Let`s say bitcoin replaces fiat. What happens?

[AAPPKK]

At this stage, most opinions are negative on the question of whether Bitcoin can replace fiat currency. Bitcoin has value, but the instability of its currency value determines that it cannot perform the function of value scale like other currencies. , Let alone set prices for others as a token of value, let alone become legal tender. The development of digital currency is certainly the general trend, but Bitcoin still has a long way to go on the issue of whether it can replace legal tender.

[jamesde]

As long as there are nation states, Fiat currencies will continue to dominate and governments are powerful enough to enforce their legislation. There are fiat currencies because the alternatives, such as gold, ultimately failed to meet the modern world's demands. Bitcoin is similar to gold, but the supply is actually even more restricted and worse.

Bitcoin is not what it is being promoted to be. Transmitting is not cheaper. It is not straightforward to use. Boosters of bitcoin say things will improve over time, but that is also true for alternative payment and transaction systems based on fiat. Governments are actively looking at ways to create blockchain versions of their own currencies that will have bitcoin's best characteristics but not its flaws.

[Coinsfera]

What you're talking about is a situation that cannot happen in real life. In time, the dollar also replaced gold. But this does not mean that the entire world economy will depend only on one currency. Bitcoin is a digital currency. It is so valued now that it has been turned into an asset as reliable as gold. If this continues, people may be more willing to do digital transactions with bitcoin, spend bitcoin, or earn. But this does not mean that in this case other digital currencies will be completely erased from the economy. If bitcoin is a global currency, fiats will keep their strength depending on the economies of the countries.

[pinggoki]

I can't imagine when bitcoin replaces fiat, and never in history will do this kind of thing. Replacing fiat with bitcoin is very impossible because if this happens many people will not be able to adapt to this kind of situation especially elders who don't understand what cryptocurrency nor bitcoin is. That would really become a disaster when that happens. Bitcoin was just supported by the dollars and will never be an main currency and also bitcoin will be ever as an alternative or 2nd currency until the next generation.

[stompix]

Moving it for the purpose of making profit, that's what I see and when that happen, the price dump, and when there's a hype, the price pump and that is not a good definition of stability.

You don't understand!
In this scenario, we have no more fiat!
There is no more USD, no more EURO, o yeh no yuan no bolivar no nothing.
So, what market will those whales manipulate to make a profit if we have no longer a btc<>usd pair or anything else?
You will dump your coins...where? 

[Casdinyard]

At this moment? I guess there will be difficulties to be realistic. The market price is changing from time to time which I think will be the downside of doing so, especially to those people who are not into investments. Fiat promotes balance in the world market. Just think of how stable the values are of the currencies compared to Bitcoin. Ofcourse such thing is having purpose. If the market value of the medium is volatile, there will be difficulties with daily transactions, not concerning convenience which could be enhanced by cryptos. It is just that decentralisation and volatility which could be a problem if cryptos will be used as the main medium of payment.

[Iron Fist]

Moving it for the purpose of making profit, that's what I see and when that happen, the price dump, and when there's a hype, the price pump and that is not a good definition of stability.

You don't understand!
In this scenario, we have no more fiat!
There is no more USD, no more EURO, o yeh no yuan no bolivar no nothing.
So, what market will those whales manipulate to make a profit if we have no longer a btc<>usd pair or anything else?
You will dump your coins...where? 

Great observation. I agree that it will be impossible to manipulate the price if there is no market for it.
You can not buy Bitcoin if there is no currency exchange where you can exchange money for it. You can not sell Bitcoin if there is no market for it.

[goldade]

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.

I absolutely agree with you about this. Fiat can't be totally eradicated by bitcoin. This can't happen for several reasons. I'd try to list some here.
Bitcoin can only totally eradicate the use of fiat if only everyone and every businesses in all the seven continents is educated about the use and benefits of bitcoin, uses it and accepts it as a payment option.
Secondly, the governments of countries won't just sit by and allow bitcoin take over. Trust me, they wouldn't subscribe to that. The best that can happen is that bitcoin and fiat currencies exist simultaneously just as they are now.

[A62662]

Sounds like a whole lot of fun. The elderly and many of the disabled people would starve to death, as there would be no more pensions or welfare money.

When you have spent your last Bitcoin, if you get sick or unemployed, prepare to die. Say hello to 80+% unemployment in society. Most common sight would be poor people begging in the streets, homeless.

How the hell would the government collect taxes to fund the state if there was only Bitcoin. Guess the government with the police and everything else just went out the window too. Good luck making it to old age in this fun new world. Looting, robbery, murder and extortion would be a daily occurrence.

Replacing fiat with Bitcoin would destroy society as we know it.

[Broly46]

Sure, you don’t accept fiat for your fruit, I have no idea what’s fiat did to you, and you want to go against it like a plague, anyway, you can always exchange fiat to the thing you want to keep as soon as you receive the fiat and swap it before the value depreciated, however, it would be time consuming and go around and swap your fiat during lock down, with bitcoin, the swapping will be quick and effortless, you can swap from tether to whatever you want, I think you want to swap all fiat into gold to preserve value? That’s very possible with bitcoin, you can swap bitcoin to gold without any custodial entity, and the swap will be completely conduct on the network, hence it will be an instant.

