Why Do People Believe Bitcoin Will Replace Fiat?

[cryptworld]

I don't think bitcoin may replace fiat
it must live with it and i don't think it can live without it

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[twiifm]

A point that seems to be missed is that Bitcoin is already replacing fiat to the extent of approx $30 million per day. If bitcoin/crypto did not exist fiat would have to be used for most of that volume of transaction. It is a small beginning and currently the $ value and transaction volume is increasing incrementally at approx 3% per month average.


 

Wow poor logical thinking.  Its not zero sum.  Those bit coins came into existence through mining.  They didn't replace any fiat because no fiat got taken out of circulation

Speak for yourself. My bitcoins replaced my fiat.

Your fiat still exists its just in someone else's possession 

Wrong. That fiat is their's, not mine.

So if you can't see it, then it cease to exist?  Mmmmkay.  Gotcha.  

[cbeast]

A point that seems to be missed is that Bitcoin is already replacing fiat to the extent of approx $30 million per day. If bitcoin/crypto did not exist fiat would have to be used for most of that volume of transaction. It is a small beginning and currently the $ value and transaction volume is increasing incrementally at approx 3% per month average.


 

Wow poor logical thinking.  Its not zero sum.  Those bit coins came into existence through mining.  They didn't replace any fiat because no fiat got taken out of circulation

Speak for yourself. My bitcoins replaced my fiat.

Your fiat still exists its just in someone else's possession 

Wrong. That fiat is their's, not mine.

So if you can't see it, then it cease to exist?  Mmmmkay.  Gotcha.  

When everyone exchanges their fiat for bitcoins, only you will still have any fiat. Good luck spending your fiat then.

[Rassah]

Has he? I've seen an announcement about Realcoin. It is purported to to be a cryptocurrency that is controlled in lockstep with the US Dollar. Tell me - exactly how is this to be accomplished?

USD backed tokens, issued and backed by a bank, running on Mastercoin on to of bitcoin. Bank can always issue or take in tokens to control supply, and promises to back 1:1 with full reserves.

Maybe Pierce has a viable scheme. I don't think he does. I think he's lying. I think he is just trying to attract fantastic sums of VC money with which he can live large -- just like every other failed business in which he has been involved so far.

Brock IS the VC, and has been the funder in all those business, including failed one. He has more money than he knows what to do with, so doesn't need anyone else's help to live large.

[twiifm]

When everyone exchanges their fiat for bitcoins, only you will still have any fiat. Good luck spending your fiat then.

And when is this supposed to happen?  100 years later after I'm dead?  LOL 

[Rassah]

A point that seems to be missed is that Bitcoin is already replacing fiat to the extent of approx $30 million per day. If bitcoin/crypto did not exist fiat would have to be used for most of that volume of transaction. It is a small beginning and currently the $ value and transaction volume is increasing incrementally at approx 3% per month average.

Wow poor logical thinking.  Its not zero sum.  Those bit coins came into existence through mining.  They didn't replace any fiat because no fiat got taken out of circulation

Speak for yourself. My bitcoins replaced my fiat.

Your fiat still exists its just in someone else's possession  

Start with 100 fiats. You own 100 fiats, and fiats are 100% of the world's economy

Mine 10 fiats worth of bitcoins. Trade your 10 fiats worth of bitcoins to someone else. Now there is 110 fiats worth of wealth in the world. Actual fiats take up only 90.9% of the world's economy. Bitcoins took over 9.1% of fiats in the world's economy.

When everyone exchanges their fiat for bitcoins, only you will still have any fiat. Good luck spending your fiat then.

And when is this supposed to happen?  100 years later after I'm dead?  LOL 

I don't think fiats will exist for 100 more years. It will only take dollars and/or euros to collapse for fiats to end and the world to switch to bitcoin. Euro fiat is only about 25 years old, and dollar fiat is only about 45 years old. They are both very new, and historically fiats have an average lifespan of about 27 years.

[twiifm]

A point that seems to be missed is that Bitcoin is already replacing fiat to the extent of approx $30 million per day. If bitcoin/crypto did not exist fiat would have to be used for most of that volume of transaction. It is a small beginning and currently the $ value and transaction volume is increasing incrementally at approx 3% per month average.

Wow poor logical thinking.  Its not zero sum.  Those bit coins came into existence through mining.  They didn't replace any fiat because no fiat got taken out of circulation

Speak for yourself. My bitcoins replaced my fiat.

Your fiat still exists its just in someone else's possession  

Start with 100 fiats. You own 100 fiats, and fiats are 100% of the world's economy

Mine 10 fiats worth of bitcoins. Trade your 10 fiats worth of bitcoins to someone else. Now there is 110 fiats worth of wealth in the world. Actual fiats take up only 90.9% of the world's economy. Bitcoins took over 9.1% of fiats in the world's economy.

When everyone exchanges their fiat for bitcoins, only you will still have any fiat. Good luck spending your fiat then.

And when is this supposed to happen?  100 years later after I'm dead?  LOL 

I don't think fiats will exist for 100 more years. It will only take dollars and/or euros to collapse for fiats to end and the world to switch to bitcoin. Euro fiat is only about 25 years old, and dollar fiat is only about 45 years old. They are both very new, and historically fiats have an average lifespan of about 27 years.

