Why Do People Believe Bitcoin Will Replace Fiat?

[TheAccountant]

I have a hard time following the logic when people make a statement that Bitcoin will replace all fiat currency.  In my world view, they coexist and will continue to coexist.  I can see where some fiat currencies die and Bitcoin fills in the gap, but not on a global level.  Your thoughts?

[1714480302]

1714480302

[1714480302]

1714480302

[1714480302]

1714480302

[Rampton]

Well everyone has their opinion and is entitled to it. I think it'll be a very long time before any crypto replaces fiat currency, largely in part because the central banks and authorities wont want to give control of the production up.

[HELP.org]

I think the people who go around saying Bitcoin will replace all money, that it will end wars, collapse banks and governments, etc. are slowing the adoption of Bitcoin.  When people hear this stuff they often disregard Bitcoin as anything serious and it confuses people as to what Bitcoin actually is.  The worst are the people who have some political cause, claim Bitcoin is part of that cause, and try to imply that anyone who uses Bitcoin agrees with them and supports their cause.

[bornil267645]

Rubbish, how they even consider something like bitcoin to fiat.

[shawshankinmate37927]

I have a hard time following the logic when people make a statement that Bitcoin will replace all fiat currency.  In my world view, they coexist and will continue to coexist.  I can see where some fiat currencies die and Bitcoin fills in the gap, but not on a global level.  Your thoughts?

Yes, cryptocurrencies will coexist with fiat currencies, just like the automobile coexisted with the horse and buggy.  The transition doesn't happen overnight, it takes time.

[btcpokerface]

Bitcoin won't replace Fiat but will be used for most of the transactions, we will have to wait several years before it will happen.

[Gervais]

I don't think it need to replace fiat, but it may eventually. For the time being I think it will coexist peacefully and grow. I think bitcoin could exist alongside all other currencies as like a one world currency where you could spend it all over the world. I think that would be pretty cool.

[qwerty555]

I have a hard time following the logic when people make a statement that Bitcoin will replace all fiat currency.  In my world view, they coexist and will continue to coexist.  I can see where some fiat currencies die and Bitcoin fills in the gap, but not on a global level.  Your thoughts?

Yes, cryptocurrencies will coexist with fiat currencies, just like the automobile coexisted with the horse and buggy.  The transition doesn't happen overnight, it takes time.

+1

It may be faster than we think at the moment. Apart from the major savings in the cost of handling/recording/destroying/reduction in fraud ( eventually)/storing etc there are mounting political issues which suggest (eventual) monetary reform would be a good option for Politicians to deflect anger that results from food and utility inflation of 20% + in 2014 due to their irresponsible attitude in "printing" fiat. Once cryptocurrency is perfected it would be a great option to adopt it by issuing their own ( as they will claim it to be so much better for the Nation..which it is when perfected)

[Ektra]

Do you have a good solid reason why they should continue to exist? Do you think they'll perhaps adopt cryptocurrency innovations to stay ahead of the curve and survive ? Or do you reject the idea of bitcoin/alts overtaking fiat because it seems too radical.

[Chompa]

Even if Bitcoin and altcoins match the volume of creditcards, we should be happy.

[pythonista]

Perhaps bitUSD will replace Bitcoin. bitUSD combines the convenience of crypto with the stability of the dollar.

[yayayo]

Bitcoin could ultimately replace fiat, but both will coexist for many years. The reason for this possible outcome is that if you can pay everywhere with bitcoin there exists no advantage to use and hold fiat. With bitcoin you can do everything you can do with fiat. On top of that you can do many things easier (for example money transfers) and you don't risk inflationary devaluation by holding bitcoin.

When bitcoin reaches majority adoption central banks might realize that they've lost control of monetary policy. In turn they might fade out the fiat system, because they only incur costs from it without influencing economy.

ya.ya.yo!

[LiteCoinGuy]

i dont think that this will happen in the next 30-40 years. instead they will go side by side for a long time.

[franky1]

when you take into account the Zimbabwe dollar saga, and now africans are stepping into non government currencies like bitcoin/mpesa.. you have to ask yourself what will the rest of the world do when you cant even buy a loaf of bread for less than 2000 USD/GBP

[marife01]

I also do not think that this will happen since both are better to co exist. 

