All Fiat-Replacement crypto will fail: what is wrong with this line of thinking?

[eggorange]

What is wrong with this line of thinking:

Virtually all cryptocurrencies that are intended to be used as a replacement for fiat currency will become somewhat worthless.

All cryptocurrencies and their underlying technology are simply stage 1.

Stage 2 is where, once the technology has advanced enough from other peoples efforts, the Government creates its own either universal or country-based digital currency.

Afterwards, no one uses any other form of cryptocurrency (as a form of cash), except some of the techie-types or for purchases such on the dark web, because it is not the mainstream digital currency.

The government could also enact laws to prevent business from accepting any other form of digital currency, or make deals with payment processors to stop them from allowing other cryptocurrencies to be accepted.

Bitcoin may hold some value among collectors, as it was a first mover. Also, cryptocurrencies that are tied to a certain company or utility can hold value, such as how stocks function today.

But any fiat replacement coin besides the one adopted/created by government, ultimately will be worthless absent within some fringe communities.

[Findingnemo]

So you are saying trust the governments no matter how much lies they are telling to you.

The reason of crypto's existence is decentralization so why you need a crypto currency created by governments when you have the fiat in digital form already.

Governments may create their own but people are free to choose what they want but decentralized means they have some level of knowledge.

[LazerSMS]

Most people don't care, if Facebook's currency was to launch one day you would see millions adopting it. What some techie types as you say, think of it, changes nothing in front of the reality of humanity. The computer was a niche thing as well, maybe the firstcomers from decades ago think the project has gone the wrong way, then this is the future of bitcointalk's forumers.

[dothebeats]

What is wrong with this line of thinking:

Virtually all cryptocurrencies that are intended to be used as a replacement for fiat currency will become somewhat worthless.

All cryptocurrencies and their underlying technology are simply stage 1.

Stage 2 is where, once the technology has advanced enough from other peoples efforts, the Government creates its own either universal or country-based digital currency.

Afterwards, no one uses any other form of cryptocurrency (as a form of cash), except some of the techie-types or for purchases such on the dark web, because it is not the mainstream digital currency.

Some governments are already hinting towards the creation of their own cryptocurrencies, and several groups already gave negative remarks about it. There will always be a distinct difference between decentralized cryptocurrencies and cryptocurrencies ran by a state: trust. Decentralized currencies are trust-less, and only has a certain number of coins that can be minted. Every transaction records is publicly displayed on the blockchain, so anyone can view every transaction if they so do like. With this, you can rely on the fact that the value of your coins isn't destroyed in any way by artificial inflation or insertion of new money supply past supply cap.

For government crypto, you cannot be sure that there aren't any coins that are magically inserted since transactions would be private, and only the state can know and view how much money there really is in total circulation, just like what they are doing with fiat. Government crypto is easily controllable, susceptible to hyperinflation and can be manipulated depending on what the government has in mind.

The government could also enact laws to prevent business from accepting any other form of digital currency, or make deals with payment processors to stop them from allowing other cryptocurrencies to be accepted.

They already are.

Bitcoin may hold some value among collectors, as it was a first mover. Also, cryptocurrencies that are tied to a certain company or utility can hold value, such as how stocks function today.

But any fiat replacement coin besides the one adopted/created by government, ultimately will be worthless absent within some fringe communities.

At present, no one really knows what would happen to decentralized cryptocurrencies. Ultimately, every currency would be worthless once this planet is shattered into pieces by wars for money and power. In the short-term future though, the possibilities for bitcoin to flourish and remain are bright. With the growing pains of the world towards their own governments and currencies, it's not impossible for people to turn towards decentralized currencies and gold for safe-keeping of assets and for payment purposes.

[fabiorem]

Nice April Fools joke.

[hatshepsut93]

I don't think crypto like Bitcoin should only be viewed as a do or die replacement for fiat. It can easily complement fiat by allowing cross-border transactions of value, microtransactions, being used as a method for privately transfer value and so on. Government coin won't be a competitor to any of it, because it would be a very centralized system, like PayPal or Venmo but owned by state - it just won't have the same properties as true crypto.

[royalfestus]

As long as a stable coin maintain its value and can produce the crypto to fiat whenever necessary, it will always be useful and relevant. Tether had always been the with high volume in crypto use, more than 2x of its volume daily. This has been attractive to all exchanges, organizations and some governments but none had surpass Tether in use.

[Darker45]

Although governments shifting into the use of digital money is a nice improvement, the problem basically remains. You see, the problem is not just the kind of money we are using. The issue is not just about between hard cash and cryptocurrency. The issue includes the government itself. So, even if the government sticks to their old cold cash or has evolved into digital currencies, the fact is that they are the same governments. And when it comes to money, that would be in bad hands if it is under the regulation and control of the government. This will make Bitcoin still very much relevant.

