Do you think cryptocurrencies could eventually replace fiat in the future?

 

I am not sure about replacing, but it is likely that crypto will become a more prominent currency in the future. I don't know whether one of the current cryptocurrencies will be the most popular, or something new, but it will be there in some way, shape or form

 

I think so too, especially with the increasing demand for digital transactions and digital currency, the importance of cryptocurrency is getting higher. Plus, crypto features include decentralization, lower transaction fees, secured transactions and it can be used everywhere. Some even say that eventually, we will have one global virtual currency.

 

no

 

I'm sure some sort of cryptographically secure fiat currency will be 'minted' by official government computer systems in the future. The odds that some powerful future government would allow anything like the total free for all price manipulation and price fixing we see today in the crypto market is about zero.

 

I don't see crypto replacing fiat anytime soon. While everyone argues about how crypto markets will revolutionize the fiscal systems around the world, there are still way too many apprehensions. I don't question the motive but it has by far been vulnerable and unstable. Without regulations its prone to threats and investor privacy is always at stake.
Maybe crypto could give us a new way to look at the financial systems, but they need to bring in some regulations and monitoring. A financial system cannot flourish if it doesn't have guidelines and regulations.

 

I don't see crypto replacing fiat anytime soon. While everyone argues about how crypto markets will revolutionize the fiscal systems around the world, there are still way too many apprehensions. I don't question the motive but it has by far been vulnerable and unstable. Without regulations its prone to threats and investor privacy is always at stake.
Maybe crypto could give us a new way to look at the financial systems, but they need to bring in some regulations and monitoring. A financial system cannot flourish if it doesn't have guidelines and regulations.

I agree. Crypto adoption will take time. Countries like Japan and Korea have been very responsive to crypto and are quickly embracing it, with the addition of regulation. That’s a start, right?

https://cryptoticker.io/japan-crypto-regulatory-updates/

https://www.bloomberg.com/news/arti...d-cracks-down-japan-emerges-as-a-crypto-haven

 

I have strong faith in cryptocurrency simply because it is effectively immune to inflation from money printing. Currently, its too volatile to hold cash as savings but is great for quick transfers. Infact you can use it to bypass currency exchange charges if you do it cleverly plus its great to own in countries like Venezuela. A currency system that cannot be controlled will become huge so long as governments dont ban it outright.

 

It's immune because the actual worth is zero. The crypto-coin worth comes from what a 'investor' would pay for it in currency that can buy toilet paper.
Rolls of toilet paper function as currency in Venezuela today and it's usable if you're without electricity or internet. Venezuela has its own cryptocurrency called the Petro.

From the Petro Wiki:

The Brookings Institution stated that "it is relatively unsurprising that a dictatorship with little reserve currency ... has resorted to a deceitful means like introducing the petro ... [t]he petro ... exists to create foreign currency reserves from thin air", further explaining that the creation of the petro has tarnished the reputation of cryptocurrencies and that sanctioned countries "might pursue the same fraudulent strategy as Venezuela: create a cryptocurrency tied to a government-controlled asset, raise money in violation of sanctions, and proceed to manipulate that cryptocurrency’s value to maximize profit".[32]

https://www.reuters.com/article/us-...currency-is-nowhere-to-be-found-idUSKCN1LF15U

 

There's a pretty fascinating podcast that aired on NPR regarding the nature of money and cryptocurrencies. If the topic interests you at all, I highly recommend giving it a listen. It's got a certain NPR feel to it but is tolerable.
https://player.fm/series/on-the-media/full-faith-credit

 

There's a pretty fascinating podcast that aired on NPR regarding the nature of money and cryptocurrencies. If the topic interests you at all, I highly recommend giving it a listen. It's got a certain NPR feel to it but is tolerable.
https://player.fm/series/on-the-media/full-faith-credit

I've had a full Bitcoin node up and running long before the 2015 rise and crash that preceded this latest bubble. The current transaction database size is 200GB but you can run pruned mode once the entire set is validated on the computer. I even mined some bitcoin dust back when it was possible on a PC. Bitcoin IMHO (worth what you paid for it) will never be a general currency because the infrastructure to support a decentralized database of transactions needed to stop double-spending (Proof_of_work) requires too much power (needs the output of the Hoover dam for an hour to calculate a transaction) and computing resources for the value it delivers. The Bitcoin system of today only operates because of the defacto concentration of power in the hands of miners mainly in China and large holders of coin that mined it for almost nothing in the beginning.

