Can Bitcoin even work in our current system?

[aditasetia123]

Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin.  Ignore scalability issues for this scenario.

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

Bitcoin is decentralized system and its hard to replace fiat money in our currency economic system. Every country need their own currency because every country have different strenght on their economic.

bitcoin and blockchain could work together with current system.blockchain prepare solutions to resolve the weakness and improved they system performance.

[supermine]

I don't think bitcoin was created for the purpose of killing all the fiat and want to take over all the places and even if all the fiat dies we still have over 2000 crypto currencies in usage as of now so we don't care about the limited availability of bitcoin we can pick the most real life useful coins and can make the in a ways which is useful for us in our daily life.

[Bezobraznike]

Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin.  Ignore scalability issues for this scenario.

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

Bitcoin is decentralized system and its hard to replace fiat money in our currency economic system. Every country need their own currency because every country have different strenght on their economic.

therefore bitcoin is very useful for a country in the field of transaction tools, because bitcoin is very fast and safe as a means of payment in the future and in terms of the economy as well

    We must agree that system where economy is stimulated by loans is wrong, people start to get it. Indamuck is right about changing our consumerism, we need to do something about
it globally. It`s more than Bitcoin when he wrote that people wouldn`t be able to borrow money that doesn`t exist, it`s the advantage of most crypto-currencies.
   I think that crypto-currencies can work in our current system. Internet is available everywhere, we all have mobile phones. I think that using crypto-currencies would make many things
easier than they are now.

[basyang]

Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin.  Ignore scalability issues for this scenario.

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

Of course it can work in our current system. Actually, it can not be accepted if it do not have any value in the economy.   But if fiat will be replace by bitcoin many people will hard to adjust to use it especially the seniors people because they can not follow the trend its hard for them to use some gadgets and it will be hard for them to trade or buy some goods.

[South Park]

Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin.  Ignore scalability issues for this scenario.

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

I'm not sure if for example we use bitcoin, it can't eliminate the nature of the loan interest, the use of bitcoin here can still have bank interest. so actually only changing names is not the value or internal factors. The problem with capitalism is the interest on loans from the bank which strangles customers

The interest rates that banks charge to customers are not there because of capitalism, capitalism has been around for a long time and there was a time when loans did not require you to pay interest, but the currency that people used at that time was gold but now we use fiat and as we know fiat currency losses value every day and the banks want to protect their investment and so they have to charge interest in your loans.

[pedangrusak]

the scenario of all fiat is lost and there is only crypto, so the government and central bank will maximize crypto from services, utilities, repairs and also the best partners for crypto to increase the country's economy. crypto will progress rapidly when the fiat is agreed to disappear for all countries

[Maxre]

nothing has to be changed, let the system run as usual.
bitcoin is very limited and very different from fiat money.
let crypto grow slowly without removing the function of the fiat money.

[BlueStackz]

Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin.  Ignore scalability issues for this scenario.

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

Bitcoin is decentralized system and its hard to replace fiat money in our currency economic system. Every country need their own currency because every country have different strenght on their economic.

This is not the right assumption. Why we need different currencies for different countries when almost all the countries have accepted gold as a common momentary exchange medium. When gold is working as a common medium why not we can have a common currency. I guess in near future all the countries will be accepting this fact and benefits of having a common currency like European Union and euro.

I believe bitcoin can even work along with our current system because there will be no need of any specialized the system for the need of adopting bitcoin. It is already happening in many merchants environment. For a country level also it will be working similar to how Japan is doing right now.

[okala]

We are having so many places that has no access to internet and that makes bitcoin not to effectively work in our current system and society.  Cryptocurrencies should just remain investments opportunities and not as currency.  Investment opportunity mean we should used it to make money and not in other ways.

[St4yInTh3D4rk]

We are having so many places that has no access to internet and that makes bitcoin not to effectively work in our current system and society.  Cryptocurrencies should just remain investments opportunities and not as currency.  Investment opportunity mean we should used it to make money and not in other ways.

If we are only using to make money it will fade away in some years because it is just pure speculation so some people will lose money and some other gaining money,now whales are the one who is making more our of crypto investments so if this continues they will always make us a tool to get their profits that is why we should use this what it is meant for.

[0t3p0t]

Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin.  Ignore scalability issues for this scenario.

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

For me, yes it can. And here in my country we need something like Bitcoin for the current system. Bitcoin is fast, secure and decentralized so I think people will like it that way. Fiat sucks most especially when we are doing an online transactions. Bitcoin is for me more convenient to use than fiat money and it's systems. I think it is also hard for us to buy smaller amount of goods or pay services with Bitcoin due to transaction fees and I think it would work perfectly with fiat. Therefore having both assets will make sense.

[timerland]

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

Is this debt based system necessarily something that is positive for the economy, though?

