How Fiat Will Always Be The Norm

[SpenserReed]

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.

So do you mean that crypto can create a world without inflation?

[Disruptivas]

Many countries have adopted extremely populist positions in recent years and after implementing these policies for a few years, it is really difficult to change that. Any kind of addiction becomes a kind of addiction. In this context, any policies, to be minimally effective in terms of controlling inflation, etc., would necessarily be unpopular and difficult to implement. However, there are super legal cases in the history of politicians who took unpopular positions, which after a few years proved to be super beneficial for the popular in general. But the first step to breaking this cycle is really difficult.

[Zlantann]

Fiat will continue to exist side by side with cryptocurrencies. For now there is no reasonable prediction that fiat would be replaced by cryptocurrencies. Bitcoin and others need technologies to functions. At least a mobile phone that is connected to the internet is needed to carry out an average bitcoin transactions.

A report indicated that a total number of 450 million people, about six per cent of the world’s population don't have access to mobile broadband coverage. Also,  3.4 billion (about 43 per cent of the world’s population) people do not use mobile internet despite living in areas with mobile broadband coverage. And this underdeveloped people are mostly found in Sub-Saharan Africa. https://punchng.com/450-million-people-lack-access-to-mobile-broadband-report/
How would this people handle cryptocurrencies transactions. They would ever embrace fiat.

Also most countries lack essential infrastructures that aids the usage of cryptocurrencies. Facilities such as power or electricity is lacking in most countries. Hence, it would slow the adoption speed of bitcoin and others and encourage the use of fiat.

Another challenge that would keep strengthening fiat is high rate of illiteracy in most countries. In some countries most citizens lack basic education which include reading, writing and arithmetics. These set of people would prefer to use fiat transactions that is much easier because they might not be able to understand the complexities of cryptocurrencies transactions

Summarily, some develop country might come close to replacing fiat with cryptocurrencies but most underdeveloped or developing countries would still hold firm to fiat because they might not have all that is required to make cryptocurrencies transactions smooth.

[noormcs5]

True. Fiat isn't going anywhere. It will eventually be obsolete but that would be after many decades. Until them, fiat will be mainstream. Cryptocurrencies will also be used, but it won't be replacing the fiat nor the banks. Instead the banks will start to adopt crypto currencies but in a centralized way and sadly most people will choose this centralized way because they are too lazy to learn and understand how crypto currencies work. All they know would be that it is a store of value and will give it to the bank to hold it for them. But eventually, crypto currencies will be used as regular currency, and hence will be able to replace fiat one day.

The reason for the existence of fiat is that people are not aware of cryptocurrencies. Also, the government discourages the growth of crypto and politicians worldwide don't want people to use crypto and they lose their control over the people.
When most of the buyers are not willing to accept crypto and most of the sellers also do not accept crypto, then how can cryptocurrencies become the norm?

[CryptoHeadlineNews]

It is very certain you can never eradicate fiat entirely from the system as fiat must always be the commodity in exchange for crypto, since it's simply because we have got fiat that cryptocurrencies exist. And fiat is the only measure through means a country can be ascertained to be either rich or poor through the value of its currency and not crypto, because if all countries are to use crypto there will be more recession even than we have now. But however, that doesn't mean crypto adoption shouldn't be encouraged in these places, because crypto has come to stay weather people like it or not.
What causes a recession is when a country consumes more than they produce. When the goods or natural resources imported into a country is more than they export out to other countries, it causes a devalue of its currency leading to recession. So my typical advice is that fiat and crypto will always exist, and left for you to know the difference and take advantage.

[Ebede]

It is very certain you can never eradicate fiat entirely from the system as fiat must always be the commodity in exchange for crypto, since it's simply because we have got fiat that cryptocurrencies exist. And fiat is the only measure through means a country can be ascertained to be either rich or poor through the value of its currency and not crypto, because if all countries are to use crypto there will be more recession even than we have now. But however, that doesn't mean crypto adoption shouldn't be encouraged in these places, because crypto has come to stay weather people like it or not.
What causes a recession is when a country consumes more than they produce. When the goods or natural resources imported into a country is more than they export out to other countries, it causes a devalue of its currency leading to recession. So my typical advice is that fiat and crypto will always exist, and left for you to know the difference and take advantage.

