How Fiat Will Always Be The Norm

[worldtraveller321]

How Fiat Will Always Be The Norm

How Fiat Will Always Be The Norm


With all the ongoing growth with cryptocurrency has created many different avenues of direction in many ways. It does create more control for the people of their money but this is only successful when someone educates themselves on this system.

However, the majority of the population are not willing to do this and still only see FIAT as the main money system.  If they hear about Bitcoin, is only seen as a store of value or a like a stock to get more fiat.

Also the media, corporations and governments are still successful in making everyone use FIAT regardless of the inflation that is happening. Come to think on it, people do not see that fiat is the cause of inflation at all.

More and more inflation is happening with more money being printed all the time. Yet people still demand more services from the government which creates more money to be printed and more inflation.

Yet people do not see this as a problem at all, since the demand for specific services keeps increasing.

Many people just do not understand that they are encouraging inflation. All these factors play in the role that fiat is here to stay. People just don’t see the problems of fiat nor able to see the benefits of crypto.

This will be for sure a spiral down to something really bad in the next while. What type of solutions are there to fix this problem?

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[amishmanish]

Economic changes historically takes several decades, there are several reasons why fiat money is still the standard. For one it is so well integrated in current  world economy that the astronomical cost of giving it right away will be huge. Moreover there are so many financial institutions that are debt ridden and they can come out of dependency of fiat money overnight without paying those debts.
Yes crypto has created an alternative avenue to store our assets and it is showing a sustainable growth.
I believe in case there is any by economic jolt to  the world economy. Crypto will remain unscathed and in that circumstances we will see a huge jump.
So keep hodling and stay safe

[odolvlobo]

However, the majority of the population are not willing to do this and still only see FIAT as the main money system.

The problem with your premise is that there are countries that choose not to have a fiat currency. Many countries use USD as their currency, and USD is a hard currency to them because they have no control over it.

[Jawhead999]

Don't forget even a marketplace or stores accepting Bitcoin as payment, you're paid the stuff based on fixed USD price not in BTC. Because if the stuff's price is fixed in BTC, it will be hard for people to determine how much the price of satoshi is... unlike USD even though inflation always increase. You still need one currency as a global currency where the price is pretty much stable. I don't see USD could be replaced with BTC in the current situation right now.

[Mauser]

I don't think Fiat will always be the norm. It is so right now becayse old man are still in power and unwilling to give it up. A few politicians control the fate of millions. It's the same kind of governments all around the world. Politicians first think about themselves and only later about the ordinary people. It would be good for society if crypto currencies would be playing a bigger role, but for that to happen fiat money needs to lose some power. The problem we face with switching to a more independent financial system is that governments would need to act more prudent and couldn't keep issuing new debt every year. Unfortunately politicians are not willing to make that sacrifice yet. Maybe in 10-20 years we will have a new area of more open minded politicians.

[Kakmakr]

I compare the "Fiat System" to Cholesterol..... because it is the "Silent killer" of the financial world. Most people are clueless of the repercussions of "Inflation" and "hyper-inflation" ....until it happens. The few informed people are seen as "Doomsday" crazies and the warning that they give, goes unnoticed.. until it is too late.

Bitcoin can actually repair the financial world, by introducing a monetary system that are not based on infinite money printing. It will cause a ripple in the Pond that will have far reaching consequences for the global economy.  

[Smartvirus]

The ideas in OP lives me with the impression that you thought fiat or centralization was going to give way for bitcoin or let's say cryptocurrencies or decentralizedsystems to be exclusively the new order/era of the time. That is a wish, most persons thought but sadly not mine! The world needs a centralized system to function alongside decentralisation. Let's not forget, cryptocurrencies needs a network and an electronic device to operate.

What becomes of the story when all or either of these are not in place?
Looking at the fact that, people don't have equal status in the society and there would always be the poor once that aren't financially buoyant enough around us, not to mention mention the blind and aged persons;
What becomes there fate in a complete  or exclusively cryptocurrency functioning system?