[Latviand]

Although governments shifting into the use of digital money is a nice improvement, the problem basically remains. You see, the problem is not just the kind of money we are using. The issue is not just about between hard cash and cryptocurrency. The issue includes the government itself. So, even if the government sticks to their old cold cash or has evolved into digital currencies, the fact is that they are the same governments. And when it comes to money, that would be in bad hands if it is under the regulation and control of the government. This will make Bitcoin still very much relevant.

It is somehow true that cryptocurrencies are not enough to replace fiat as a currency. These currency have their own advantages and disadvantages in the community, and still crypto needs to acquire mass adoption in every country. Some countries still not comprehending the legitimacy of cryptocurrency in the market so that they are just ignoring and having a false mindset about this. They are still suspicious about the crypto that's why replacement into fiat is still impossible. Their mindset of the crypto is that it is just full of scammers and it is hard to manipulate as it varies in the market from time to time without any assurance of its price. Government doesn't feel some good vibes in crypto as it needs to be proper regulated and manipulated in the country, in short, it needs a total control of the authority.

[fiulpro]

People need to understand that replacement of Fiat will mean a death sentence for the people who are still working things out with the virtual cash inflow.
The thing is , there are too many people living in poverty who cannot even afford the cryptocurrencies , how are we going to leave a sector alone and allow other sector to flourish?

This won't work until and unless people are at least middle class and the cryptocurrencies are not volatile.

[Magkirap]

People need to understand that replacement of Fiat will mean a death sentence for the people who are still working things out with the virtual cash inflow.
The thing is , there are too many people living in poverty who cannot even afford the cryptocurrencies , how are we going to leave a sector alone and allow other sector to flourish?

This won't work until and unless people are at least middle class and the cryptocurrencies are not volatile.

Exactly, not every single one of us have capability of getting ourselves our own crypto for not all of us can afford it. And honestly in my opinion you cannot replace fiat, well for now. It will surely afffect the general flow of money and people will be divided and that may cause slowness in transactions. If we're gonna go for innovation then let every one go for it.

[milesfull]

Goverments rather will create digital fiat instead of allow mass use of crypto

[Ucy]

Well, a truly decentralized systems ultimately become independent of such authority. What matter is that communities that drive such systems are safe, secured, more efficient, reliable, trustworthy, honest, transparent, happy, very healthy, good people, hardworking, not creating problems for others,

[davis196]

The "Stage 2" that you are describing might never happen.
Governments don't want to adopt decentralized cryptocurrencies,because they won't have full 100% control over such cryptocurrencies.They might want to create centralized cryptocurrencies,but a "centralized cryptocurrency" is a f***ing joke.
The good thing after all is that people have CHOICE.They can choose their medium of exchange,their store of value.
If they want centralized money(fiat or pseudo-cryptocurrencies),OK,that's their choice and we have to respect it.

[charlesmichel1]

I don't like considering cryptocurrencies as fiat money replacement. Bitcoin can't replace fiat just in a couple of years, because the society is not ready for the cashless future.

[pawanjain]

According to me, as the number of such crisis increases, people will become more aware of what to invest in and what to not.
I really think that true decentralization will be the only true way to hold our money. I believe only decentralization can save the economy.
It's definitely not happening now but I guess as time goes it will. Good things take time!
Centralized currencies might still be there but in my opinion it will only be used for daily transactions and people might rely on decentralized currencies for their savings.

[Febo]

The government could also enact laws to prevent business from accepting any other form of digital currency, or make deals with payment processors to stop them from allowing other cryptocurrencies to be accepted.

Why they had not do it yet? They had long 10 years for this. Is it that hard to do it? When everyone will use Bitcoin then they will not be able top just print money when needed anymore. There for sure is an interest for that. But why they did not do it. Mystery!

[carter34]

I have not believed that fiat will totally be replaced by cryptocurrency, we can have an alternative maybe but to have a total overhaul of fiat money, I really think it will take a very long time.

[Meowth05]

I agree that creating a centralized cryptocurrency for each is very useless, but think about it. These crypto might replace their predecessor fiat, they can be exchanged the same as btc to usd, btc to euro, you just replace the usd and euro with their crypto counterpart.

[wozzek23]

I've always thought about the possibility of cryptocurrency replacing fiat and I don't really see how that's going to be possible. They are not going to be any replacement, though I strongly believe that bitcoin will still be around, but most of the other cryptocurrencies might die off and not be used any more.

The government is going to create their own cryptocurrency and will expect the citizens to be making use the ones they have created, they will be like digital assets which people will be able to exchange through their their banks. And as you have said ,only cryptocurrencies that are tied to certain companies will last.