What would a Crypto-only economy look like?

[Febo]

Imagine a world where businesses, merchants, and everyday people use crypto as the only medium of exchange. Everything will operate autonomously and decentralized without the need for third parties. In this world, governments and big corporations might cease to exist as everything will be guided by both Blockchain technology and AI. People will be able to gain autonomy over their own money, reducing corruption and fraud in every way possible. Negative events in the mainstream world will have little to no effect on the world's economy, as it lives in cyberspace. No one will be able to control people's actions worldwide, as it'll be a "free for all" scenario. Central banks will no longer be relevant, as people will become their own bank via the use of various interconnected Blockchain networks.

Economy will simply flourish. GDP will grow a lot. Countries that will regulate crypto to much will not see this GDP growth and cry latter.

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[MCobian]

I think the world is not ready with crypto only economy, because the government is still on the side of fiat. Unlike the cryptocurrency
until now it cannot be controlled by anyone. Therefore some of the country's governments have not been able to accept cryptocurrency.
What is more realistic is that the fiat and crypto world economies collaborate with each other, if that can be realized I am very confident
of the economy the world can certainly develop very rapidly.

[wozzek23]

It would also require a lot of re-education of the elderly. There are too many people who are not good with technology, there are sick people, there are many people with disabilities that prevents them from using technology. At the end of the day crypto-only should never be the result of this.

Crypto was created to be alternative to fiat, it wasn't meant to replace fiat at all, that wasn't the idea. Crypto is strong as long as it is the alternative because its easy to fight from outside to inside, its not easy to fight inside to out hence why it would create so many troubles with it. Yet when I think about the distant future, like future we can't even think right now, 500 years from now or so for example. I can't stop but think, will money really still be a thing?

[Sanugarid]

While all of this seems to be more of a dream than anything else, there's a possibility it could happen in the future if people lose trust in governments, central banks, and conglomerates alike.

There's a very little possibility IMO.

I guess not, it would be chaotic for me since there is no governance in all financial terms at all and if there's no one to control it might be disastrous for all of us inside the crypto.

Look at the country that loses their trust to their government, the country is not progressive anymore and there's a lot of crime happening.
We don't want that to see in the future, that's the reason we elect government officials to implement the law and govern people.

What country are you referring to?

Fiat will remain, bitcoin or crypto might grow but it will not be as acceptable as fiat, there's a limitation on using crypto as whether we like or not, we are still subject by the law which the government has the power to implement it, and let us not think if they still believe they have the trust of the majority, they will always put their interest which they think good for the many, and IMO that is not crypto.

Cryptocurrencies does not really created to replace the fiat, what its purpose is to add an option for people to use when there is a distortion on the other system just like what VISA did, they did not replace the fiat for crypto instead they add a crypto on their list so people could use their neither fiat nor crypto in any transaction. I see the point of yours, if we want to be a cashless society then we should not be having a decentralized one, on this case best if we use the digital payments method.

[TheUltraElite]

I think the world is not ready with crypto only economy, because the government is still on the side of fiat.

Government does not take any side, what I mean is that they are going to follow that thing which is bigger in share. World does not need to be ready. People use crypto and that is enough to get a suppl/demand ratio.

Unlike the cryptocurrency until now it cannot be controlled by anyone. Therefore some of the country's governments have not been able to accept cryptocurrency.

Actually governments are more interested in catching the criminals who are abusing this pseudo-anonimity to launder money. They may have spoken against crypto but they know it is a normal thing for people to use it, which is why governments never started any extreme crackdowns on crypto users, but arrested those who are into illegal stuff.

What is more realistic is that the fiat and crypto world economies collaborate with each other, if that can be realized I am very confident of the economy the world can certainly develop very rapidly.

It is very likely in the far future.

[Latviand]

It would also require a lot of re-education of the elderly. There are too many people who are not good with technology, there are sick people, there are many people with disabilities that prevents them from using technology. At the end of the day crypto-only should never be the result of this.

Yes, they will become outdated because of the technologies that are continuously advancing. If there's a will, there's a way, there are ways on how those PWD have an access to social media, there are people who are guiding or taking care of them so that those actions that they want to do will be possible for them with the help of other people. But not all, there are people who are poor enough to do that because of lack of money.

Crypto was created to be alternative to fiat, it wasn't meant to replace fiat at all, that wasn't the idea. Crypto is strong as long as it is the alternative because its easy to fight from outside to inside, its not easy to fight inside to out hence why it would create so many troubles with it. Yet when I think about the distant future, like future we can't even think right now, 500 years from now or so for example. I can't stop but think, will money really still be a thing?