On the part of demand for certain services, its not entirely wrong as they are a much needed service and as you can tell, the population as at now is far different from 5 - 10years ago, so has it affected demand and supply coupled with the fiatoney in circulation. This also comes with the cryptocurrency acceptance and used cases in our world today. Everything has a pathway of growth and acceptance and they surely do follow it!

[killerfrost]

But how long will it be? I know that before the primitive times, when people did not have enough conditions, they considered money a tool, and it was used almost for the right purpose, a tool to exchange goods. Even a shell would be a tool for exchange. Today we have many things that are considered such tools but they are corrupted and their purpose of use is also different. Perhaps in our time, fiat is something we have easier access to, but I think the future of crypto will replace many things and be seen as a tool of exchange for many products.

[Dunamisx]

However, the majority of the population are not willing to do this and still only see FIAT as the main money system.  If they hear about Bitcoin, is only seen as a store of value or a like a stock to get more fiat.

Understand this as well, people that does not believe in the existence of bitcoin or doubt it role in the current economy system will not even give an approach in seeing it as an investment asset to get more fiat, possibly if they had known such before time they would have cease the opportunity to invest in bitcoin and receive a massive ROI on their investment when exchanged back to fiat, we need not to overlook the fact that every businessman is after making profits be it investing on crypto or any other investment asset.

Also the media, corporations and governments are still successful in making everyone use FIAT regardless of the inflation that is happening. Come to think on it, people do not see that fiat is the cause of inflation at all.

After all they are not mandating fiat currency as a must on citizens and this gives me and you the privilege to be here enjoying the benefits in bitcoin, while we have some countries placing ban on commercial banks to make bitcoin transactions same we have other countries encouraging that and cease the opportunity through their financial institutions, individuals result or outcome is now base on the approach given either in continuous use of fiat under the rule of inflation or surviving through inflation with the role of bitcoin in the econmy.

[PX-Z]

I don't think Fiat will always be the norm. It is so right now becayse old man are still in power and unwilling to give it up. A few politicians control the fate of millions. It's the same kind of governments all around the world. Politicians first think about themselves and only later about the ordinary people. It would be good for society if crypto currencies would be playing a bigger role, but for that to happen fiat money needs to lose some power. The problem we face with switching to a more independent financial system is that governments would need to act more prudent and couldn't keep issuing new debt every year. Unfortunately politicians are not willing to make that sacrifice yet. Maybe in 10-20 years we will have a new area of more open minded politicians.

It needs lots of considerations, huge resources to invest for internet usage in any part of the world or country for crypto to dominate fiat as crypto transfers needs internet unless they use a custodial wallets that has features to send crypto/bitcoin through sms which is possible for such kind of wallets.

[o48o]

Inflation is part of how Fiat money works, it isn't designed to be store of value like gold for example. Fiat money works very well for what it's designed to do. I don't get why people are comparing bitcoin to it as payment method because i can't see it as scaleable alternative for numerous of reasons. Then again i am not a crypto anachist. Fiat money is government money, they rule it and do what ever they want to keep it in check.

[DapanasFruit]

As of the current situation of the world economy, fiat money remains the KING and it can be that way for many decades to come. I am seeing Bitcoin and cryptocurrency to be existing alongside with fiat until there can be a big and global crisis that can be shaking the establishments and the financial system so that people will realize that it would be better to be investing, using and trusting Bitcoin as the best alternative. Changes are not that easy to come and as of the moment people are always asking: "what's in it for me" hence BTC is more of a store of value or a speculative tool rather than a currency people are using everyday. Now, we don't have to be impatient because this is one thing that we could not forced on the people...eventually we will get there and in fact surveying all the developments that happened in the past 10 years I would say that Bitcoin and crypto achieved a lot.

[Zilon]

In the days of ignorance lack of knowledge  is always an excuse.  Many still have limited knowledge about crypto currency and to embrace this era the story of crypto should be told as often as needed.  It is difficult embracing  something  you have  no knowledge about and as long as fiat is the key available  source of exchange  it will remain king in the mind of the masses  except  more people talk to more people about crypto currency not with the mind of profit making  but  to boost the adoption  even more.

