Some newbies think that Bitcoin can eliminate traditional currencies

[Ishicryptic]

From time to time I always see and hear new Bitcoin enthusiasts that have this believe (fantasy) that one day Bitcoin will totally eradicate traditional banking systems. They surely lack proper Bitcoin knowledge, it was not created to eliminated traditional currencies but to be an alternative to them. Newbies needs to understand that all traditional currencies like USD are centralized which means that they are controlled by government central banks.

Bitcoin was created as a decentralized digital currency to be the opposite of what centralized currencies represents. No doubt both Bitcoin and traditional currencies can coexist, people now have a choice to hold a decentralized currency that is not controlled by any government. Bitcoin gives freedom and privacy to it's holder, they can do peer to peer transactions without any third party involvement like banks and exchanges

The more reason why Bitcoin cannot eliminate traditional currencies is because it has become a store of value. Many people will rather hodl it for profit instead of using it for financial transactions. It means that traditional currencies are still preferred for payments.

On a humorous note I wouldn't want Bitcoin to eliminate traditional currencies because governments can feel intimidated and ban it in their countries, it won't help the adoption. So what is your take on the believe (fantasy) that Bitcoin will one day eliminate traditional currencies?

[Ruttoshi]

Fiat currency was created by the government in order for them to be able to use it  as a legal tender for their countries. Not only that it gives them the power to manipulate and control the citizens financial life. Bitcoin is the opposite and government wouldn't allow bitcoin to take over from fiat because it's not theirs and they can't print more bitcoin unlike fiat.

However, majority of people adopting Bitcoin isn't doing so because it's a currency that they can use but as an asset which has a hedge against inflation. I feel that cryptocurrency like usdt and the rest stablecoins are used more as payment method than bitcoin due to her steady increase in value overtime.

[Stormisover]

Newbies thinking or making an assumption in that direction only shows their own level of understanding and it is their best interest to learn more learning is a continuous process, from the knowledge i have I don't think it can be possible for and if at all such time will ever come when Bitcoin will eliminate any nation traditional currencies completely if proper considerations are made that it is never going to be possible because Bitcoin is a digital currency and not everyone by default can make use of it, if Satoshi can be seeing people talking about Bitcoin as being a threat to any nation traditional currency maybe I don't think he will be happy because it doesn't seems it is part of his dreams for Bitcoin.

[Doan9269]

The more reason why Bitcoin cannot eliminate traditional currencies is because it has become a store of value.

Bitcoin is not here to compete with the use of fiat, but rather to serve as an alternative to using this same local currency, because it gives the privacy required and we can also control our financial economy all by our own self.

Bitcoin has gone even beyond the expectation of its creator, because very soon now, everyone will have no option than to embrace the use of bitcoin and this has just created an opportunity for everyone to take charge of their financial economy and also be profitable in their choice for choosing bitcoin, they may both exist, while on a long time, the people may shift to the use of bitcoin more preferably than fiat.

[Ambatman]

On a humorous note I wouldn't want Bitcoin to eliminate traditional currencies because governments can feel intimidated and ban it in their countries, it won't help the adoption. So what is your take on the believe (fantasy) that Bitcoin will one day eliminate traditional currencies?

It can't. They both have different target market. There are People that enjoy the use of Fiat and their money being in third parties custody
While there others that understands the benefits of self custody.
Bitcoin is an alternative payment method like you said not a replacement.


Newbies that feel bitcoin is replacing Fiat isn't a fault of theirs but the source of their information.
I have seen people that push bitcoin as perfect and a replacement for fiat.


Besides Fiat is a tool in controlling the economy and correcting either deficit or surplus
Unfortunately it has being tainted by the greed of those above.

[Joy- maker]

I have witness many occasions where things like this are been said, and the funny thing there is some people are even saying that they don't need the banking system anymore that bitcoin can replace it,  well it's not their fault they still need more knowledge and understanding about bitcoin. but the truth is bitcoin is not here to eliminate out current traditional banking system, rather  bitcoin is  here to serve as alternative currency to the fiat. Bitcoin is not dragging anything with our current traditional banking system. And secondly bitcoin cannot become a country currency do it decentralize nature and volatile in nature.