That's right it is just an alternative for fiat, but if you think of the future and the risks of getting harmed and the crime rate is increasing, would it be safe to use fiat? While in cryptocurrency, there is what we called security in wallets, by that it will help you to become secured and away from those scammers and hackers.

Using crypto is less hassle in many transactions, it will make you have faster and secured sending of money so that you will not be anxious about your money. The only thing in crypto is that there is a coin that is volatile in the market and you need to deal with it.

[jseverson]

Imagine a world where businesses, merchants, and everyday people use crypto as the only medium of exchange. Everything will operate autonomously and decentralized without the need for third parties. In this world, governments and big corporations might cease to exist as everything will be guided by both Blockchain technology and AI.

I don't know how switching from fiat to crypto will result in such a drastic change. It's just a means of exchange at the end of the day, and they've historically been able to adapt to changes.

As for blockchain technology, there hasn't really been any widespread application that doesn't have anything to do with cryptocurrency, so there's not much to suggest that it can guide a new society lol.

Anyway, part of why the world is struggling right now is that people have been reluctant to part with their money; people are mostly restricted to spending on essentials. A world with just crypto might mirror this, except people will be reluctant to spend because of crypto's deflationary properties rather than a global pandemic. I guess inflation could be introduced to address this, but depending on how new coins are issued, things might not end up too different from fiat.

[AniviaBtc]

I think the world is not ready with crypto only economy, because the government is still on the side of fiat. Unlike the cryptocurrency
until now it cannot be controlled by anyone. Therefore some of the country's governments have not been able to accept cryptocurrency.

Because there are government who are still doubted the ability of cryptocurrency in the economy, most of the country who engaged in cryptocurrency are progressively developing right now like US, CANADA, and etc. People just need to understand and promote it so that the government will try to spend some time studying it so that it will bring big impact to the market and their economy.

Cryptocurrencies are more centralized than decentralized that's why people are having a hard time to make it possible to become implemented it in the community.

What is more realistic is that the fiat and crypto world economies collaborate with each other, if that can be realized I am very confident
of the economy the world can certainly develop very rapidly.

That's what happening right now, fiat and cryptocurrency are moving simultaneously in the market. But maybe in the near future, this crypto-only economy will be put into reality once that most of the people know the true value of crypto in their wallet and the market.

[mu_enrico]

Economy will simply flourish. GDP will grow a lot. Countries that will regulate crypto to much will not see this GDP growth and cry latter.

Oh wow, care to elaborate this opinion?
How crypto will positively affect GDP growth?

[Febo]

Economy will simply flourish. GDP will grow a lot. Countries that will regulate crypto to much will not see this GDP growth and cry latter.

Oh wow, care to elaborate this opinion?
How crypto will positively affect GDP growth?

Most people on the world have no access to banks. and this banks will be automated. Those that have they get paid weeks or months after deal is done. With Bitcoin you can use your coins the same hour. All digital asset will get tokenised to prevent piracy. Much more that I could not think of.

[Kakmakr]

How will you automate security services? You are saying everything will work on autopilot and in virtual space... right? Who will be in charge of the security services if it can be automated? (Some private company?)

Nah, there are just certain services that will always be governed and controlled by some political influence. We as social humans has always had some sort of authority figure, because in a "free for all" society, people will rape and kill and molest their fellow humans.. without consequences. 

Some aspects of a government can be automated and controlled by some kind of Blockchain technology and examples of that might be Logistics and financial matters of all government organizations for better transparency. (Procurement and stock control and payments can be done on the Blockchain)  

[solomine]

I guess it can lead to an increase of the poor people. A lot of persons don't understand what is bitcoin...

[Yatsan]

Economy will simply flourish. GDP will grow a lot. Countries that will regulate crypto to much will not see this GDP growth and cry latter.

Oh wow, care to elaborate this opinion?
How crypto will positively affect GDP growth?

Most people on the world have no access to banks. and this banks will be automated. Those that have they get paid weeks or months after deal is done. With Bitcoin you can use your coins the same hour. All digital asset will get tokenised to prevent piracy. Much more that I could not think of.

I think we should all think of this stuff when there are already company that is paying their workers with bitcoin because the idea is not really possible. It's like suggesting the government to be fully decentralized, and that would be a fool idea if you let your people out of your control. Moreover, it will be hard to sustain the financial capability of a nation when something like this happened.

And having that kind of society is risky as there are more prone to hacking, that idea just makes the hacking more interesting for many people.

[mu_enrico]

Most people on the world have no access to banks.

Yes, and they use cash.

Most people on the world have no access to banks. and this banks will be automated.

Why put a lot of hassle just to automate things if they can simply use cash?

