Can a Crpytocurrency replace current economic systems?

[barbara44]

Current economic systems are designed and governed by the central authorities which makes them reliable. People will never simply trust cryptos as an alternative just because they might offer additional benefits. People want security and want their money to be insured always. When it comes to cryptos, there is no third party involved which transfers the money peer to peer. Central authorities have regulated the current economic system in a way that it benefits both the user and the nation. Even though it might seem unfair, the current system seems to be working pretty fine.

Your project has merits and even if you are not able to capture or change the entire economic system, you can at least capture a decent community to earn you good profits. You can build your own economic system within the community and expand if all goes fine.

[passwordnow]

For the strict countries, I think that's better than banning it. They can opt to make it as an investment rather than involving it with potential of helping its economy through legal matters. It's better to leave it that way without having so much expectation. Only a few countries have the balls to do that with a straight involvement of crypto to their economic policies and one of the few is El Salvador.

El-Salvador is a real example of how Bitcoin is being adopted directly in their country and it became a starting point on the rise of Bitcoin that Bitcoin can also be a real Adoption for a country.
But of course there will be some pros and cons to the mass adoption rule.
Some resistance occurred and in the end Bitcoin continued to rise and made El-Salvador gain more profits.

Rather than just banning it, it is better to provide a clear regulation and
how to regulate it so that it can provide benefits for retail users or for countries that provide the best regulations for bitcoin and crypto.

I agree, these governments know that they can benefit and capitalize from it. And from making certain regulations, it will also be a win for their citizens who are into it that also contributes to the taxation of their economy and country. But others are turning into that quick decision of banning it asap without having to further study if it will be helpful to at least give it time to study and how the people who has it can help somehow in a little way for their contribution to the government with their spending power and the value that they hold on it.

[Davidvictorson]

Have you ever asked yourself if our current economic systems even make sense? Could they be replaced with a Crypto alternative? Are there any serious projects out there actually trying to do that?

I started a while ago and the whitepaper and technical documentation is as far as I got, feedback is welcome. It ended up looking more like an economic protocol than a token or a chain.

https://github.com/MoziHayek/nomos-protocol

I'd like to move forward with this project, but I'm not really sure where to start as I don't believe there are currently any projects like this out there.

Never say never
However it will be close to impossible because have a replacement, however they could exist together.
The world financial and economic system has been organized in such a way that doesn’t permit a new entrant.
I encourage you though to move forward with the project and see how far it goes.

Good luck.

[SquallLeonhart]

When I was newly into cryptocurrencies and this industry, I also used to have the same thoughts about how cryptocurrencies will replace fiat currencies in the future, and then we will only use cryptocurrencies as payment for anything we do, but as time went by, and I got more knowledge and understood things more clearly, I realized that it is not going to happen, and fiat currencies or the traditional systems are not going anywhere, which means that cryptocurrencies and the traditional systems will go side-by-side and there will be no replacing of any sort.

The reason for that is simple; governments won't let that happen, first of all, because if a cryptocurrency has a decentralized network or protocol like Bitcoin, they won't be able to control everything since they won't have the power to do so, and all they would be able to do is watch wallets and movement of the assets, but they won't be able to stop them, or block wallets, etc. If a cryptocurrency is centralized then I see no reason why we shouldn't continue using fiat instead of a centralized cryptocurrency.

[savetheFORUM]

Today’s financial systems cannot be viewed as isolated entities. The financial system is part of geopolitics, part of power, part of the structure of individual states, and part of a system of incentives and penalties...
In my opinion, until there is a global transformation of the world order, the fiat system (even in the form of a “central bank digital currency” or CBDC) will remain in one form or another, while cryptocurrencies may form an alternative level of financial interaction but will not replace the fiat model.

Even I think cryptos are never meant to replace the fiat model but work alongside. Cryptos are best when paired with fiat, so I don't really think there is any need to replace fiat. Fiat should be the primary monetary mode which cryptos being secondary. Even though both might function similarly, their end goals are totally different. CBDC is something that can renovate the fiat model. With the digitalized payment modes, there is no need to add cryptos as another payment mode. It might just complicate things. Cryptos are best the way they are right now.

There has always been this debate where cryptos can replace fiat, but I highly doubt if that would even happen even in the coming future. Maybe after a couple of decades, the entire world would change completely, and cryptos might be the primary source in that era, but this might not be the right time.

[taufik123]

I agree, these governments know that they can benefit and capitalize from it. And from making certain regulations, it will also be a win for their citizens who are into it that also contributes to the taxation of their economy and country. But others are turning into that quick decision of banning it asap without having to further study if it will be helpful to at least give it time to study and how the people who has it can help somehow in a little way for their contribution to the government with their spending power and the value that they hold on it.

