Let`s say bitcoin replaces fiat. What happens?

[Pizzalover420]

As a farmer, I no longer accept fiat cash for my fruits, veggies, time and my work. I have 300 acres of fiat free land. (I don`t accept bitcoin either but let`s say that I do)

Let`s say all of the other farmers wake up to the slavery they are in and do the same.
Let`s say the electric companies do the same, they stop accepting fiat and only accept bitcoin.
Let`s say the bitcoin mining manufacturers do the same.

Won`t the people with the most miners at that time stay on top forever?
They will be the only people to generate the supply or obtain supply from network fees when there is none left in nature.

Won`t the people with the most miners collect most of the network fees since they have the highest hash rate and push out all the small miners because the smaller miners will actually mine at a loss and go out of business running there machines at a electric power loss? At some point in time they will have to turn off their machines.

It is like my small family farm, I cannot compete with the bigger corporation farms, they have 1000`s of acres and can sell peaches at a much lower price than me, pushing my small family farm out of the game. My cost of operations exceeds my profit intake, especially with the min wage going up. I just can`t afford workers.

So, Won`t 1 miner win in the end, the biggest miner will just keep getting bigger, and everyone else will be left in the dust?
Don`t you think that miner will be a central banker, for they had the most fiat before hand to buy the most miners?
So a central banker still wins.

[odolvlobo]

Won`t the people with the most miners at that time stay on top forever?
They will be the only people to generate the supply or obtain supply from network fees when there is none left in nature.

Mining is a business. Whether miners succeed or fail depends on how well they run their business. Simply being the people that maintain the block chain won't automatically put them "on top forever".

Won`t the people with the most miners collect most of the network fees since they have the highest hash rate and push out all the small miners because the smaller miners will actually mine at a loss and go out of business running there machines at a electric power loss? At some point in time they will have to turn off their machines.

It is like my small family farm, I cannot compete with the bigger corporation farms, they have 1000`s of acres and can sell peaches at a much lower price than me, pushing my small family farm out of the game. My cost of operations exceeds my profit intake, especially with the min wage going up. I just can`t afford workers.

Not all small miners mine at a loss. It depends on costs. As long as it costs you less then 1 BTC to mine 1 BTC, you will make a profit, regardless of your hash rate. Now, like your farm, big miners can lower costs more effectively than small miners, so it is true that small miners will have a more difficult time making a profit.

So, Won`t 1 miner win in the end, the biggest miner will just keep getting bigger, and everyone else will be left in the dust?
Don`t you think that miner will be a central banker, for they had the most fiat before hand to buy the most miners?
So a central banker still wins.

There isn't 1 farmer in the end, and similarly it is not likely that there will be 1 miner in the end. And while central banks and governments print all the fiat, that doesn't mean they will become miners.

[mindrust]

It won't ever replace FIAT.

Fiat can scale infinitely because it is centralized. There are zero bottlenecks with FIAT.

If some magic happens and Bitcoin replaces FIAT however, it would be same as FIAT without any physical bank notes...

Bitcoin supply is limited and it is cornered by a few people. It would be total chaos and the governments would fall and the next world war would begin.

[Fatunad]

It won't ever replace FIAT.

Fiat can scale infinitely because it is centralized. There are zero bottlenecks with FIAT.

If some magic happens and Bitcoin replaces FIAT however, it would be same as FIAT without any physical bank notes...

Bitcoin supply is limited and it is cornered by a few people. It would be total chaos and the governments would fall and the next world war would begin.

This is definitely right!

Even on my wildest dreams i never think off that bitcoin would able to replace fiat.Do we really think that government would just allow for those things to happen?

Decentralized things cant able to placed on whats had been used for thousand of years which is money, maybe in different forms but government do still handle it out.
What if question? I cant think off because there would be lots of situations will happen along the way.They cant just simply allow for this
thing to happen.

[Wysi]

I am not a fan of fiat or regulated currencies but at the same time if Bitcoin replaces fiat which will never happened but just for example if we consider then it would be brutal for normal users like us as miners will just increase transaction fee to an unaffordable limit for their own benefits as most of the mining field are backed by institutions, at the same time the price of bitcoin will be easily manipulated by whales for their benefits and I think it would be absolute chaos.