With Bitcoin you can use your coins the same hour.

Cash?

All digital asset will get tokenised to prevent piracy. Much more that I could not think of.

Will it improve basic needs though? Food, shelter, clean water, and clothes, have pretty much nothing to do with digital assets and privacy.

[ranochigo]

I imagine that it could be worse in some aspects. Transactions would be done faster, things would be more streamlined and it would be easier for people to transact.

However, the story could be different for those living in less developed countries; Lack of internet access/ stable electrical power would make it hard for them to transact. For the governments, it means that hyperinflation could be a thing of the past but it would be harder for them to
control capital flows within the country. Illegal activities would run rampant with a less regulated currency.

[Botnake]

While all of this seems to be more of a dream than anything else, there's a possibility it could happen in the future if people lose trust in governments, central banks, and conglomerates alike.

There's a very little possibility IMO.

I guess not, it would be chaotic for me since there is no governance in all financial terms at all and if there's no one to control it might be disastrous for all of us inside the crypto.

it's close to impossible right, that's why I said there's a very little possibility.
No government, means no one will implement the law and that would certainly mean chaos.

Look at the country that loses their trust to their government, the country is not progressive anymore and there's a lot of crime happening.
We don't want that to see in the future, that's the reason we elect government officials to implement the law and govern people.

What country are you referring to?

Countries where terrorist are living, especially the ISIS.

I see the point of yours, if we want to be a cashless society then we should not be having a decentralized one, on this case best if we use the digital payments method.

That's what I mean, not because people will choose that, but it's because we have a government that will be more effective if things are centralized since they can monitor things easily and they can implement the right approach.

[Ucy]

Imagine a world where businesses, merchants, and everyday people use crypto as the only medium of exchange. Everything will operate autonomously and decentralized without the need for third parties. In this world, governments and big corporations might cease to exist as everything will be guided by both Blockchain technology and AI. People will be able to gain autonomy over their own money, reducing corruption and fraud in every way possible. Negative events in the mainstream world will have little to no effect on the world's economy, as it lives in cyberspace. No one will be able to control people's actions worldwide, as it'll be a "free for all" scenario. Central banks will no longer be relevant, as people will become their own bank via the use of various interconnected Blockchain networks.

While all of this seems to be more of a dream than anything else, there's a possibility it could happen in the future if people lose trust in governments, central banks, and conglomerates alike.

What are your thoughts?

I think humans should have major control over the system not AI. Humans should be guiding robots/AI and able to control it via moral rules and other means.

Free for all scenario is for lawless things. A well decentralized and safe cryptocurrency won't be a place of lawlessness. It should be governed by us/rules/laws.. . Afterall Bitcoin system is governed by rules, and satoshi whitepaper/posts speaks about Reputation, consensus, rules, escrow, etc. It was never built for lawlessness

[imstillthebest]

nice overview  . while reading it i also imagine it at the same time and i feel so good  . everything new is good anyway  . there will be no governments or banks that can dictate us and we are free as a bird ( just sky is the limit )   . however as of today there were still people that trust government and banks but this doesnt also mean that those banks and governments are bad but the reason they trust it its because they can help each other as well as the economy of their country    . 

[figmentofmyass]

For the governments, it means that hyperinflation could be a thing of the past

with an endless supply of potential cryptocurrencies---which themselves can have high/unlimited supplies---maybe that's not true. some people believe bitcoin's code-enforced scarcity is artificial and could be (or already is) diluted by expanding supplies in the larger crypto market. bitcoin would of course be deflationary over the long run, but it's hard to say what the larger "crypto"-only economy would look like.

However, the story could be different for those living in less developed countries; Lack of internet access/ stable electrical power would make it hard for them to transact.

yeah i think stable access to electricity and internet is a prerequisite for mass adoption. less developed countries will probably lag behind in this respect and cling to physical cash.

I guess it can lead to an increase of the poor people. A lot of persons don't understand what is bitcoin...

poor people are already poor. their circumstances wouldn't change just because of crypto adoption. they had little to no savings before, and would have little to no savings afterwards. the only difference is they'd be getting paid their daily wages in cryptocurrency rather than fiat, so that's what they'd be spending as well.

[darewaller]

Lol what makes you think that a world where there is no government will be a better world?

I know that we all don't like the government, because of several reasons, but anything that has a disadvantage also has an advantage, but most times we choose to neglect the good side of everything.

In a world where you are in possession of all your wealth and have no place to keep it, anyone (armed robber) can walk in and take everything you have all at once. That's why you have the banks to store your money. And it's not everyone that can make use of technology, since cryptocurrency can only be used with the help of tech, it wouldn't be possible for some people to make use of it.