Will bitcoin co-exist with the current financial system

[tanef478]

According to a Deloitte survey, today the blockchain industry has cleared a large number of projects created in the wave of the 2017 rush, the industry is developing more calmly, but there is a steady interest in the technology itself, and new options for its use are emerging.
Big companies like Amazon, IBM, and Walmart are looking for ways to use blockchain in the supply chain, data management, and project administration. According to TechCrunch, hiring specialists in blockchain technologies came in second place in terms of growth dynamics.
Banks are also looking towards integrating blockchain technology to ensure transparency of transactions: they will not need to radically change existing processes in this case. If the “compliance” and KYC procedures are unlikely to be fully automated, then ensuring payment transparency using distributed technologies may become the industry norm.
That is why I think that this is an option for a bitcoin to gain its place in the financial system.
The main obstacle to the development of the industry remains state regulation: the circulation of cryptocurrencies is still associated with a lack of legislation and lack of control.

[Coin-1]

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?

If you are talking about a normal country, then yes, Bitcoin will co-exist with the fiat national system side by side. Official cryptocurrency exchanges will serve as financial gateways. Citizens investing in Bitcoin will pay taxes levied by the government and fund the budget of the country they live in.

If you are talking about a country which has banned Bitcoin in its jurisdiction, then no. Local BTC holders will be forced to hide themselves in order not to be punished by law enforcement officers. Bitcoin will only try to survive there. In any case, the fight against blockchain technology based on a decentralized network is very difficult, so eventually this government is likely to fail.

I consider BTC coins to be investment assets such as stocks which can be traded without involving third parties, so I like the first option. In my opinion, both financial systems should exist, people must pay taxes on their income.

[AicecreaME]

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

Isn’t bitcoin already coexisting with the current financial system? Bitcoin was established to be an independent community, governed by no one, and with the main goal of being decentralized.

Bitcoin has been existing together with the global financial system that we have long ago.  It is another form of payment system and currency as well, which has unique features and advantages for those who know how to use it. It can help people to generate income as well, which is a very good thing. You can’t find this kind of feature in a bank or any centralized organizations wherein you’ll apply for campaigns and you can generate money.

However, bitcoin does not guarantee equality in terms of wealth distribution. It can help people make money out of it by investing and such, but it cannot eliminate certain bracket and class which gets richer and richer each day. Remember, bitcoin is open to all and can be utilized by literally anyone. It just depends on how you will make the best out of what you have regardless of the amount.

[Xinarae*]

Bitcoin does not require any financial institution to complete the transaction later and does not depend on the financial system. Bitcoin is not yet widely used in many countries so it has no effect on the financial situation. Decentralized Bitcoin is becoming increasingly popular in more than one country. Bitcoin is currently used in the form of digital currency products or services. like the Fiat currency financial system is circulated and centralized around the world bitcoin will depend on the financial system. Being decentralized has nothing to do with anyone, everyone can invest independently.

[ice098]

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.

That is true and since both of them are coexisting right now, there is possibly no way that the Cryptocurrency Industry can mess up with the current financial system because it could always exists since not all people are available to use Cryptocurrencies or some people still lack knowledge on how to use Cryptocurrencies. This would be a huge step if people can gain knowledge about them since it might also be another way to help people to monetize their time.

Bitcoin were already existed and it was also a currency well a digital currency in specific. We have just waited for the legality of bitcoin in every country and of course a worldwide adoptability of the bitcoin in near future . If it would going to happen it will be good enough for the digital economy of bitcoin. This would be also a good option for transaction and paperless and no hassle transaction.

[romero121]

More large companies are getting into bitcoin for investment purpose and as reserve to back the company. The recent involvement of paypal into bitcoin business is an example of bitcoin co-existing with the financial services.

Already we've got more such ventures functioning along with bitcoin. One of the UK based venture Cashaa is partnering with UNICAS of India to provide user friendly cryptocurrency buying and selling through savings bank account. Initially it has planned for 34 branches within India. Likewise the co-existence of bitcoin with current financial system has begun.

[uneng]

However, bitcoin does not guarantee equality in terms of wealth distribution. It can help people make money out of it by investing and such, but it cannot eliminate certain bracket and class which gets richer and richer each day. Remember, bitcoin is open to all and can be utilized by literally anyone. It just depends on how you will make the best out of what you have regardless of the amount.

I think an utopical equal society isn't achievable through bitcoin or through any other way, it's just an illusion impostors sell people to make their own political careers.
But I have no doubts bitcoin can decrease the barriers between the richest and poorest in the world, since these people have a genuine will to work and thrive in life. What happens today is that our national currencies are very devalued, as pointed on this thread, and our economies are broken. So only few groups who have access and influence with the government find ways to make their fortunes, while all the rest have to perish.

But bitcoin gives us the chance to reach further and find job and investments opportunities anywhere in the world without the necessity of leaving home, city or country.
Bitcoin has already changed the current financial system in some personal cases, even with the system against it. And I'm glad for it.

[wxa7115]

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?

If you are talking about a normal country, then yes, Bitcoin will co-exist with the fiat national system side by side. Official cryptocurrency exchanges will serve as financial gateways. Citizens investing in Bitcoin will pay taxes levied by the government and fund the budget of the country they live in.

If you are talking about a country which has banned Bitcoin in its jurisdiction, then no. Local BTC holders will be forced to hide themselves in order not to be punished by law enforcement officers. Bitcoin will only try to survive there. In any case, the fight against blockchain technology based on a decentralized network is very difficult, so eventually this government is likely to fail.