[Rassah]

It's really just a simple waiting game. There is a strong need for a world reserve currency (currently filled by USD, and somewhat my EUR). Fiat currencies have a 100% failure rate, and an average life expectancy of 27 years. Even USD we use today is only about 45 years old, since it switched from being a gold-backed currency to free floating fiat in 1971. So as long as you believe that bitcoin, being an open-source free-to-innovate platform, can continue to exist and be innovated on top of, it should simply outlast all other fiat currencies one by one, with the countries of those failed currencies adopting both bitcoin and the last world reserve currency. If USD collapses within a few short years, with bitcoin adoption still being low those countries will adopt both bitcoin and EUR. If USD lasts for a few more decades, most countries will probably end up using USD and BTC already, and will switch exclusively to BTC as soon as USD dies. At that point, BTC will have completely replaced all fiat.

There's also the black hole fiat collapse scenario, where if bitcoin gains about 50% of world-wide adoption, where it will not make a difference for a merchant or person whether he receives USD or BTC, at that point BTC's technological advantages over USD will kick in full force, people will start preferring BTC, and as a result, the balance of use will tip greatly in BTC's favor. This also means that with more and more people choosing to take BTC, BTC adoption and price will suddenly skyrocket, people will start dumping dollars to switch to BTC, which will make BTC price go up even faster, which will cause more people to switch, over and over in a self feeding cycle, with BTC literally sucking out all the wealth from the USD in a very short period of time. The 50% adoption rate is the "event horizon" in this black hole scenario, and if this happens, it will happen VERY suddenly and VERY quickly, likely causing a whole lot of damage to people too slow to keep up in the process.

The worst are the people who have some political cause, claim Bitcoin is part of that cause, and try to imply that anyone who uses Bitcoin agrees with them and supports their cause.

As Andreas says, Bitcoin's political cause is neutrality, while the world's political cause is SEVERELY skewed to the side. So, in that kind of a world, just being neutral seems like being politically radical. Kind of like just being neutral to everyone and treating everyone equally was a radical political stance at a time when some people were slaves.

[Victoo]

Replacing Fiat is not a peace of cake. Bitcoin may become more preferred currency over fiat after few years but reaplacing fiat is not possible in even 100 years.

[Ayers]

because they think it will save us from the great recession, dunno if this will come true but, bitcoin is doing well for now, it's a good safe-haven asset

[HELP.org]

The worst are the people who have some political cause, claim Bitcoin is part of that cause, and try to imply that anyone who uses Bitcoin agrees with them and supports their cause.

As Andreas says, Bitcoin's political cause is neutrality, while the world's political cause is SEVERELY skewed to the side. So, in that kind of a world, just being neutral seems like being politically radical. Kind of like just being neutral to everyone and treating everyone equally was a radical political stance at a time when some people were slaves.
[/quote]

There is a big difference between a radical political stance and going around acting like a screwball.  If the goal is to increase the usage and importance of Bitcoin then you are not going to achieve that goal with a bunch of hyperbole and nonsense.  That drives people away and makes it difficult for people trying to increase adoption.  Using Bitcoin in itself is not a political stance of any kind.  Now you may want to use Bitcoin as a tool to achieve some goal because it has more options than other payment instruments but it does automatically meant you agree with anything.  That is like saying that everyone who uses the USD agrees with the policies and politics of the USA.

[Beliathon]

I have a hard time following the logic when people make a statement that Bitcoin will replace all fiat currency.

For me it's a very simple matter. Nation-state fiat scrip is a giant scam, all of it is eventually worthless after X # of decades. Even nations with the BEST of intentions (few and far between) cannot help but inflate their currency, eroding its value.

From a financial perspective: All empires crumble into the dust of history, eventually. Which means sooner or later your descendants will be left holding the bag of that worthless inheritance you left them. Bitcoin is the opposite, it can only gain value over time.

From an ethical perspective: Nations require violence to keep their currencies valuable, bitcoin does not.

Yes, cryptocurrencies will coexist with fiat currencies, just like the automobile coexisted with the horse and buggy.  The transition doesn't happen overnight, it takes time.

Horse and buggy wasn't a scam causing billion to wallow in slavery-like conditions, though.