Why crypto currencies will never kill FIAT

I am using crypto for receiving payments because many people likes it and pays using crypto but after year of active using, I think it will never kill real currencies because:

NO REAL VALUE
Nobody can guarantee value of crypto currency. It's not connected to stocks, real monetary system, real goods like oil, gold, etc.

HUGE ENERGY USAGE
To generate crypto currencies, we are using huge energy, more than small country needs. It's wasting of resources.

QUANTUM COMPUTERS ON HORIZON
Not now, not in one year but soon or later we will have explosion of quantum computers and their computing powers, every crypto algorithm will fall in few hours. We need something new, bulletproof solution for quantum computers and NO, quantum computers cannot encrypt keys to stop decryption by another quantum computer. Everything will be broken in minutes.

GOVERMENTS
You don't know but goverments can easily kill crypto currencies if they want. Banks will not work with crypto, you will not find any ATM, ISPs will block every payment processor. It will stay in dark web but not exchangeable to fiats.

PAYMENT PROCESSING
Pay for pizza? Ok, then restaurant will give you pizza tomorrow when they get enough network confirmations.

SCAMS
They are thousands scams arround crypto: ICO, fake coins, ponzi schemes, fraud advertisement and much more

We can enjoy crypto now but when you see something bad, run as fast you can.

I agree that it couldn't kill fiat, that many of the currencies would not be that useful for real-life situations, but there already cryptocurrencies that are built on technology that successfully solves some of the problems you are mentioning like speed of transactions.

Everybody who's predicting something drastic about them is wrong, both the naysayers and the hardcore supporters. It's not a market that will kill all other markets, but it's also not a market that's going to go away.

crypto market cap - : $307,883,370,491


let’s try to estimate the money in the world

7 billion dollars, amount in bitcoin investments

7.6 trillion real estate investment

7.9 trillion the amount of gold and silver

70 trillion stock market investment

90 trillion notes and coins in circulation

199 trillion dollars is debt by people and countries

1.2 quadrillion is the amount of derivatives.

1,200,000,000,000,000 dollars now that’s what we call a big number.


According to me .

Cryto wont replace Fiat, But very soon Fiat will be traded like Crypto
much faster and much easier.

Cash is instant.
Cash needs no internet.
Cash has no transaction fees
Cash can be reversed.
.................................................................

I love the technology behind cryptocurrency... Blockchain rulez

abhi007 said:

I love the technology behind cryptocurrency... Blockchain rulez

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I also love screwdrivers. Doesn't mean any project involving screws will succeed or is of any value for that matter.
And blockchain really needs an overhaul, like desperately.

Blockchain. No doubt the most mis-over-used-hyped-overvalued word there is in these days.
Everyone seems to assume throwing it in-between lines somehow magically secures them lambos and sheet.

abhi007 said:

I love the technology behind cryptocurrency... Blockchain rulez

Click to expand...

Of course, blockchain is powerfull but we cannot go to blockchain when quantum computers will arrive in next 10-15 years. It will kill blockchain

vinku said:

Of course, blockchain is powerfull but we cannot go to blockchain when quantum computers will arrive in next 10-15 years. It will kill blockchain

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In my opinion you are wrong dude, read some abt quantum bits and how they works

http://www.doc.ic.ac.uk/~nd/surprise_97/journal/vol2/mjc5/

http://www.economist.com/news/scien...en-quantum-computers-and-standard-ones-faster

https://www.quora.com/What-is-the-fundamental-difference-between-a-classical-bit-and-a-quantum-bit

https://www.quora.com/What-can-an-8bit-quantum-computer-do-better-than-a-classical

NO REAL VALUE
You are right, as same as currencies (even US $ is not covered by gold like it used to)

HUGE ENERGY USAGE
only bcoz of POW which is an old technology and it will change for sure, anyway databases, data transfer is using huge energy without nlockchain aswell.

QUANTUM COMPUTERS ON HORIZON
@up

GOVERMENTS
not that easy, there will be always anyone from them (I mean politics, banks owners who are working together to destroy crypto) who can want to take easy money and earn a lot from fees. They're already tryin to stop but its not that easy, there are still countries like Russia which can easly earn much in situation like this

PAYMENT PROCESSING
You are speakin abt 9year old technology which can make 3 transactions per second while there are already working blockchains which can make 50k+ transactions per sec and its still goin forward, Lightnin Network can do like 700k+ per sec if I remember well but its long topic for another time.

SCAMS
like financial pyramids are not acceptin $ or other fiats

ofc im not tellin u that it will kill fiat coz i dont know, I can tell u even more, personally im quite sure they wont but still i think in next 5~years these crypto which are really doin something will grow up a lot(+BTC which will always be on top while crypto are around)

krishnaverma said:

Cash is instant.
Cash needs no internet.
Cash has no transaction fees
Cash can be reversed.
.................................................................

Click to expand...

Barely anyone uses cash anymore in scandinavia, and others will follow.
Easier control without cash. So could plausibly be replaced by blockchain technology in the future

vinku said:

I am using crypto for receiving payments because many people likes it and pays using crypto but after year of active using, I think it will never kill real currencies because:

NO REAL VALUE
Nobody can guarantee value of crypto currency. It's not connected to stocks, real monetary system, real goods like oil, gold, etc.

Click to expand...

Just like fiat it has the value we give it to. Paper money hasn't been backed by gold etc in decades, IMF just prints when they need more.