Your math is wrong because you are only calculation M0.  Also you assume fiat supply is fixed while BTC supply is inflating

The USD "fiat" started from "greenbacks" in Civil War time.  The EUR has been only around since 2002. 

Anyways, none of that is important.  The only important thing is that money is a creature of the state not a creature of the market.  In other words, if USD collapse the US govt will just replace it w another currency.  Bitcoin will never replace USD unless the govt allows it to. 

[cbeast]

[
Anyways, none of that is important.  The only important thing is that money is a creature of the state not a creature of the market.  In other words, if USD collapse the US govt will just replace it w another currency.  Bitcoin will never replace USD unless the govt allows it to. 

Governments are creatures of the market as well.

[nwfella]

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

Stability of the dollar?  Whose dollar exactly?  Certainly not the United States? :p

[dnydublin12]

The USD "fiat" started from "greenbacks" in Civil War time.  The EUR has been only around since 2002. 

Only a small thing, but the Euro's being around since 1 Jan 1999. Physical came in 2002.

I think fiat and bitcoin will always both exist, simply because fiat for some things is easier. However what could happen a long time down the road and probably gradually, is that bticoin could become the reference currency of value.

What could also happen is bitcoin could suffer attack, fail and be replaced by another crypto currency which perhaps will have some of the design flaws of bitcoin remedied. In short, I think Fiat as a reference currency will in the long term be replaced by a crypto currency, perhaps bitcoin, perhaps another.

[shawshankinmate37927]

The only important thing is that money is a creature of the state not a creature of the market.  In other words, if USD collapse the US govt will just replace it w another currency.  Bitcoin will never replace USD unless the govt allows it to.  

Actually, money was hijacked by the state.  Bankers and politicians have been colluding with each other to maintain their control over money by giving themselves the ability to both create it and confiscate it.  Government as we know it today rests upon those two abilities and Bitcoin kills both of those birds with one stone.

Fiat monetary systems will come to an end because all scams eventually come to an end.

[itsAj]

A point that seems to be missed is that Bitcoin is already replacing fiat to the extent of approx $30 million per day. If bitcoin/crypto did not exist fiat would have to be used for most of that volume of transaction. It is a small beginning and currently the $ value and transaction volume is increasing incrementally at approx 3% per month average.


 

Wow poor logical thinking.  Its not zero sum.  Those bit coins came into existence through mining.  They didn't replace any fiat because no fiat got taken out of circulation

He is referring to the commerce that bitcoin is used in, not the new bitcoin being mined. Every $100 that is used in bitcoin related commerce will result in roughly $3 in savings from credit card processing fees, and more in chargeback costs.

As more people use bitcoin for commerce, the amount of commerce that fiat is used for will decrease.

[Bitbirdhunt]

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.

[cryptomad]

Bitcoin is awesome,I would love to see it replace fiat,Because the fees are low and Fiat fees can be ridiculous. + Bonus bitcoin is fun to use

[Rassah]

Your math is wrong because you are only calculation M0.  Also you assume fiat supply is fixed while BTC supply is inflating

Whether the supply is fixed or inflating is irrelevant. It could be 15 trillion fiats taking up 90% of economy, or 100 trillion, but they still take up 90% of the new economy. New currencies and forms of wealth displace the old.

Anyways, none of that is important.  The only important thing is that money is a creature of the state not a creature of the market.  In other words, if USD collapse the US govt will just replace it w another currency.  Bitcoin will never replace USD unless the govt allows it to. 

That has almost never been the case with collapsed fiat. Typically countries with collapsed fiat have no choice but to adopt another fiat, such as USD, or if their country forces a new fiat on them, treat it like risky garbage. If Peso collapses, government has USD wealth that they can use to hold power and force others to accept a new fiat. If USD collapses, what will US government use to maintain power, and what will they pay their troops with?

[jabo38]

I think an adaption can happen in 15 years.

I think that if enough momentum builds there will be a bitcoin rush, not to different than the gold rushes long ago. At a certain point when bitcoin is very easy, safe, and fast, it could become a serious contender.

Once the rush happens, everyone and I mean EVERYONE will want in for fear of being left behind. The fear of waking up one day and realizing all your money is worthless will take hold and fuel the rush.

Then governments will learn how to make fiat and bitcoin coexist. Maybe even the fed locking in bitcoin rates to USD instead of interest rates like they do now.

I really think bitcoin is going to make a big mess of things. And most of the people on this forum will see huge returns.

[jabo38]

I had this thought that fiat could be backed by bitcoin much like the gold standard era. I don't see the Fed backing out without a fight.

I agree.   Also, the US is one of the largest holders of Bitcoin.  A couple more seizures and they could really wield some power and set exchange rates for quite a while. 

[arieq]

I am holding a few coins of BTC because IMO btc is rebuilding/destroying the USD system as use expands, bitcoin space is replacing fiat with every new coin mined.

[Bananana]

Why Do People Believe Bitcoin Will Replace Fiat?
Because fiat is corrupted and government can print money whenever they want. I believe crypto currency will one day replace fiat but definitely not Bitcoin. Unless Bitcoin can be 99% secure and not get hacked or stolen so easily.

[youngmike]

Crypto geeks live in their own tech-believer world, that's why they believe bitcoin replacing fiat.   like flying car is going to replace cars or millions of humans living in space by the year 2000...
There's Paypal, easier to use than bitcoin   Btc is overpriced even when 50$