Can cryptocurrencies replace fiat currencies

[goldade]

Maybe someday that's going to happen but I do not see it happening any time soon. Bitcoin still has quite a long way to go in terms of adoption in the mainstream world.
Before crypto can replace fiat, then everyone must be literate and have access to the Internet at all times. Every merchant of goods and services must accept crypto as a means of payment.
These two factors, as simple as they seem, will take so many to years to come into play which is exactly why bitcoin and crypto at large cannot replace fiat anytime soon.

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[just_Alice]

That would only be possible in the case of centralization, because, obviously, all money supply can't be left without control (at least now it is hard to imagine how that could be regulated).
If the governments accept cryptocurrency (meaning actual crypto, NOT digital currencies) as an official way of payment - they will start looking for regulations to control it, track the movement of funds, and that would basically destroy the purpose of cryptocurrencies.

[tabas]

will cryptocurrency be used in the world instead of fiat currency?

It is already used. But there's no need to think of it kicking out fiat, I guess fiat is here to stay and so bitcoin does. The government that sees good alternative for bitcoin and will allow its co-existence with fiat, those countries will do better.
And how we're wishing that most countries are going to be the same as El Salvador, they got two currencies and one of it is bitcoin.

[tippytoes]

That would only be possible in the case of centralization, because, obviously, all money supply can't be left without control (at least now it is hard to imagine how that could be regulated).
If the governments accept cryptocurrency (meaning actual crypto, NOT digital currencies) as an official way of payment - they will start looking for regulations to control it, track the movement of funds, and that would basically destroy the purpose of cryptocurrencies.

This is why a lot of governments are still hesitant with bitcoin or other crypto because they don't know yet how to regulate this type of currency. That's why crypto can't replace fiat anytime soon. The government has full control about their fiat currency but with crypto, still vague for them on how to manage this new payment system. For crypto users, they don't want government poking on their crypto transactions as that's not the reason why crypto was created. Bottomline, we don't see crypto replacing fiat. There are so many factors to consider. But we are happy if our government is not too strict dealing with our crypto.

[Kasabus]

will cryptocurrency be used in the world instead of fiat currency?

It is already used. But there's no need to think of it kicking out fiat, I guess fiat is here to stay and so bitcoin does. The government that sees good alternative for bitcoin and will allow its co-existence with fiat, those countries will do better.
And how we're wishing that most countries are going to be the same as El Salvador, they got two currencies and one of it is bitcoin.

Bitcoin is already used but in limited areas. And some of the countries had banned it so bitcoin will only be used as more of an investment rather than a currency. But if government changes their mind and open their doors for bitcoin in the future, then probably bitcoin will be widely used as a currency but not to replace fiat, but as another option to it. I think fiat will stay forever and bitcoin might do the same too once its adoption will grow that will end into its people's acceptance.

[tabas]

will cryptocurrency be used in the world instead of fiat currency?

It is already used. But there's no need to think of it kicking out fiat, I guess fiat is here to stay and so bitcoin does. The government that sees good alternative for bitcoin and will allow its co-existence with fiat, those countries will do better.
And how we're wishing that most countries are going to be the same as El Salvador, they got two currencies and one of it is bitcoin.

Bitcoin is already used but in limited areas. And some of the countries had banned it so bitcoin will only be used as more of an investment rather than a currency. But if government changes their mind and open their doors for bitcoin in the future, then probably bitcoin will be widely used as a currency but not to replace fiat, but as another option to it. I think fiat will stay forever and bitcoin might do the same too once its adoption will grow that will end into its people's acceptance.

Those countries that had banned it, there are still people that have been trading and used it because they can bypass even if there's also banning visiting bitcoin-crypto related websites.
We saw countries have changed their heart towards bitcoin, they've banned it for a long time and they're having now a time to think if they'll reopen their doors for it.

[Hydrogen]

Why would fiat currencies need to be replaced.

I would prefer crypto and fiat exist in a state of relative competition. The way that competition between AMD and intel reaped significant benefits for consumers and semiconductor markets. Over the last 10 years competition has brought consumers lower prices, greater performance, greater reliability and lower energy consumption of CPUs. This is one positive facet of how free markets and capitalism are supposed to work to benefit humanity.

Fiat and crypto do not need to be enemies who attempt to destroy each other. They can compete and strive to make each other better and stronger. Fiat can learn lessons from crypto. And perhaps the opposite could be true to some degree. If crypto is successful it is due to shortcomings or limitations of fiat which crypto is better suited to fill. The rational solution is for fiat to improve and offer better terms, conditions and stability to its user base.

Crypto replacing fiat would end with crypto becoming a monopoly of itself. Which given the negative publicity monopolies have received of late, may not be an optimal solution.