Bitcoin won’t replace fiat, that’s not possible, there is roughly 30m non zero bitcoin wallet to date, which translate to how obscure bitcoin is accepted world wide, but it does complimenting each other.

[imstillthebest]

Sounds like a whole lot of fun. The elderly and many of the disabled people would starve to death, as there would be no more pensions or welfare money.

When you have spent your last Bitcoin, if you get sick or unemployed, prepare to die. Say hello to 80+% unemployment in society. Most common sight would be poor people begging in the streets, homeless.

How the hell would the government collect taxes to fund the state if there was only Bitcoin. Guess the government with the police and everything else just went out the window too. Good luck making it to old age in this fun new world. Looting, robbery, murder and extortion would be a daily occurrence.

Replacing fiat with Bitcoin would destroy society as we know it.

fun ? lol .
pension are going to stay , btc didnt kill all the necesities that people need and we dont even know if its possible to replace fiats because if that is possible we dont have our fiats now but if let say it happens , pension are going to be payed by btc and btc would be more super easy to use for elders and youngsters .
 unempleyment has nothing to do with the fiat and btc but if you are wise and you invest , save and have an education .
 you can secure your life in the future .

[A62662]

Sounds like a whole lot of fun. The elderly and many of the disabled people would starve to death, as there would be no more pensions or welfare money.

When you have spent your last Bitcoin, if you get sick or unemployed, prepare to die. Say hello to 80+% unemployment in society. Most common sight would be poor people begging in the streets, homeless.

How the hell would the government collect taxes to fund the state if there was only Bitcoin. Guess the government with the police and everything else just went out the window too. Good luck making it to old age in this fun new world. Looting, robbery, murder and extortion would be a daily occurrence.

Replacing fiat with Bitcoin would destroy society as we know it.

fun ? lol .
pension are going to stay , btc didnt kill all the necesities that people need and we dont even know if its possible to replace fiats because if that is possible we dont have our fiats now but if let say it happens , pension are going to be payed by btc and btc would be more super easy to use for elders and youngsters .
 unempleyment has nothing to do with the fiat and btc but if you are wise and you invest , save and have an education .
 you can secure your life in the future .

No, pensions are not going to stay if bitcoin replaces fiat, because the government wouldn't have any btc to give out for pensions or for anything else for that matter. What, do you think they can just print BTC like they print fiat?

As for the unemployment, it has almost everything to do with it in todays modern society. Fiat is the bloodstream of the economy that keeps it all running as it should.

Well, they could hold you up at gunpoint and force YOU to give your BTC to some old woman so she doesn't starve to death. But then again, what about all the other elderly that would starve to death.

[xiboothrezi]

I can't imagine even if this is just pretending.
While bitcoin can solve problems that fiat can't, it won't work if there's no internet network. how can solve that? however, we really need fiat
Unless development is evenly distributed around the world, facilities and infrastructure allow for BTC transactions in all regions, and the important thing is that all human resources must be ready and able to use bitcoin, we know that this is not easy enough right?

[serjent05]

You don't understand!
In this scenario, we have no more fiat!
There is no more USD, no more EURO, o yeh no yuan no bolivar no nothing.
So, what market will those whales manipulate to make a profit if we have no longer a btc<>usd pair or anything else?
You will dump your coins...where? 

As far as I know, the market doesn't consist of only currency.  There are markets for trades like wheat against BTC, name any existing materials and commodities out there and you got your market.  Aside from that, there will be also this Altcoin, BTC pair.  The scenario only stated that Bitcoin replaces fiat, but there is no way it states that the altcoin market stops.  So yeah whales will always manipulate, the same thing with materials hoarders and alike.

[A62662]

The amount of stupidity and ignorance on this forum is only exceeded by their massive greed, and that says something  

Its simply astonishing how little most of these morons know of the economy in general. Thankfully there are at least some who have at least half a brain that knows how the real world works, so kudos to you few people.

[Mituletr]

I think it is impossible for Bitcoin to replace fiat currency. Bitcoin has not been recognized and familiarized by anyone.

[caryoscar]

It is possible that the legal currency of individual countries will be replaced, but it does not mean that it will replace the legal currency of all countries. Because of the limitation of the number of bitcoins, there may be other encrypted digital currencies serving bitcoins, carrying more functionality

[Swopon]

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.

You already explained but if the society demands to use Bitcoin then the whole scenario can be changed. Because everything is dependent on people's behavior and mind set. If we want to established it we must create a cashless society before. Then it is possible. Otherwise, it may take a long time to become habituated by generation to generation.

[torrantz]

Some people think that mining cryptocurrency more specifically bitcoin will have some kind of consistent profit and if the scenario you mentioned really happens they gonna rule the world but truth is many people gonna try mining aswell which in return increases difficulty and decreases the profit. It's gonna be a hell of competition and there's chance of switching from PoW to another method to avoid waste of energy altogether when miners becoming too much and energy consumed becoming unbearable, it's not that simple.

[Phanditha Echevarria]

bitcoin can be unstable later. We never know what will happen in the future. Bitcoin is lucrative and promising currently, but who knows!