still need to convert my cryptocurrency to fiat when I need to buy something especially if it is a store that do not even accept credit card transactions. Technology in the current world cannot do all transactions online because some places doesn't even have enough electricity so it would be less likely for them to use a digital currency that they don't know anything of.

Yeah it is right that cryptocurrency will take long time to take over the market and replace paper and fiat currency. People use fiat currency for small transactions and this will continue till the whole world starts using just one cryptocurrency and that will be definitely bitcoin. World is going towards digital currency but in this day we cannot stop fiat currency.

and also cryptocurrency needs to established its integrity first before the large scale businesses adapt this industry for now it is really hard for them to adapt it because of lack of regulations and security.

[Dudeperfect]

There is no other option for those who can't use the modern decentralized cryptocurrencies. Let's admit the fact that we don't have an impressive literacy rate when it comes to the global level especially regarding technology and it is the basic requirement to use the cryptocurrencies. There won't be any single option for illiterate people if we are eliminating fiat currencies from the picture of the economy.

[Jose Rizal]

Fiat currencies definitely aren't necessary, there is an increasing trend towards digitization of currency, and blockchain based currencies are just the next generation of this. The problem is that Bitcoin came out, and everybody treated it as the successor to fiat currency, rather than an incremental improvement on digital currencies such as Paypal and Skrill. I think that if Bitcoin was never invented, but somebody like Paypal had implemented a blockchain technology first, then we wouldn't be in the rivalry scenario that we're in now.

I highly disagree with this, the existence of the cryptocurrency is a by product of the the fiat currency, innovation is present but there would be always a reason how does somete sprout somewhere, and we cannot really jump of trading of goods to digital methods, I was actually talking about the process how are we now embracing digitization is also because of the past ways how we do transactions.

[Dikarama7]

You need fiat money to buy your daily needs. Fiat will still be needed now and in the future. Fiat plays an important role in the economy and also fiat is governed by rule, and it will be difficult for bitcoin to shift fiat.

[goshay97]

Fiat is being used to enslave you.  So it is 100% not necessary at all to have fiat.  People can use a resource like silver or gold which evens the playing field.  We don't need the central bankers controlling our economies and running us into the ground so they can live large and have it all.  In the USA we pay 6% to the bankers to print our money.  WTF..

[Coral27]

yes of course this fiat currency is very important for the world because without the fiat currency will make the world economy very difficult, with fiat currency can be used by many people who need it.

Well hope you won’t mind but I am not agree with you, now according to me fiat has no value bit bitcoin has, now in a lot of areas crypto currency has taken the place of fiat currency because it is good, easy, profitable and source of earning as well, when people only use crypto so we can do with crypto currency what we are doing with fait but we cannot earn their same money with fiat what we are earning from crypto currency.

[omorfi]

I bet some states can clone and create the other states fiat currencies with todays technology. Maybe thats why crypcocurrencies that have algorithym were created.

[laravuemaster]

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

Obviously it was really necessary, not every people can manage to invest on cryptocurrency and that is the reason why fiat is very important today and not just cryptocurrency.

[surfer43]

Yes, fiat Currencies are a must globally becayse they help us for our day to day transactions. We cannot use cryptos for our day to day life so peoples always prefer for the fiat Currencies at this situation.

[Morgann]

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

In my own opinion, fiat is necessary because people in other countries are still using fiat which is a physical cash for physical stores so it will be always important but digital currencies has also advantage so they are both important.

[Hell-raiser]

The need for fiat currency is currently maintained in many countries but I think it will gradually be abandoned. I was quite observing in terms of raw materials and real ownership of money between the fiat and crypto currencies.
1. Fiat currency requires special raw materials and this will continue to grow and will eventually run out, if so what happens is the sustainability of fiat currency? Crypto does not need this raw material because they are non-physical and no longer cost to procure raw materials.

Fiat money already exists mostly in digital form, and in some countries like Denmark or Sweden (not sure here), they are going to remove paper banknotes and coins from circulation altogether within a certain period. So creating fiat in the majority of cases doesn't require anything "material", technically speaking. Besides, modern paper money is made from cotton (and linen), not from wood as many mistakenly continue to think. Though I agree that it is a complicated process but definitely not because of "special raw materials". There is nothing special about cotton.

[traderethereum]

fiat currencies still necessary in every country because people still use fiat to buy anything. but fiat currency slowly has to turn into digital payment because we see some apps offering us to deposit some amount of money to them so we can use it to pay for something we buy without using fiat. and I think in the future, the fiat will still exist but there are many options of the payment which comes from the digital payment like I said.

[jaaeeeyyyy]

The usual currency in the near and distant future will not disappear. If someone does not need a fiat, then many still need it and most of the world's population will not be able to do without ordinary national money. In addition, the crypto currency can not replace the national money vseravno. She can only walk in parallel with them. Therefore, the reasoning is whether people still need the usual currency, which is still used today, is meaningless.

It has some point. It is a stereotyping in which we tend to believe what we have commonly seen, or somewhat we believe the thing that we just assumed. This kind of mentality is probably what most of the cryptocurrency users needed. We must not only considered our personal interest but rather think of the future benefit of everyone. But still it will be beneficial if everything will be digitalized because it is the new trend and what people need.

[hotBriX001]

Absolutely yes because we can make our day to day living by means of our national currency even in travel of different countries. What we really expect to crypto is to earn from it and converted into our real fiat for our future use.