Countries like these may have their own judgments about how cryptocurrencies will affect the economic sectors in their countries.
But usually countries that initially banned eventually provide clear regulations on how crypto is used in their country as happened in China,
which initially completely shut down from crypto but is now a pro-crypto country.

Bitcoin Being the most popular digital currency in crypto and the mass adoption by pro-crypto countries provides good returns,
not forbidding a revolutionary economic technology from developing, but providing an opportunity and a forum to be able to develop it into a newer tool for profit.

[yhiaali3]

So great discussion, did anyone take a look at the project?

Since no one seems willing to bother reviewing the project, I have taken a quick look at project.
I'm not actually an economist, but from my quick reading I can say that your project is theoretically excellent.

If I understand correctly, your project aims to build a fair economic governance system based on token locking, economic weighting and a code based system, instead of the traditional governance dominated by whales. The idea combines behavioral economics, mathematical models, and decentralized governance to create a sustainable, long term system. The project is theoretically strong and innovative, but it's very complex and requires a large team and highly precise implementation to become a reality.

Transforming an “economic constitution” and mathematical behavioral models into smart contracts is a complex process requiring a large team and multidisciplinary expertise. Furthermore, governance can become overly centralized if not carefully designed.

For example, who writes the constitution? Who defines the equations? Who sets the standards? Who has the authority to amend the rules?
Whoever holds the keys to these matters may wield more power than society as a whole.

Conversely, the density of rules and mechanisms also poses a high risk of economic manipulation and significant challenges to security auditing.

These issues require research by a multidisciplinary team of economists, not just a single team.

[Mozi.Hayek]

So great discussion, did anyone take a look at the project?

Since no one seems willing to bother reviewing the project, I have taken a quick look at project.
I'm not actually an economist, but from my quick reading I can say that your project is theoretically excellent.

If I understand correctly, your project aims to build a fair economic governance system based on token locking, economic weighting and a code based system, instead of the traditional governance dominated by whales. The idea combines behavioral economics, mathematical models, and decentralized governance to create a sustainable, long term system. The project is theoretically strong and innovative, but it's very complex and requires a large team and highly precise implementation to become a reality.

Transforming an “economic constitution” and mathematical behavioral models into smart contracts is a complex process requiring a large team and multidisciplinary expertise. Furthermore, governance can become overly centralized if not carefully designed.

For example, who writes the constitution? Who defines the equations? Who sets the standards? Who has the authority to amend the rules?
Whoever holds the keys to these matters may wield more power than society as a whole.

Conversely, the density of rules and mechanisms also poses a high risk of economic manipulation and significant challenges to security auditing.

These issues require research by a multidisciplinary team of economists, not just a single team.

Wow, thanks for taking a look at it! I will say, most of your questions are actually answered in the white paper and in the technical documents.

I wrote the constitution, it's not perfect, but after a long conversation with AI and looking at the world around me, I deemed it necessary. I along with a family member and AI came up with the equations. We carefully checked their accuracy and even tested them to some degree, if possible. Amending the rules would be done by the governance layer. Higher rep profiles could propose rule changes to committees that could be voted on and groups of wallet holders, nodes, and participants would have voting power based on their role or group, exact numbers and weights are in the documentation. Oh and yes, this is a complex overall system/protocol, but using it and understanding the basic premise isn't, which is why I think it could work. Imagine we all use TCP/IP and have a basic understanding of it, but we certainly don't know everything about it. It's kept me up at nights for years and I'm just glad I was able to get it all documented.

[m2017]

Have you ever asked yourself if our current economic systems even make sense?

It makes sense if it still functions (even if it's not perfect). Everything you see around you was created within the current economic system (this is food for thought for the haters).

Could they be replaced with a Crypto alternative?

This is most likely exactly what will happen in the future (if we look at current trends and the advantages of crypto currencies for the regulator).

Are there any serious projects out there actually trying to do that?

All projects from central banks (CBDC) are quite serious, and I am confident that the regulator will see them through to completion.

I started a while ago and the whitepaper and technical documentation is as far as I got, feedback is welcome. It ended up looking more like an economic protocol than a token or a chain.

https://github.com/MoziHayek/nomos-protocol

I'd like to move forward with this project, but I'm not really sure where to start as I don't believe there are currently any projects like this out there.

You are doing meaningless work because the regulator with its CBDC will not allow you to enter this niche.

[Antotena]

Have you ever asked yourself if our current economic systems even make sense? Could they be replaced with a Crypto alternative? Are there any serious projects out there actually trying to do that?

