Cryptocurrency can not replace fiat currency.

[tvplus006]

Bitcoin and cryptocurrency is not meant to replace fiat, it is invented to be an alternative source of payment that's scarce and decentralize, when the old monetary system gets to regulated and manipulative.
But if people gets to fed up with it, we might see massive migration of users from fiat to cryptocurrency, especially when countries are trying to establish their own cryptocurrency we might see a massive adoption in the future.

I guess the reason you have given is just a cover up for what the main purpose of cryptocurrencies because if it is really made just for alternative method then we should have already adopted it since then. I think this is what the government sees even though we are saying that it is just a simple payment method when it is really not. The fact that it is decentralized is already enough reason to invalidate it by the regulators.

If we consider a digital national currency, it cannot be decentralized. From the government's point of view, such a currency will only need to be centralized so that it remains possible to control its citizens. It is in this direction that China is now moving in developing its digital yuan.

[SacriFries11]

I agree that it cannot replace the fiat currency but it can be a good alternative for it and it will not be affected by inflation, Also a fact that the internet is not yet implemented throughout a certain country and we all know that in order to do a transaction in cryptocurrency we need to have an internet connection and a hardware either a smart phone or a computer.

Also we need to educate people what's this, how to use, how does it work unlike the fiat where in it's just a matter of numbers and physical trading/exchange.

This two has different purpose in payment system. Some people make transfer of bitcoin without an internet but it's hard to do it by ordinary people. Fiat will always be the best currency we have today, we don't know in the future if it will be totally gone. It's also regulated by the government unlike digital currency. Some people don't want to adopt the technology even it will make them easily to use. They are contented on what they got used to (fiat currency).

[Saint-loup]

...There are still some rural places in this world, so it will be hard for them to adopt the new system if this will be implemented in the future, which I hope won't happen, and even those person in provinces will also get mad if those things happen.

Many countries have now started developing their national digital currencies, which will have to replace their national Fiat currencies. In order for cryptocurrency payments to become available in hard-to-reach places, we only need access to the Internet.

I agree with you CBDC will be a game changer in the crypto currency world, because people will be educated by governments about the technology and will begin to trust it unlike nowadays.
Unfortunately we don't know what will be the impact on the "real" crypto currencies : on one hand it can trigger more adoption, on the other hand people can leave a less lawful and recent technology...

That was true because most of the people today still using the fiat currency but we need to make to introduce the cryptocurrency and now this is one of the most popular transactions on it so why they are going to use it because it has a faster transaction and also it has a less transaction fee even this is one of the greatest transaction still why they use the fiat currency because this is the most important today with the use of physical money because this is one of the money we use for our transaction and this is the money that is authorized and legalizes by the country.

What do you mean when you say "now this is one of the most popular transactions on it"? What do you call "on it" exactly? You are talking about the blockchain and the stable coins on it?
Well I don't think stable coins are the same as CBDC, most of people don't trust stable coins and much more don't know them. It will be different with CBDCs that's why I'm calling them a game changer...

[Baoo]

You should know that the world economy is based on fiat (Like, Dollars, Yen, Euro...ect ) so it is not that easy that cryptocurrency will replace Fiat especially in the near future despite this new era has a lot a characteristics or advantages. In addition to that, the governments are rejecting the recogniztion of Bitcoin despite they are investing in cryptocurrencies but indirectly , there are too many hiding information and facts, and unfortunately we only see the fake media news. Possibly, after some years everything is going to change in a good way but not now maybe after many years.

[abhiseshakana]

You should know that the world economy is based on fiat (Like, Dollars, Yen, Euro...ect ) so it is not that easy that cryptocurrency will replace Fiat especially in the near future despite this new era has a lot a characteristics or advantages. In addition to that, the governments are rejecting the recogniztion of Bitcoin despite they are investing in cryptocurrencies but indirectly , there are too many hiding information and facts, and unfortunately we only see the fake media news. Possibly, after some years everything is going to change in a good way but not now maybe after many years.