 

I've had a full Bitcoin node up and running long before the 2015 rise and crash that preceded this latest bubble. The current transaction database size is 200GB but you can run pruned mode once the entire set is validated on the computer. I even mined some bitcoin dust back when it was possible on a PC. Bitcoin IMHO (worth what you paid for it) will never be a general currency because the infrastructure to support a decentralized database of transactions needed to stop double-spending (Proof_of_work) requires too much power and computing resources for the value it delivers. The Bitcoin system of today only operates because of the defacto concentration of power in the hands of miners mainly in China and large holders of coin that mined it for almost nothing in the beginning.

As the podcast notes, money is information, with a value set by collective faith. Big religions and nation states can pull together enough “believers” to make a currency work. With only the backing of anonymous and distributed believers, I’m not sure any cryptocurrency can achieve that level of faith.

 

As the podcast notes, money is information, with a value set by collective faith. Big religions and nation states can pull together enough “believers” to make a currency work. With only the backing of anonymous and distributed believers, I’m not sure any cryptocurrency can achieve that level of faith.

Correct and that's why we see the centralization of bitcoin into the true believing faithful and opportunist from the regular investor today as the price falls. The blockchain solved the byzantine Generals problem with a decentralized network but it can't change human nature so we see corruption and manipulation of the system as power consolidates in to the faithful and the greedy.
https://coincentral.com/byzantine-generals-problem/

My local Bitcoin node updating to the current block.

 

Do you think cryptocurrencies could eventually replace fiat in the future?

No. It is an issue of national sovereignty, which no country will willingly abandon.

 

I am not sure about replacing, but it is likely that crypto will become a more prominent currency in the future. I don't know whether one of the current cryptocurrencies will be the most popular, or something new, but it will be there in some way, shape or form

I agree with this - replacement I think is unlikely, at least in the short term, however who knows what long term will bring?

 

I agree. Crypto adoption will take time. Countries like Japan and Korea have been very responsive to crypto and are quickly embracing it, with the addition of regulation. That’s a start, right?

I think moderate regulations are a necessity (however much the users may deny). You can't keep bidding for a market that has no fair means to check investor rights.

This might interest you: https://dailyhodl.com/2018/11/29/crypto-market-under-pressure-will-regulation-save-us/

Smart regulation will build trust in the crypto-economy and enable the economic development in Europe.
This ‘smart regulation’ should not stifle innovation and creativity that are inherent to blockchain. Balance must be found between cracking down on crypto and blindly supporting its growth, and the right place to look for it may be the “crypto nation.”

 

https://dailyhodl.com/2018/11/29/crypto-market-under-pressure-will-regulation-save-us/[/URL]

Smart regulation will build trust in the crypto-economy and enable the economic development in Europe.
This ‘smart regulation’ should not stifle innovation and creativity that are inherent to blockchain. Balance must be found between cracking down on crypto and blindly supporting its growth, and the right place to look for it may be the “crypto nation.”

Interesting read. “blockchain is still a revolutionary piece of tech that should not be red-taped, but supported with a suitable kind of crypto framework.”

I completely agree that TRUST must be established, and smart regulation can help. I just hope the decentralized nature of crypto can be maintained. We can benefit so much from decentralization and cryptocurrency. Imagine easier transactions especially when travelling –no need to exchange currencies or bring lots of cash and cards. Just like the Virie Market (distributed exchange network) is stressing –no need to declare anything, no import-export duties will be imposed and you won’t attract swindlers or thieves. It could be life-changing, right?

 

Interesting read. “blockchain is still a revolutionary piece of tech that should not be red-taped, but supported with a suitable kind of crypto framework.”

 

https://www.zdnet.com/article/coinb...assic-etc-trading-after-double-spend-attacks/

According to Crypto51, it only costs $5,029 to rent enough computing powerto overwhelm the ETC blockchain with your own miners and gain 51 percent hashing power to carry out a double-spend attack.
...
Update, January 8, 06:00 AM ET: Bitfly, a fellow cryptocurrency trading platform, has also confirmed Coinbase's report. So did the Ethereum Classic team, which was immediately criticized for not spotting the attack on its own network in the first place. Coinbase, too, was criticized, but for failing to reveal the double-spend attacks on Saturday when they first happened, leaving ETC users at risk for three days, for no good reason. Coinbase also updated its original report with details on another 12 double-spend attacks, bringing the total of stolen funds to 219,500 ETC (~$1.1 million).

 

No. It is an issue of national sovereignty, which no country will willingly abandon.

Well the countries of Europe has already abandoned it.