A co-dependent financial system (Crypto and Fiat currency)

[BrolySSJ]

There is a common consensus or curiosity in the crypto world if there will ever be a replacement of the fiat currency by the crypto world. This however, is not a fair question, in my opinion, as i don believe that a replacement is necessary on our current fiat financial system. In fact, I believe that in order to have the maximum financial benefit to the economies, it is necessary that both of these currencies work together and compliment each other in its use. This is the best way in order to benefit from both sides of these financial systems, and in my opinion it is a great way to try and recover from the financial crisis that the pandemic continues to leave us in. Do you agree with me? Or do you perhaps feel that crypto will one day replace the current fiat currencies?

 

[Prettybabe]

I don't feel or think that cryptocurrency will ever replace the fiat currency. If that happens, trust me, it won't be funny. But it's not going to happen anyway, hopefully.

It is better the we way use both the fiat and cryptocurrency together. They compliment each other and it's okay that way.

 

[Sincerem]

There is a common consensus or curiosity in the crypto world if there will ever be a replacement of the fiat currency by the crypto world. This however, is not a fair question, in my opinion, as i don believe that a replacement is necessary on our current fiat financial system. In fact, I believe that in order to have the maximum financial benefit to the economies, it is necessary that both of these currencies work together and compliment each other in its use. This is the best way in order to benefit from both sides of these financial systems, and in my opinion it is a great way to try and recover from the financial crisis that the pandemic continues to leave us in. Do you agree with me? Or do you perhaps feel that crypto will one day replace the current fiat currencies?

You made good point about your post, it is not necessary that digital currency replaces fiat currency. But of them have roles to play while they're still around. They are still integral part of transactions online and offline.

 

[GoldenLady]

It will be a mistake to try to replace fiat currency with cryptocurrency as the major payment vehicle.

Cryptocurrency is volatile, it's mining consumes a lot of money and energy, which is still necessary if it's to be used for transactions.

Also, not everyone in the world has access to the internet.

Cryptocurrency is best used as a means of exchange where fiat cannot be used, or as an investment.

 

[Nurudeen]

I totally agree with you on what you said. Even though most people are now seeing crypto currency as the future of any means of payment it shouldn't be hyped ahead of Fiat currency. A lot of countries still don't even know how Digital currency works so we just need to use these two payments system and not trying to delegate Fiat currency for digital currency.

 

[Kamon c4]

Cryptocurrency can never replace fiat currency in all business sectors. There’re some offline business which cryptocurrency can never be used as a mode of payment. Also cash is needed cause it’s physical and doesn’t require online presence unlike cryptocurrency where you need online presence to access your coins.

 

[Josemendez]

There is a common consensus or curiosity in the crypto world if there will ever be a replacement of the fiat currency by the crypto world. This however, is not a fair question, in my opinion, as i don believe that a replacement is necessary on our current fiat financial system. In fact, I believe that in order to have the maximum financial benefit to the economies, it is necessary that both of these currencies work together and compliment each other in its use. This is the best way in order to benefit from both sides of these financial systems, and in my opinion it is a great way to try and recover from the financial crisis that the pandemic continues to leave us in. Do you agree with me? Or do you perhaps feel that crypto will one day replace the current fiat currencies?

I think cryptocurrency can't replace the fiat system because if it's volatility . However they need each other , one can't buy cryptocurrency without using fiat currency ,and cryptocurrency can't be profitable if it can't be converted to fiat currency

 

[BrolySSJ]

I think cryptocurrency can't replace the fiat system because if it's volatility . However they need each other , one can't buy cryptocurrency without using fiat currency ,and cryptocurrency can't be profitable if it can't be converted to fiat currency

I agree with you as well. Also another reason why i don't feel that crypto can ever replace fiat currency is that the value of any cryptocurrency is commonly compared or given to it by a fiat currency, especially when it is expressed in dollars, euros or so forth. Therefore changes in the strength or value of the fiat currency results in changes in the crypto value, showing the dependence that crypto has on fiat currencies.

 

[zagzagi]

Crypto money has the feature of being an important investment tool. It has a confidential transaction feature like coastal banking. With this aspect, it plays an important role in attracting the wealth desired to be hidden to the countries. With this method, one can have an important foreign exchange reserve that is accepted by many countries.

Crypto currencies have some similarities with the gold they are often compared to. First of all, the supply of most of the cryptocurrencies in circulation, similar to gold, is limited. Like gold, the value of cryptocurrencies is extremely volatile, shaped by users' investment decisions and supply-demand balance. Crypto coins can be easily measured and divided, just like gold.

Finally, the protection of the value of cryptocurrencies is not dependent on any central authority. Crypto coins differ in some ways from gold. Cryptocurrencies do not have a physical existence or a unique value. Unlike gold, cryptocurrencies can be easily transported because international transfers do not have to be subject to bureaucracy like banknotes.

 

[BrolySSJ]

Crypto money has the feature of being an important investment tool. It has a confidential transaction feature like coastal banking. With this aspect, it plays an important role in attracting the wealth desired to be hidden to the countries. With this method, one can have an important foreign exchange reserve that is accepted by many countries.

Crypto currencies have some similarities with the gold they are often compared to. First of all, the supply of most of the cryptocurrencies in circulation, similar to gold, is limited. Like gold, the value of cryptocurrencies is extremely volatile, shaped by users' investment decisions and supply-demand balance. Crypto coins can be easily measured and divided, just like gold.