[SilverCryptoBullet]

Newbies needs to understand that all traditional currencies like USD are centralized which means that they are controlled by government central banks.

They need to know that stable coins are centralized too (not all but the majority of stable coins are centralized). Furthermore, governments can request stable coin companies to freeze stable coins in any address.

It's very big risk of centralized stable coins.

PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets.
Stablecoins and blacklists.

[sunsilk]

I was one of the many believers when I was new to think like that. I think that there is nothing wrong with that or to say that we surely lack knowledge with Bitcoin is kind of mocking.

It starts with the belief on how powerful Bitcoin is as part of the financial systems. We are just simple enthusiasts that have certain belief on how Bitcoin will disrupt the financial and tech industry.

Well, it's happening nowadays but I agree that it's better if they just co-exist and none will be eliminated because both has their pros and cons.

[Peanutswar]

They are just making an overwhelming approach with the crypto once they experience what are the perks and benefits of it so I guess its just their hype, sooner or later they will realize that. Theres is no chance they the bitcoin will replace the local currencies of the different countries because its a regulated by the law and also they have the over take control with the supply and demand the same time with their money it has a impact too if they will change their kind of payment and use the bitcoin as their currencies not all are into crypto and enlighten with the purpose of it so if you don't want to have a chaos happen slowly adaptation is just must but not as remove their local currencies.

[Obim34]

So what is your take on the believe (fantasy) that Bitcoin will one day eliminate traditional currencies?

Popular saying in my country, i don't know if it goes beyond, but they say after God is Government.

Why fear government is because they hold power. Something that is not generally bestowed.

If you don't respect anyone, that wouldn't be extended to the government because they have the power to close every operation. The fact is that Bitcoin won't replace any country's fiat, not in a hundred years to come, if anyone has that idea, it better be buried early. As long we have average and poor citizens in a country, the traditional banking system will always work, and who would borrow rich dude loans if not the banks.

[OcTradism]

Popular saying in my country, i don't know if it goes beyond, but they say after God is Government.

Why fear government is because they hold power. Something that is not generally bestowed.

Givernments are not God and can not do or achieve anything they want, but if you are a citizen who self give up your control and freedom, you are done and you will be completely observed, traced and controlled by governments.

It is reason why people try to warn the others especially newbies about following risks.

It is not your key, it is not your coin.
KYC is extremely dangerous and useless.

Be wisely and carefully with your privacy, money and how you store your fund like in bank accounts, Bitcoin - that is decentralized, or altcoins - that are centralized like banks.

[Franctoshi]

Bitcoin was not meant to take away the fiat currency but a hedge against inflation and centralised system.
Because of the divers languages and culture, I doubt if fiat currency will totally go out of existence and be replaced by Bitcoin but basically becomes the alternative form of money where countries, banks and institutions may decide to store their wealth rather than replacing it.

[BtcAnalyst1]

Yes, the bitcoin concept does not includes eliminating fiats but to be a stronger alternative based on its features. As a matter of facts, fiats are centralized while bitcoin remains a decentralized digital currency. I think both are very useful on the economy, but bitcoin has the potentials to dominate fiats because of it's limited supply and the capacital for it's demands to increase as time progresses.
Fiats are constantly devalued due to inflation, and printing of more fiats, bitcoin supply remains the same, a maximum supply of 21m BTC.

[$crypto$]

Those who are fanatics with bitcoin might say something like this where they are more confident with bitcoin payments than traditional money, but the fact is that it will not happen the government still has great control over this maybe it can make strict regulations on the use of bitcoin, can the government do this?

Fiat money will still exist, bitcoin as an alternative --- then that's true.
Bitcoin as a good store of value in the future --- fiat is only used for daily transactions.
Don't expect to eliminate fiat, it won't work.

[Filicius]

In some countries it seems like they want to eliminate cash, but it will be using CBDC's if they finally do it, not Bitcoin. Bitcoin being pseudonymous is not too bad, but I think that it is positive for privacy to keep having an anonymous alternative for payments, or for small everyday payments at least.