[crwth]

I’m curious about how you accept money now. Is it purely digital to you now? Maybe it’s time you get fiat because you are losing many customers for you to supply on. You cannot be successful in your business if you keep being negative on the operational expenses.

Anyway, there would never be in our lifetime that it’s priced in BTC. It is always going to be pegged to USD and converted to any other currency there is. The reason why that is because not everyone has BTC, and if ever there would come a time that it’s purely BTC, the price per BTC would be higher than the recent ATH.

I doubt it’s going to happen though. Not that I want that but to make the world change like that, I don’t think so.

[mindrust]

I’m curious about how you accept money now. Is it purely digital to you now?

Exactly. Most stores don't even accept cash anymore and the pandemic has sped this process up. You show your credit card to the device, pay in seconds and walk away. Why carry cash?

This is how bitcoin would look like in an ideal world after replacing FIAT. The only problem is, it will never as widely adopted as FIAT because of both the technical and fundamental reasons I described above.

[Murpheus]

As a farmer, I no longer accept fiat cash for my fruits, veggies, time and my work. I have 300 acres of fiat free land. (I don`t accept bitcoin either but let`s say that I do)

Let`s say all of the other farmers wake up to the slavery they are in and do the same.
Let`s say the electric companies do the same, they stop accepting fiat and only accept bitcoin.
Let`s say the bitcoin mining manufacturers do the same.

Won`t the people with the most miners at that time stay on top forever?
They will be the only people to generate the supply or obtain supply from network fees when there is none left in nature.

Won`t the people with the most miners collect most of the network fees since they have the highest hash rate and push out all the small miners because the smaller miners will actually mine at a loss and go out of business running there machines at a electric power loss? At some point in time they will have to turn off their machines.

It is like my small family farm, I cannot compete with the bigger corporation farms, they have 1000`s of acres and can sell peaches at a much lower price than me, pushing my small family farm out of the game. My cost of operations exceeds my profit intake, especially with the min wage going up. I just can`t afford workers.

So, Won`t 1 miner win in the end, the biggest miner will just keep getting bigger, and everyone else will be left in the dust?
Don`t you think that miner will be a central banker, for they had the most fiat before hand to buy the most miners?
So a central banker still wins.

At the end.. Capitalism still wins.....

[Banana_mufn]

It won't ever replace FIAT.

Fiat can scale infinitely because it is centralized. There are zero bottlenecks with FIAT.

If some magic happens and Bitcoin replaces FIAT however, it would be same as FIAT without any physical bank notes...

Bitcoin supply is limited and it is cornered by a few people. It would be total chaos and the governments would fall and the next world war would begin.

I could see a government holding it in reserve and issuing fiat agents it same as gold or any other reserve.
The advantage is that you can always prove you have the reserve by publishing the public key.

[oktana]

I get the assumption, but I'm afraid it'll never be possible. Fiat cannot be erased completely. I use to be concerned about what could happen to a country's financial system when majority of it's citizens opt into cryptocurrency rather than fiat. But like I said earlier, Fiat cannot be erased.

[Rajamuda]

Basically, crypto activities will increase the number of activities and make more online transactions using crypto, in my opinion all of that will coexist with transactions using fiat, it will not replace but is a complement to life and transaction about the economy's life.

[kentrolla]

 If BTC was meant to be a currency then what would be its value? the thing is Fiat has a fixed value where as BTC has appropriate value it may go either way. Also no one would want to spent it on their daily needs like if we buy some stuff for some dollar today the same you will get two by the next day.

People are using BTC now as an investment and trading purpose such is gold is being used now, so do not make it complicated and confuse yourself till the world ends Fiat will live in the world.

[Lorence.xD]

I get the assumption, but I'm afraid it'll never be possible. Fiat cannot be erased completely. I use to be concerned about what could happen to a country's financial system when majority of it's citizens opt into cryptocurrency rather than fiat. But like I said earlier, Fiat cannot be erased.