[coinism]

This issue of crypto and fiat comparison is as old as hills. Fiat is there in different forms from the time man started life on this planet earth. Crypto is just decade old and has challenged the monopoly of institutes controlling wolrd finance through fiat. I don't think fiat is going somewhere atleast in near future, while crypto adoption may increase with time it won't replace fiat for daily living for many reasons.

[GreatArkansas]

For me, it is because we are still early. Bitcoin or cryptocurrency right now is still early, still a lot of room to grow.
For me, FIAT will stay as Bitcoin will stay too.
Fiat <-> Bitcoin in the future will be the same thing, it will be always the choice of people, which they will choose.
It is normal today that people still looking at Bitcoin or other cryptocurrencies just for investment or like in stock markets.

[Wexnident]

Well I wouldn't deny that Fiat would stay even with the development of crypto, heck even if the majority of the merchants and services accepted crypto, I'd doubt Fiat would actually die, it's just that convenient for most people. Also inflation is part of the system afaik, just that the government isn't exactly doing the best when it comes to handling it.

But that doesn't exactly mean crypto couldn't be part of the mainstream no?

[taufik123]

Well I wouldn't deny that Fiat would stay even with the development of crypto, heck even if the majority of the merchants and services accepted crypto, I'd doubt Fiat would actually die, it's just that convenient for most people. Also inflation is part of the system afaik, just that the government isn't exactly doing the best when it comes to handling it.

But that doesn't exactly mean crypto couldn't be part of the mainstream no?

anything is possible, just as Crypto could become part of the mainstream. it's only a matter of time, but for now FIAT is still the most important. Fiat is also present in digital form and it also makes transactions easier, but inflation is a problem that continues to occur on this earth.

Fiat and crypto are still side by side. If massive adoption happens to bitcoin I think Fiat will still survive.

[decodx]

Crypto could take over fiat, but fiat's strengths are it's trust and interoperability. Right now it's the easiest method to use, and that could be the very reason people end up using it as their main currency. Crypto payments are still not fully understood by many companies, and they aren't integrated into existing processes and systems. Bitcoin still isn't used enough which means it's still not a great solution for commerce, and fiat is the only widely accepted payment method around.

[AicecreaME]

FIAT is too outdated for me because of hyperinflation, so cryptocurrency for me is the real future. But as of now, fiat will still be the main currency for the majority. In no time, cryptocurrency will be embrace fully by the whole world, best example is when Ukraine has been attacked by Russian, in times of crisis, cryptocurrency provides that FIAT can't.

[Fortify]

How Fiat Will Always Be The Norm

With all the ongoing growth with cryptocurrency has created many different avenues of direction in many ways. It does create more control for the people of their money but this is only successful when someone educates themselves on this system.

However, the majority of the population are not willing to do this and still only see FIAT as the main money system.  If they hear about Bitcoin, is only seen as a store of value or a like a stock to get more fiat.

Also the media, corporations and governments are still successful in making everyone use FIAT regardless of the inflation that is happening. Come to think on it, people do not see that fiat is the cause of inflation at all.

More and more inflation is happening with more money being printed all the time. Yet people still demand more services from the government which creates more money to be printed and more inflation.

Yet people do not see this as a problem at all, since the demand for specific services keeps increasing.

Many people just do not understand that they are encouraging inflation. All these factors play in the role that fiat is here to stay. People just don’t see the problems of fiat nor able to see the benefits of crypto.

This will be for sure a spiral down to something really bad in the next while. What type of solutions are there to fix this problem?

It is a bit of a catch-22 situation and you definitely identified one of the main reasons - all these people reciting "HODL" are stuck in the mindset that they own a form of digital gold. Some sort of unique and very rare that they must keep forever - like Smegle chasing the ring to Mordor. Many people around the world are lucky if they can save anything at all, they need a currency that is instant, convenient and functional in day to day life. While other cryptocurrency might at some point get to that stage, Bitcoin itself has many drawbacks associated with those things. I think the best way to use Bitcoin is for money repatriation for overseas workers, who are able to avoid greedy banks and money changers when sending relatively large chunks of money back home.