[arwin100]

Cryptocurrency is a new trend in the modern financial economy, and it is an Internet-based medium of exchange that can be traded using cryptographic functions.
The decentralization and transparency of cryptocurrency makes it free from government supervision and control, and it is the owner who controls own wealth. The benefits of cryptocurrency make many new users to invest in it, and it has been accepted and recognized by more people. Some countries have banned bitcoin from the beginning to now accept and use it, and some countries use bitcoin as legal tender.
With the passage of time and the increase in value, will cryptocurrency be used in the world instead of fiat currency?

Its just a modern trend but it cannot totally replace fiat since for sure many people will not  allow a certain digital currency  with unknown creator identity status will take over their financial system, Its really impossible to think that it will happen and maybe you are just over thinking it  due  to El salvador adoption. Bitcoin is just a perfect secondary option and we need to accept the fact that this is where atleast he can go since the law is the main barricade on why  we cannot see this happening.

[XUNing]

The future is uncertain and may be realized someday, but now it is difficult to become fiat currency.
Cryptocurrency is just a new trend of investment now, and it is chosen and loved by many people. However, there are still some countries suppressing and banning the use, prohibiting the use of cryptocurrency for transactions. The price of cryptocurrency is not stable and the market is volatile, so cryptocurrency is more suitable for investment rather than as a fiat currency.

[Tina H]

I think the two will coexist. One of them will not be replaced by the other, nor will it disappear. The nature of cryptocurrency and difficult algorithm may not be accepted by some people, and the nature is different. So I think that cryptocurrency still shines in its own field, and fiat currency will not be replaced.

[Darker45]

Can is a question of possibility, so while it is unimaginable at least at this point in time, I guess it remains possible. Who knows, in the next couple of centuries?

But in our current situation, I don't think it will happen. Bitcoin and fiat work in two highly different systems, extremes as a matter of fact. The incompatibility is immeasurable, so that it is next to impossible to use Bitcoin as a currency in a system which is tailored-fit for fiat.

For one, a certain amount of control is indispensable in our current setup. Prevailing economic theories, approaches, and policies couldn't work should Bitcoin replace fiat. So there has to be a complete paradigm shift in order for this to work, which is probably not going to happen very soon.

[Rruchi man]

Just as we have options and choices that still hold universally, like the option of

-whether to have tea or coffee,
-to either drive a car or ride a motorcycle or both for mobility sake
-to either travel by road, by air or by sea.
-the option of which tv channel to watch or radio station to listen to and so on

Cryptocurrency has come to present options in terms of finance and not to completely replace the traditional fiat. Now users have an option to send money across the globe in cryptocurrency or in the traditional fiat through the government controlled banks.

For me, it is the dream that cryptocurrency gains widespread acceptance globally like fiat to an extent that they can both exist and be used in harmony.

[Lorence.xD]

I think the two will coexist. One of them will not be replaced by the other, nor will it disappear. The nature of cryptocurrency and difficult algorithm may not be accepted by some people, and the nature is different. So I think that cryptocurrency still shines in its own field, and fiat currency will not be replaced.

Well, coexistence is much better than the alternative because if cryptocurrency were to replace fiat, a lot of people that don't use electronics will be left behind unless the government does the impossible and takes care of these marginalized people and that's just one part of the problem, economy will be on hot water for a really long time because they will have to fill the void that was left by fiat.

[Vishnu.Reang]

Well, coexistence is much better than the alternative because if cryptocurrency were to replace fiat, a lot of people that don't use electronics will be left behind unless the government does the impossible and takes care of these marginalized people and that's just one part of the problem, economy will be on hot water for a really long time because they will have to fill the void that was left by fiat.

Coexistence is the only option, IMO. A few years ago, Sweden and some of the other countries wanted to replace physical cash completely with digital cash (fiat in both cases). But after a few years of compulsion, they just gave up that effort, as a lot of people simply refused to trust digital cash. Especially the elderly people find it very difficult to use their mobile phones to make payments. The same issue will arise with cryptocurrency as well. In fact, it is one of the reasons why we don't have a lot of senior citizens using cryptocurrency.

[so98nn]

Well, coexistence is much better than the alternative because if cryptocurrency were to replace fiat, a lot of people that don't use electronics will be left behind unless the government does the impossible and takes care of these marginalized people and that's just one part of the problem, economy will be on hot water for a really long time because they will have to fill the void that was left by fiat.