Even if bitcoin is banned in a country there are circumstances in which it could still be used alongside the official currency, for example if the country was going through a very important and almost permanent economic crisis then people will make the decision to still use bitcoin despite the penalties because that is the only way they have to keep their wealth.

And in the case there is a high corruption in such country, just as it is the case in most countries going through such a huge crisis, then those that use bitcoin could always get away with it thanks to that corruption.

[Argoo]

Bitcoin is a completely different payment system, and is not dependent on banks. You might as well say will bicycles coexist with cars when/if electric cars replace petrol cars

While bicycles have always coexisted with cars.  Also, bitcoin must coexist with the currency of states.  Bitcoin needs to walk on the territory of different states.  It will be much better if it is legalized by states.  Then its infrastructure will be able to develop and bitcoin will expand its liquidity as a means of payment.

[pixie85]

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.

Think of a situation where you have a few coins worth 400 thousand dollars or more. A wealthy person like you can still buy groceries with Bitcoin just like people did in the old days.

A wealthy recognized individual had a store tab that would get paid every month. They wouldn't have to carry money around every time. They'd go to a store take what they wanted and get it signed to the tab.

It's also possible to use your address as an escrow. You'd get a wallet that would lock up 1 bitcoin and then a third party processor would cover all your payments in fiat money. Once those bills reach 1  BTC the escrowed bitcoin would be sold by the processor and you'd have to recharge the account.

[palle11]

Bitcoin already co-exists with the financial system and will continue to do so for some time. But who will win in the end, I do not know.

There is no winning in coexistence or in such coexistence. The financial of the world is getting support from cryptocurrency and the pressure has reduced in the banks, that is because you can do business and get paid right in your home and transactions are clean without third party as bank.

[oktana]

I think that fiat just has to be there playing it's sick role. I'm not sure about this but I feel that if bitcoin is used by everyone, they'll be problems we've never thought of. Let's imagine everyone begins to use bitcoin, what will happen to the banks? The whole world will just stop printing money? It sounds like trouble tho.

[cryptopediabd]

Paypal has accepted Bitcoin payment on its platform.
Corporations have bought Bitcoin to reserve.
Major countries around the globe have already accepted Bitcoin payments.
Bitcoin is coexisting with modern finance and is likely to be the mainstream in the future. Looking at the value of Bitcoin and the liquidity of Bitcoin globally, we will see that it is no longer an internet phenomenon, but a fact, the future of money.

It's jus a matter of time where people will start to embrace cryptocurrency, after paypal mainstream adoptions is no longer far to come.

For sure with news that circulate globally and with it's availability now with one of the most useful tool from payment online, awareness

will spread more and businesses will be there to adopt this chain.

Not only PayPal but also Venmo will offer and accept cryptocurrency for all online payments. PayPal is rolling out cryptocurrency support later this year. It will encourage global use of virtual coins and prepare its network for new digital currencies.

News: https://www.theverge.com/2020/10/21/21527288/paypal-cryptocurrency-support-buy-sell-venmo-bitcoin

[carlfebz2]

I think that fiat just has to be there playing it's sick role. I'm not sure about this but I feel that if bitcoin is used by everyone, they'll be problems we've never thought of. Let's imagine everyone begins to use bitcoin, what will happen to the banks? The whole world will just stop printing money? It sounds like trouble tho.

Those things you had mentioned are really just impossible thing to happen on this world on where getting rid completely with fiat or banks? As long government do exist this wouldnt happen
even on my wildest dreams.

Both are already existing on this world but as we do know that they cant collaborate yet decentralization will always be a main issue on why government just cant accept bitcoin
and there would be lots of debates and argumentation before there would be some consideration.

Just let it be on how its been doing upto these years.It might not be completely adopted but at least we are seeing some progress.

[Walterhank]

Yep, bitcoin will change the world bit by bit and it will surely co-exist with fiat. It does have issues that make it impossible to use for daily routine so it will be regarded as an asset for its lifetime. Already a lot of big companies, banks, and insurance companies are seemingly interested in investing in BTC, so we can say that it is a good start towards a better future.

[syedakhlaque]

Yes, bitcoin will co-exist with the current financial system. As it is co-existed for more than one decade. But in this era of decade bitcoin got much popularity in the world.No one can control its spread. The number of its joining is continuously increasing. Its meaning is that crypto is continuously going to dominate FIAT. But see what happens in the future.

[mynonce]

Will bitcoin exist with the current financial system?

Yes, the current financial system will exist with Bitcoin. More as Bitcoin's 'Layer 2' system for non-tech people.

[Argoo]

Yes, bitcoin will co-exist with the current financial system. As it is co-existed for more than one decade. But in this era of decade bitcoin got much popularity in the world.No one can control its spread. The number of its joining is continuously increasing. Its meaning is that crypto is continuously going to dominate FIAT. But see what happens in the future.

Bitcoin simply has no other way than to coexist with the currencies of states. He can exist in his virtual digital world. But people can use it only in their physical world and only on the territory of individual states, where their currency has been used for a long time.
At the same time, bitcoin or other decentralized cryptocurrency cannot dominate the national currency of states. The state will not allow this.

[mynonce]

The state will not allow this.

How?

[Slow death]

Does anyone still believe that one day the currencies of governments will disappear and only bitcoin will remain? who would believe that? government currencies will always exist, bitcoin is the only one that has no choice, is forced to have to be side by side with the governments currencies, bitcoin is forced to co-exist with the banks