Will bitcoin co-exist with the current financial system

[DarkDays]

Bitcoin is the future. Does it solve the underlying problems of inequality providing utopia land? Possibly not. However, it solves the constant devaluation of currencies by governments all around the world. The world financial system is built to ensure a specific few groups of people get richer and more prosperous. That stops! Period!

bitcoin as a currency is not meant to do either one of these. it can't fix the "inequality" because it is not equipped to do so and the inflation issue that exists with fiat currencies doesn't exist in bitcoin just because of its controlled capped supply but that is only a very small thing compared to what bitcoin really offers.

bitcoin is meant to address the centralization issue with currencies. so it provides a censorship resistant global payment system that is also fast and secure.

I agree, BTC is a currency on its own that has not ties to 'inequality' (at least the type discussed above' whatsoever as in the end only the people who can afford BTC buy it, people who don't have the money don't buy into BTC. However, by this logic all else excluded this may lead to the putative dilemma of BTC and cryptocurrency in general widening the inequality gap even further.

This gap will consist initially of obstacles from inability to gain access, then move up in terms of finance (to be able to acquire it) and lastly at the level of technological understanding and innovation.
The division within sets/classes of people I can only envision it to be getting bigger and bigger.

[ChrisPop]

I wouldn't bet on Bitcoin completely replacing fiat currencies in the next 15 years. I think the most probable scenario is Bitcoin becoming the standard value for our financial system and potentially replacing Gold as the 'go-to' assets in times of crisis and uncertainty.

However, I have learnt to never say never. If the current financial system based on fiat collapses, we might see a change of behaviour on macro level that should speed up the transition to cryptocurrencies. Keep your eyes open for market signals.

[teosanru]

Will bitcoin exist with the current financial system? Or will it become a parallel system that coexists like two countries exist side by side? I believe it will be a parallel system? The fiat money will flow from traditional to bitcoin system slowly but surely. We are already seeing some indication of that happening. Around, $7Billions, have already poured into it. It is here because it no longer 100% believes in the USD or any other currency it holds.

I was born in a poor country. During our independence 1USD = 7unit of currency. It got devaluated to such a level that now 1USD = 80 units of currency. We are worst off then we were in the 1990s. Some people have become multi-level rich. It is now one of the fastest rich producing nations, whereas the country is mega poor.

Bitcoin is the future. Does it solve the underlying problems of inequality providing utopia land? Possibly not. However, it solves the constant devaluation of currencies by governments all around the world. The world financial system is built to ensure a specific few groups of people get richer and more prosperous. That stops! Period! Rest will be what off shot applications come out of Bitcoin or Ether etc

If we just for once assume 1btc = $480,000, then we quickly realize the potential of this thing we call bitcoin.
Let's assume 1btc = $480000

We can take 1btc and buy a 2bed apartment in the heart of any significant part of the world. We can take 1bitcoin and start our own business. Bitcoin was never built to allow one to buy groceries. However, if one sees the potential to be able to transact in other places where wait time is not crucial, then one soon realizes that bitcoin has a place that will ultimately change the world. You want to buy a car. Bitcoin likely can do that in the future. You want to buy a home. Bitcoin. You want to start a business. Bitcoin. You want to purchase a yacht. Bitcoin. You want to pay utilities that does not need to be paid instantly (usually you get time to pay those). Bitcoin. You want to pay you credit card bills that give you a few weeks to pay. Bitcoin. You want to pay your vendors that live overseas and don't need payment immediately. Bitcoin. You want to send money back home. Bitcoin. Bitcoin has a future.

Every such transaction will likely be a cheaper and more economic benefit for the party that receives bitcoin. The purchasing power increases over time. And everyone will want to use it. Simple. I do not expect amazon to allow bitcoin. However, I expect bitcoin to be used in other parts of our lives in the next decade

No No! No matter what you or other folks say let me tell you what you are imagining is never going to happen. Bitcoin isn't a magic wand that would take away all your problems with itself. What all you are pointing out can be done in fiat too. What is stopping you from buying a car or yacht from fiat? It's because you don't have money. How are you expecting everyone to have BTC just by default? If you are talking about the problems of income inequality or poverty there is absolutely no connection that Bitcoin has with it. Chances are it would worsen off with cryptocurrencies as there would be no social regimes to pick them up. Bitcoin isn't made for this purpose. It's sole purpose is to transact payments over long distances without any intermediary I think even this value thing that has been attached to it is quite ancillary and not the primary activity. The purchasing power would also not increase because the production won't increase. Because producers too have to do expenditure in order to produce a good. If they can get a better ROI just by holding Bitcoin why would they produce? So imagining such an economy is certainly impossible.

[suzanne5223]

Will bitcoin exist with the current financial system? Or will it become a parallel system that coexists like two countries exist side by side? I believe it will be a parallel system? The fiat money will flow from traditional to bitcoin system slowly but surely. We are already seeing some indication of that happening. Around, $7Billions, have already poured into it. It is here because it no longer 100% believes in the USD or any other currency it holds.