Coexistence is the only option, IMO. A few years ago, Sweden and some of the other countries wanted to replace physical cash completely with digital cash (fiat in both cases). But after a few years of compulsion, they just gave up that effort, as a lot of people simply refused to trust digital cash. Especially the elderly people find it very difficult to use their mobile phones to make payments. The same issue will arise with cryptocurrency as well. In fact, it is one of the reasons why we don't have a lot of senior citizens using cryptocurrency.

Exactly! The old generation is far from the adoption stages of digital era. Even if we consider the developing countries along with the underdeveloped one, BTC global adoption is next to impossible. It's being used everywhere, that's not a question but at what level it's being adopted is real thing. A global adoption would be something with the proper infra-structure. Ability to transact with crypto everywhere, irrespective of nation where I am paying the bills or holiday trips! Even today, digital world is lacking behind and everyone carries cash with them for emergencies!

You can stumble upon places where there is no network coverage area but local businesses exists and you want to buy something then how would you pay? Cash!
These are just small case studies, but can give you clear idea as to why digital or crypto based currencies lack the phenomenal growth.

[Xinarae*]

There is a difference between fiat and crypto will never be able to replace fiat currency crypto is not supported everywhere. Crypto is the best with online first of all bitcoin is the real money from a purely economic point of view it has prices and can be purchased for products and services it is unlikely that you will be able to pay your bills or buy groceries in full bitcoin although those services exist and are growing you will be able to buy an amazing amount of products online with bitcoin wallet.

[adriaparcerisas]

There is a difference between fiat and crypto will never be able to replace fiat currency crypto is not supported everywhere. Crypto is the best with online first of all bitcoin is the real money from a purely economic point of view it has prices and can be purchased for products and services it is unlikely that you will be able to pay your bills or buy groceries in full bitcoin although those services exist and are growing you will be able to buy an amazing amount of products online with bitcoin wallet.

Yes, but what will happen if it occurs? As we have seen in the news lately, big industry players have started to talk about the possible adoption of banks. Even accepting Bitcoin purchases through banks.

I think this is the step that the big banks should take if they want to make a step forward towards globalisation and the new economic and technological generation. It is clear that thanks to bitcoin and cryptocurrencies, banks are losing some of their clout. And I think, based on what we're seeing, the strategy of going against it is not working out very well for them. On the contrary, they need to start thinking about how to adapt to change.

In fact, very recently, the president of the NYDIG left us with some interesting clarifications.

"This is not just the banks thinking that their clients want bitcoin, they're saying 'We need to do this, because we see the data,'" he said.

One of the things he said that I found most interesting and that perhaps some of you might have missed is the point that, unlike current investments that you can make through banks, with Bitcoin you can start investing from as little as 1 dollar, which is not even 1 euro. This not only attracts institutional investors with large capital (which is the case so far), but anyone can have access to such an investment.

[worle1bm]

Cryptocurrency is a new trend in the modern financial economy, and it is an Internet-based medium of exchange that can be traded using cryptographic functions.
The decentralization and transparency of cryptocurrency makes it free from government supervision and control, and it is the owner who controls own wealth. The benefits of cryptocurrency make many new users to invest in it, and it has been accepted and recognized by more people. Some countries have banned bitcoin from the beginning to now accept and use it, and some countries use bitcoin as legal tender.
With the passage of time and the increase in value, will cryptocurrency be used in the world instead of fiat currency?

These topics have been discussed many times over the forum and the answer will remain the same that bitcoin can be used as an alternative to fiat as medium of decentralised finance making global payments without any third party intervention but fiat will also be used along with it till the time btc is being globally adopted.Many government are also working on the framework to develop their own CDBC to counter effect the crypto market because they know fiat will be used less with digitalization and that's where we need digital modes of payment.In future btc surely stand a future and you would see normalised bitcoin transactions.

[Anonylz]

That would only be possible in the case of centralization, because, obviously, all money supply can't be left without control (at least now it is hard to imagine how that could be regulated).
If the governments accept cryptocurrency (meaning actual crypto, NOT digital currencies) as an official way of payment - they will start looking for regulations to control it, track the movement of funds, and that would basically destroy the purpose of cryptocurrencies.

very true, without proper regulations from the government i doubt crypto will be consider as an acceptable global means of transaction, like it or not, regulations is important to curtail the activities of the influential people in crypto with huge amount in their possession, the government can not allow few individuals to have control of sizeable part of the space, it will bring a lot of problem, in essence there will be a lot of re-evaluation of the whole space if this will be consider. 

[maxreish]

This was tackled many times before. Fiat currency is the country's legal, approved currency that is centralized. While cryptocurrency is way different as it is decentralized and some government dislike the volatility of it. While cryptocurrency can also be used as payment method, in some remote areas, fiat currency is more convenient.

About that question that has been asked many times before? Think twice about crypto adoption first.