Fiat is originator and initiators of other currencies so in that case and some understanding cryptocurrency is new adoption of currency which is not officially know by every one due to news and other things, you are making sense that with your points because without fiat a country will lack thing's you will not like to afford with bitcoin and that is why is the originator of other currencies the idea of creating means of currencies

[MinMan]

Well, that’s just it; I think the people are only ready to fully accept whatever the government accepts as the legal tender. If the government in a country should accept Bitcoin as a legal tender, and remove their fiat currency (which has been the first and the original legal tender used for exchange of services and goods), then people will quickly adopt that.

But, as long there continues to be Fiat, people are not ready to fully adopt Bitcoin, it’s still going to be an asset or an alternative whenever they feel like using it.

[CryptocurencyKing]

Well, that’s just it; I think the people are only ready to fully accept whatever the government accepts as the legal tender. If the government in a country should accept Bitcoin as a legal tender, and remove their fiat currency (which has been the first and the original legal tender used for exchange of services and goods), then people will quickly adopt that.

These are very much unlikely to happen cases.

Government accepting Bitcoin and removing fiat from the system? Let's not just dream it because it can never happen. Government is a centralized system and fiat is a major string they pull to ensure control over what happens in a nation. With this sort of power that fiat accords the government, no government of any nation would be willing to do away with its measure too to centralization in order to go for bitcoin that is rather decentralized.
Again, fiat isn't just money like cryptocurrency is, its a national symbol too. Doing away with it is doing a way with a nations national symbol and for what? For bitcoin? I don't see this happening ever.

When it comes to cryptocurrency uses cases to be functional by government acceptance for a legal tender, you can take the case in El-Salvador for an example. It's already been accepted and we had a revolution from the people about it. That's to say, people are more comfortable with what they are used to as cryptocurrency requires some know how for which, most people aren't willing to go through.

[jhonjhon]

Central banks can regulate the amount of money created with fiat money, they have more power over the economy. The majority of current paper currencies, such as the US dollar, are fiat. One risk with fiat currency is that governments will create too much of it, leading to hyperinflation.

Advantages
Fiat money serves as a good currency if it can handle the roles that a nation's economy needs of its monetary unit—storing value, providing a numerical account, and facilitating exchange.

Disadvantages
The mortgage crisis of 2007 and subsequent financial meltdown; however, tempered the belief that central banks could necessarily prevent depressions or serious recessions by regulating the money supply. A currency tied to gold, for example, is generally more stable than fiat money because of the limited supply of gold.

Ref. https://www.investopedia.com/terms/f/fiatmoney.asp

[Finestream]

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?

The government will always hate the fact that bitcoin is decentralized, as they won't have any control on it, so most likely fiat will always stay in its position and will always be the norm in the financial industry. Although inflation has continue affecting our world's economy, but i guess we can't do nothing about it as long as fiat will always remain as the official currency, and bitcoin will always be considered as a threat to fiat.

[Nerdy doctor]

I disagree with you in that. Fiat won't always be the norm.
We've come a long way as humans and transacted commerce and accepted payments for services rendered. There were various means of payments and what was used as money before fiat came along. Change is necessary and like we have always evolved in our means of payment and what is accepted as money. A key characteristic of money is acceptability meaning it must be generally acceptable. Btc is slowly yet steadily becoming acceptably generally and would overshadow fiat in the coming years. Fiat would probably still be around but would probably be used as a second choice.

[AjithBtc]

The government will always hate the fact that bitcoin is decentralized, as they won't have any control on it, so most likely fiat will always stay in its position and will always be the norm in the financial industry. Although inflation has continue affecting our world's economy, but i guess we can't do nothing about it as long as fiat will always remain as the official currency, and bitcoin will always be considered as a threat to fiat.