Cryptocurrency can replace currency but it will not be able to replace the dominance of the fiat money system because, even if the state is required to follow technological advances, the choice will be to use a centralized stable coin and can be controlled by the government of a country. Second, when we want to have a cryptocurrency, we have to exchange our fiat money with cryptocurrency, so that the gap between the rich and poor remains, only the change is the shape of the rich. The rich can have more cryptocurrencies while the poor have less cryptocurrency.

The problem of inequality in the spread of technology, I think along with technological advances that correlate with the population demographics of a country, the gap will decrease because projections of millennial generation increase while conventional generations decrease.

But keep in mind that the dependence on technological advances is also vulnerable to system malfunctions that we cannot predict due to natural disasters, so we need manual operating instructions and a backup plan if we suddenly return to the ancients because of the loss of technology.

[AniviaBtc]

Not all can afford high fees with slow transaction process.

What high fees? The vast majority of my transactions are made with fees of 1 sat/vbyte, which works out as a couple of cents. Even if you sre paying something like 40 sats/vbyte to guarantee placement in the next block with every transaction, you are still talking less than a dollar in fees for most transactions. For microtransactions then you can make Lightning transactions with fees so small they are irrelevant. Credit card fees are up to 3% per transaction.

Transactions also aren't slow. Credit cards transactions can be reversed for several months after they have been made. Bitcoin transactions are final within an hour. For instant transactions, again you can use Lightning.

Although there are still other "altcoins" that offer fast transactions with low fees

The reason altcoins can be faster per confirmation is because they are less secure than bitcoin. Most altcoins will take several thousand confirmations and and several days or weeks to reach the security Bitcoin achieves in an hour.

They have different advantages and uses so it is not worth it to compare. Digital currency like bitcoin is more on about investment and faster transactions. This currency can be stocked and it will surely preserve the value of money. But when it comes to practicality, fiat currency is really the best option to use if you're buying goods and anything in the market. Also people tends to use fiat currency more than bitcoin when it comes to paying bills, buying a car, house and their necessities. Bitcoin can also be a material for payment or transaction but as people are using fiat currency for so long, it will never be vanished or become replaced because most of the people prefer to use fiat.

[KrisAlex18]

You actually did not give strong reasons why cryptocurrency can't replace fiat currency. Cryptocurrency can actually/theoretically do most things fiat currencies can do, but I doubt typical fiat currencies can safely do most things cryptocurrency can do with losing their centralization. Besides, government can run their fiats on Blockchain or other real decentralized system.

Crypto could actually work better in rural areas than fiat, even without relying too much on internet. But I believe safe/crypto-friendly worldwide rural internet coverage is a possibility in the future

Even though I didn't include some strong reasons why cryptocurrency cant replaces fiat currency, it is really accurate, because as we all know, there are still some existing rural places in our world, who are deprived of knowledge about technology and money. So how will be the life to them if cryptocurrency will replace fiat?

The volatility of the cryptocurrency also makes it be not standard money to all of us because it will be so hard for us if there will be a transaction that uses money, which is a cryptocurrency that always changes its value day by day, can you imagine that? It will be hard for so many aspects of our life if we will have cryptocurrency in real life. Even if this cryptocurrency becomes more popular in the future, I don't think that it would replace our traditional system.

You actually did not give strong reasons why cryptocurrency can't replace fiat currency. Cryptocurrency can actually/theoretically do most things fiat currencies can do, but I doubt typical fiat currencies can safely do most things cryptocurrency can do with losing their centralization. Besides, government can run their fiats on Blockchain or other real decentralized system.

Crypto could actually work better in rural areas than fiat, even without relying too much on internet. But I believe safe/crypto-friendly worldwide rural internet coverage is a possibility in the future

yeah exactly. "it will be hard to adopt" is not the real reason why cryptocurrencies won't replace fiat its an excuse not to work hard for the result imo.
I see only one reason why crypto can possibly not become next fiat - people's skepticism about crypto and blockchain overall.
But honestly I think its a matter of time when most of population will understand and accept digital currencies.

But I think it really is or should I say it is one of them, We are so used in fiat currency, so our whole system will be obliged to adopt all changes if these things happen, and that would be so hard for them. Even though all of us will understand the whole concept of digital currency, I don't think that it would be enough reason to be implemented in the land.