Isn't it co-existing already? It's true that bitcoin will never become a mainstream currency system because it is controlled by none!

Despite the fact that Bitcoin was decentralized and also created by Satoshi as an alternative to make people financial freedom and it too early to conclude it will never be mainstream currency because we cant predict the future. Mind you, we have some government that sees Bitcoin as a legal tender.

Nilanjon, crypto setting is wide and welcoming for every institutions thats ready to comply with it decentralize nature. I think the question should be will current (government) financial system co-exist with Bitcoin.

[MCobian]

I think right now Bitcoin has started to co-exist with the current financial system, that's why some merchants have started accepting
Bitcoin payments. Although not all countries have yet to accept Bitcoin as payment, but I believe in the next few years Bitcoin can be
used as a payment in all countries in the world. Because there is no way Bitcoin will completely replace fiat currency, so it is possible
that Bitcoin will co-exist with fiat currency.

[gundala]

Will bitcoin exist with the current financial system? Or will it become a parallel system that coexists like two countries exist side by side? I believe it will be a parallel system? The fiat money will flow from traditional to bitcoin system slowly but surely. We are already seeing some indication of that happening. Around, $7Billions, have already poured into it. It is here because it no longer 100% believes in the USD or any other currency it holds.
--snip--

Of course, bitcoin will be an alternative payment and become an effective financial system in everyday life. However, there are some aspects that are not fully covered by bitcoin such as mycro payments, which is why paying with bitcoin will be a complement to conventional payment systems.
Well, the latest announcement from Paypal that will support transactions using 4 cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, amplifying crypto adoption has become even more evident. This is a very good sign, I think there will be some interesting increases in the future if there are no other heavy rumors.

[witcher_sense]

I totally agree with you with most, but this part is quiiite debatable. It's probably safe to assume(at least from where I'm from), that the "lazy" demographic I was referring to doesn't even know much about inflation/deflation; what more monetary policy in general? No monetary shift into a deflationary-ish society is going to change most of those people imo.

True. But the thing is that even if all people have an incentive to produce something or offer services in exchange for scarce money, that doesn't mean they all will take steps  towards their own prosperity. That is a part of the reason why inequality cannot be completely "cured". But it can be significantly decreased because some people, even lazy ones, will definitely take this opportunity.

[Francis Freeman]

Bitcoin can certainly exist with the current financial system but I don't think everything in the world like a 2 bed room or a hatch suddenly becomes cheap because of Bitcoin. Remember that not everyone will have a Bitcoin to become rich, the inequality among people will continue to exist.

[manfredmann]

We are slowly going to adapt bitcoin to the community. We know that bitcoin is still too young.

Nevertheless, bitcoin has been a great deal to anybody here for it has already prove its worth in making payments, money transfer from other countries, as an investment and in other aspects of financial system. There will come a time that all or almost of the majority of the people will going to hold cryptocurrenct especially bitcoin. It could be other coins as well like ethereum and BCH.

[jamesde]

Bitcoin is the most common cryptocurrency and has already enabled businesses and individuals to grow and prosper, while many depend on trading as their source of income. Bitcoins can certainly be of great benefit to the global economy and society in general.

As the use of cryptocurrencies and blockchain does not rely on an actual physical area to exist, the costs associated with transactions of these currencies are very low. Numerous sub sectors have already been created by bitcoin that have enriched many businesses and people.

[proTECH77]

Bitcoin is a decentralized currency that is not control by the government or any country in the world. Fiat money is be control by the government, operate by the government and control by the government. Many fiat currencies lose their value during pandemic period that give bitcoin a good position in the eyes of the users.
Bitcoin is existing and it will continue to exist no matter how the situation may be in the next few years. Bitcoin is different from other cryptocurrencies in the areas of exchange market.

[budi691]

maybe now it has started side by side with the current financial system, and maybe in the future this Bitcoin system will be widely used in many countries, and more use the Bitcoin system because many do not agree with the current financial system, "but this is only hope"
and I think Bitcoin was created not only for investment but to be able to change the current financial system,
Even though it will be difficult but I always hope this can happen

[Beparanf]

maybe now it has started side by side with the current financial system, and maybe in the future this Bitcoin system will be widely used in many countries, and more use the Bitcoin system because many do not agree with the current financial system, "but this is only hope"
and I think Bitcoin was created not only for investment but to be able to change the current financial system,
Even though it will be difficult but I always hope this can happen

The only problem why I don't think Bitcoin will be widely in the future is because there's a lot of new and existing crypto that has a better feature than Bitcoin. No one can assure the value of BTC because there is no valuable things such as Gold or USDT backed its existence. Only speculation on the price is what keeps BTC grows overtime.

Besides that, Bitcoin can't or might faced hard time on co-existing on the financial system because they are completely opposite. The current financial system is centralised and BTC is decentralized. We all know that in terms of financial, It must be centralised so that government can control all taxable money. As you can see, the goal of most big mover BTC related company was to register an ETF that will represent BTC on stock market.  It means that BTC direction towards to indirect centralization.