Inflation is the major thing that is being talked whenever there is someone to adopt/use bitcoin. As stated governments never take the inflation causing the lack of purchasing power, but it requires everything to be under its control. Even the government knows well about the positive side of bitcoin, but they never say the good. Always try to suppress it with negative statements. Hope things will change, as small countries around are adopting bitcoin.

[Fatunad]

The government will always hate the fact that bitcoin is decentralized, as they won't have any control on it, so most likely fiat will always stay in its position and will always be the norm in the financial industry. Although inflation has continue affecting our world's economy, but i guess we can't do nothing about it as long as fiat will always remain as the official currency, and bitcoin will always be considered as a threat to fiat.

Inflation is the major thing that is being talked whenever there is someone to adopt/use bitcoin. As stated governments never take the inflation causing the lack of purchasing power, but it requires everything to be under its control. Even the government knows well about the positive side of bitcoin, but they never say the good. Always try to suppress it with negative statements. Hope things will change, as small countries around are adopting bitcoin.

Better not to make yourself that hopeful for government to have some u-turn in speaking about cryptocurrencies which it would really be still focusing or ending up on throwing negative sentiments and feedbacks
or the worst do make out direct ban without any questions or reconsiderations but well this isnt something surprising for government to do so because it would really be something like this.
Fiat would remain no matter what and its true that crypto cant take over as long they are on the peak on the chain, Crypto would still remain as an alternative nor matter what.

[AmoreJaz]

The government will always hate the fact that bitcoin is decentralized, as they won't have any control on it, so most likely fiat will always stay in its position and will always be the norm in the financial industry. Although inflation has continue affecting our world's economy, but i guess we can't do nothing about it as long as fiat will always remain as the official currency, and bitcoin will always be considered as a threat to fiat.

Inflation is the major thing that is being talked whenever there is someone to adopt/use bitcoin. As stated governments never take the inflation causing the lack of purchasing power, but it requires everything to be under its control. Even the government knows well about the positive side of bitcoin, but they never say the good. Always try to suppress it with negative statements. Hope things will change, as small countries around are adopting bitcoin.

they are not publicly acknowledging the good side of bitcoin or crypto, because it is against the centralisation system that they are implementing to its people. but yeah, more then likely some of these officials already did their homework. and they can't give their output in public because it is against their financial system . but for sure, sooner or later, some of these officials will admit owning some crypto when the community is more accepting with this new currency.

[Argoo]

Well, that’s just it; I think the people are only ready to fully accept whatever the government accepts as the legal tender. If the government in a country should accept Bitcoin as a legal tender, and remove their fiat currency (which has been the first and the original legal tender used for exchange of services and goods), then people will quickly adopt that.

But, as long there continues to be Fiat, people are not ready to fully adopt Bitcoin, it’s still going to be an asset or an alternative whenever they feel like using it.

Even if governments abandon their national money in favor of cryptocurrencies, I do not think that then citizens will quickly switch to using cryptocurrencies. There are still many problems here, and some of them are quite difficult to solve. However, states will never abandon their fiat currency. It is not even worth dreaming and fantasizing about. Cryptocurrency can only walk in society along with the fiat of states, and at the same time fiat will always be the leader. States have been a form of our social structure for many millennia, and for the full functioning of the economy, each state needs its own currency, which it can control. Other forms of payment can only be alternative.

[evichi]

Money, in the form of our current fiat system, has been part of human history for at least the past 5,000 years (Investopedia). Before that time, historians generally agree that a system of bartering was likely used. Bartering is a direct trade of goods and services; for example, a farmer may exchange a bushel of wheat for a pair of shoes from a shoemaker.

The point is that it may take decades for people to start using cryptocurrency for day to day transactions. From every indication, cryptocurrency will suffice as the future of financial transactions because of its unique characteristics and benefits. Cryptocurrency is the future of money, IMO.