[r_victory]

I have already expressed my opinion on this in another thread, but I would like to express it here as well.

Physical money is used for business, day-to-day payments, by merchants. We buy food at the market, our clothes, pay our bills and rent. It was created for this purpose and fulfills its role very well.

Given the direction that Bitcoin has taken, being seen only as an investment/store of value, it will be practically impossible for it to replace fiat currency. What Bitcoin holder will buy a pizza now? Pay for a coffee? With the price rising more and more.

I know that there are still many enthusiasts, "libertarians", who use it for payments, but they are the minority. This is the reality at the moment, and it is better to accept it.

[Jegileman]

From time to time I always see and hear new Bitcoin enthusiasts that have this believe (fantasy) that one day Bitcoin will totally eradicate traditional banking systems. They surely lack proper Bitcoin knowledge, it was not created to eliminated traditional currencies but to be an alternative to them. Newbies needs to understand that all traditional currencies like USD are centralized which means that they are controlled by government central banks.

Newbies when introduced to bitcoin usually have this misconception that bitcoin came to fight the traditional currency and to eliminate it which in the real case it is nothing like that. The banking system has been existing for long now and with the power of its operations being in the hands of the government makes it very hard for bitcoin to even fight it and win over it. It is better for being used as alternative to fiat currency instead of it being compared to it.

On a humorous note I wouldn't want Bitcoin to eliminate traditional currencies because governments can feel intimidated and ban it in their countries, it won't help the adoption. So what is your take on the believe (fantasy) that Bitcoin will one day eliminate traditional currencies?

I don’t see that happening anytime soon, if it will happen, it is going to be a long time from now because bitcoin is not even being adopted with that mindset from the people. The government has shown interest in bitcoin but not for financial transaction purposes but to be used as a store of value through creation of strategic reserves for them. The government is not definitely looking at it in the perspective of eliminating the fiat currency but as a profitable asset to hold on to for the long time.

[Finestream]

If only bitcoin started as a centralized currency, then it would have higher chances to be the official currency all over the world. However, bitcoin is decentralized which makes it unique, and any decentralized currency will not be allowed by any centralized government to take over as an official currency or a legal tender, so there’s no reason for bitcoin to replace fiat in its position.

After all, bitcoin isn’t created to take over fiat’s position, as it’s here to give us financial freedom, and co-exist with any centralized currency.

[Floxynice]

Bitcoin was not meant to take away the fiat currency but a hedge against inflation and centralised system.
Because of the divers languages and culture, I doubt if fiat currency will totally go out of existence and be replaced by Bitcoin but basically becomes the alternative form of money where countries, banks and institutions may decide to store their wealth rather than replacing it.

Fiat can never cease to exist. Do you think the government will dump fiat, which they have full control over and can easily monitor, knowing who holds a certain amount of fiat and how taxes and other revenues will be allocated or imposed on individuals and corporate bodies? Dumping fiat with all these benefits for Bitcoin, which they are still finding hard to properly regulate? Certainly not. No matter how we push it, the government won't make it happen.

Well, the information about Bitcoin being an alternative means of payment is old gist already, and any newbie who still thinks Bitcoin will eliminate fiat is just living in ignorance.

[HONDACD125]

Well, even if Bitcoin can't completely eradicate fiat or traditional currencies, one thing is certain, their usage will be lowered because of Bitcoin and other cryptocurrencies becaus, over time, people start preferring cryptocurrencies over fiat currencies for most of their financial operations, fiat currencies won't have the same value and importance as they do right now, and I say that in the sense that people have already started choosing cryptocurrencies to store their wealth knowing that they can get better privacy with their finances with them.

When it comes to governments banning cryptocurrencies for being a threat, they can do that, but with time, we can see that even governments are giving up because they see other countries moving forward with cryptocurrencies, and they don't want to stay back, this has made so many countries and their governments embrace the reality that cryptocurrencies are here to stay, even if they aren't to replace fiat currencies, they will surely become most used currencies in the world in the future.