But to answer your question, even with bitcoin, banks are able to conduct fractional reserves. I don't see why they can't. It's just that there would be no government guarantee if there was to be a bank run, and I'd assume that most people would feel more comfortable just keeping their BTC inside of addresses that only they have exclusive ownership to.

Since bitcoin's completely independent of the current system, and is completely different if not the opposite to fiat currency, I don't think it's fair to measure its validity or success based on how well it can "replace fiat" per se, but rather, how well it serves as an alternative asset that can store value in the long run, and to facilitate quick transactions globally without intermediaries. That's what bitcoin brings, not how well it integrates to the current fiat system.

[mwaqar17]

It will be fantastic but for this many things need to be replaced. It is really difficult to replace the existing systems. So it will be difficult for BTC to work in current system. Then there would be different names of BTC, like BTC for US, BTC for UK, BTC for Kuwait, so on and so forth. BTC value will be measured by these countries.

[Betwrong]

We are having so many places that has no access to internet and that makes bitcoin not to effectively work in our current system and society.  Cryptocurrencies should just remain investments opportunities and not as currency.  Investment opportunity mean we should used it to make money and not in other ways.

Basically what you propose is a financial pyramid, which Bitcoin is not. Maybe crypto will not replace fiat completely in the nearest future, but it will be (and it is already, only upon a small scale) a convenient payment system used by many, and only growing of this kind of usage can guarantee the price rising investors are hoping for.

Please research more on the subject yourself by googling "Pyramid scheme", but if you have no time for that, I can tell you what is the main thing of all those pyramids. They create no real goods or services, and they draw income only from new members joining the scheme. I hope now you can see the difference.

[CarnagexD]

Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin.  Ignore scalability issues for this scenario.

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

Lending can still happen even with bitcoin, it's just that the money being used for lending will not be generated out of thin air and therefore there won't be such inflationary pressure on the currency. As for how that would work from an economic point of view it's hard to truly answer as it's never before happened.

  Lending in fiat requires some form of security by including third party like guarantors but how will that also be possible with bitcoin where bitcoin even don't adopt third party agreement.

Does an escrow is not enough to be a form of like guarantors? But i'm also confused if how would they will going to do that if everyone was using bitcoin, then people should be talking here forever if they want to loan some bitcoin in the future. I doubt if there's another forum that looks like a bank in the future.

It's really not too difficult, it's the same as in fiat, persons asks to borrow money and the lender asks for something to use as collateral, a  house for example with a mortgage. As for governments borrowing money from themselves which they intend to print in the future then as I said that won't be possible. We are already moving away from a world where banks and governments can lend/borrow with little reserves so it's not impossible to function with 100% reserves.

  i think yes, this is just one issue on the present status about the Bitcoin which still hanging on the hand of the Regulators by the government financial institution whom critical on the adoption of digital crypto transaction to main stream market. But once this issue is resolved we can see the more favorable transaction on the market.

[ATMD]

Yes, but will governments allow for it.

[South Park]

Is this debt based system necessarily something that is positive for the economy, though?

The debt based system in which the whole economy is based can be very positive if you are a politician, the owner of a bank and a powerful businessman that is friends with politicians and the owners of banks, they are the ones that benefit the most out of the system and that is why they are going to defend it even if people complain about the unfairness of the system.

[setialovers]

Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin.  Ignore scalability issues for this scenario.

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

Its hard for bitcoin to be world currency because bitcoin is decentralized. I think bitcoin can be an alternative payment or currency. Every country have different economic strenght and its hard to measure economic if using bitcoin

[shendy]

Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin.  Ignore scalability issues for this scenario.

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

Its hard for bitcoin to be world currency because bitcoin is decentralized. I think bitcoin can be an alternative payment or currency. Every country have different economic strenght and its hard to measure economic if using bitcoin

Not as easy as we imagine, bitcoin has a nature that is not easy to stabilize and will continue to change and this is difficult to accept, even the government has not been able to allow bitcoin to fly freely. The existence of bitcoin is acceptable but if the transaction has not been obtained a permit.

[Cupomi]

Pretend that all the fiat money in the world is gone and the whole world is only using Bitcoin.  Ignore scalability issues for this scenario.

I'm sure most of you know that most money is actually created by banks through fractional reserve lending.  Our economy is stimulated by people constantly taking out loans to make purchases.  But with bitcoin you can't loan money that doesn't exist.  Maybe we would have to change our consumerism as a society and prices would drop.  Being able to borrow money easily makes everything rise in price.   What are your thoughts?

I think the price goes up because demand exceeds the supply of goods, this is an economic principle, but all can happen because there is an ease in paying, for example the credit system is always provided by the bank, so if the convenience is removed, then the purchase will reduced, this caused a decrease in demand, and resulted in an abundant supply of goods, and then we all knew that the abundant stock demand was a little, the price would also drop, something like this could happen if bitcoin became the world's single currency, because bitcoin does not provide credit services.