It can be possible but the problem is people are still putting value in goods and services, if we are able to look past that notion then I think that fiat being eradicated altogether with the banks that benefit from it, I think that it is possible.

To OP, we can replace fiat and in regards to who will get bigger when the changes happen, it will not happen if we were to solve the problem of monopoly as soon as the current system is removed.

[LogitechMouse]

I’m curious about how you accept money now. Is it purely digital to you now?

Possible that all of his money are in digital already since it is less hassle when it comes to buying things especially online.
On the other hand, I don't believe that he doesn't accept fiat cash at all.

Now to answer the question, what will happen if Bitcoin replaces fiat? You need to wake up into the reality that Bitcoin will never replace fiat at all. Bitcoin is just an alternative mode of payment and fiat is the most widely accepted currency worldwide. I see Bitcoin as an investment more than a currency TBH but it will never replaces fiat.

Bitcoin adoption is increasing yes but the fact that not all people have access to it is enough already to prove that the scenario the OP is saying will never happen.

[Latviand]

When talk about "IFs" then I'm worrying about those indigenous people who are not that familiar in that way of transactions.

There are some part of every countries who will be left behind due to slow development and those people will surely have a hard time to earn money.

But I know that it is impossible to happen because traditional way of payment method using fiat is the best and suitable for everyone.

Let's just leave bitcoin to become an alternative tool for payment whenever we want it because in bitcoin, we have a financial freedom.

[UserU]

If BTC was meant to be a currency then what would be its value? the thing is Fiat has a fixed value where as BTC has appropriate value it may go either way. Also no one would want to spent it on their daily needs like if we buy some stuff for some dollar today the same you will get two by the next day.

That's the most obvious shortcoming. Imagine receiving your salary in Bitcoin right before it crashes. That's really gotta suck.

[AjithBtc]

There is difference between a miner and a government. There is chance of government to acquire entire miners, but this isn't possible with a single government. Because, the large scale farms are located on different regions around the world. Another thing, miners won't easily get out of the business. Replacement of Banking process through blockchain technology will happen, and central bankers winning through the process of acquiring all mining farms won't happen. If this happens, then I'm sure the cryptocurrency network crashes.

[irixo10]

Most times one can say that these big miners are getting their reward for trusting and believing in Bitcoin , many that started very early are the ones topping the charts, that's what comes with believing in Bitcoin, also many people who got to know Bitcoin at an early age and held on are also enjoying it now, thus the reward for believing. Nevertheless, in as much as I believe in Bitcoin and so is everyone, but we need to understand and agree within ourselves that, no matter what, Bitcoin won't replace Fiat, it can never happen because no government will allow another currency to decide some things for them, and no government will be willing to give power to a currency they can't control the way they desire.

[shoreno]

As a farmer, I no longer accept fiat cash for my fruits, veggies, time and my work. I have 300 acres of fiat free land. (I don`t accept bitcoin either but let`s say that I do)
Let`s say all of the other farmers wake up to the slavery they are in and do the same.
Let`s say the electric companies do the same, they stop accepting fiat and only accept bitcoin.
Let`s say the bitcoin mining manufacturers do the same.

your a one smart farmer but if you dont accept fiats and btc , what payments are you accepting ? gold , silver , or something? not all farmers are smart like you that wont accept a fiat but most farmers that i see are matured and like things done in a simple way .

they will prefer fiats mo matter what but i dont know about to those who work in an electric company maybe some of them will try btc because they are more expose in the technology. the last one is btc mining manufacturer , they can surely accept btc because the item that they provide can produce a btc

[adzino]

I would be more concerned about the global economy rather than being concerned about miners "being in power".
I doubt bitcoin is going to replace fiat. Maybe after decades or even centuries, but not now. Think what is going to happen to those countries where access to the internet isn't cheap. Countries that are under developed and lagging behind in technology. They won't be able to trade with anyone outside their country and hence make them suffer more.

Won`t the people with the most miners at that time stay on top forever?
They will be the only people to generate the supply or obtain supply from network fees when there is none left in nature.

Wouldn't there be more "competition" as there will be more miners and the difficulty be increased?