Can a Crpytocurrency replace current economic systems?

[Y3shot]

Bitcoin is great as a store of value, but I don't think it works well as an alternative for daily transactions and use. That's more a fault of fiat than it is Bitcoin. Fiat is the default across the world and our systems and technology have adopted to it. Unfortunately, Fiat's value is bound to the whims of politics, so it's inevitably inflationary, to the point where some government's have effectively made their currency worthless. Did you look at my project?

The idea of Bitcoin is not to completely replace fiat, and it is not even intended to boost the economy. The idea behind Bitcoin is for freedom and as a means of storing value. Bitcoin can’t solve the economic problems but can play a positive role for individuals during an economic crisis. In this economic crisis, it is up to people to tackle it to generate income, and then it can also be invested in a good store of value like Bitcoin to yield a good return. Economic problems have to do with leadership, which requires a leader to think carefully in order to solve them.

[Smack That Ace]

Stablecoin and CBDC are not very different. We are all centralized currencies, managed and controlled by the government. CBDC may be even safer because they are regulated by central bank. Meanwhile, stablecoins are managed only by private companies, and the risk is that they could go bankrupt, lose liquidity, and our money could disappear permanently.

Bitcoin was designed as a decentralized currency, but today it is used as a store of value. Therefore, comparing it to stablecoin and CBDC is unnecessary.

Each to their own but I think if CBDC gonna get regulated by central bank and managed tightly, you're essentially losing what stablecoin do best which is uncomplicated transfer and remittance.

What if CBDC follow the bank guidelines with tight screening and you're gonna get asked so many questions when you receive money from abroad and your account got frozen and there has been so many such stories where people got their account frozen for receiving money from their own family abroad, at least your address isn't gonna get frozen and asked those many questions when you are sending stablecoin that lives in decentralized blockchain.

As far as I know, USDS is the only decentralized stablecoin on the market, so far. But it is not really popular or widely used, instead, most people use USDT and USDC. Unfortunately, they are centralized stablecoins and they are strictly complying with regulations such as the GENIUS Act and MiCA. This means your asset can still be frozen without prior notice or request. This is even worse than how banks operate, because you almost have no chance to recover your money.

Tether has done this many times without a court, without prior notice and without explanation. I believe you know this very well, don't you?

[kawetsriyanto]

The idea of Bitcoin is not to completely replace fiat, and it is not even intended to boost the economy. The idea behind Bitcoin is for freedom and as a means of storing value.

The basic idea of having Bitcoin was to be an alternative of transaction. It wasn't for storing value, nor for solving economic problem as a whole. Until now, Bitcoin still has some limitation because not all countries accept Bitcoin fully. In some countries, people only can use Bitcoin for their own assets. In this way, Bitcoin has no power to change the economic system or boost the economy level.

Bitcoin can’t solve the economic problems but can play a positive role for individuals during an economic crisis. In this economic crisis, it is up to people to tackle it to generate income, and then it can also be invested in a good store of value like Bitcoin to yield a good return.

Indeed. Bitcoin has no ability to solve the economic problem in a country, but it can solve a financial problem of individual. Economic crisis covers a wide range of economic problems, this requires a more comprehensive solution.

Economic problems have to do with leadership, which requires a leader to think carefully in order to solve them.

Exactly. It is the responsibility of the government. They need to change the policy in a country, so the economic problems can be solved.

[shinratensei_]

As far as I know, USDS is the only decentralized stablecoin on the market, so far. But it is not really popular or widely used, instead, most people use USDT and USDC. Unfortunately, they are centralized stablecoins and they are strictly complying with regulations such as the GENIUS Act and MiCA. This means your asset can still be frozen without prior notice or request. This is even worse than how banks operate, because you almost have no chance to recover your money.

Tether has done this many times without a court, without prior notice and without explanation. I believe you know this very well, don't you?

My concern wasn't on the stablecoin itself getting blacklisted, we know it's centralized token and have blacklist mechanism. My concern was the difference on the centralized control mechanism that CBDC and stablecoin have.
Stablecoin only have control on the smart contract code, the blockchain is still decentralized and immutable. CBDC have control on the entire blockchain down into the smallest piece and I doubt it will be immutable.

When someone got blacklisted randomly, only their stablecoin can't move, their address is fine and all the other crypto inside it. CBDC's private blockchain could freeze your entire account, and possibly rewrite history. Who knows right?

[Abiky]

My concern wasn't on the stablecoin itself getting blacklisted, we know it's centralized token and have blacklist mechanism. My concern was the difference on the centralized control mechanism that CBDC and stablecoin have.
Stablecoin only have control on the smart contract code, the blockchain is still decentralized and immutable. CBDC have control on the entire blockchain down into the smallest piece and I doubt it will be immutable.

When someone got blacklisted randomly, only their stablecoin can't move, their address is fine and all the other crypto inside it. CBDC's private blockchain could freeze your entire account, and possibly rewrite history. Who knows right?