I started a while ago and the whitepaper and technical documentation is as far as I got, feedback is welcome. It ended up looking more like an economic protocol than a token or a chain.

https://github.com/MoziHayek/nomos-protocol

I'd like to move forward with this project, but I'm not really sure where to start as I don't believe there are currently any projects like this out there.

You want to hear the truth right? Don't bother yourself trying to understand or relate reality of economy and crypto coins. If there is any coin that will try, I will say Bitcoin is the best coin that is going to solve some fundamental issues about economy and that is where Bitcoin reserves comes into play, any other altcoins that are saying they want to solve real problems are typical liers trying to use that to sell their projects to the people.

I have seen ton of projects comes up with different ideas, there is one famous singer Akon, he launched a project called Akoin city, did everything and wanted to open a city called Akon city but after many years of lies and tweets, they went into hibernation mode and after a while, he announced the discontinuity of the projects. There is nothing coins and projects can do if they don't come with sincerity, we have seen this book before many times and it failed.

[WillyAp]

You want to hear the truth right? Don't bother yourself trying to understand or relate reality of economy and crypto coins. If there is any coin that will try, I will say Bitcoin is the best coin that is going to solve some fundamental issues about economy and that is where Bitcoin reserves comes into play, any other altcoins that are saying they want to solve real problems are typical liers trying to use that to sell their projects to the people.

As it was seen in San Salvador Bitcoin is scary for most people ignorant of all things Crypto.
Litecoin would have been better IMHO basically all DEFI coins with fast and speedy exchange speeds.

[yhiaali3]

~snip~

Wow, thanks for taking a look at it! I will say, most of your questions are actually answered in the white paper and in the technical documents.

I wrote the constitution, it's not perfect, but after a long conversation with AI and looking at the world around me, I deemed it necessary. I along with a family member and AI came up with the equations. We carefully checked their accuracy and even tested them to some degree, if possible. Amending the rules would be done by the governance layer. Higher rep profiles could propose rule changes to committees that could be voted on and groups of wallet holders, nodes, and participants would have voting power based on their role or group, exact numbers and weights are in the documentation. Oh and yes, this is a complex overall system/protocol, but using it and understanding the basic premise isn't, which is why I think it could work. Imagine we all use TCP/IP and have a basic understanding of it, but we certainly don't know everything about it. It's kept me up at nights for years and I'm just glad I was able to get it all documented.

I understand your enthusiasm for the project and appreciate the great effort you have made, but I think that discussing it with artificial intelligence and one of your family members is not enough to cover all the points. You need to review the project with real economic experts who have a great knowledge of blockchain technology to discuss all the technical details accurately and discuss all the possibilities.

More importantly, if you're aiming to build a fully decentralized economic system based on digital currencies, have you considered how governments will accept such a project? Governments don't accept "fully decentralized governance," so how can you build an alternative economic system without their approval?

In the end, I wish you the best of luck and I hope you find someone to fully adopt your project.

[Mozi.Hayek]

~snip~

Wow, thanks for taking a look at it! I will say, most of your questions are actually answered in the white paper and in the technical documents.

I wrote the constitution, it's not perfect, but after a long conversation with AI and looking at the world around me, I deemed it necessary. I along with a family member and AI came up with the equations. We carefully checked their accuracy and even tested them to some degree, if possible. Amending the rules would be done by the governance layer. Higher rep profiles could propose rule changes to committees that could be voted on and groups of wallet holders, nodes, and participants would have voting power based on their role or group, exact numbers and weights are in the documentation. Oh and yes, this is a complex overall system/protocol, but using it and understanding the basic premise isn't, which is why I think it could work. Imagine we all use TCP/IP and have a basic understanding of it, but we certainly don't know everything about it. It's kept me up at nights for years and I'm just glad I was able to get it all documented.

I understand your enthusiasm for the project and appreciate the great effort you have made, but I think that discussing it with artificial intelligence and one of your family members is not enough to cover all the points. You need to review the project with real economic experts who have a great knowledge of blockchain technology to discuss all the technical details accurately and discuss all the possibilities.

More importantly, if you're aiming to build a fully decentralized economic system based on digital currencies, have you considered how governments will accept such a project? Governments don't accept "fully decentralized governance," so how can you build an alternative economic system without their approval?

In the end, I wish you the best of luck and I hope you find someone to fully adopt your project.

I agree and that's why I brought it up here and in other areas and groups, to see if I can get people to help who might be interested in it. Well as far as government acceptance, there's always a first, right? In all seriousness, there's no stopping an idea whose time has come.

[FanEagle]

Cryptocurrency can never replace the current economic systems but blockchain can. Governments do not really have to trust the pre-built coins with their finances but can integrate blockchain to come up with their own decentralized medium of finances which will make things way more transparent. This is not the first time we are talking about it and I am sure multiple government might already have given it a thought to launch their own coin where they can monetize and regulate the transactions.

