Why Do People Believe Bitcoin Will Replace Fiat?

[moriartybitcoin]

Very simple - the government can STEAL your fiat money simply by printing more of it.

They cannot steal your Bitcoin .. unless they send goons to your house with guns (as they have been known to do ..)

[hodap]

Bitcoin should be viewed as an enhancement to fiat than replacement.

The same way fiat function as an enhancement to gold than replacement.

[SwingFirst]

We are entering a new era of liberal beliefs. The wave of neo-feminism, drug legalization etc. has had the natural consequence that is bitcoin, a libertarian currency!

[wasserman99]

But in the end, there will simply be no competing against a deflationary currency. When you throw a deflationary currency among inflationary currencies, it starts acting as a black hole absorbing all the wealth in the world.

Exactly, just like how fiat lost out to the gold standard and we're all on the gold standard now.

Transacting in bitcoin is magnitudes easier than transacting in gold, and even USD.

Resource wise, it isn't. Those old batch systems are orders of magnitudes more efficient on a per transaction basis than bitcoin is. A lot of this has to do with the rewards system of bitcoin, which encourages miners to keep adding on more hashing power even when there is already astronomically more than is needed to run the network.

When VISA for example gets enough processors to run its network it stops adding them because there is no reason to keep piling them on, bitcoin miners on the other hand keep right on adding because they want higher returns. Bitcoin's reward system incentivises mining inefficiency. The network could be run on a few old desktops at its current transaction volume, but instead it's being run on untold amounts of ASICS with huge processor farms chewing up money and energy to keep going.

Credit card companies like Visa will need to have excess "hashpower" (aka processing power) in the event of spikes in the number of transactions that are processed on their network. This would result in customer essentially paying excess fees for using the network (in the form of higher prices from merchants) to pay for this idol processing power. 

[nope491]

Bitcoin won't replace fiat but will coexist with it, btw it will take several years before it will happen.

[Mike Christ]

I have a hard time following the logic when people make a statement that cars will replace all horses.  In my world view, they coexist and will continue to coexist.  I can see where some horse usage dies and cars fill in the gap, but not on a global level.  Your thoughts?

I think your world view doesn't extend very far into the future

[Swordsoffreedom]

I have a hard time following the logic when people make a statement that cars will replace all horses.  In my world view, they coexist and will continue to coexist.  I can see where some horse usage dies and cars fill in the gap, but not on a global level.  Your thoughts?

I think your world view doesn't extend very far into the future

I imagine an Amish town that doesn't embrace digital currencies using paper money and coinage to make transactions
Well I'll give him one although I think the Amish still bank so maybe they would vote to use it lol.

[Ondago]

Are you paying those costs, or are they?

Businesses pass their costs off to consumers, that's kind of how they fundamentally operate.

[Orjaner]

Mining isnt about processing transactions, it is about fairly distributing coins and preventing anyone from cornering the market.

How does mining accomplish this? Last I checked most coins are falling into the hands of financially well off miners with huge mining farms. Massive capital investments are now needed to run a profit mining, it's a system that only allows the rich to become richer.

[BlockShame]

Mining isnt about processing transactions, it is about fairly distributing coins and preventing anyone from cornering the market.

How does mining accomplish this? Last I checked most coins are falling into the hands of financially well off miners with huge mining farms. Massive capital investments are now needed to run a profit mining, it's a system that only allows the rich to become richer.

What is your alternative? Let a single institution print them at whim?
Also, the electricity costs are not paid by anyone but the miners. They are also forced to sell coins to pay bills, thus making coins more affordable to us proles.

[Rira6ade]

The entire purpose of fiat was to be more portable and divisible than gold. Bitcoin is divisible enough and infinitely more portable than fiat. Natural selection will eventually make fiat a thing of the past but it may take decades. Government corruption/violence, and public education/awareness are the only factors that can delay its progress.

[CryptoClub]

It is totally obvious to me that automated systems, like Bitcoin, with virtually no overhead in comparison, and infinitely better accountability, will replace outdated systems almost entirely. I think the "horse and buggy" is a great example. We are still not in a "paperless society" yet either, so it will take decades, but everything that can be automated will be eventually. It is more cost effective, more profitable, so those that do it last will simply lose. No question. 

If you don't think mass adoption of Bitcoin could stop most major war, how much BTC will you send to support the next invasion? Decentralization is revolutionary regardless of what people think about it, and revolutionary in a very good way. They will try and stop it no matter how it is packaged, so don't worry about us silly revolutionaries. It will be just like the wagon wheel repair people trying to stop the automobile, absurd. They will have to adjust to the times, and adapt to Bitcoin.

[teknohog]

Try driving a Fiat from Europe to America in 10 minutes, with just a drop of fuel.

[Poolie]

Very simple - the government can STEAL your fiat money simply by printing more of it.

They cannot steal your Bitcoin .. unless they send goons to your house with guns (as they have been known to do ..)

So they can or they can't steal it? Maybe they wont need to use guns in the future and will just have advanced spyware or super computers that can crack encryptions etc.

[sandykho47]

Every people have different opinion
But, i think this will happen because if we promote every plus point bitcoin & fix critical function.
I think bicoin & other crypto can replace fiat 

And if you search reason why bitcoin can replace fiat.
Please search on google.com 

[Beliathon]

If you don't think mass adoption of Bitcoin could stop most major war, how much BTC will you send to support the next invasion?

Zero BTC, and I thank you for asking, instead of simply eroding the value of my Bitcoin by printing mass quantities of it to give to your war profiteering corporate pals. OH WAIT, you can't do that with crypto! I almost forgot!

[BrunesBTC45]

Very simple - the government can STEAL your fiat money simply by printing more of it.

They cannot steal your Bitcoin .. unless they send goons to your house with guns (as they have been known to do ..)

So they can or they can't steal it? Maybe they wont need to use guns in the future and will just have advanced spyware or super computers that can crack encryptions etc.

I think they are already doing that now.

[QuestionAuthority]

Bitcoin is about control, not inflation.

If you want something deflationary, buy a barrel of oil.

The problem: people don't see it coming. THey still believe in the fairy tale of anonymity.

Maybe at the beginning, not now.

Not even at the beginning. Gavin's presentation at the CIA was probably more about teaching the government how to follow transactions than it was about a general technology presentation.

[minerpumpkin]

When people get to know Bitcoin and learn about the advantages, they start to believe they know more than the average person out there. They also think that since Bitcoin is newer and offers so many useful features, it is effectively bound to succeed. What they don't see is that Bitcoin still has to overcome rather big hurdles still.

[InwardContour]

Common people doesn't know anything about bitcoin and how it works, but when the word will spread I'm sure that the virtual currencies (not only btc) will replace FIAT in all the countries.