[NavI_027]

Not all individuals are really used in technology, so how could they handle their money if they are not familiar with the technology.

This is a valid point. I still think there is a hurdle to overcome with bringing bitcoin to the tech illiterate. As the percentage of the population who have grown up immersed in technology increases, however, this problem becomes ever smaller.

Indeed. Imagine, if my grandmother learned how to play on smartphone deapite of her old age and the traditional gap then what more for the people on rural areas which is for sure not as primitive as the other thinking . This hindrance for attaining mass adoption is not as big as it seems, it only requires eagerness from crypto lovers like us to educate those who are not familiar with. We can already spread the word even in our own little ways; when we are on the streets or just hanging out with our love ones .

[kooboat]

There are  still strong reasons why cryptocurrencies may replace fiat currency in the very near future. When we go through the archives of history books, we would realise that fiat currency also took some time before it replaced the ancient system of trading or making payment of service such as the barter trade system.

[dnprock]

It is true that cryptocurrency cannot replace fiat. They are technically different (crypto is decentralized, fiat is centralized). There are design tradeoffs. It's like saying apple will replace orange. With fiat, we can control price. With crypto, that is not possible. You can design a system that fudge the line between fiat and crypto. For example, Ethereum has a minimum viable issuance schedule. It's difficult to interpret this monetary policy. But they can probably manipulate its supply to control price.

I think cryptocurrency will force fiat to become better. That will be a win for people. I came up with a diagram to illustrate different kinds of cryptocurrency.



Original Post: https://bitflate.org/post/2019/11/10/emerging-markets-of-cryptocurrencies.html

When we move between centralization and decentralization, we get different kinds of currencies. Cryptocurrencies don't compete directly. They'll compete in their categories. For example, cryptocurrencies with limited supply are competing for the Store of Value use-case. I think future currencies will strike good tradeoffs. They will offer people convenience and transparency.

[Dhoe]

There are  still strong reasons why cryptocurrencies may replace fiat currency in the very near future. When we go through the archives of history books, we would realise that fiat currency also took some time before it replaced the ancient system of trading or making payment of service such as the barter trade system.

Yes of course, Crypto takes a long time to be able to replace fiat money as a legal currency used by all people. Until now, there are still many people who do not understand about the world of Crypto, so it is difficult to make Crypto as a recognized currency, but I personally believe that in the future Cryptocurrency will be able to replace fiat money.

[FanatMonet]

There are  still strong reasons why cryptocurrencies may replace fiat currency in the very near future. When we go through the archives of history books, we would realise that fiat currency also took some time before it replaced the ancient system of trading or making payment of service such as the barter trade system.

Until everyone on our planet has free access to the Internet and devices in their hand from which they could have access to it, cryptocurrencies will not be able to replace fiat. I doubt very much that your bitcoins will help you in the Mekong jungle or in the Sahel.

[MCobian]

I do not agree that cryptocurrency cannot replace fiat currency, because overall cryptocurrency is still better when compared with fiat
currency. If the reason is only because the price of cryptocurrency is volatile, it is because that uses crypto the amount is still very
small. Because if cryptocurrency is used by most of the world's population, I'm sure the price will be more stable. And the government
inevitably has to accept cryptocurrency if there are already many users. But there are indeed obstacles some people don't follow the
development of technology and it will be very difficult for them to use cryptocurrency in their daily lives.

[xvids]

Cryptocurrency could replace Fiat but it would take so much time.
And about the volatility of the price there is already some stable crypto that could be used like USDT so it only depends on the adaptation.
BTC price volatilitiy is still a problem for most of the people to use it.
And using crypto is much more easier than it looks people just need to take some time to know it.

[tvplus006]

Yes of course, Crypto takes a long time to be able to replace fiat money as a legal currency used by all people. Until now, there are still many people who do not understand about the world of Crypto, so it is difficult to make Crypto as a recognized currency, but I personally believe that in the future Cryptocurrency will be able to replace fiat money.