Not now, but in future we might definitely see a few governments running on blockchain networks to make things way easier and transparent. This is not an easy task and would need approvals from a lot of departments which in itself can take a couple of years.

[alastantiger]

Never say never
However it will be close to impossible because have a replacement, however they could exist together.
The world financial and economic system has been organized in such a way that doesn’t permit a new entrant.
I encourage you though to move forward with the project and see how far it goes.

Good luck.

New currencies are being created and they are also getting adopted into the world economy but it is not as frequent as we thought. I heard that some countries have come together to decide to create a new currency that will rival the dollar and from the looks of things they may have a success very soon. For cryptocurrency to achieve this it will be very difficult and I don't think any newer cryptocurrency will be able to overthrown the dollar, the only currency that I think can achieve this is Bitcoin and that is not the purpose of Bitcoin though. Bitcoin was created to work independently not with the dollar.

[mobilestrike]

With the way things are going ,the whole point of whales having ETF and parking some of their money into bitcoin ETF is literally because of the economic systems fault. They have seen that no matter how rich they are, one day with one hyperinflation all of that could be gone. Especially the ones who are no longer working but sold their company for a lot.

Like today if you sell your company for a billion dollars, you retire as a rich person, but in 50 years your kids could be poor due to inflation. Hence why bitcoin is definitely taking over any other investment option as the best one for everyone.

[savetheFORUM]

New currencies are being created and they are also getting adopted into the world economy but it is not as frequent as we thought. I heard that some countries have come together to decide to create a new currency that will rival the dollar and from the looks of things they may have a success very soon. For cryptocurrency to achieve this it will be very difficult and I don't think any newer cryptocurrency will be able to overthrown the dollar, the only currency that I think can achieve this is Bitcoin and that is not the purpose of Bitcoin though. Bitcoin was created to work independently not with the dollar.

I don't know which countries you are referring to, probably Russia and China are a part of it, Iran could join hands as well I believe, however, I don't really think that it's going to be easy for any newly created currency to replace the place that the US Dollar have in the world right now.

Whether it's the online world or any country in general, mostly the dollar is used as the denomination for the value of goods and services if it's asked by someone who isn't a local. For example, if there is a ecommerce platform, such as Amazon, or any other platform, even though it gives you multiple options for the currency, but the mostly used one is the USD, because it's internationally recognized and used.

With that being said, I also don't think that Bitcoin or cryptocurrencies are going to change that, because cryptocurrencies are not going to be allowed to take over the currently existing payment methods and currencies, they are only being allowed to be used on the side, which means that if you are using fiat, you are also allowed to use cryptocurrencies, but if people say they are not going to use fiat currencies, those with authority won't allow them to use cryptocurrencies, and then they won't have a choice but use fiat again.

[henmark]

You want to hear the truth right? Don't bother yourself trying to understand or relate reality of economy and crypto coins. If there is any coin that will try, I will say Bitcoin is the best coin that is going to solve some fundamental issues about economy and that is where Bitcoin reserves comes into play, any other altcoins that are saying they want to solve real problems are typical liers trying to use that to sell their projects to the people.

As it was seen in San Salvador Bitcoin is scary for most people ignorant of all things Crypto.
Litecoin would have been better IMHO basically all DEFI coins with fast and speedy exchange speeds.

When it comes to cryptos, bitcoins have always been the first choice for most of us. Litecoin comes secondary when it comes to transactions even if it has a number of benefits like fast and cheap transactions, better blockchain support on-chain payments, etc.

Bitcoins are a great investment tool but when it comes to transacting bitcoins, they come with their own pros and cons. Pros would be you can make border-less transactions without worrying about the authorities. Cons would include higher transaction cost, slower confirmation speed, etc. Litecoin can still be an alternative for centralized governments to consider in order to integrate cryptos in their economic systems. There still are a number of alternatives like lightening network, etc.

[Odusko]

Government have control of the economic system and have that Centralised intentions towards it, crypto on the other hand is most privacy and decentralized in nature at least, to this extent we cant say that cryptocurrency will always remain unattractive to government and it officials reason that it pause a threat to the hold on the citizens and control of their financial freedoms, this reason is what make government to create so harsh economic laws that make it hard or crypto dominance to thrive.

[Dunamisx]

You can make use of cryptocurrency to support your idea to escape the economic hardship and challenges, but there is a way we must go about it with our own personal idea or strategy, because before we can have a global concession upon cryptocurrency absorption may take a little while to this time, everyone is taking it a responsibility upon themselves to engage the use of Bitcoin for their personal benefits.