MrRandQm said:

Barely anyone uses cash anymore in scandinavia, and others will follow.
Easier control without cash. So could plausibly be replaced by blockchain technology in the future

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Forgot about cash also, come to my village. I will show you people using barter system, like kids giving potato to ice cream seller.

Huge energy?
We got PoS

Quantum computer?
Still a long road to go. If this ever happened, this quantum computing will distract not only blockchain technology, but every website too including banking.
So bank (or any web with sha256) including blockchain still have time to upgrade their technology into quantum proof.

@op, you almost trolled me.
Stopped reading after the Blockchain has no real value.

How much worth is your trash coins in your pocket if you go to Europe for example?
/discuss

artur core said:

@op, you almost trolled me.
Stopped reading after the Blockchain has no real value.

How much worth is your trash coins in your pocket if you go to Europe for example?
/discuss

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There are exchanges on every corner in Europe his money will worth what the current forex ex ratio is minus a small fee.

Blockchain may or may not have value depending on how fast/effective it may be implemented for real problem solving or replaced with better application. Don't see how blockchain eventual usability guarantees any future for any crypto though. Almost a decade of developing attempts so far and nowhere near to be widespread.
The idea of replacing fiat is flat out outlandish at this stage and IMO at any stage.

redjebo said:

The idea of replacing fiat is flat out outlandish at this stage and IMO at any stage.

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I dont think that your ancestors walked outside of their cave, traded meat and pearls for other stuff and a week later they had dollars.

artur core said:

I dont think that your ancestors walked outside of their cave, traded meat and pearls for other stuff and a week later they had dollars.

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Our ancestors traded one useful/valuable thing for another.
Crypto currency wants something valuable e.g. a house in exchange for something that someone wasted electricity on and the only thing they created was a "proof of work" i.e. the currency itself. They created nothing of real value to claim the house for.
Fiat represents (in general) value. Real labor/goods exchanged for other real labor/goods. Crypto wants real labor/goods in exchange for wasted electrical and computational power. That's not even ponzy, it's something worse, not sure what the proper name is.

NO REAL VALUE

I've got terrible news about the Euro and US dollar mate. They ain't worth anything either. As soon as people realize that banks can print money freely as they wish, they'll understand why 12 banking families have as much money as 99% of the world.

HUGE ENERGY USAGE

An automobile wastes tens of thousands of kilowatts to drive a single person around. Did cars fail?


QUANTUM COMPUTERS ON HORIZON

No problem. Most cryptos are safe. Bitcoin becomes 128 bit instead of 256 bit. You won't break 128 bit in the lifetime of the universe.

GOVERMENTS

Governments are bankrupt. Decentralization is in the horizon. The enormous machines that suck all our production which we call government won't be around as we know them today for much longer. Can't take 40 to 50% of everything every human does to sponsor bullshit. Decentralization is around the corner, self-sustainable neighborhoods, with solar energy off the grid, local economies and so on.

Governments like banks have everything to fear about crypto, this is just the beginning of mass decentralization.

PAYMENT PROCESSING

Thousands of services already accept cryptos and millions more will in the coming years.


SCAMS

These are everywhere, whether it's US dollar, Euros or Bitcoin. All the money laundering in the world from drug cartels and crime syndicates happen in US dollar or Euro, there's cocaine in most US dollar bills.

No real value? Fiat by definition has no real value. It’s mandated to represent value by any given government. Governments fail... do you accept the nummus as payment? Crypto has the advantage that anyone can help in the “minting” (or mining) process, and in some senses unify the world.

Huge energy use? How much energy do banks use again? Crypto is innovation and competition, wouldn’t you think that this competition would drive companies toward becoming more eco friendly over time?

Quantum computers? Again, i point toward innovation. By the time quantum computers hit the market, the algorithms for all financial and security institutions will be stronger.

Governments? As I said earlier, governments fail. Can they kill bitcoin? Yes. But it would take a long time to pass legislature, governments are built to work slowly and deliberately.
Oh they can shud down bitcoin entirely you say? Just as they’ve shut down ThePirateBay? Just as they’ve stopped drugs from crossing borders illegally? Just like they’ve stopped murders from happening daily?

Payment processing? Innovation. Not every crypto has 10 minute blocks (also 10 minutes is an average).

Scams? There are scam artists in everything. That will never change. It’s up to the community to smoke out the scammers just like we do here on BHW.

Will crypto replace fiat? Probably not.
Is there a chance it Could it happen? Yes.
Will blockchain technology change the way we secure information? Already happening.

The dinosaurs died out because they couldn’t adapt to the rapid changes in environment (or so some scientists say). Are you a dinosaur?

Salut @bartosimpsonio and @DonSchlessinger for putting that much effort into questions like that.

bartosimpsonio said:

NO REAL VALUE

I've got terrible news about the Euro and US dollar mate. They ain't worth anything either. As soon as people realize that banks can print money freely as they wish, they'll understand why 12 banking families have as much money as 99% of the world.

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I hope you're trolling like the OP.

Only central banks can print money - those owned by a government.

Retail banks and investment banks (those owned by rich shareholders) can't print money (unless they have permission from a central bank). Even then, how much they can print in their own names is tightly controlled by the central bank.

The Euro and the Dollar are backed by the guarantee of the countries that issue them. Those countries are effectively pledging to use the labour of their countrymen to produce goods and services equivalent to the value. You might not think that the word of the US or the EU is worth anything, but most people do, and that keeps the system working.

Governments do fail, which is why some fiat money of some countries isn't worth anything compared to other currencies. But if a government doesn't have enough trust from people, it usually issues money backed by another country instead.

Bitcoin isn't backed by anything at all.