Why Do People Believe Bitcoin Will Replace Fiat?

[bigasic]

The only way it would get adopted for everyday use in the world/or usa, is if there was hyper inflation. I think that bitcoin will be more popular than paypal in our lifetimes, but it wont replace fiat in the near future, or hell, even in the next 100 years. We have to have something to give it value, right now, its worth 500 us dollars. if there wasn't a us dollar, what would you give me to buy it? It would take my employer to pay me in bitcoin, etc. so, I dont think it was made to replace fiat, just an easy way to control your wealth and easily transfer money. But Fiat is here to stay...

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[duravello]

The only way it would get adopted for everyday use in the world/or usa, is if there was hyper inflation. I think that bitcoin will be more popular than paypal in our lifetimes, but it wont replace fiat in the near future, or hell, even in the next 100 years. We have to have something to give it value, right now, its worth 500 us dollars. if there wasn't a us dollar, what would you give me to buy it? It would take my employer to pay me in bitcoin, etc. so, I dont think it was made to replace fiat, just an easy way to control your wealth and easily transfer money. But Fiat is here to stay...

After the collapse of fiat, precious metals will become the main way how to value things again, and Bitcoin as convenient worldwide currency. I would take your gold for my Bitcoin, it would be complicated physicall trade, but once you get Bitcoin, you can use it so easily 

[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. 

good point : https://www.youtube.com/watch?v=joITmEr4SjY&feature=youtu.be

Not sure if you are being sarcastic but if you show a video like that to a new user most will immediately lose interest and think it is some kind nonsense.  That is probably the number one complaint I hear from new users looking for info.  They often complain when they look for info about Bitcoin they are directed to some 30-45 minute video filled with a bunch of political ideology.  In general, people want to know how to donate $2 for their favorite charity or tip someone on discussion board, they don't want some monetary policy discussion.  If start talking about collapsing governments/banks you might as well forget it, most people will never listen. 

[itsAj]

The only way it would get adopted for everyday use in the world/or usa, is if there was hyper inflation. I think that bitcoin will be more popular than paypal in our lifetimes, but it wont replace fiat in the near future, or hell, even in the next 100 years. We have to have something to give it value, right now, its worth 500 us dollars. if there wasn't a us dollar, what would you give me to buy it? It would take my employer to pay me in bitcoin, etc. so, I dont think it was made to replace fiat, just an easy way to control your wealth and easily transfer money. But Fiat is here to stay...

I agree. I think that bitcoin will be very widely used for a lot of commerce but will unlikely be able to replace fiat anytime in our lifetimes. I think it should be noted however that paypal does do billions of dollars in transactions every year, so even getting close to the amount of transactions that paypal handles would be very positive for bitcoin.

[twiifm]

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

M-pesa is not a currency.  Its a mobile  payment system launched by Vodaphone.  Stop fear mongering so you can pump bitcoin

[Rassah]

Anyone who says "I don't think bitcoin will replace fiat in our lifetimes" is quite literally saying "I don't think USD will collapse in our lifetime." I'm not 100% convinced it will, but I'm not sure USD can handle another 97% drop in value, with the debt it's based on going up from $15trillion to $150trillion, if it continues to rise at the same rate it has for the last many decades. There just isn't enough wealth in the world to keep it going like that. Then the only question is what happens when US is suddenly forced to stop borrowing to support its USD...

[Wealthy]

People don't believe it will replace fiat but they believe that bitcoin will get accepted widely as fiat is accepted.Like people use credit cards,we will be able to pay off with bitcoin onto the stores

[catlinhappy]

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?

 Your perspective on this issue is noted but the general overview states it all with the growth and expansion of the bitcoin network.

[Cream]

Its only an opinion. Even at a good exponential rate, such things won't happen. More time to go for such replacement.

[BADecker]

It all has to do with the big bankers and big business - the Elite - trying to take control of the world with a tight fist.

Most major nations of the world have a reasonable amount of freedom for their people. But factions among the Elite want more for themselves. Smaller big business people want a lion's share, as well. The greed is causing nations to fight. This is part of what will bring down the banking system. We see it happening right now with the Russia/China natural gas agreement being done without using the Dollar, the world currency.

Bitcoin won't take the place of the currencies because Bitcoin is so great. If Bitcoin DOES replace the currencies, it will be because the currencies have crashed, and the people need something.

If the crash of the currencies brings down the whole industrialization of the world, so that there are no more broad, worldwide communications, the places where communication remain alive, will each have their own blockchain fork as people in those separate areas continue using Bitcoin. If the world ever gets back together after that, multiple blockchains might make Bitcoin crash.

[EndlessStory]

Bitcoin wont replace fiat, possible in american countries but I highly doubt that happening in asian and african countries.

However the replacement seems flawed too. It won't happen in next 100 years.

[meadefreling]

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.

Exactly,the central banks and authorities will not want the baton of power to shift not withstanding the popularity Bitcoin is gaining.Thus,BTC can never over shadow fiat.

[Hasher99]

Bitcoin won't be able to replace upto an extent that you people are thinking. Imagine what will happen to the currency of a country in case of serious natural disaster..if all their btc is gone then their currency crashes? OFC not..that's why it won't happen. The country will surely keep some stock reserved in physical form.

[itsAj]

Anyone who says "I don't think bitcoin will replace fiat in our lifetimes" is quite literally saying "I don't think USD will collapse in our lifetime." I'm not 100% convinced it will, but I'm not sure USD can handle another 97% drop in value, with the debt it's based on going up from $15trillion to $150trillion, if it continues to rise at the same rate it has for the last many decades. There just isn't enough wealth in the world to keep it going like that. Then the only question is what happens when US is suddenly forced to stop borrowing to support its USD...

