The effect of cryptocurrency on fiat currency

[Bigron]

Bitcoin was originally created to serve as another means of currency that alternate the fiat currency and help the dying economy at that time. It’s believed that the increase in the fiat currency printed causes a lot of harms than good to the economy. With a stable amount of bitcoin I believe it has done justice to the supply making it controllable from inflation. Recently most people have found interest in cryptocurrency and they’re investing, saving and trading with cryptocurrency and that’s gradually decreasing the usage of fiat currency.

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How do you think this will affect fiat currency? Please state the positive and negative effects
Thanks

Honestly, I don't believe that cryptocurrencies affect paper currencies as much as they have been alleged to in any nation, but the reality is that most governments are too skeptical about the potential of crypto, thus causing them to sow seeds of doubt within the public

 

[Monster Masterpiece]

Honestly, I don't believe that cryptocurrencies affect paper currencies as much as they have been alleged to in any nation, but the reality is that most governments are too skeptical about the potential of crypto, thus causing them to sow seeds of doubt within the public

It is not hard to crypto currencies owner to make paper of 1000 satoshis or 10,000 satoshis but they do not want they want only that it stays not being converted to paper and that is all.

 

[Bigron]

It is not hard to crypto currencies owner to make paper of 1000 satoshis or 10,000 satoshis but they do not want they want only that it stays not being converted to paper and that is all.

I understand what you are saying. With that being said, the government's approach towards cryptocurrency is quite negative because they are a bit ignorant on the benefits of cryptocurrency, and the impact it would have on flat currency.

 

[Monster Masterpiece]

I understand what you are saying. With that being said, the government's approach towards cryptocurrency is quite negative because they are a bit ignorant on the benefits of cryptocurrency, and the impact it would have on flat currency.

Such papers should reduce the impact of fiat currency means you could cash out such paper to daily transactions, but I discover some crypto wallet offers debit card like spectrocoin one for crypto assets.

 

[Good-Person]

I understand what you are saying. With that being said, the government's approach towards cryptocurrency is quite negative because they are a bit ignorant on the benefits of cryptocurrency, and the impact it would have on flat currency.

The government is trying its best to make sure that cryptocurrencies do not have a really major effect on fiat currencies. This is why the U.S government makes policies that makes dollar strong. The federal reserve recently increased interest rates that made dollar strong.

 

[Monster Masterpiece]

The government is trying its best to make sure that cryptocurrencies do not have a really major effect on fiat currencies. This is why the U.S government makes policies that makes dollar strong. The federal reserve recently increased interest rates that made dollar strong.

Does the trade on USDT affects positivelly or negativelly the US Dollar effect or even BUSD token one or they have separate economy schedule from the first to the second?

 

[Joseph555]

The character of the people can also create instability of the fiat value and this is also the main reason why most governments still have fears with the cryptocurrency development.

 

[Monster Masterpiece]

The character of the people can also create instability of the fiat value and this is also the main reason why most governments still have fears with the cryptocurrency development.

To resume the fiat and cryptocurrency reglementations:
Half of the countries are charged a lot for international bank wire while it doesn't debit a lot for same purpose for crypto payment.
Means to pay someone in foreign country in crypto is much cheaper and faster than bank wire.

 

[Bigron]

The government is trying its best to make sure that cryptocurrencies do not have a really major effect on fiat currencies. This is why the U.S government makes policies that makes dollar strong. The federal reserve recently increased interest rates that made dollar strong.

This is really valuable information you have shared with us. I think the fact that the dollar has become the strongest out of the three big currencies in economics (euro, dollar, and pounds) gives credence to to your assertion.

 

[Sincerem]

In Most cases the government tries to maintain the value of their currency and is not determined by the price or the condition of cryptocurrency . Both of them has a very important role to play in the financial markets independently.

 

[Prince]

Most financial professionals expect digital assets will replace government-issued currencies within a decade, or at least present a solid alternative to them,” said a Business Insider report published in August 2021, quoting a Deloitte survey.

 

[Georgeadawara]

I dont know enough about it. I used to mine and now I use a faucet that earns me interest on the bitcoins I have now..

Alright that's very interesting, but it still shock me that people are still mining the so called Bitcoin, which is very difficult. But how much have you ever made from mining Bitcoin so far.

 

[Chibson]

Alright that's very interesting, but it still shock me that people are still mining the so called Bitcoin, which is very difficult. But how much have you ever made from mining Bitcoin so far.

the reason people are mining bitcoin is because it is profitable to them. Not everybody will be able to mine it because it requires financial investment and sometimes losses may incur.

 

[tyrim88]

From my ends here, Bitcoin Is affecting the economy in a very positive way, in that it's now a major way most people receive payment in the country from abroad thereby bringing in the much needed foreign exchange that has been so lacking for a while now.

One of the ways that cryptocurency will have an effcet on the economy is on two ways,when money is been sent in the economy will benefit from it,but during capital flight it will affect the economy.

 

[Genie01]

Cryptocurrencies are gradually replacing fiat currency in major ways as a medium of exchange for goods and services in the digital environment. It is reducing the need to use fiat currency.

 

[Agbalagbaa]

Cryptocurrencies are gradually replacing fiat currency in major ways as a medium of exchange for goods and services in the digital environment. It is reducing the need to use fiat currency.

I sincerely agree with you, alot of platforms now are accepting cryptocurrencies as a mode of payment and alot of people prefer cryptocurrencies than their conventional fiat currency.

 

[Genie01]

I sincerely agree with you, alot of platforms now are accepting cryptocurrencies as a mode of payment and alot of people prefer cryptocurrencies than their conventional fiat currency.

Cryptocurrencies are very unstable though and some are not that interested in using it for transactional purpose.
But some platforms are beginning to accept such mode of payment.

 

[Gandiba]

Crypto currencies made a lot of people do believe that they would be able to make fast money and this resulted in massive losses.

This is why most people don't trust bitcoin again.

 

[Agbalagbaa]

Cryptocurrencies are very unstable though and some are not that interested in using it for transactional purpose.
But some platforms are beginning to accept such mode of payment.

The instability in price of cryptocurrencies makes it easier to trade and make money.
Traders take advantage of volatility to bank profits.

 

[Genie01]

The instability in price of cryptocurrencies makes it easier to trade and make money.
Traders take advantage of volatility to bank profits.

This is the fact, I am a forex trader and I understand that it is very easy to make profits in highly volatile market conditions. I trade during news events because of the increased volatility.