True. But there are stablecoins with proprietary blockchains. They can behave the same way as CBDCs. For instance, Circle (issuer of USDC) has its own L1 blockchain network called Arc. It's a permissioned ledger, which means Circle can freeze the entire chain or rollback transactions whenever it wants. In this case, there would be no difference between a stablecoin and a CBDC.

Governments might even decide not to "reinvent the wheel" and use existing solutions (stablecoins) that would act as "de-facto" national currencies. Trust will be transferred to companies instead of the government. Many things can happen in the future. Better be prepared for the worst, just in case.

[Jostern]

Currently I think that each one of them are just there to be serving there a particular purpose, so I don’t really think that it’s necessary for anyone of them to be replacing anyone in this situation, but I don’t really know if any cryptocurrency can solve any problems at this moment, but I can be confident with bitcoin, bitcoin might be able to solve some economic challenges that we might be facing, but in other sense bitcoin might not be the only solution to solve this Challenges.

[kawetsriyanto]

Currently I think that each one of them are just there to be serving there a particular purpose, so I don’t really think that it’s necessary for anyone of them to be replacing anyone in this situation ~

Sure, crypto doesn't need to replace the current system in economic or financial sector. Crypto functions to complete the current system or an option for people in transactions. Crypto also can be an option for people in investment. So, they can improve their economic level. However, this isn't for all people because many people still don't have an intention to join crypto.

~ but I don’t really know if any cryptocurrency can solve any problems at this moment, but I can be confident with bitcoin, bitcoin might be able to solve some economic challenges that we might be facing, but in other sense bitcoin might not be the only solution to solve this Challenges.

Crypto may help the people to solve their financial problem, but it doesn't mean crypto can solve any problem. There are too many problems in this life, it is impossible to rely on Bitcoin for the solutions. Moreover, Bitcoin still has some limitations in some countries. It even only can be used for a digital asset in my country. With this condition, it is impossible for Bitcoin to solve all the problems.

[Iranus]

Sure, crypto doesn't need to replace the current system in economic or financial sector. Crypto functions to complete the current system or an option for people in transactions. Crypto also can be an option for people in investment. So, they can improve their economic level. However, this isn't for all people because many people still don't have an intention to join crypto.

We should not exaggerate crypto. We should not forget that their original purpose was to be an alternative, not a competitor or replacement to the existing financial system.

Too many investors are becoming obsessed with crypto and illusions, forgetting its original purpose.

Crypto may help the people to solve their financial problem, but it doesn't mean crypto can solve any problem. There are too many problems in this life, it is impossible to rely on Bitcoin for the solutions. Moreover, Bitcoin still has some limitations in some countries. It even only can be used for a digital asset in my country. With this condition, it is impossible for Bitcoin to solve all the problems.

Even if Bitcoin were legalized as a currency, it would not solve all the financial problems the economy is facing. Bitcoin is just a tool, an alternative, not a god that can fix everything simply by using it.

[Dunamisx]

All we want is there an improved economical system and we can use cryptocurrency to achieve this in different ways for our personal use, this is why it is also important that we continue to learn about cryptocurrencies so that we can engage its uses on different aspects that concerns us regarding the financial economy, the difference is glaring and variable if we make use of it in the right manner.

[batang_bitcoin]

All we want is there an improved economical system and we can use cryptocurrency to achieve this in different ways for our personal use, this is why it is also important that we continue to learn about cryptocurrencies so that we can engage its uses on different aspects that concerns us regarding the financial economy, the difference is glaring and variable if we make use of it in the right manner.

Doing it with crypto alone, it won't happen. But using crypto as a help and alternative, there's a chance that it can help the system to be up. We don't want to look at an economy to collapse due to crypto. What we want to see is to make an economy healthy with the help of crypto. And by  that, it will be recognized by whoever doesn't like it and they'll have hard time in denying that in such hard times, crypto was there and willing to help.

[Abu-Naim]

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.

The only crypto that can successfully replace the current economic system and have a very good and everlasting economic system is Bitcoin. Since it is decentralized, it is been control led by demand and supply, and due to its limited supply, there is always high demand because of halving which reduced miners rewards, because of that, the price will go high because miners need to afford their mining tools and power, and if the price is low, they can’t keep it up with the node, so the price will definitely go higher due to high demand again.

The current economic system is centralized and so many lapses is happening due to selfish interests and so on, but if it is Bitcoin which can’t be controlled by anyone’s if the government, we will have successful economic system that will favor everyone but the government will kick against it always.

[WatChe]

Like or not the economic system of every country is controlled by central government and they won't let any other entity to take over this. If we talk about CBDC or centralised crypto coins then governments may allow them to operate in the country but there is no way governments will allow decentralised crypto like Bitcoin to operate in the country. Having said that the economic system is created by government and decentralised crypto can run beside in parallel. Bitcoin has its own use case and is not designed to replace the existing economic system. 