Finally, the protection of the value of cryptocurrencies is not dependent on any central authority. Crypto coins differ in some ways from gold. Cryptocurrencies do not have a physical existence or a unique value. Unlike gold, cryptocurrencies can be easily transported because international transfers do not have to be subject to bureaucracy like banknotes.

I agree with your analysis of crypto and gold and banknotes, however if there is a case where crypto had to become widely used as a mainstream form of payment, it is important to note that the crypto would then be regulated, and whilst it will be able to transferred internationally easily, it will still be subject to the same procedures that we have at the moment with bank notes in order to maintain the order of the currency. so whilst this is an advantage now this may change in the future depending on how crypto progresses.

 

[zagzagi]

I agree with your analysis of crypto and gold and banknotes, however if there is a case where crypto had to become widely used as a mainstream form of payment, it is important to note that the crypto would then be regulated, and whilst it will be able to transferred internationally easily, it will still be subject to the same procedures that we have at the moment with bank notes in order to maintain the order of the currency. so whilst this is an advantage now this may change in the future depending on how crypto progresses.

I absolutely agree with you. Of course, I think a lot of time is needed for this to happen.

 

[BrolySSJ]

I absolutely agree with you. Of course, I think a lot of time is needed for this to happen.

I think tat for the future developments you need a single tech savvy nation that will be able to implement it. If this happens there are many countries that will see the impact it has on the country and therefore follow in those footsteps. So you need one country to start all of it, however finding the country that is able to do such is quite a search. My opinion is that Asian countries like Singapore and China are likely to be at the forefront of this.

 

[giddy]

For the time being, no cryptocurrency has effectively overtaken fiat in any part of the world. In the end, it may be payment apps like SPEDN which most dramatically open upcryptocurrency payments to real-world applications.

 

[BrolySSJ]

For the time being, no cryptocurrency has effectively overtaken fiat in any part of the world. In the end, it may be payment apps like SPEDN which most dramatically open upcryptocurrency payments to real-world applications.

This is the first that I am hearing of SPEDN. What is this payment app?

I do agree that payment apps are what is going to open up the world to crypto applications though, because they will provide the perfect intermediate for these transactions, and what is better than that is that it will be able to bridge the gap between fiat currency and crypto and maintain confidence that they have already established as a payment app.

 

[giddy]

Fiat money (or fiat currency) is currency that a government has declared to be legal tender. ... The government controls the supply and you can pay your taxes with it. Cryptocurrency is not “legal tender” and it is not backed by a central government or bank (it is decentralized and global

 

[Ralphjoe]

I absolutely agree with you a 100%. This has always been my opinion about cryptocurrencies and fiat currency, I believe it will be better for them to work hand in hand, most times cryptocurrencies will feel the void when fiat currency have limitations especially on online payments.

 

[BrolySSJ]

I absolutely agree with you a 100%. This has always been my opinion about cryptocurrencies and fiat currency, I believe it will be better for them to work hand in hand, most times cryptocurrencies will feel the void when fiat currency have limitations especially on online payments.

Exactly. And there are voids in the fiat currency space, especially if you look at the transaction fees that can be associated with large transactions internationally, and also at times the transaction times can be quite long, whereas crypto in certain coins do not have this problem and therefore can be utilized to the best of their ability as such.

 

[ahmedo24]

There is a common consensus or curiosity in the crypto world if there will ever be a replacement of the fiat currency by the crypto world. This however, is not a fair question, in my opinion, as i don believe that a replacement is necessary on our current fiat financial system. In fact, I believe that in order to have the maximum financial benefit to the economies, it is necessary that both of these currencies work together and compliment each other in its use. This is the best way in order to benefit from both sides of these financial systems, and in my opinion it is a great way to try and recover from the financial crisis that the pandemic continues to leave us in. Do you agree with me? Or do you perhaps feel that crypto will one day replace the current fiat currencies?

Whenever topic like this is raise my contribution has always been what you have rightly said , Crypto currencies are highly dependent on fiat currencies for people to engage in them because they will eventually convert to their Local currency before they can spend it especially in the countries where bitcoin can't be spent locally.

 

[BrolySSJ]

Whenever topic like this is raise my contribution has always been what you have rightly said , Crypto currencies are highly dependent on fiat currencies for people to engage in them because they will eventually convert to their Local currency before they can spend it especially in the countries where bitcoin can't be spent locally.

This is very true and highly accurate. Also apart from it being converted from crypto into their fiat currency in order to be utilized, the fact of the matter remains that Bitcoin and other crypto are valued against fiat currency, and therefore crypto would not be able to exist or be valued without fiat currencies in my opinion.

I think that for spending crypto, there are many that are moving to using crypto visas as a way to increase the number of merchants where they can use their crypto.

 

[ahmedo24]

This is very true and highly accurate. Also apart from it being converted from crypto into their fiat currency in order to be utilized, the fact of the matter remains that Bitcoin and other crypto are valued against fiat currency, and therefore crypto would not be able to exist or be valued without fiat currencies in my opinion.

I think that for spending crypto, there are many that are moving to using crypto visas as a way to increase the number of merchants where they can use their crypto.

Yeah very big companies that are good at taking risk are already accepting Crypto currencies, the fact is that the USD is the currency Crypto currencies will be value in line with so any attempt to replace it will kill the Crypto currency generally.