Just because there are more dollars in circulation does not mean the value of each dollar will decrease. This is similar to how the price of bitcoin does not decrease when new coins are created via block rewards every day. As long as the economy keeps growing the overall value of the dollar/whatever currency will continue to grow.

Also by your own logic a 10x increase in the USG debt would cause the dollar to fall by 90% not 97% (see above to counter this logic).

[Rassah]

Exactly,the central banks and authorities will not want the baton of power to shift not withstanding the popularity Bitcoin is gaining.Thus,BTC can never over shadow fiat.

Banks and authorities will need money to keep their currencies propped up and bitcoin down. Where will they get that money, if bitcoin starts taking away a whole lot of their revenue?

Just because there are more dollars in circulation does not mean the value of each dollar will decrease. This is similar to how the price of bitcoin does not decrease when new coins are created via block rewards every day. As long as the economy keeps growing the overall value of the dollar/whatever currency will continue to grow.

Tat's true, there's an interplay between inflation, tax revenue, and growth rate of national debt. If inflation and national debt grow at about the same rate, we could go on for ever. ditto for tax revenue. But tax revenue is unlikely to go up (thanks to bitcoin it is much more likely to go WAY down), and our national debt has been growing much faster than inflation. If that continues, either out lenders will not want to borrow any more, because we would have reached the debt point where all we can afford is interest on the outstanding debt, or they will ask us to pay a higher interest rate on any new debt, which would force us to inflate faster to be able to afford that debt, which would in turn make our lenders ask for an even higher interest. If the system was balanced it would work, but it's not, and with our perpetual tax less, spend more political culture, I am not sure it can ever be fixed (what politician would risk cutting programs or raising taxes of his own constituents?)

Also by your own logic a 10x increase in the USG debt would cause the dollar to fall by 90% not 97% (see above to counter this logic).

$150 trillion was just a guess. It may be going up faster or slower, but I wasn't trying to show exact calculations and balances there. Sorry, my bad.

[movelikejagger]

too early to think about it
if you would tell me that crypto will replace dollar i would say:ha-ha
may be in 30-50 years it could change

[itsAj]

Just because there are more dollars in circulation does not mean the value of each dollar will decrease. This is similar to how the price of bitcoin does not decrease when new coins are created via block rewards every day. As long as the economy keeps growing the overall value of the dollar/whatever currency will continue to grow.

Tat's true, there's an interplay between inflation, tax revenue, and growth rate of national debt. If inflation and national debt grow at about the same rate, we could go on for ever. ditto for tax revenue. But tax revenue is unlikely to go up (thanks to bitcoin it is much more likely to go WAY down), and our national debt has been growing much faster than inflation. If that continues, either out lenders will not want to borrow any more, because we would have reached the debt point where all we can afford is interest on the outstanding debt, or they will ask us to pay a higher interest rate on any new debt, which would force us to inflate faster to be able to afford that debt, which would in turn make our lenders ask for an even higher interest. If the system was balanced it would work, but it's not, and with our perpetual tax less, spend more political culture, I am not sure it can ever be fixed (what politician would risk cutting programs or raising taxes of his own constituents?)

Inflation will rise when the supply of money rises (along with people's willingness to spend money) faster then the supply of goods and services (generally economic output). So for inflation to even be a concern, people will need to be willing to spend their money in the first place. Once people are wanting to spend money, if economic output is rising at a similar pace that money supply is rising then we will not see inflation, or will see a lower amount of inflation.

[murraypaul]

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

No they don't.
There are many many fiat currencies currently in existence, and those haven't failed.
Your statement boils down to "Fiat currencies that have failed have a 100% failure rate", which is content-free.
On the same basis:
"Democracies have a 100% failure rate"
"Countries beginning with M have a 100% failure rate"

[LitcoinCollector]

Money (Paper) is being printed in huge amount daily, not only by gouverments but also counterfitters. This will couse deflation of value and public distrust of paper money.

Bitcoin will be replacing paper money, may it be in it's current form or another, in 10-50 years.

[qwerty555]

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

No they don't.
There are many many fiat currencies currently in existence, and those haven't failed.
Your statement boils down to "Fiat currencies that have failed have a 100% failure rate", which is content-free.
On the same basis:
"Democracies have a 100% failure rate"
"Countries beginning with M have a 100% failure rate"

Regretfully yes they do eventually fail.

https://bitcointalk.org/index.php?topic=678512.msg7692168#msg7692168



All fiats die..all fiats die.....btw all fiats die!!!

 Dollar is in decline and will eventually disappear . It may well take a few decades for that.  I suspect cryptos whether bitcoin or Government/ financial Institution created will replace all fiats over time as they are just BETTER in so many ways and less expensive to use.


"Every 30-40 years the Reigning Monetary System Fails and has to be retooled"

http://georgewashington2.blogspot.com/2011/08/average-life-expectancy-for-fiat.html

According to a study of 775 fiat currencies by DollarDaze.org, there is no historical precedence for a fiat currency that has succeeded in holding its value. Twenty percent failed through hyperinflation, 21% were destroyed by war, 12% destroyed by independence, 24% were monetarily reformed, and 23% are still in circulation approaching one of the other outcomes.

The average life expectancy for a fiat currency is 27 years,



If you read through the thread it was suggested that the British pound was the longest lasting and  still in existence but the answer to that was ..It is not the same as it was and has been   monetarily reformed  on the gold standard/ off the gold standard/ decimilization  so its not the same fiat even though it has the same name.