[Johnlomape]

All we want is there an improved economical system and we can use cryptocurrency to achieve this in different ways for our personal use, this is why it is also important that we continue to learn about cryptocurrencies so that we can engage its uses on different aspects that concerns us regarding the financial economy, the difference is glaring and variable if we make use of it in the right manner.

Doing it with crypto alone, it won't happen. But using crypto as a help and alternative, there's a chance that it can help the system to be up. We don't want to look at an economy to collapse due to crypto. What we want to see is to make an economy healthy with the help of crypto. And by  that, it will be recognized by whoever doesn't like it and they'll have hard time in denying that in such hard times, crypto was there and willing to help.

The government already have full supports for individual currencies and it will be hard for the government to allow crypto to take control of the financial area of the government where they cannot control. As the government is supporting the adoption of cryptocurrency in most countries, this is not a mistake at all because they are looking at controlling everything we do and that we have acvess to to be fully regulated. The process of regulating the crypto market is not going to take longer again since there has been laws that will prohibit self custody just for the government to have control over everything relating to cryptocurrency.

[kawetsriyanto]

We should not exaggerate crypto. We should not forget that their original purpose was to be an alternative, not a competitor or replacement to the existing financial system.

Indeed, we must remember the original purpose. However, I think it isn't a too high expectation to dream that Bitcoin can bring big contribution to help a better financial system. And to hope that Bitcoin can improve many people's economic level. It is actually very possible although it is still in a very early stage.

Too many investors are becoming obsessed with crypto and illusions, forgetting its original purpose.

We actually only can remind the people, we have no way to control people's obsession. I have no problem that people dream to improve their financial with Bitcoin or altcoins. But they must adjust their dream or obsession with their capital/funds.

Even if Bitcoin were legalized as a currency, it would not solve all the financial problems the economy is facing. Bitcoin is just a tool, an alternative, not a god that can fix everything simply by using it.

Sure, Bitcoin is impossible to solve all financial problems.
Improving the quality of the government in managing the policy in financial and economic sector is probably the solution.
In many cases, the problem in financial and economic sector is caused by the lack of ability from the government in managing that sectors.

[ultrloa]

All we want is there an improved economical system and we can use cryptocurrency to achieve this in different ways for our personal use, this is why it is also important that we continue to learn about cryptocurrencies so that we can engage its uses on different aspects that concerns us regarding the financial economy, the difference is glaring and variable if we make use of it in the right manner.

Doing it with crypto alone, it won't happen. But using crypto as a help and alternative, there's a chance that it can help the system to be up. We don't want to look at an economy to collapse due to crypto. What we want to see is to make an economy healthy with the help of crypto. And by  that, it will be recognized by whoever doesn't like it and they'll have hard time in denying that in such hard times, crypto was there and willing to help.

The government already have full supports for individual currencies and it will be hard for the government to allow crypto to take control of the financial area of the government where they cannot control. As the government is supporting the adoption of cryptocurrency in most countries, this is not a mistake at all because they are looking at controlling everything we do and that we have acvess to to be fully regulated. The process of regulating the crypto market is not going to take longer again since there has been laws that will prohibit self custody just for the government to have control over everything relating to cryptocurrency.

They support it because they know that crypto adoption is unstoppable, but this does not mean at all that crypto will take full control of their economy because government official will not provably allow that.

People are expect to much on what's going to happen in future and they are imagining on something not possible to happen.  Believe local fiats and Bitcoin will co exist together and government will choose crypto to became the alternative currency next to their own currencies.

[Abiky]

Like or not the economic system of every country is controlled by central government and they won't let any other entity to take over this. If we talk about CBDC or centralised crypto coins then governments may allow them to operate in the country but there is no way governments will allow decentralised crypto like Bitcoin to operate in the country. Having said that the economic system is created by government and decentralised crypto can run beside in parallel. Bitcoin has its own use case and is not designed to replace the existing economic system. 

In some ways, it's better for crypto to serve as an alternative than a replacement to the existing economic system. Because if it were to replace Fiat, it would not be able to handle the burden of billions of people interacting with it. Blockchain's transaction capacity is limited. Not even sidechains or L2s will do any help. They're constrained by the main chain's inherent capacity. On top of that, governments will never ever allow decentralized cryptocurrencies to take over Fiat. Doing so, means surrendering power/control over the economy.

CBDCs are an effort to maintain a grasp over the Fiat money system, preventing crypto's dominance from ever rising. This is inevitable. As long as only one crypto remains decentralized, there should be nothing to worry about.

[Orpichukwu]

All we want is there an improved economical system and we can use cryptocurrency to achieve this in different ways for our personal use, this is why it is also important that we continue to learn about cryptocurrencies so that we can engage its uses on different aspects that concerns us regarding the financial economy, the difference is glaring and variable if we make use of it in the right manner.

I don't tap into the idea of using cryptocurrency to level the economy of a nation; they should figure out how to boost their economy. We can personally use it to level our lives in the little way we can, but I don't see it with its little capitalisation boosting an economy. Maybe we have different ways of seeing economy levelling.