But we've all seen how credit card payments drive Fiat out of everyday life. The same can happen with non-cash payments, when they will be replaced by the national digital currency. Most likely, most people will not even notice this, as they will continue to pay with the card.

[tbterryboy]

Some people here are really confused. The op is probably right. Yes cryptocurrency cannot replace fiat because it is decentralized and cannot be controlled by the government. If it cannot be controlled by the government then don’t see the need for it, because they believe that the way cryptocurrencies like bitcoin functions they can lead to a lot of bad stuffs and can be used for illegal purposes and other things that are not good without the government being aware of it.

The fiat system is centralized and is being controlled by the government and you should read the importance of centralization. Government can still create their own cryptocurrency, but it’s going to be centralized and citizens will be able to convert their fiat, e.g USD, for the cryptocurrency as an asset. And they are going to have their own blockchain.

[o_e_l_e_o]

Also people tends to use fiat currency more than bitcoin when it comes to paying bills, buying a car, house and their necessities.

That's not really a fair comparison. People majorly spend fiat for these things because every company accepts fiat. There are very few companies which will accept bitcoin for a car, a house, bills, etc. I spend bitcoin everywhere I can, and often buy gift cards with bitcoin for places I can't spend it directly.

With fiat, we can control price. With crypto, that is not possible.

We can't control anything. The Federal Reserve or other central bank can control it for the benefit of them and the government, not for the benefit of the average person. The only price controlling that the average person sees is the purchasing power of their fiat constantly decline over time.

Government can still create their own cryptocurrency, but it’s going to be centralized and citizens will be able to convert their fiat, e.g USD, for the cryptocurrency as an asset. And they are going to have their own blockchain.

Unlikely it would be a blockchain. Any government run "crypto" will be entirely centralized as you say. Little point in running a blockchain when you want to keep complete authority and control over the coin.

[White Christmas]

Yes of course, Crypto takes a long time to be able to replace fiat money as a legal currency used by all people. Until now, there are still many people who do not understand about the world of Crypto, so it is difficult to make Crypto as a recognized currency, but I personally believe that in the future Cryptocurrency will be able to replace fiat money.

But we've all seen how credit card payments drive Fiat out of everyday life. The same can happen with non-cash payments, when they will be replaced by the national digital currency. Most likely, most people will not even notice this, as they will continue to pay with the card.

Impossible that the cryptocurrency can not replace fiat currency because as of now the continues upgrading of the globalization people nowadays prefer noncash transaction or using digital currency only just like for example in shopping online you we are just paying it through credit card or online banking and which it is almost the same as making a transaction using digital currency or cryptocurrency because of this people will be able to hassle free on having a transaction with other people or paying their bills over the counter.

[Jateng]

Yes of course, Crypto takes a long time to be able to replace fiat money as a legal currency used by all people. Until now, there are still many people who do not understand about the world of Crypto, so it is difficult to make Crypto as a recognized currency, but I personally believe that in the future Cryptocurrency will be able to replace fiat money.

But we've all seen how credit card payments drive Fiat out of everyday life. The same can happen with non-cash payments, when they will be replaced by the national digital currency. Most likely, most people will not even notice this, as they will continue to pay with the card.

It will continue to use credit card unless their own government advertise the cryptocurrency which they also created. I think if crypto will totally adopt by each countries they will create of their own and it will centralized. It's takes a long time to accept Bitcoin first. The debate will be Fiat between cashless payment card first before crypto and in the future it will be cryptocurrency but centralized.

[Gozie51]

Yes of course, Crypto takes a long time to be able to replace fiat money as a legal currency used by all people. Until now, there are still many people who do not understand about the world of Crypto, so it is difficult to make Crypto as a recognized currency, but I personally believe that in the future Cryptocurrency will be able to replace fiat money.

But we've all seen how credit card payments drive Fiat out of everyday life. The same can happen with non-cash payments, when they will be replaced by the national digital currency. Most likely, most people will not even notice this, as they will continue to pay with the card.

Payment cards are far from cryptocurrency. Cards have been successful for making the society a cashless place. Although, it is digital in nature but at least it can be feeled by the presence of the card but not like bitcoin. Anyway, it is going to take a longer time.