[BITCOIN4X]

The only problem why I don't think Bitcoin will be widely in the future is because there's a lot of new and existing crypto that has a better feature than Bitcoin. No one can assure the value of BTC because there is no valuable things such as Gold or USDT backed its existence. Only speculation on the price is what keeps BTC grows overtime.

Bitcoin is a popular asset and trusted by many people (its user) and increased adoption is a form of support for the development of bitcoin itself. I think bitcoin cant be affected by the volatility of other asset such as gold and also fiat or the stock market because I think bitcoin is an asset that has its own foundation without any authority controlling it.

Besides that, Bitcoin can't or might faced hard time on co-existing on the financial system because they are completely opposite. The current financial system is centralised and BTC is decentralized. We all know that in terms of financial, It must be centralised so that government can control all taxable money. As you can see, the goal of most big mover BTC related company was to register an ETF that will represent BTC on stock market.  It means that BTC direction towards to indirect centralization.

I don't think that bitcoin will be a centralized asset in the future, although in term of usability it could still be the same as other centralized instrument. Bitcoin cant be controlled and can only be regulated based on the laws applicable in each country.
So far, bitcoin is not an illegal asset used by its user even though there are several countries that have severely restricted the existence of foreign currencies such as Argentina and Russia. I can still use bitcoin as well as fiat whenever I want, both have weaknesses and strengths and I think there is no problem bitcoin and fiat coexist just because not everyone know about bitcoin and how it works and they still need fiat.

[FinneysTrueVision]

It is unrealistic to expect Bitcoin to replace the current system so it will probably exist as an alternate system. As Bitcoin continues to improve and is more efficient and private to use I think it'll start to gain a bigger market share because people don't want to be burdened with regulations.

The only problem why I don't think Bitcoin will be widely in the future is because there's a lot of new and existing crypto that has a better feature than Bitcoin. No one can assure the value of BTC because there is no valuable things such as Gold or USDT backed its existence. Only speculation on the price is what keeps BTC grows overtime.

Altcoins with "better features" like cheaper fees and faster transactions have made some sacrifices to achieve those features. Every single altcoin is significantly less decentralized than BTC, transactions can be censored more easily, and they are also less secure. If altcoin devs have the power to bail out their wealthy friends then they are no better than the legacy system.

[TheDigitalMan]

Will bitcoin exist with the current financial system?

What do you mean by that? Bitcoin was created, has been used and will exist because the current financial system is broken. Bitcoin is an attempt to create a completely independent financial system, a system that governments cannot control. Although they can fight it and try to regulate it. For such financial system to succeed and replace the current one, it first needs to survive in battle with the states and central banks. They should be deprived of the ability and power of control money supply and money issuance. It is not going to happen any time soon, but still bitcoin nowadays can and should be used by people completely isolated from financial system, it is for them, after all, bitcoin was born.

I absolutely agree with you!  I shun all projects that try to mix bitcoin with traditional fiat systems.  I hate the broken fiat system and refuse to support it any more then I absolutely have to at the moment.  But I agree that bitcoin should be separate.

[dificanovi]

Bitcoin and fiat currencies can coexist and need each other, but not the system. Bitcoin is out of government control but we can see that bitcoin and fiat money need each other, for example, if we want to buy bitcoin, we definitely need fiat money as a medium of exchange.
if you want more fiat money then hold on to bitcoin until the price is much more expensive, then if the price of bitcoin is already expensive, it means our money has increased.

[mindrust]

Isn't it already doing that?

With every new day bitcoin doesn't get destroyed, it is reinforcing its status as a financial asset.

Will it get adopted by the banks? I am not sure about that. Probably not but still not sure. Crypto does not forgive mistakes. Banks sometimes do. And that's a big problem.

[gentlemand]

The current financial system ain't going anywhere so it has no choice but to co exist. Co existing is the same as parallel anyway innit?

As long as there are governments there'll be fiat and they will pay out in it and demand tax in it. You may be able to step out of parts of the old system but you'd need to live in a properly radical jurisdiction yet to exist to fully shed it.

[famososMuertos]

Actually the matter of your OP focuses a lot on a part of the whole of what bitcoin really means, and it is in essence the part that shines the most, therefore it is the small part of the whole that many see as the only objective of bitcoin.

The value of bitcoin is really important, because it has and should have a "traditional" fiduciary framework for people to understand it. But in the reality of the future of bitcoin, he must be the reference.

Bitcoin has a great intrinsic value in its characteristics that gives it great power of control to those who possess it, that in the utopian reality that we want to happen, the reference framework of the traditional system is not necessary.

Currently we "suffer" from an existential "adoption" of the traditional system to allow us to exist as bitcoin users, it is a cancer, which unfortunately we are letting it metastasize when in my opinion the best chemotherapy is not to co-exist with the current financial system.